Tax Tip - Seniors: Tips to help you this tax season!

By Benzinga8 days ago

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OTTAWA, ON, Jan. 14, 2021 /CNW/ - The Canada Revenue Agency (CRA) understands that the COVID-19 pandemic may have affected the usual ways seniors manage their taxes. Here are some tips to help prevent disruptions to your tax and benefit affairs, as well as to help you when completing your income tax and benefit return in order to ensure you receive all the benefits and credits to which you are entitled!

Sign up for direct deposit and file online to reduce delays

The CRA encourages you to sign up for direct deposit, file your income tax and benefit return online, and update your address and personal information, to get any refund faster and avoid delays. The CRA also encourages you to sign up for My Account, the fastest and easiest way to view and manage your tax and benefit information. The CRA's Get Ready page has information on online filing, deadlines, and other helpful links.

If you filed your return on paper last year, the CRA will automatically send you an income tax and benefit package by mail, so there is no need to leave your home to get one, reducing your potential exposure to COVID-19. File your return soon after you receive your package to get any refund for which you may be eligible for, and to help ensure that your benefit and credit payments are not interrupted.

How COVID-19 benefits affect your return

If you received the Canada Emergency Response Benefit (CERB), Canada Emergency Student Benefit (CESB), Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB), or Canada Recovery Caregiving Benefit (CRCB) payments, these are considered taxable income, and you will have to enter on your return the total of the amounts you received. You will receive a T4A (for benefits issued by the CRA) and/or a T4E (for benefits issued by Service Canada) tax slip in the mail with the information you need for your return. You can view tax slips online as of February in My Account. Residents of Quebec will receive both a T4A and RL-1 slip.

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