The pandemic is expected to play a significant role on your taxes this year.
According to Cathy Sheppard, CEO of Sheppard & Associates, there’s lots of misinformation surrounding some of the benefit programs that have been offered amid COVID-19.
Among the misinformation is how the Canada Emergency Response Benefit is expected to impact taxpayers for the next decade.
Sheppard says it’s important for taxpayers to be guarded and get expert advice before filing their tax returns.
“There were three different benefits this year, the CERB, the CRB – which was the morphed CERB after a while, and regular employment insurance. So, people are getting them all mixed up and there’s different conditions and circumstances for each one of them that will affect your tax return.”
Sheppard adds there are multiple claims you can make on your taxes.
This includes your T4, any donations you’ve made, workers compensation, childcare benefits and expenses, student loan interest, property taxes, as well as rent and moving expenses.
“If you have relocated over 40 kilometres to take on a new job or your spouse has, you can deduct a good lot of those moving expenses, and disposal fees for getting rid of your old house and getting a new house, there’s lots of things that should be looked into and explored,” Sheppard said.
There are a few deductions that Sheppard says taxpayers should also be mindful of which include the senior accessibility credit and the home accessibility credit.
She says these are basic deductions that could save you up to $8,000-$10,000, if they have a person living with a disability in their home.
Another misconception is people working from home, believing they will receive a $400 deduction.
“If you had to work at home, you can take two dollars a day, up to two-hundred days, a maximum of $400, and people are getting all wound up about it, thinking they are getting a big tax deduction,” Sheppard said. “But it boils down to a $400 tax deduction that a lot of people are going to have to pay 20-30 per cent.”
For more tax advice, you can reach out to Sheppard & Associates.