What is new for the 2022 tax season

Tax Filing starting date

The 2022 tax filing season is on the horizon, and it will kick off on February 21, 2022.

Tax-filing Deadline

The tax-filing deadline for most Canadians (for the 2021 tax year) is May 2, 2022. Normally, the general tax filing deadline is April 30 each year, but in 2022, this date falls on a Saturday, so there’s an extension until the next business day.

For those who are self-employed, or who have a spouse/partner who is self-employed, the deadline is June 15, 2022.

Home office expenses for employees working from home due to COVID-19

Using the temporary flat rate method, you can make a claim without a signed form from your employer or receipts for your expenses. You can claim $2 for each day you worked from home, up to a maximum of $500. In other words, you can claim up to 250 days.

Home Buyers’ Plan

After being frozen for several years, the federal government increased the withdrawal limit in 2019. Now, those eligible to participate in the program can withdraw up to $35,000 from their RRSP, up from $25,000 in previous years. This means that a couple buying a home together could withdraw a combined $70,000 from their RRSPs to buy their first property.

Changes to carbon tax refunds

Beginning in July, carbon tax rebates issued to residents of Alberta, Saskatchewan, Manitoba and Ontario, will be issued quarterly, instead of annually.

The Digital News Subscription Tax Credit

This new federal non-refundable tax credit applies to fees paid for a digital news subscription from a qualified Canadian journalism organization. You can claim up to $500 in eligible subscriptions, which could save you up to $75 in taxes (15%).

Enhanced Eligible Educator School Supply Tax Credit

This existing tax credit, which allows teachers and early childhood educators to claim a 15% refundable tax credit up to $1,000 for eligible supplies, is bumping up to a 25% credit. This will apply even if the teachers use those supplies at home rather than in the classroom/daycare.

For business

Repayment deadline for CEBA Loan

The government recently announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing.

Payroll remittance

Employment Insurance (EI) Premiums are staying steady at 1.58% in 2022. However, maximum insurable earnings will increase from $56,300 to $60,300.

Maximum pensionable earnings, the amount used by the government to calculate Canada’s Pension Plan contributions for the year, is increasing to $64,900, up from $61,600 in 2021. Similarly, the employee and employer contribution rates for 2022 will increase to 5.7%, up from 5.45% in 2021.

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