New tax filing season is fast approaching. Here's a quick overview of some of the changes you need to know when filing your 2022 personal tax return.
Changes at the Federal level:
- Tax brackets for 2022 are adjusted to make up for inflation and you may be shifted to a lower bracket with smaller taxes.
- Covid-19 benefit repayments: You may choose when and how to claim a deduction for if you repaid COVID-19 benefits from CRA in 2022 on T1B Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year.
- Basic Personal Amount (BPA) has increased to $14,398.
- Canada Pension Plan maximum contributions have been increased by 2.7%.
- You can claim a maximum of $500 for work-from-home expenses for days you worked from home.
- Air quality improvement tax credit for small businesses: you may be eligible to claim a refundable tax credit of 25% of your total ventilation expenses to improve ventilation or air quality.
- Capital Cost Allowance (CCA) ceiling limits for zero-emission vehicles are increased.
- First-time home buyer's tax credit: the amount for credit calculation has increased to $10,000.
- The Home Accessibility Tax Credit (HATC) has increased to $20,000.
- New Labour Mobility Deduction (LMD) for eligible tradespersons to claim transportation, meals and lodging expenses to earn income at a temporary work location.
Changes at the Provincial level:
- Nova Scotia
- A new Children’s Sports and Arts tax credit of $500 to cover the expense in sports and arts for kids under 19 years old in 2022.
- Prince Edward Island
- Volunteer Firefighter, Volunteer Search and Rescue Personnel Tax Credit has extended to include amounts related to search and rescue personnel, from $500 to $1,000.
- British Columbia
- A new clean buildings tax credit started on February 23, 2022.
- The training tax credit has been extended until December 31, 2024.
- The shipbuilding and ship repair industry tax credit has been extended until December 31, 2024.
- The community enterprise development tax credit and the small business venture capital tax credit become permanent.
- The renters tax credit is a new refundable credit for renters of residential properties, replacing the renters part of the education property tax credit.
- Ontario Staycation Tax Credit is a temporary one-time credit to claim eligible expenses of up to $1,000 as an individual or $2,000 for a family.
- Ontario Seniors Care at Home Tax Credit to help low- to moderate-income seniors with eligible medical expenses.
- Seniors’ Home Safety Tax Credit, is a new credit to support seniors in making their homes safer and more accessible.
Last but not least, the deadline for 2022 tax filing is May 1, 2023. Check the latest information from the Canada Revenue Agency before filing your tax return.