Under the current tax rules, teachers are eligible to claim a refundable tax credit of 15 per cent on an amount of up to $1,000 in expenditures made in a taxation year for eligible supplies. To qualify, eligible supplies must be purchased for use in a school or other regulated child care facility for the purpose of teaching or facilitating learning. Eligible supplies include books, construction paper, flash cards, games and puzzles, containers, and educational support software. Under the current rules, electronic devices are not included in the list of eligible supplies.
The 2021 Economic and Fiscal Update proposes to enhance this tax credit for 2021 by:
The first-time home buyers' amount is $5,000, in respect of which you may qualify for a federal non-refundable tax credit of $750, if you purchased a home in the year and both of the following conditions apply:
You can claim an amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. For the 2021 taxation year, the maximum amount of eligible expenses for each child remains at $16,563. Parents can claim these adoption expenses in the tax year that includes the end of the adoption period for the child.
The adoption period:
As a sole proprietor employer in Canada who was affected by the COVID-19 pandemic between March 15, 2020, and October 23, 2021, you may have been eligible for the Canada Emergency Wage Subsidy (“CEWS”).
Beginning October 24, 2021, the CEWS and the Canada Emergency Rent Subsidy (“CERS”) were replaced with two new programs, each offering wage and rent support:
If you were eligible for the CEWS, you can still apply for past claim periods until 180 days after the claim period has ended.
The CEWS provides support to sole proprietorships that had a payroll account on March 15, 2020 and experienced a drop in revenue. Each CEWS claim period is a specific period of four weeks beginning on a Sunday. Each four-week period needs to be applied for and the applicant must confirm you are eligible and calculate the CEWS amount.
The CEWS is taxable immediately before the end of the four-week period to which it relates, not when the amount has been received. If you applied for and were eligible for CEWs payments in 2021, these may be taxable to you in your 2021 tax return. Speak to your Crowe Soberman advisor regarding the taxation of these payments.