Since the calendar has turned to 2023, it’s hard to believe that tax season is just around the corner. Some of you might be wondering what’s new for filing your 2022 Income Tax return. Here are some of the changes that you should know about.
COVID-19 benefits
If you received COVID-19 benefits from the Canada Revenue Agency in 2022, such as the Canada Recovery Benefit, Canada Sickness Recovery Benefit or Canada Recovery Caregiving Benefit you will receive a T4A slip with the relevant information you need for your tax return.
If you received the Canada Recovery Benefit and your net income is more than $38,000, then you may have to repay all or part of the benefits you received in 2022.
If you have repaid COVID-19 benefits in 2022, you can choose which year to claim the tax deduction. You can either claim the deduction in the year you received the benefit, or the year you repaid it.
Also, any one-time provincial payments to help you through COVID-19 will not be taxable, and you don’t need to report them as income on your 2022 tax return.
Working from home expenses
You can once again claim the work-from-home tax credit. If you’ve been keeping track of your expenses, you can use the detailed method. You must have a form T2200 or T2200S signed by your employer. Otherwise, you can use the temporary flat rate method of $2 for each day worked from home during the pandemic.
Changes to tax credits
Some credits have been added or changed for the 2022 tax year:
1/ Air Quality Improvement Tax Credit
Eligible businesses including sole proprietorships, can claim 25% of their qualifying ventilation upgrades to a maximum of $10,000, creating a $2,500 tax credit.
2/ Automobile Income Tax Deduction Limits
There is an increase in Capital Cost Allowance (CCA) ceiling limits for zero emission and passenger vehicles, deductible monthly leasing costs also increased by $100, and the per kilometer rate paid by employers to employees who use their personal vehicle for work has increased by 2 cents per km from last year.
3/ Home Accessibility Tax Credit
If you’re 65 or older, are eligible for the disability tax credit, and have remodeled your home for safer access, you can claim up to $20,000 of your related expenses.
4/ Labour Mobility Deduction
This new deduction allows tradespeople, apprentices, and employees working in construction to claim meals and lodging expenses paid to earn income at a temporary work location.
Deadlines
The personal tax filing deadline for 2022 is April 30, 2023. Because April 30, 2023 falls on a Sunday, your return will be considered filed on time if the CRA receives it or it is postmarked on or before May 1, 2023.
You have until June 15, 2023, to file your return if you or your spouse or common-law partner are self-employed.
Eligible educator school supply credit
If you qualify for the educator school supply tax credit, you can claim up to $1,000 of eligible supplies and expenses.
For the 2022 tax year, the tax credit rate is 25% with a maximum credit of $250. This year, remote learning tools, digital timers and graphing calculators were added.
Now you are up to speed with some of major changes that might apply to your 2022 tax return. If you would like to know more, please contact our office for trusted advice and personal service.