Must-Know: 3 CRA Deadlines for September

Its a busy month for the CRA. This September, three important deadlines are coming. The CERB is ending, the CRB is beginning, and the tax filing deadline is ending. Plan your this month’s budget wisely.

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Attention Canadians! September is very important as three deadlines will end this month. It’s a busy time at the Canada Revenue Agency (CRA) and other government offices. This month, they are undergoing a major shuffle. In September, the Canadian government will take all possible steps to return to the new normal of the COVID-19 economy.

The CRA has three major deadlines coming up in September:

  • It will end the popular $2,000 Canada Emergency Response Benefit (CERB) on September 26.
  • The CRA will launch the new Canada Recovery Benefit (CRB) on September 27.
  • It will accept 2019 tax returns till September 30.

The CERB ends in September

The CRA is finally ending the popular CERB on September 26 after extending it twice — once in June and the other in August. Its August CERB extension does not extend the deadline of the benefit period, but extends the maximum period for which Canadians can claim the benefit.

Earlier, eligible Canadians could claim for six of the seven-month benefit period. Now, they can claim the benefit for all seven periods. The CRA expects to spend $8 billion on this four-week CERB extension.

CRB begins in September

The CRA will replace the CERB with a new benefit, the CRB, which will cater to unemployed Canadians not covered under the Employment Insurance (EI). The CRB will give eligible Canadians $400 a week for up to 26 weeks while they search for a job.

The CRB will also give two more benefits for sickness and caring for dependents, making it similar to EI. If you are sick, you can claim $500 a week for two weeks. If you have to stay at home and care for a dependent because schools and care facilities are closed, you can claim $500 a week for a maximum of 26 weeks.

File your tax returns in September

The CRA has set the 2019 tax filing deadline on September 30, after extending it twice to June 1 and September 1. In light of the pandemic, the CRA extended the tax filing deadline. However, CRA is unlikely to extend this deadline further.

You can file your 2019 returns without any penalty for late payment and avail the three tax-free cash benefits which the CRA only gives to those who file tax returns:

  • Goods and Service Tax credit
  • Canada Child Benefit
  • Guaranteed Income Supplement

Make the maximum of the CRA deadlines

In September, you can claim your $2,000 CERB payment and apply for the CRB, if you meet the eligibility criteria. You will also face the annual tax bill on your 2019 tax returns, which you have to pay before September 30.

I recommend you save this $2,000 CERB, as it will come in handy to meet your tax bill. Moreover, you will get the CRB at the end of October after the benefit period. If your working income barely makes ends meet, it’s time to withdraw some of your savings.

If you invested $400 every month from your CERB payments in Lightspeed POS (TSX:LSPD), you would now have $3,000 by now. And if this money was in the Tax-Free Savings Account (TFSA), you can withdraw the amount without paying a tax on it. It can take care of your October expenses and even help you a little with the tax bill.

Investor corner 

Later, you can shell out $400 from your CRB payments and invest it in Lightspeed again. The stock has delivered a perfect V-shaped recovery and is back to its pre-pandemic levels. The company is changing its platform according to the needs of the COVID-19 economy. It is offering curbside pickup, delivery, Lightspeed Capital, online appointment booking, e-commerce platform, and much more.

These new features are increasing Lightspeed subscriptions, putting it in competition with Shopify. Lightspeed revenue is growing by more than 50% year over year. As revenue grows, so will its stock price. If it maintains the price-to-sales ratio at 20 times, the stock price could double in two years.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.

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