What’s new this tax-filing season?
Quick Facts
The tax-filing deadline for most individuals is April 30, 2023. Since April 30, 2023 falls on a Saturday, tax returns will be considered filed on time if filed and received by CRA on May 1, 2023.
Self-employed individuals have until June 15, 2023 to file their return. However, any balance owing is due April 30, 2023.
Taxpayers should file an income tax and benefit return, even if their income is tax exempt or they have no income in 2022, because it is the only way to receive benefits and credits to which they may be entitled.
Slam the scam – Protect yourself against fraud
Click on the link below to learn more about scam/fraud and to protect yourself:
https://www.canada.ca/en/revenue-agency/corporate/security/protect-yourself-against-fraud.html
What’s new for the 2022 tax-filing season:
Filing deadline:
The deadline to file your tax return is May 1st, 2023 and if you have a business it will be on June 15, 2023 but if you owe the government, the payment has to be made before May 1st.
I encourage everyone to sign up for direct deposit as it is safer and faster and there will be no delay in receiving your refund or benefits.
Canada Dental Benefits:
It is available to eligible families earning less than $90,000/year. This applies to children under 12 years old and do not have access to a private dental insurance. Canada Dental Benefit.
One-time top-up to the Canada Housing Benefits:
It is a one-time payment of $500 to help lower-income renters. Application are open until March 31, 2023. You must have an account with CRA in order to apply. One-time top-up to the Canada Housing Benefit.
First-time home buyers’ tax credit:
The amount used to calculate the first-time home buyers’ tax credit has increased to $10,000 for a qualifying home purchased after December 31, 2021.
Home accessibility tax credit:
For 2022 and later tax years, the annual expense limit of the home accessibility tax credit has increased to $20,000.
Climate action incentive payment (CAIP):
If you are eligible, you will automatically get the CAIP four times a year. Climate action incentive payment.
Organ and tissue donation initiative:
Beginning with the 2022 tax year, you can indicate whether you want to receive information about becoming an organ and tissue donor if you are a resident of Ontario. By ticking the “yes” box in the consent section of your return, you authorize the CRA to give your name and email address to Ontario Health so that they may contact you or send you information about organ and tissue donation. For more information, go to Consent to share contact information – Organ and tissue donor registry.
Disability tax credit:
For 2021 and later tax years, an individual diagnosed with type 1 diabetes is considered to have met the two times and 14 hours per week requirements for life-sustaining therapy. For more information, go to Disability tax credit.
Payment arrangements:
If you cannot pay an existing debt in full, you may be eligible for a payment arrangement. Payment arrangement options have been expanded to reflect current realities. The Payment Arrangement Calculator has also been added to My Account and My Business Account. This self-service tool allows you to submit a potential payment arrangement without having to contact the CRA. If the proposed payment arrangement does not meet the CRA payment policy, a CRA officer will reach out to complete the arrangement.
Protecting you from scams and fraud:
To avoid scams and fraud, be aware of when and how the CRA might contact you. The Scams and fraud page provides information on the ways that the CRA may contact you, including by phone, email, mail and text message.
Here are a list of ways to reduce the tax you owe or to increase your refund.
Family, childcare, and caregivers:
· Child care expenses
· Support payments made
· Spouse or common-law partner amounts
· Amount for an eligible dependant
· Canada caregiver amount for spouse, common-law, or eligible dependant age 18 or older
· Adoption expenses
· Amounts transferred from your spouse or common-law partner
· Eligible medical expenses can claim on your tax return
· Refundable medical expense supplement
Education:
· Moving expenses
· Interest paid on your student loans
· Your tuition, education, and textbook amounts
· Tuition amount transferred from a child or grand child
· Canada Training credit
Disability:
· Disability supports deduction
· Canada caregiver amount for spouse, common-law, or eligible dependant age 18 or older
· Canada caregiver amount for other infirm dependants age 18 or older
· Home accessibility expenses
· Disability amount for self
· Disability amount transferred from a dependant
· Amounts transferred from your spouse or common-law partner
Pension and savings plans:
· Pension adjustment
· Registered pension plan (RPP) deduction
· RRSP deduction
· Deduction for elected split-pension amount
· Deduction for CPP or QPP enhanced contributions on employment income
· Base CPP or QPP contributions through employment income
· Base CPP or QPP contributions on self-employment income and other earning
· Pension income amount
· CPP or QPP overpayment
Employment:
· Annual union, professional, or like dues
· Moving expenses
· Other employment expenses
· Employment insurance premiums through employment
· Employment insurance premiums on self-employment and other eligible earnings
· Volunteer firefighters’ amount
· Search and rescue volunteers’ amount
· Canada employment amount
· Employment insurance overpayment
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