Each new tax year brings with it a listing of tax payment and filing deadlines, as well as some changes with respect to tax planning strategies. Some of the more significant dates and changes for individual taxpayers for 2021 are listed below.
RRSP deduction limit and contribution deadline
The RRSP current year contribution limit for the 2020 tax year is $27,230. In order to make the maximum current year contribution for 2020 (for which the contribution deadline will be Monday, March 1, 2021), it will be necessary to have earned income for the 2019 taxation year of $151,278.
Tax-free savings account (TFSA) contribution limit
The TFSA contribution limit for 2021 is unchanged at $6,000. The actual amount which can be contributed by a particular individual includes both the current-year limit and any carryover of uncontributed or re-contribution amounts from previous taxation years.
Taxpayers can find out their personal 2021 contribution limit by calling the Canada Revenue Agency’s (CRA) Individual Income Tax Enquiries line at 1-800-959-8281. Those who have registered for the CRA’s online tax service My Account can obtain that information by logging into that service.
Individual tax installment deadlines for 2021
Millions of individual taxpayers pay income tax by quarterly installments, which are due on the 15th day of March, June, September, and December 2021.
The actual tax installment due dates for 2021 are as follows:
Monday, March 15, 2021
Tuesday, June 15, 2021
Wednesday, September 15, 2021
Wednesday, December 15, 2021
Old Age Security income clawback threshold
For 2021, the income level above which Old Age Security (OAS) benefits are clawed back is $79,845.
Individual tax filing and payment deadlines in 2021
For all individual taxpayers, including those who are self-employed, the deadline for payment of all income tax owed for the 2020 tax year is Friday, April 30, 2021.
Taxpayers (other than the self-employed and their spouses) must file an income tax return for 2020 on or before Friday, April 30, 2021.
Self-employed taxpayers and their spouses must file a 2020 income tax return on or before Tuesday, June 15, 2021.