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Get your T4, T4A and T4E forms together
As part of your tax return preparation, you will need to get your T4, T4A and/or T4E forms in order. These government documents help determine your income. On your T4A you can also see how much you have saved for retirement through your registered pension plan throughout the year if you have chosen to contribute.
“The T4, or Statement of Remuneration Paid, is a tax statement that the employer issues to employees after each calendar year. This includes your income, deductions and taxes previously paid. The T4A is another tax statement issued by payers of other employment-related amounts (pension payments, annuities, self-employment commissions, retirement benefits, grants, bursaries, research grants, etc.).”
Learn more about these documents: What are T4, T4A and T4E forms?
Interest payments: when to claim a tax deduction for your investments
Can you claim a deduction for interest paid on money you borrowed for investment purposes? You can purchase investments in unregistered accounts for a mortgage on a rental property or a loan. However, note that there are limitations:
“According to the Canada Revenue Agency (CRA), you pay the most interest on money you borrow for investment purposes [can be deducted] but generally only if you are attempting to earn investment income from it. … If the only income your investment is capable of generating is a capital gain, you will not be able to claim the interest paid.’ … An example of when interest may not be tax deductible is when purchasing land that does not earn rental income and can only generate capital gains. Buying a stock that hasn’t paid dividends in the past (or whose stock class doesn’t allow dividends) is another possible example.”
More on claiming an interest deduction: Are interest payments tax deductible?
Claims for COVID-related labor costs
Have you worked from home at least part of the year? You can still claim a deduction for home office expenses.
“In 2020, eligible employees working remotely could deduct up to $400 of household expenses from their taxable income without having to keep receipts or get a signed T2200 form from their employer. The government has promised to extend the simplified deduction through tax year 2022 and increase the allowable amount to $500.”