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Canada Revenue Agency: New $500 Digital News Tax Credit You Can Claim!

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If you have not yet filed your taxes, it’s about time you start making preparations to perform your duties and play your part in helping the economy by preparing everything. The Canada Revenue Agency (CRA) introduced an update this year that extended the tax filing deadline to June 1, 2020 instead of the usual April 30 deadline.

Even if you missed the June 1 deadline, the CRA will not apply the substantial penalties for late tax filing unless you file and pay the taxes you owe by September 1, 2020. This extension applies to both individual and corporate taxpayers.

A new tax break

With all the extra time you have to file and pay your taxes for the 2019 income year, I would advise taking advantage of as many tax deductions and breaks as you can to reduce the amount the CRA can take.

The current system already offers several deductions and credits that cover most expenses that the government deems fit to lower your taxes. The CRA also introduces new tax breaks occasionally. Last year, the government introduced an entirely new tax break that applies to all Canadian taxpayers.

I will tell you about the new tax credit and how you can use it to your advantage when it comes to making investment decisions.

The digital news tax credit

If you have subscribed to any paid news subscriptions, it can give you more benefits than keeping you up-to-date with the latest news. The digital news tax credit is a 15% non-refundable tax credit that you can leverage for qualified subscriptions. The government rolled this out in 2019, and you can use it from now to the 2025 tax year.

The digital news tax credit is applicable for up to $500 worth of subscription fees for digital news outlets. While you can only use it to save up to $75, saving every penny goes a long way. This tax credit helps you in more ways than just with reducing the money that the CRA can take from you.

Use the information you learn

This tax credit technically makes it cheaper for you to subscribe to news outlets that can provide you valuable information. You can capitalize on it to help you make better investment decisions to make smarter investment decisions. The more access you have to vital data, the more well-informed decisions you can make.

Put this tax credit to work by subscribing to financial news. Over time, access to information can help you receive better returns, especially if you want to invest in the stock market.

One stock that can boost your overall portfolio is Shopify Inc. (TSX:SHOP)(NYSE:SHOP).

The e-commerce giant has shown unbelievable returns for investors ever since it went public on May 21, 2015. At writing, the company’s shares have grown by more than 3,900% since its IPO. The stock has grown 157.71% since March 23, 2020, while the rest of the market has struggled throughout the year.

Makes the tech stock seem attractive, right? The stock continues to climb, and investing in Shopify seems like the most viable way to make your capital grow. However, if you have access to news, you will learn that the company’s shares cost more than how much it earns. It means that Shopify has to post substantial profits in the coming months to justify its share prices.

Foolish takeaway

It’s critical that you take advantage of any tax breaks coming your way before the September 1, 2020 deadline. While digital news tax credit might not give you much in terms of financial savings, it can be valuable in another way. Use the tax credit to leverage access to the financial information that can help you make the best investment decisions.

Whether Shopify will continue to rise is anyone’s guess and nobody can guarantee its continued climb. However, keeping up-to-date with the right subscription can help you make the ideal investment decisions with passing time about the stock.

The post Canada Revenue Agency: New $500 Digital News Tax Credit You Can Claim! appeared first on The Motley Fool Canada.

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Fool contributor Adam Othman owns shares of Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify.

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