The Motley Fool

CRA: 3 Important Dates to Remember in 2021

Image source: Getty Images

The Canada Revenue Agency (CRA) has clearly defined deadlines for all its programs and tax formalities. If you’re a taxpayer, saver or investor, here are the three key dates you need to keep in mind for 2021.  

CRA tax deadline

The deadline to file your tax return is April 30th. But if you’re self-employed, it could be June 15th. Either way, you must pay your taxes before April 30th. 

This year’s filing is likely to be exceptionally complicated. You may need to account for benefit payments, special business loans, loss of income or capital gains from the stock market. It’s best to start preparing right away and set some cash aside to pay your taxes on time. 

The 10 Best Stocks to Buy This Month

Click here to learn more!

TFSA contribution date

Canadians can contribute up to an additional $6,000 to their Tax-Free Savings Account (TFSA) from January 1. This means you can buy more stocks that you intend to hold for the long-term and expect a tax shield. 

RRSP contribution deadline

While the TFSA is for after-tax savings, you could contribute some cash to the registered retirement savings plan (RRSP) to reduce taxes right away. Any contribution to the account is deducted from your pre-tax income, reducing your bill to the CRA. The deadline for this contribution is March 1. 

Prioritizing the RRSP over the TFSA could be a good idea. However, maximizing both accounts and deploying them in the right assets is an essential step towards financial freedom. Here’s a robust long-term stock that could be ideal for either account in 2021. 

Safe and reliable dividend stock

Few industries are as predictably profitable as the utilities sector. Which is why Fortis Inc (TSX:FTS)(NYSE:FTS) is usually my top pick for a long-term registered savings account. 

As one of the largest suppliers of electricity across North America, Fortis is a safe bet for predictable cash flows. The stock currently offers a 3.9% dividend yield. That dividend is paid out of only 72% of the company’s earnings, so there’s a margin of safety. 

In fact, this margin of safety, coupled with the steadily growing demand for electricity, has allowed Fortis to deliver 46 consecutive dividend raises over the past five decades — a bonafide Dividend Aristocrat. 

Looking ahead, there are two reasons I’m bullish on Fortis for the next five decades. One is population growth. Canada’s immigration system has the potential to steadily expand the population for decades. More households means more demand for energy. 

However, the electrification of transport is a bigger factor. As cars and trucks become electric, Fortis could see an unprecedented surge in demand for its core service. This means investors can safely expect dividend bumps every year for the foreseeable future. 

Bottom line

The CRA has strict deadlines for RRSP contributions and tax filings. TFSA contributions, of course, are already open. Every saver needs to keep these dates in mind and plan their finances accordingly. Meet the deadlines, mitigate taxes and invest wisely to secure your financial freedom. Good luck!

Looking for more quality stocks? Here's a list.

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.

Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

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 Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.