Canadian government providing one year without interest on certain 2020 tax debt

Feb 9 2021, 9:53 am

The Canadian government is providing one year without interest on certain 2020 tax debt.

On Monday, Prime Minister Justin Trudeau said, “Right now I don’t want you to worry about what you may owe in taxes. That’s why we’re providing one year without interest on certain 2020 tax debt, giving people more flexibility to repay amounts owing from last year.”

The prime minister added that if you received federal emergency benefits, like CERB, and you made up to $75,000 in taxable income, you will not have to pay interest on 2020 tax debt until April 2022.

“Our priority is ensuring that you and your family get through this pandemic,” he said.

Trudeau noted that while no one enjoys tax season, it’s important to file taxes as individuals can receive the Canada Child Benefit, the Work from Home Deduction, or the Climate Action Incentive, which are all benefits and credits that can “really help, especially after such a tough year.”

“That’s what you should be able to focus on.”

However, the prime minister emphasized that for those who needed CERB but managed to go back to work, receiving an income that allows them to pay their “fare share” of taxes, the CERB will be taxed.

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