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4 things Canadians need to know before file 2020 tax

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Let’s face it, online software and auto-fill features are making tax filing less and less painful even for the do-it-yourselfers.

Still, whether you’re outsourcing the work to an algorithm or an accountant, it’s always a good idea to know when deadlines fall and what’s new every year.

Here’s our guide to the 2020 tax season:

1. When is the deadline to contribute to my RRSP?

Since March 1 falls on a Sunday this year, the cutoff this year is March 2.

Remember, you can put money into your registered retirement savings plan (RRSP) any time. But if you want to get a tax refund for your RRSP contribution with your 2019 return, you have to add the funds by the March deadline.

2. When’s the tax-filing deadline?

As usual, April 30 is the date most Canadians need to keep in mind. For the majority of tax filers, this is the deadline to both pay any tax due and file returns.

If you’re self-employed, this year you have until June 15 to file. Remember, though, that if you owe taxes, you still need to pay up by April 30.

If you’re late to either settle your balance or send in your paperwork, you’ll face late-filing penalty and daily interest charges on any taxes owed.

 

3. When’s the earliest I can file?

If you just can’t wait to get that big refund, know that the Canada Revenue Agency (CRA) will start accepting electronic returns on Feb. 24.

Most people want to skip the tax-processing queue because they anticipate getting money back. But having a big tax bill is also a good reason to file early. That allows you to set up a plan to pay your tax in installments. The more you manage to pay by April 30, the fewer extra charges you’ll face.

Still, there are potential drawbacks with filing too earlysaid Robin Taub of TurboTax. Many of the tax slips you need to file your return are due March 2, so it’s not a good idea to file before then unless you’re sure you’ve received all of them, she noted.

Also, it usually takes until mid-March for tax slips and other information the CRA has on file to become available through its auto-fill my return feature, which allows you to automatically fill-in part of your return.

4. What’s new this year?

Here are the highlights:

New and improved federal tax breaks:

Climate Action Incentive. Albertans will now be able to claim this federal incentive, while residents of New Brunswick will not. If you live in Saskatchewan, Manitoba or Ontario, you continue to be eligible and stand to receive a considerably larger amount this tax season compared to last year.

The money, which may create or boost a tax refund or reduce a balance owing, is meant to offset the cost of the carbon tax in provinces that do not have a carbon price regime of their own. The amount of the tax credit depends on family size — you can use this table from H&R Block to calculate how much your household can claim.

It’s important to note that the tax credit applies to the household, not the individual taxpayer, said Lisa Gittens of H&R Block. This means that only one person for every family living under the same roof should claim the credit, she added.

In Alberta, where the federal carbon tax took effect in January, taxpayers will now be getting the federal incentive instead of the Alberta Leadership Adjustment Rebate, which was only available to lower-income taxpayers.

Larger withdrawals under the Home Buyers’ Plan. The Home Buyers Plan allows you to withdraw money from your RRSP to buy your first home. The withdrawal is tax-free as long you put the money back into your RRSP within 15 years according to a set schedule that starts the second year after the year in which you first withdrew funds. (However, you can also repay in full or more than the required amount.)

What’s changed here is that the maximum amount you can pluck from your retirement account increased from $25,000 to $35,000 for withdrawals made after March 19, 2019. While this has no impact on 2019 returns, if you took advantage of the beefed-up plan, you’ll find your HBP statement account in the notice of assessment for your 2020 return, Gittens said.

That statement will indicate any amount you have repaid, your remaining balance and what you need to put back in the RRSP the following year. It’s important to know you need to designate your RRSP contributions as HBP repayments. If you don’t, it will be considered a regular RRSP contribution and you’ll be deemed to have missed an HBP repayment. That repayment installment will become taxable, as if it had been a regular RRSP withdrawal.

“It really is a simple step to miss,” Gittens said, “especially for those who are using like online software or don’t communicate correctly to their tax professional.”

Cannabis as a medical expense. If you’ve been prescribed medical cannabis products, you may now be able to claim them under the medical expense tax credit.

Canada Workers Benefit. The Working Income Tax Benefit, a refundable tax credit for low-income Canadians who work, is now the Canada Workers Benefit. With the CWB, the maximum tax credit increases by up to $170 and the income level at which the credit is phased out completely is higher.

New and improved provincial tax breaks:

Ontario

The low-income individuals and families (LIFT) tax credit. The LIFT credit is designed so that someone working full-time making minimum wage pays no provincial tax. It works out to tax relief of up to $850 for individuals and up to $1,700 for couples. Those who qualify will get a tax reduction of $450 on average, the government estimates.

Childcare access and relief from expenses (CARE). This refundable tax credit aims to help families with children up to age 16 and income of up to $150,000. The credit is in addition to the provincial and federal childcare expense deductions and includes a broad range of child-care options, such as day camps and boarding schools.

