What To Expect Next Tax Season

Curious as to what you should expect next tax season? What is new to 2021 tax law? The last couple years have brought huge changes to our lives. Everyday life has been turned upside down, and the world is moving towards electronic, well, everything. Tax law, and the way returns will be processed, are not excluded in this change.

Expect Next Tax Season

While a lot of Canadians are excited for their annual tax return to hit their bank accounts, some Canadians are facing large tax bills. This is not only frustrating, but it can sometimes cause uncertainty. From not knowing what deductions or benefits you qualify for, to seeing a balance owed, taxes are inherently stressful. Regardless of if you do or do not owe taxes this year, it is important to file your return. Not filing your return will affect your eligibility for credits and benefits like the Canada Climate Action Incentive and your GST/HST credits. With all these new changes, it is important to know what is new and what to expect next tax season.

Most Canadians have moved to filing their returns electronically. The CRA has been encouraging electronic filing for the last few years. For those filing paper returns, there are some big changes you need to be aware of. If you decide to file a paper return, your refund, benefit, or credit payments might be delayed. Due to on-site processing limitations in tax centers, it could take upwards of 10 to 12 weeks for the CRA to issue you your assessment. Not only will your return be delayed, but there are also new restrictions on how many returns you may file, and how many information slips you are allowed to send in with each return.

Changes to Paper Filing

Taxpayers filing paper returns will be limited to 5 returns at a time, the previous limit was 10 returns. This could cause a problem for those who file paper returns for their family. Not only are you limited now to 5 returns, you are also limited to 5 information slips (T4, T5, Etc) per return. This is a steep decline from the 50 information slips allowed per return in previous years.

This is an important new change to the CRA return process and may cause a lot of fines for those who are not up to date on tax law. It is also important to note that Notice of Assessment’s will soon be only issued electronically unless you have filed a paper return. This will take place when the new law reaches royal assent. Gautron Management Services would be happy to assist you in setting up your MyCRA account.

Due to the Covid-19 pandemic and changes to tax law, the CRA has opened new ways of filing your return. Taxpayers may now submit returns via the following methods: Certified Tax Software, Authorization of a Tax Representative, Volunteer Tax Clinics, Tax Preparers, Paper Returns, Automated Phone Line Returns (File my Return), or Tax Filing Assistance from a CRA Agent.

Have more questions? Want help filing your return? Want clarification on the new tax laws? Give us a call at 204-509-0753 or contact us here. We would be happy to help.