As tax season fast approaches, navigating this time of year is no easy feat and with new changes outlined by the Canada Revenue Agency — it can sometimes feel too overwhelming.
We’re making tax season a little bit easier for you to cope with a list of the newly announced changes that could affect your 2022 taxes, including significant changes to tax brackets and the first-time homebuyers’ tax credit.
Here are nine changes, updates and tax credits to take note of ahead of the annual filing:
Canadians who received COVID-19 benefits from the CRA in 2022, including the Canada Recovery Benefit, Canada Sickness Recovery Benefits and/or the Canada Recovery Caregiving Benefit, you should receive a T4A slip with all required information.
If you worked from home due to the COVID-19 pandemic, eligible Canadians can claim up to $500 for work-from-home expenses. Exact amounts are determined based on overall expenses. However, if you haven’t been keeping track, you can use a flat rate method of $2 for each day worked from home.
The Government of Canada changed the tax brackets for 2022 to account for inflation. The new federal tax brackets for 2022 were raised according to an indexation of 2.4%:
Self-employed Canadians or member of a partnership in 2022 may be eligible to claim a refundable tax credit that equals to 25% of your total ventilation expenses used to improve the air quality at your place of business.
For 2021, and later tax years, an individual diagnosed with type I diabetes is “deemed to have met the the two times and 14 hours per week requirement for life-sustaining therapy,” the CRA said.
If you purchased a qualifying home for the first time in 2022, it’s important to note that the first-time home buyers’ tax credit has increased to $10,000 for a qualifying home purchased after December 31, 2021, double the amount of previous years.
According to the Canada Revenue Agency, “the annual expense limit of the home accessibility tax credit has increase to $20,000.”
The TFSA contribution limit for Canadians was $6,000 until 2022, but has increased to $6,500 for the 2023 year.
The annual RRSP dollar limit for 2022 is $29,210.
This content is for general informational purposes only and does not constitute financial, investment, legal, tax or accounting advice.
Post Credit: MTL Blog
