Year-end is a time when we start thinking about winding down. However, in the field of tax planning, the end of the year is when we need to take stock, and potentially take action. Below you will find important reminders and tips to help you navigate year-end tax planning, grouped by personal profile and type of need.
Of course, this year we are also dealing with the effects of the COVID-19 pandemic, for which we have included a summary and guidance on the government support programs rolled-out this year. Click on the headings below to read the reminders and tips. They are high-level only, so please inquire further with your financial advisor and your tax professional to be certain if and how they may apply in your situation.
COVID-19 financial supports
In response to the pandemic, the federal government implemented a variety of non-taxable and taxable benefit programs. For the taxable benefits, withholding tax was not applied to the early program, and even as applied to the later programs, the amount withheld may not be sufficient to cover actual tax due once added to the recipient’s other income for the year.
This table will help you understand the tax treatment of each program, and whether you may need to set aside a cash reserve to cover any tax that may be due when you come to prepare your 2020 tax return.