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April 15, 2021

The IRS has extended the US tax filing deadline to May 17, 2021 - plus the 3rd round of Economic Impact payments are now being dispersed

Earlier in April, the IRS announced it will be extending it's filing deadline for US tax returns to May 17, 2021 due to the pandemic. If you are a US expat (or US citizen living abroad), you have an automatic extension until June 15, 2021. However, any amounts owing may collect interest and penalties as of the regular filing deadline of April 15, 2021.

The 3rd and final economic recovery benefit payment is now being dispersed, to eligible individuals/families. You can check your payment status (if you have a SSN) on the IRS website. Below are screen shots of what you will see on their Check your Payment website.

Feb 17, 2021

IRS to begin offering Identity Protection Pins starting 2021 (IP PIN)

Beginning in 2021, US tax filers can voluntarily opt into the new IP PIN program - this pin is meant to help protect you from tax-related identity theft. The pin is a 6 digit number that is used when filing your return, so that no one else can use your social security number to file a return in your name.

There is a rigorous identification process required which you can access through your IRS.gov account. If you don't already have an account, you must register online and validate your identity.  IP PINs will be available to anyone who has a SSN or an ITIN, and who can verify their identity.

NOTE:

• An IP PIN is valid for one calendar year.

• You must obtain a new IP PIN each year.

• The IP PIN tool is generally unavailable mid-November through mid-January each year.

REGISTER FOR IRS.GOV / GET YOUR IP PIN

Please note that those living outside the US may need to follow alternate methods to apply as the verification process requires a US based phone number and utility bills, etc --> IRS Tools

Alternately, If your income is $72,000 or less, file Form 15227, Application for an Identity Protection Personal Identification Number PDF. You must have:

• A valid Social Security number or Individual Taxpayer Identification Number
• An adjusted gross income of $72,000 or less
• Access to a telephone

The IRS will use the telephone number provided on the Form 15227 to call you, validate your identity and assign you an IP PIN for the next filing season. For security reasons, the IP PIN cannot be used for the current filing season. You will receive your IP PIN via the U.S. Postal Service the following year and in the future.

Information posted here was sourced from --> https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin 

Feb 10, 2021

Yesterday the CRA announced a new Pandemic Benefit Tax Debt Relief program, for individuals earning up to a maximum of  $75,000 taxable income, and who received pandemic support benefits during 2020.

This means that any outstanding interest balances for the 2020 tax year will be postponed until April 30, 2022, ONLY for those meeting the criteria and who have filed their 2020 tax returns as usual (by April 30 2021 deadline).

The interest relief measure will be automatically applied for those who meet the criteria.

The pandemic benefits that qualify include:

• CERB - Canada Emergency Response Benefit
• CESB - Canada Emergency Student Benefit
• CRB - Canada Recovery Benefit
• CRCB - Canada Recovery Caregiving Benefit
• CRSB - Canada Recovery Sickness Benefit
• Employment Insurance Benefits
• Similar provincial emergency benefits

If you did not receive pandemic relief benefits, you are still expected to pay your tax and interest by the usual deadline of April 30, 2021.

If you received pandemic benefits and were not eligible for them and did not repay them to the government in 2020 as required, you must report the income on your tax return for 2020. However, if you repay in 2021, an adjustment will be made on your 2021 tax return.

January 2, 2021

EI Sickness Benefits - Temporary Changes effective Sept 27, 2020 - changes will be in effect for 1 year to allow for more people to apply for EI benefits.

The temporary changes include:

- one time credit of 480 insured hours - so you only need 120 insured hours to qualify for benefits (done in order to help meet the required 600 insured hours of work)

- $500 per week pre tax dollars (more possibly)

- if you received CERB benefits, the 52-week period to gather insured hours is extended

- a medical certificate signed by a doctor plus your ROE are required

Read more here (https://www.canada.ca/en/services/benefits/ei/ei-sickness/apply.html ) to learn how to apply and required documentation

Dec 21, 2020

      Applying ONLINE is the fastest way to submit your request and receive the benefit ---> https://www.etax.gov.bc.ca/btp/BCRBP/_/

December 15, 2020

Small Business Owners - CEBA loans are still available, and have expanded the loan amount - see the details below (pulled from CRA website --> https://ceba-cuec.ca/).

Learn more about the simplified process here --> Government of Canada of News Release

IRS Newsroom Notification --> IRS Tax Tip 2020-170 

Are you wondering about the status of your US TAX refund?

Use this link from the IRS.gov website - you will need your SSN, exact Tax Refund $ amount, and filing status --> US Tax Refund STATUS

Mar 17, 2020

COVID -19 Update

We know many of our clients are feeling uncertain about leaving their homes during this time - therefore we have made some modifications to how we are conducting our business operations in the short-term.

At this time, we are working to create a secure online portal for our clients, which they can use to upload their documents from their computers to streamline the process.

We are encouraging clients to do a quick drop off with their paperwork, if you are healthy to do so. If any appointment is required, it can be held via the telephone, or if an in-person appointment is necessary we will take the precautions to ensure everyone's health.

Feb 28, 2020

Do you have unclaimed payments on your CRA account?

Global News recently reported about a new feature on the CRA website under your My Account profile - where any unclaimed cheques you are owed will be listed, which you can claim.  Most of us probably won't see any unclaimed amounts listed, but if you moved and did not notify the CRA, for example, you may have an unclaimed amount.

If you have online access to your My Account on the CRA website, once you've signed in, you will be presented with the Overview page. On this page, you will see Uncashed Cheques under the Related Items section on the right-hand side of the page.  Simply click the link to view any outstanding payments.

Note that any outstanding amounts you owe to CRA will be deducted prior to them issuing any funds outstanding.

Feb 21, 2020

CRA will open their systems to Efile taxes on Feb 24, 2020.

Jan 17, 2020

This year the federal government has changed the TD1 form basic personal exemption amount to be based on a sliding income scale basis.

What is the TD1 form?

This is the form you complete or update under these common circumstances - when you have a new employer, want to change the amount of your exemption or want to increase the amount of tax deducted by your employer.

What does this mean for me?

If you have or expect your 2020 income to be :

• $150, 473 or less during the year, you enter $13,229 on line 1

• $150,474 to $214,368

• you can claim a partial credit using the TD1-WS Worksheet to determine your credit amount for line 1

• you can claim the flat rate of $12,298 if you do not want to calculate a partial credit for line 1

• $214,369 or more, enter $12,298 on line 1

CRA WEBSITE

Update on this topic, Jan 24, 2020 from Financial Post --> here 

Dec 18, 2019

DONATIONS TO CHARITY - WHAT TO BE AWARE OF FOR TAX TIME

Donating to charities is a worthy endeavor, but if you want to claim donations on your tax return, be sure of these key points before handing over any cash.

• The deadline for 2019 receipts is Dec 31, 2019
• In order to claim a donation, you are required to submit a valid receipt (must be registered with CRA)
• Research the charity here - to ensure it is registered with the CRA
• Generally, tax Credits for donations on the federal return is 15% for the first $200 of annual charitable donations.but jumps to 29% for combined donations of more than $200 in total
• Tax credits can be applied for donations from RRIFs, RRSP's, Donations in Kind, and Donor Advised Funds - read on here for more info
  

Read more at the Business Financial Post --> Make sure your charity of choice has charitable status before making a donation

July 29, 2019