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What's New For Tax Year 2021?

Important Upcoming Changes about Your Notice of Assessment
Planned for 2023, the Canada Revenue Agency (CRA) will start the process of switching to electronically providing a notice of assessment or reassessment. You will receive your notice of assessment or reassessment electronically through your NETFILE software or through My Account by providing your email address. In either case, you will need to be registered with My Account for individuals. You can find more information on how to register for My Account here: Registration process to access the CRA sign-in services.
Tax law changes that affect most taxpayers:
  • Other employment expenses
    If you worked from home in 2021 due to COVID-19, you may be able to claim certain employment expenses. You may choose to claim home expenses based on supporting documents including receipts and employer signed certificate form T2200s, or claim up to $500 in expenses without any supporting document.
  • Canada workers benefit
    The Canada workers benefit (CWB) rates and income thresholds have changed for 2021. A new "secondary earner exemption" has also been introduced. The software will follow this calculation without your intervention.
  • Northern residents deductions
    The deduction for travel benefits would change and be expanded to be available to eligible northern residents who take a trip even if their employer does not provide travel benefits for personal travel. The travel deduction is up to $1,200 per person.
  • Postdoctoral fellowship income
    Beginning in 2021, postdoctoral fellowship income would be included as earned income for registered retirement savings plan (RRSP) purposes. This measure would apply retroactively to 2011. If you reported postdoctoral fellowship income in a tax year after 2010 and before 2021, you could send an adjustment request to the CRA to have your RRSP contribution room adjusted.
Provincial Tax Changes
  • For Alberta, Manitoba, Ontario and Saskatchewan
    The Government of Canada has decided to deliver the Climate action incentive (CAI) as a quarterly benefit. If you are eligible, you would automatically receive your CAI payments four times a year, starting in July 2022. To receive your payments, you have to file a tax return even if you did not receive income in the year. The credit is no longer calculated on tax returns. However, if you live in a rural area and want to receive the 10% extra benefit, you will need to tick the box on schedule 14.

  • Manitoba
    A new refundable teaching expense tax credit has been introduced for eligible educators. This credit has the same criteria and limit as the federal credit and we will use the federal number directly without a separate entry.
    Beginning in 2021, changes have been made to the education property tax credit, the seniors' school tax rebate and the school tax credit for homeowners, the credit limits are all reduced to 75% of prior year numbers.
  • Newfoundland and Labrador
    A new refundable physical activity tax credit (up to $2,000 per family) has been introduced for the cost of registering an eligible individual in sport and recreational activities.

  • Ontario
    A refundable Ontario seniors' home safety tax credit has been introduced for seniors and individuals who share a home with a senior relative. Complete Schedule ON(S12), Ontario Seniors' Home Safety Tax Credit, to claim this credit. This is a temporary credit for 2021 only.
    A refundable Ontario jobs training tax credit has been introduced for eligible individuals. This is a temporary credit for 2021 only. This credit is calculated automatically based on your tuition fees paid and your training credit limit.
    The credit entitlements for Ontario childcare access and relief from expenses (CARE) tax credit have increased by 20% for 2021 only. The software will calculate the increase automatically.
  • Prince Edward Island
    A new non-refundable children's wellness tax credit has been introduced for all families with children under the age of 18 for eligible activities related to their children's well-being. You may claim up to $500 per child.

  • Saskatchewan
    A new non-refundable home renovation tax credit has been introduced. Refundable active families benefit tax credit has been re-introduced.
Other Highlights
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