April may seem like miles away, but before we know it the April 30 income tax deadline will be here. Last year the deadline was pushed because of the pandemic, but in 2021 that is not the case. Tax professionals are recommending getting a head start now to avoid surprises.
About 30 percent of Canadians received the Emergency Response Benefit (CERB) payments from the federal government. These payments are taxable.
“My recommendation to people (is) for each payment of two thousand dollars they receive, that they put aside about four hundred dollars. It may not be enough, or a little bit too much, but at least they will have put money aside in preparation for tax owing this year,” says H&R Block Senior Tax Specialist, Josee Cabral.
The three new Recovery Benefits that were introduced to replace CERB are also taxable.