File Your 2019 Taxes Now; Apply for DTC
A final reminder to get your 2019 taxes filed if you have not yet! Important for those who receive government benefits.
Canadians who receive the Canada Child Benefit (CCB) or the Goods and Services Tax (GST) credit or the Guaranteed Income Supplement (GIS) need to complete their 2019 tax returns as soon as possible.
As of June, more than 1.9 million Canadians (about 70,000 in Manitoba) who were eligible for the CCB or GST credits have not yet filed their return. If you’re one of these Canadians, you must file your taxes to continue to receive your benefits.
Filing as soon as possible will ensure you receive the right amount and that your payments continue beyond September 2020.
If you do not file, your estimated payments will stop in October and you may have to repay what you received in July, August, and September 2020.
September 30 2020 deadline
Canada Revenue Agency (CRA) has extended the filing and payment deadlines again. The new deadline is September 30 2020. CRA will not charge late-filing penalties or interest as long as it is filed and paid in full by September 30.
CRA will also waive arrears interest on existing tax debts from April 1 to September 30 2020. This will ensure that a taxpayer’s existing debt will not grow through interest charges during this difficult time.
COVID-19 Payments for Canadians With Disabilities
In June, the federal government made an announcement about this one-time tax-fee payment of up to $600 for those who claim the Disability Tax Credit (DTC). The benefit finally received Royal Assent on July 27 so the payments should be made some time in August. The eligibility was expanded to include:
- Those claiming the disability amount on their taxes
- Those receiving the CPP disability benefit
- Those receiving disability supports from Veterans Affairs Canada
If you are receiving Old Age Security (OAS) and/or the Guaranteed Income Supplement (GIS), you will have already received the payment for Seniors ($300 or $500). These payments were made early July.
If you also qualify for the disability tax credit, you will get an extra $300 or $100 only. The maximum benefit for all three is $600.
Apply by September 25 2020
Canadians with disabilities who are eligible for the disability tax credit but have not yet applied, have a 60 day window of opportunity to do so. You need to apply with CRA by September 25, 2020.
We have contacted several of our clients who may have be eligible for the disability tax credit, but have never applied. Why have they not applied in the past?
There are some taxpayers that do not benefit from the DTC. Individuals receiving Employment and Income Assistance (EIA) and whom do not pay income tax and do not receive any provincial credits would not get any benefit from claiming the DTC on their income taxes.
But now there is a reason to apply for the disability tax credit: to get the $600 one-time tax-free benefit from the federal government.
If you think you may qualify for the disability tax credit, but you are not sure how, give our office a call: we will help you with the forms and give you some guidance.
I suspect the doctors’ offices may be busy for the next month or two; a doctor or nurse practitioner must complete the medical questionnaire portion of the form.
If you need information about the various benefits and programs the federal and provincial governments have been announcing since March, you can read my past articles at dawsontrail.ca. My previous articles for April, May, June, and July contain information about most of the COVID-19 benefits announced by the Federal Government and the Province of Manitoba.
Stay safe! Stay healthy!
Anni Markmann is a Personal Income Tax Professional and Certified Financial Planner; living, working, and volunteering in our community. Contact Ste Anne Tax Service at 204.422.6631 or 36 Dawson Road in Ste Anne (near Co-op) or info@SAtaxes.ca