How cryptocurrency and government relief packages could impact your tax returns

Wednesday, February 23, 2022

By Krista Sharpe, CTV News Videographer

Andrew Bauer

The 2021 tax season began Monday and the deadline to file your taxes is May 2.

The deadline to contribute to RRSPs in order to have it included in this year’s income tax is March 1.

For a number of people, the pandemic will once again impact returns.

As direct investing and cryptocurrency gain momentum with new users, experts say it’s important to keep good records of exchanges for tax purposes or you could risk being audited.

IF YOU HAVE RECEIVED A COVID-19 GOVERNMENT RELIEF PACKAGE(S):

H&R Block senior tax specialist, Josee Cabral says each relief package is slightly different.

“For those who have been on COVID relief for the second year now, (you) should probably look at a pretty similar income tax this year although there was a bit of income tax withheld at the source,” she said.

“Although they should still expect to pay a bit of income tax so please put some money aside,” she suggests.

Andrew Bauer, University of Waterloo associate professor and Canada Research Chair in Taxation Government and Risk, says the deadline for certain interest charges in relation to relief packages has also been extended for some.