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 2020 are listed below.
RRSP deduction limit increased
The RRSP current year contribution limit for the 2019 tax year is $26,500. In order to make the maximum current year contribution for 2019 (for which the contribution deadline will be Monday March 2, 2020), it will be necessary to have earned income for the 2018 taxation year of $147,222.
TFSA contribution limit unchanged
The TFSA contribution dollar limit for 2020 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 2020 contribution limit by calling the Canada Revenue Agency’s Individual Income Tax Enquires 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 instalment deadlines for 2020
Millions of individual taxpayers pay income tax by quarterly instalments, which are due on the 15th day of each of March, June, September and December 2020.
The actual tax instalment due dates for 2020 are as follows:
Monday March 16, 2020
Monday June 15, 2020
Tuesday September 15, 2020
Tuesday December 15, 2020
Old Age Security income clawback threshold
For 2020, the income level above which Old Age Security (OAS) benefits are clawed back is $79,054.
Individual tax filing and payment deadlines in 2019
For all individual taxpayers, including those who are self-employed, the deadline for payment of all income tax owed for the 2019 tax year is Thursday April 30, 2020.
Taxpayers (other than the self-employed and their spouses) must file an income tax return for 2019 on or before Thursday April 30, 2020.
Self-employed taxpayers and their spouses must file a 2019 income tax return on or before Monday June 15, 2020.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.