January 2020
January 1 | New TFSA contribution room. Visit the CRA website for more information. |
| January 30 | Deadline to pay interest on a family loan at prescribed interest rates to avoid income attribution. |
February 2020
| February 24 | E-filing open for resident and immigrants in Canada for 2019 tax year. |
| February 29 | Deadline for employers and other payers to give you an information slip, usually a T4 Statement of Remuneration Paid, which tells you and the CRA exactly how much you earned in 2019. |
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March 2020
| March 2 | RRSP Contribution Deadline Deadline for making your RRSP contribution for the 2019 tax year (including Home Buyers’ Plan/Lifelong Learning Plan repayments). |
| Deadline to issue T4s, T4As, and T5s and for issuers of TFSAs to file their annual information returns.
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March 15
| First quarter personal tax instalment is due.
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March 30
| Deadline to file NR4s and T3 trust returns.
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!HELPFUL TIPS
| RRSP contributions can be deducted from taxable income and grow tax free through investments until they are fully taxed in retirement. Higher-income Canadians tend to get more bang for their RRSP buck because they are in higher tax brackets. |
April 2020
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April 15
| Deadline to file U.S. individual income tax returns for 2019 or 6-month extension requests. Deadline to file 2019 report of Foreign Bank and Financial Accounts, FinCEN report 114 (formerly FBAR), for U.S. citizens living in Canada. |
| April 22 | Deadline to set up a pre-authorized debit payments for 2019 to avoid interest charges |
April 30 | Deadline for most tax returns. If you owe anything, you must pay by this date or you will be charged interest. (* Now June 1, 2020- Due to COVID-19)
Personal Income Tax Returns Deadline for filing your Canadian (or Quebec) personal income tax return (excluding self-employed individuals and their spouses or common-law partners). April 30 is also the deadline for payment of any taxes owing to the CRA (or Revenu Québec) for 2019 for all individuals. |
!HELPFUL TIPS
| Planning Consideration: Children with earned income Unused RRSP contribution room can be carried forward indefinitely. File a personal income tax return for children with “earned income” (e.g., from a part-time job) so they can start accumulating RRSP contribution room. |
May 2020
Planning Consideration: Putting your income tax refund to work If you received an income tax refund in 2020, use the funds to make your 2020 RRSP/TFSA contribution or pay down debt.
June 2020
June 1
| Deadline for most tax returns. If you owe anything, you must pay by this date or you will be charged interest. (* Now June 1, 2020- Due to COVID-19 |
| June 15 | Second quarter personal tax instalment is due. Deadline for self-employed persons. If you or your spouse or common-law partner carried on a business in 2019 (other than a business whose expenditures are primarily in connection with a tax shelter), your 2019 tax return has to be filed on or before June 15, 2020. However, if you have a balance owing for 2019, you still have to pay it on or before April 30, 2020. Deadline to file GST/HST returns for self-employed individuals with a December 31 year-end. |
| Planning Consideration: Review your estate plan Review your estate plan regularly to ensure it continues to meet the needs of you and your family. At a minimum, your estate plan should include an up-to-date Will that reflects your intentions and names an appropriate executor(s), a Continuing or Enduring Power of Attorney for Property in the event of mental or physical incapacity, and a Power of Attorney for Personal Care to address medical and physical care decisions. Further, your estate plan should be reviewed whenever there is a change to your personal situation, such as a birth, death, incapacity, retirement, marriage, divorce, change in residency, attainment of age of majority, significant increase or decrease in wealth, or sale of a business. |
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July 2020
Planning Consideration: Income-splitting opportunities Under the Canadian tax system the more you earn, the more you pay in income taxes on incremental dollars earned. With this in mind, it may make sense to spread income among family members who are taxed at lower marginal rates to reduce your family’s overall tax burden, subject to the income attribution rules. Common income-splitting strategies to consider include:
- An interest-bearing loan at the prescribed interest rate to family members in a lower tax bracket;
- Pension income-splitting between spouses (or common-law partners);
- Gifts to adult children or other adult family members (other than a spouse or common-law partner); and
- Gifts to a minor child – directly or through a trust structure – to acquire investments that generate only capital gains.
August 2020
Planning Consideration: Planning for your child’s post-secondary education As the new school year approaches, consider whether your family’s education plan would receive a passing grade. Starting a dedicated education savings plan while children are still young helps ensure you have the funds necessary when they begin their post-secondary studies. What’s right for your situation depends on many factors, including disposable income, whether financial assistance will be provided by other family members (such as grandparents), the ages and number of children involved, and the options for your savings if your child doesn’t pursue a formal post-secondary education program.
September 2020
| September 15 | Quarterly Income Tax Instalment Payment Deadline for third quarter income tax instalments for individuals required to make quarterly payments. |
October 2020
Planning Consideration: Your RRSP maturity options If you turned or will be turning age 71 in 2020, or are planning to retire next year and will be using your RRSP to supplement your pension and government benefits, make sure you’ve considered your RRSP maturity options.
You can withdraw the cash proceeds from your RRSP, purchase a Life Annuity or transfer your RRSP to a Registered Retirement Income Fund (“RRIF”). A RRIF may be your best choice if you want to continue to manage your investments and give yourself maximum flexibility in terms of structuring your retirement income.
November 2020
Planning Consideration: If you’re age 65 or older, RRIF payments are eligible for the $2,000 federal pension income tax credit, and for pension income-splitting with your spouse or common-law partner.
December 2020
| December 15 | Quarterly Income Tax Instalment Payment Deadline for fourth quarter income tax instalments for individuals required to make quarterly payments. |
December 29
| Last day to settle trades in calendar year 2020 for Canadian tax-loss selling.
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| December 31 | Contribution deadline for Registered Education Savings Plans (RESP). Deadline to make charitable donations to be claimed for the 2020 tax year. Tax Deductions and Credits Deadline The final payment date in order to receive a 2020 tax deduction or credit for expenses such as childcare, medical and tuition tax credits. |
| Planning Consideration: TFSA withdrawal If you’re planning a withdrawal from your TFSA, consider making the withdrawal in December instead of waiting until the new year. That way, the amount withdrawn in 2020 will be added back to your available TFSA contribution room on January 1, 2021. |
!HELPFUL TIPS
| Donate appreciated publicly-traded securities instead of cash for enhanced tax savings. Further, combine all charitable donations for you and your spouse (or common-law partner) and claim these on one income tax return for maximum tax savings. |
