Tax updates - 2021
Every year the government of Canada introduces small changes or adjustments to personal and business taxes. For this reason alone, you should always use an accounting and tax professional like Blue Ocean because it is almost impossible to keep on top of all the changes if you are a small business owner or filing for personal taxes.
Not only do you need to be completely in compliance with the latest tax changes, you will want to receive the maximum benefits from your return as possible. This is why we study the newest tax changes every season. Our Blue Ocean team is always fully up to date on even the smallest changes or alterations, so that we can always ensure that you only receive the very best small business and personal tax service possible.
This season, there are many changes to your personal taxes, and we picked 4 of the biggest changes most taxpayers should be aware of. There are many more, and we will be happy to discuss them one-one-on with you when you contact the Blue Ocean team.
- Claim up to $500 for work-from-home expenses
The maximum work-from-home claim amount has been increased from $400 to $500 for tax year 2021.
- Basic Personal Amount (BPA) has been increased
The Basic Personal Amount for the 2021 tax year to $13,808, which means you will be seeing a slight increase on your return this year.
- Tax brackets have adjusted to account for inflation
The new federal tax brackets for 2021 are as follows:
$0 to $49,020 of income (15%)
More than $49,021 to $98,040 (20.5%)
More than $98,041 to $151,978 (26%)
More than $151,978 to $216,511 (29%)
$216,512 and higher (33%)
- Canada Pension Plan maximum contributions have been increased
The pension rate amount for Canada Pension Plan (CPP) contributions has increased this year. The maximum amount for employees and employers in 2022 will be $3,766.10 in Québec and $3,499.80 in the rest of Canada.