Who’s with me on this this – tax time 2021? Yuck!

In Canada we have to file our taxes by April 30. In America, it’s April 15, except for this year, 2021, the deadline has been extended to May 17, 2021.


When the World Health Organization announced the worldwide pandemic in 2020, many people became unemployed. If that happened to you, hopefully your government stepped in to help out financially.

In Canada, unemployed workers were able to collect the Canadian Employment Response Benefit of $2,000/month. Anyone who earned less than $1,000 during the month was eligible to apply. This program ran in Canada for seven months.

I was eligible for five months of benefits during this span.

I talked more about it in the post, How to Apply for Canada Emergency Response Benefit (CERB) if you’re Contract Worker or Self-Employed.

The CERB program ended in October, 2020. If you didn’t apply last year, you’re out of luck. Not retroactive.

The $2,000 CERB payment is taxable.

Whenever the money was deposited into my bank account, I immediately transferred 10% out to my saving account for taxes and another 10% into my registered retirement account, hoping it would bring down my income a bit.

A lot of people who received CERB didn’t think about putting away money for taxes. Or they were stretched so thin with housing, groceries, and other bills, there was no money to put aside.

We all have to pay the piper. Fortunately, the Canada Revenue Agency is giving Canadians until April 30, 2022 to repay the taxes interest free, if you meet the criteria.

MY 2020 TAXES?

On April 14, 2021 I had an appointment with my accountant who’d finished my taxes. She shook her head when I came in.

I knew it was bad news.

Big tax bill for me this year thanks to the CERB. Also thanks to contract work I did driving pick up trucks across the border in 2020. No taxes were deducted because I was hired as a contract worker.

But … I’d prepared myself in advance!

Clever me. Just like with the CERB, whenever the money hit my bank account, 10% was transferred to the savings account to pay my taxes and another 10% into my RRSP.


I owe $2,411 in taxes! YUCK! Double YUCK!

But I’m good. There’s more than enough money set aside. I told my accountant my system and she congratulated me. I suspect many of her clients were unable or unwilling to be that diligent.

Ladies, we have to be smart with our money! If you’re receiving income where the taxes aren’t deducted, put aside 20% into a savings account devoted to paying taxes. You’ll thank your smart self when April rolls around!

$2400?! That’s the most money I’ve ever paid in taxes!


It just sucks being a low income earner, paying high taxes, and it’s so hard to get ahead.

I can’t say it enough. Tax Time 2021 – Yuck!

This post was published by Cheryl @ The Lifestyle Digs on April 14, 2021.


Why do Low Income Earners Pay even more Taxes?
Managing my Money during the Coronavirus Pandemic

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