Eligible families stand to receive up to $6,000 per child under the age of seven and up to $3,750 per child between the ages of seven and 16.

New Brunswick

The tuition tax credit is back. Eliminated in 2017, the tuition tax credit is now a thing again. Students and eligible relatives will be able to claim tuition fees paid in 2019 as well as in 2017 and in 2018.

Tax breaks that are no longer:

British Columbia

Education tax credit. The provincial government has nixed the education credit starting with tax year 2019. Happily, you can still claim tuition fees.

Service upgrades from CRA:

Check processing times. The CRA now has an online tool that lets you check the estimated processing time for tax returns and other tax-related requests. This isn’t real-time tracking of your actual return, though. If you input your filing date, you’ll get an estimate of when the agency aims to issue your notice of assessment.

PINs for phone calls. You can now set up a personal identification number to quickly identify yourself when calling the CRA. You can set up the PIN over the phone or in My Account.

Paper returns. If you filed with pen and paper last year, you’ll receive your tax package in the mail by Feb. 17.

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Ceiling high for Vancouver Whitecaps midfielder Ahmed: Canada coach

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VANCOUVER – Jesse Marsch issued Canada’s men’s soccer squad a challenge — get physical.

The edict came after the Canadians surprised many at this summer’s Copa America tournament, making it through to the semifinals. As his players departed for their professional clubs, the head coach wanted them thinking about continued growth.

“I challenged them to be more physically present in the matches that they played in,” Marsch said. “I’ve tried to encourage all the players to sprint more, to win more duels, to win more balls, to be more dynamic in matches.”

When Canada reconvened for a pair of friendlies last week, the coach saw some players had already heeded his call, including Vancouver Whitecaps product Ali Ahmed.

The 23-year-old midfielder started in both Canada’s 2-1 victory over the United States on Saturday and Tuesday’s 0-0 draw against Mexico.

“I’m really happy for him,” Marsch said. “I think he’s still young and still has a lot of room and potential to continue to grow.”

Playing under Marsch — who took over as head coach in May — has been a boon for the young athlete, currently in his second full season with Major League Soccer’s Whitecaps.

“Jesse has a very clear way of playing,” Ahmed said. “And I think the way we’ve been training and the way we’ve been growing as a group, it’s been helpful for me.”

The reward of getting minutes for a national team can spur a player’s growth, including Ahmed, said Whitecaps head coach Vanni Sartini.

“Of course that fuels him inside to say ‘Hey, I want to be a better player. I want to get to that stage,'” said Sartini.

Vancouver had six players — including Ahmed — away on international duty during its 0-0 draw against Dallas FC on Saturday. The absences are a good problem to have, Sartini said.

“Because we have players that are close to the national team, we have a lot of players that development is faster, better, bigger than it would have been if they hadn’t been called,” he said.

Born in Toronto, Ahmed came up through the Whitecaps’ academy system and played for Vancouver’s MLS Next Pro side before cementing his spot on the first team in 2023. He put up two goals and two assists across 22 regular-season games, and added another goal and another helper in 19 appearances this year.

Taking the next step will require the five-foot-11, 154-pound Ahmed to push himself physically, Marsch said.

“Tactically, he’s technically gifted,” the coach said. “I’ve told him he’s got to get in the gym more.

“There’s a lot of these little things where too many guys, they still look like kids and we need to help them look like men and play like men. And that’s what the high standards of the game are about.”

Marsch has quickly adjusted to recalibrating standards in his short time with Team Canada. Since taking over the squad in May, the coach said he’s learned the players are smarter and more capable than he originally thought, which forces the coach to constantly recalibrate his standards.

“That’s my job right now, to keep raising the level of the demands,” he said.

The way 40th-ranked Canada is viewed on the international stage is evolving, too.

“I think we’re changing the perception on the way we’re playing now,” he said. “I think beating the U.S. — it would have been nice to beat Mexico as well — the way we did, the way that we performed at Copa, I think teams are starting to look at us differently.

“Right now, I think we’re focused on ourselves. We’re definitely trying to be the best in CONCACAF and we have higher goals as well.”

This report by The Canadian Press was first published Sept. 12, 2024.



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Lawyer says Chinese doping case handled ‘reasonably’ but calls WADA’s lack of action “curious”

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An investigator gave the World Anti-Doping Agency a pass on its handling of the inflammatory case involving Chinese swimmers, but not without hammering away at the “curious” nature of WADA’s “silence” after examining Chinese actions that did not follow rules designed to safeguard global sports.

WADA on Thursday released the full decision from Eric Cottier, the Swiss investigator it appointed to analyze its handling of the case involving the 23 Chinese swimmers who remained eligible despite testing positive for performance enhancers in 2021.

In echoing wording from an interim report issued earlier this summer, Cottier said it was “reasonable” that WADA chose not to appeal the Chinese anti-doping agency’s explanation that the positives came from contamination.

