Welcome to Tax Season 2021
Our entire team here at Vaive and Associates hopes that you and your loved ones are staying safe.
We are adapting our processes this year in order to address current world conditions. Here are some of the important changes for this year:
- We normally mail out our tax organizer envelopes in early February. We’ve created a fillable PDF version of the organizer this year, which you can print and return with your tax materials, upload to our secure portal, or simply hit the submit button which will send it to us directly. If you would like to have the organizer envelopes like in prior years, please let us know and we will mail the envelope to you.
- We are encouraging everyone to use electronic document delivery this year. You can submit your materials to us via our secure portal as an alternative to sending in hard copies. We can also provide you with your copies of the tax returns and supporting schedules in PDF format by uploading those to you through the secure portal. Copies of the documents will be maintained in the portal folder should you need to refer to them at a future date. If it is more convenient for you to send us your documents in paper format, we are perfectly fine with that. Sometimes, there’s just so much material that it simply isn’t practical to scan everything.
- Last year the tax filing deadline was extended. As of this moment, there are no extended deadlines, and we are proceeding on the basis that your return will be due on April 30th (or June 15th if you have personal self-employment income). So please try to get your materials to us no later than April 15th.
- At the present time in accordance with restrictions imposed by the Province, our building is closed to the public. That may change as public health restrictions loosen. We will have someone in our office Monday to Friday from 9am to 4pm. If you want to drop your tax materials off to us and the front entrance to the building is closed, we will have a phone number posted on the front door at street level. Just call us and a member of our team will buzz you in.
- As a further convenience to those opting to exchange documents using the portal we will be providing clients with the opportunity to sign tax returns and authorizations electronically this year. Please let us know if you would like to take advantage of that option.
Things may (and likely will) change between now and April 30th, so we will keep you updated here on any changes as they evolve.
If you need help, or have questions, you can reach our amazing support staff as follows:
Faith Castonguay 613-369-5064 x233
Juliette Glover 613-369-5064 x236
Shelby Straeche 613-369-5064 x 244
With those procedural things in mind, here are some important things to note:
- Did you sell your house in 2020 or turn it into a rental property? If so, the CRA requires that the sale be reported on your tax return in order to claim the principal residence exemption. Failure to report may result in penalties and the CRA may apply the penalty outside of the normal three year assessment period. Please include the statement of adjustments for the sale, along with a note describing the house and when you bought it.
- The Tuition Tax Credit is still available for tuition paid during the year, but the Education and Textbook amounts have been eliminated. You will no longer receive a tax credit based on the number of months of full or part-time attendance at a qualifying post-secondary institution.
- Have you found some donation receipts that haven’t been claimed? You can claim any donations missed since 2015 on your 2020 return.
- If you own foreign assets with a cost greater than $100,000 (CAD) you are required to file a T1135 Foreign Income Verification Statement on or before the due date of your income tax return. Penalties will apply if this return is filed late. If this applies to you, or if you are unsure, please contact us to review your situation and confirm your reporting requirements.
- The Canada Revenue Agency (CRA) is moving towards direct deposit for all payments. If you wish to sign up for direct deposit, or your banking information has changed, please include a void cheque with your tax information.
- The CRA is encouraging taxpayers to enroll for electronic delivery of Notices of Assessment. By signing up for the CRA Online Mail, you will no longer receive paper notices and must sign up for MyAccount with the CRA in order to view this information. By default, we are not enrolling our clients in this program unless instructed to do so. Please take a moment to indicate on the organizer envelope if you want to register for this service.
We would also like to take a moment to reaffirm our commitment to protect the privacy of your information. Our practice has always been fully compliant with the Personal Information Protection and Electronic Documents Act (PIPEDA). Any personal information contained in our files will only be used for income tax filing purposes, and will only be communicated to the Canada Revenue Agency as required to file your personal income tax return. We will not disclose any information to third parties unless we are specifically authorized by you to do so. In short, we will continue to protect your personal information as if it were our own.
We look forward to working with you again this year. If you have any questions about the process or any tax matters, please feel free to call us at any time.