2021 tax season primer: Our roundup of the best tax tips for Canadians + MORE Nov 21st

Does anyone actually like to prepare their income taxes? My friends and I—some employed, some self-employed—moan about gathering the necessary invoices and receipts and checking the mail compulsively until all our T4, T4A, and T5 slips arrive. Then they’re tossed on the counter to languish until it’s a week before the income tax deadline and we’re scrambling to file. It’s Procrastination City, population: all of us Canadians.

Why is getting motivated to do taxes so hard?

It’s true—despite knowing we can avoid this stress by getting started earlier in the year, the majority of Canucks procrastinate hard on their tax returns. An H&R Block Canada survey released at the end of last March, for example, found that 60% of Canadians still hadn’t filed their taxes a month out from the April 30th deadline. 

Moreover, one-third of the poll respondents also said they were dreading income tax season more than usual because they were afraid they owed money. In such cases, procrastinating is not only stressful, but it can also be costly…

It’s our second pandemic tax year and, once again, not all of us are sure what to expect when we file our taxes. 

Last year, as COVID-19 lockdowns forced many Canadians to work from home, taxpayers naturally wondered what employment-related expenses they might be allowed to write off. There were questions about claiming masks, office furniture, the $400 home office credit, and internet/phone usage. Then there were concerns about how government benefits like the Canada Emergency Recovery Benefit (CERB) and its successor, the Canada Recovery Benefit (CRB) would be taxed. 

This year, some of those same questions remain, as it’s unclear whether the emergency claims from 2020 will be carried over as is, changed or eliminated. There’s also a lack of clarity on when several new and amended deductions, credits and benefits that the federal government promised in the last budget and/or during the recent election campaign will come into effect. We will be updating this story as the information comes out…

Doing your taxes can be a bit like building IKEA furniture. There are lots of different pieces, the instructions aren’t always clear, and it’s often feels like it could be easier just to call in the hired pros. That’s why we rounded up our favourite expert tax advice. Whether you’re going full DIY on your income tax return or engaging a professional, these tips should help you make sense of the rules so you can keep your tax bill (and frustration) to a minimum. Here are 15 of our best tax tips for Canadians (in no particular order). 
Claims for COVID-related work expenses 
Did you work from home because of COVID-19? If so, there’s now a no-fuss way to claim a deduction for home office expenses.
“In 2020, eligible employees who worked remotely could deduct up to $400 in home expenses from their taxable income, without the need to keep receipts or get a signed T2200 form from their employer. The government has promised to extend the simplified deduction through the 2022 tax year, and to increase the allowable amount to $500…