“Taking into consideration the particularities of the case, (WADA) appears … to have acted in accordance with the rules it has itself laid out for anti-doping organizations,” Cottier wrote.

But peppered throughout his granular, 56-page analysis of the case was evidence and reminders of how WADA disregarded some of China’s violations of anti-doping protocols. Cottier concluded this happened more for the sake of expediency than to show favoritism toward the Chinese.

“In retrospect at least, the Agency’s silence is curious, in the face of a procedure that does not respect the fundamental rules, and its lack of reaction is surprising,” Cottier wrote of WADA’s lack of fealty to the world anti-doping code.

Travis Tygart, the CEO of the U.S. Anti-Doping Agency and one of WADA’s fiercest critics, latched onto this dynamic, saying Cottier’s information “clearly shows that China did not follow the rules, and that WADA management did nothing about it.”

One of the chief complaints over the handling of this case was that neither WADA nor the Chinese gave any public notice upon learning of the positive tests for the banned heart medication Temozolomide, known as TMZ.

The athletes also were largely kept in the dark and the burden to prove their innocence was taken up by Chinese authorities, not the athletes themselves, which runs counter to what the rulebook demands.

Despite the criticisms, WADA generally welcomed the report.

“Above all, (Cottier) reiterated that WADA showed no bias towards China and that its decision not to appeal the cases was reasonable based on the evidence,” WADA director general Olivier Niggli said. “There are however certainly lessons to be learned by WADA and others from this situation.”

Tygart said “this report validates our concerns and only raises new questions that must be answered.”

Cottier expanded on doubts WADA’s own chief scientist, Olivier Rabin, had expressed over the Chinese contamination theory — snippets of which were introduced in the interim report. Rabin was wary of the idea that “a few micrograms” of TMZ found in the kitchen at the hotel where the swimmers stayed could be enough to cause the group contamination.

“Since he was not in a position to exclude the scenario of contamination with solid evidence, he saw no other solution than to accept it, even if he continued to have doubts about the reality of contamination as described by the Chinese authorities,” Cottier wrote.

Though recommendations for changes had been expected in the report, Cottier made none, instead referring to several comments he’d made earlier in the report.

Key among them were his misgivings that a case this big was largely handled in private — a breach of custom, if not the rules themselves — both while China was investigating and after the file had been forwarded to WADA. Not until the New York Times and German broadcaster ARD reported on the positives were any details revealed.

“At the very least, the extraordinary nature of the case (23 swimmers, including top-class athletes, 28 positive tests out of 60 for a banned substance of therapeutic origin, etc.), could have led to coordinated and concerted reflection within the Agency, culminating in a formal and clearly expressed decision to take no action,” the report said.

WADA’s executive committee established a working group to address two more of Cottier’s criticisms — the first involving what he said was essentially WADA’s sloppy recordkeeping and lack of formal protocol, especially in cases this complex; and the second a need to better flesh out rules for complex cases involving group contamination.

___

AP Summer Olympics:



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Shapovalov, Auger-Aliassime lift Canada over Finland 3-0 in Davis Cup tie

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MANCHESTER, United Kingdom – Canada’s top male tennis players have defeated Finland 3-0 in the group stage of the Davis Cup Final.

Denis Shapovalov of Richmond Hill, Ont., beat Eero Vasa 7-6 (2), 6-2 in Tuesday’s first singles match. Montreal’s Felix Auger-Aliassime then dispatched Otto Virtanen 6-2, 6-3 in the second singles match.

With the tie already won thanks to the two singles victories, Shapovalov and Auger-Aliassime teamed up to best Virtanen and Harri Heliovaara 6-2, 7-5 in doubles play.

There was an element of revenge after Canada lost to Finland in last year’s quarterfinals.

“Everybody’s in good spirits, so it’s very good,” Auger-Aliassime said. “Any motivation is good, but I think it’s a different year, a different time, and (last year’s loss) was behind us. This year we have a full team and everybody’s playing better than last year. Everybody’s improved.”

It’s the second consecutive group-stage tie Canada has won after beating Argentina 2-1 on Tuesday. Canada, the lone seeded team in Group D, will face host Great Britain on Sunday.

Four groups of teams are playing in four cities this week to qualify for the eight-team Finals in Malaga, Spain, in November. The top two countries in each four-team group advance.

Since Canada’s undefeated after two opponents in the group stage, it is set to advance to the Davis Cup Finals.

“Couldn’t ask for more today, super proud of the team,” said captain Frank Dancevic. “Great team spirit, amazing bench team spirit, and fans pushing us through the day.”

It is Canada’s fifth consecutive appearance in the Davis Cup Finals, having won its only title in 2022. The Canadians defeated South Korea 3-1 in February’s Davis Cup qualifiers in Montreal to reach the group stage of the finals.

— With files from The Associated Press.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.



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