2021 personal income tax updates

T4A Slip

For the tax year 2021, the T4A slip contains new input boxes:

• Box 201 Repayment of COVID-19 financial assistance
• Box 205 One-time payment for older seniors
• Box 210 Postdoctoral Fellowship Income
• Box 211 Canada Worker Lockdown Benefit (CWLB)

T4E Slip

For the tax year 2021, the T4E slip contains a new box to enter the amount of CERB repayments made during the year. The amount of the repayment, less any portion already deducted in 2020, will be deducted at Line 23210 of the T1 return.

T1 Income Tax and Benefit Return

For tax year 2021, the following lines have been added to the income tax return:

• Line 23210 - Federal COVID-19 benefits repayment - An individual may claim a deduction on this line for a repayment made in 2021 of an overpayment of federal COVID-19 benefits received in 2020. Repayments of provincial or territorial COVID-19 benefits will continue to be deducted on line 23200 of the return.
• Line 47556 - Other refundable credits (specify)

The following lines have been removed:

• Line 45110 - Climate Action Incentive - The Climate Action Incentive will no longer be claimed as a refundable credit on the T1 return. Eligible taxpayers will automatically receive the benefit in quarterly payments beginning in July 2022.

Schedule 6 - Canada Workers Benefit

The Canada workers benefit rates and income thresholds have been updated for 2021.

A new secondary earner exemption has also been introduced. For individuals with an eligible spouse or common-law partner, up to $14,000 of working income is excluded in the calculation of the couple’s adjusted net income for the purpose of the CWB phase-out.

Manitoba

MB428 - The maximum credit amount that can be claimed by an individual for the small business venture capital tax credit has increased. The new maximum on line 4 of Form T1256-1 and on line 60850 on the Form MB428 is $120,000.

MB479 - The calculation of the personal tax credit, education property tax credit, seniors' school tax rebate and the school tax credit for homeowners have changed effective for the 2021 and subsequent tax years.

The following lines have been removed from form MB479:

• 61220 School taxes assessed
• 61271 Senior economic recovery credit for self
• 61272 Senior economic recovery credit for spouse or common-law partner

The following line has been added to form MB479:

• 61495 Eligible teaching supplies expenses

The teaching expense tax credit is a refundable credit of 15% of up to $1,000 of eligible expenses.

Newfoundland and Labrador

The following line has been added to form NL479:

• 62000 Physical activity expenses

The Physical activity tax credit allows a claim of up to $2,000 per family for the eligible fees paid for registration or membership for a prescribed program of physical activity for qualified family members. The total claim can be split between spouses or other eligible individuals.

Ontario

The following lines have been added to form ON479:

• 63055 Job training tax credit

The job training tax credit is a refundable tax credit of up to $2,000 for eligible tuition and other fees paid for courses taken by an eligible individual in 2021. Only an individual who has a positive Canada training credit limit for the 2021 tax year is eligible for the tax credit. The maximum tax credit will be an amount up to, but not exceeding, the lesser of 50% of the amount allowed on line 32000 on the federal Schedule 11 and $2,000.

• 63105 Seniors’ home safety tax credit

The Seniors’ home safety tax credit is a new refundable tax credit of 25% of up to $10,000 in eligible expenses made by or on behalf of an eligible individual for the year. The credit can be shared between more than one individual as long as the total of the eligible expenses does not exceed the $10,000 maximum.

Enter eligible expenses on the new form ON(S12) Ontario Seniors’ Home Safety Tax Credit. Where the individuals are spouses or common-law partners who occupied separate principal residences for medical reasons or because of a breakdown in their relationship for at least 90 days on December 31 of the year, each spouse or common-law partner can claim up to $10,000 of eligible expenses.

The following credits have been eliminated and removed from form ON479:

• 63255 Tax credits for self-employed individuals - Apprenticeships
• 63280 Apprenticeship training tax credit

Prince Edward Island

The following line has been added to form PE428:

• 58365 Children’s wellness tax credit

The Children’s wellness tax credit is a non-refundable tax credit of up to $500 per qualifying child for families with children under age 18 for eligible activities related to their children’s well-being.

Quebec

For updates to Quebec provincial personal taxes, see our article 2021 updates for TP1.

Saskatchewan

The following line has been added to form SK428:

• 58340 Home renovation expenses

The above non-refundable tax credit is available for tax years 2021 and 2022 for eligible expenses incurred. The maximum allowable claim for tax year 2021 is $11,000.

Enter eligible expenses on the new form SK(S12) Saskatchewan Home Renovation Tax Credit. Members of the same family household may share the eligible expenses up to the annual maximum allowable.

The following line has been added to form SK479:

• 59800 Active families benefit

Effective for 2021 and subsequent tax years, eligible individuals with no more than $60,000 of adjusted net family income can claim up to $150 per eligible child for the costs of participation in an eligible activity. If an eligible child is eligible for the disability tax credit, an additional $50 can be claimed.

ProFile users may encounter forms that are in “Draft” mode and displaying a watermark.

The watermark means that the form has not yet been approved by the CRA for the upcoming tax year, and cannot be filed, via paper or electronically.

Tax software providers receive staged CRA approvals throughout the year for the various T1 module forms.

For example, multi-jurisdictional forms typically come out of draft in later tax year releases, where other forms typically come out of draft earlier in tax year releases.

Intuit includes any approved forms in a software release as soon as possible following CRA approval. The What’s New notes for each release details a list of any CRA-approved forms included.

We recommend selecting Check for Updates… under the Online drop-down menu regularly throughout the tax season to ensure that you are using the latest ProFile version.