Canadian Self-Employed Filing Deadline for 2021 Tax Filing
Wednesday, June 15, 2022 is the self-employed filing deadline for the income tax and benefit returns from 2021.
What taxes do self-employed individuals pay in their income tax return?
- Personal Income Tax
- Canada Pension Plan Contributions
- Employment Insurance Premiums
- This is only required if you are eligible and have registered to participate.
Even though the filing is due on June 15, payments were already due on April 30, 2022. Because this was on a Saturday, the extended deadline was Monday, May 2, 2022. Late payments will incur additional interest charges.
COVID-19 Benefits That Should Be Included in Your Return
For individuals that received federal, provincial or territorial government COVID-19 assistance, they must include the amounts in the business income section of the return. These amounts should relate to the last day of the claim period and can reduce your expenses by the amounts received.
You should include the amounts for the following benefits:
- Canada Emergency Wage Subsidy (CEWS)
- Canada Emergency Rent Subsidy (CERS)
- Tourism and Hospitality Recovery Program (THRP)
- Hardest-Hit Business Recovery Program (HHBRP)
- Canada Recovery Hiring Program (CRHP)
- Local Lockdown Program
When it comes to government loans from the Canada Emergency Business Account (CEBA) program, the loan itself is not taxable but is to be included as part of business income. As for the forgivable portion, it is taxable in the year that the loan was received.
Updates on Income Taxes for Farmers
There is a new refundable tax credit that began in 2021 for farmers called the Return of Fuel Charge Proceeds to Farmers Tax Credit. This means that a portion of the fuel charge proceeds from the federal carbon pollution pricing system will go to farming business in provinces such as Alberta, Manitoba, Ontario and Saskatchewan because they do not have their own provincial systems.
The amount is proportional to eligible farming expenses in these provinces and if you have over $25,000 in farming expenses, the expected credit is $1.47 per $1,000 of eligible farming expenses. This will increase in 2022 to $1.73.
For more information on filing taxes as a self-employed person, please refer to the following links leading to CRA’s website: