For most Canadians, the 2022 deadline for paying and filing taxes is April 30, 2023. Since this date falls on a Sunday, the CRA will be considered to have filed on time if it is received by the CRA on or before May 1, 2023, or as postmarked.
Payments will be considered on time if they are received by the CRA on or before May 1, 2023, or if they are processed by a Canadian financial institution.
Six new benefits and services
1. Travel deduction for northern residents
The CRA is rolling out the Simplified Travel Deduction for Northern Residents, a pilot program that makes it easier for Northern residents to determine the minimum round-trip airfare, one of three amounts required to claim the travel deduction at tax time.
The abbreviated version, available at canada.ca/lowest-return-airfare the week of February 20, 2023, features a table identifying the lowest return airfare value to a given city from an airport with scheduled commercial flights. The ticket table contains more than 135 airports, almost all of which are located within the specified area.
2. Canadian Dental Benefits
The new Temporary Canada Dental Benefit is available to eligible families earning less than $90,000 a year. It provides financial support to parents and guardians of children under the age of 12 (if they receive dental care in Canada and do not have private dental insurance). In order to qualify for this benefit, you need to have already filed your 2021 tax return. The CRA’s online application “My Account” is the fastest way to apply for this benefit.
3. One-time subsidy of Canadian Housing Benefit
The government has introduced a one-time $500 grant to help low-income renters facing housing affordability challenges.
Applications are open until March 31, 2023.
The following conditions need to be met:
Household adjusted annual net income < $35,000; or individual adjusted annual net income < $20,000 - completed 2021 tax return;
Be at least 15 years old before December 1, 2022 and be a Canadian tax resident in 2022;
Have their principal residence in Canada as of December 1, 2022;
Have paid rent on their own dwelling in 2022, and the rent amount is at least 30% of their adjusted household net income in 2021.
In addition, some personal information is required, including address, who to pay the rent to and contact details of the landlord. If you move, you need to state how long you lived in each residence.
Notice! CRA reminds that this information needs to be kept for at least 6 years, because subsequent audits may be conducted.
4. First Home Buyer Tax Credit (HBTC)
For tax years beginning December 31, 2022 and beyond, the Budget proposes increasing the amount used to calculate HBTC to $10,000, which would provide eligible homebuyers with a tax credit of up to $1,500.
First-time homebuyers who purchase a qualifying home can claim a non-refundable tax credit of up to $750. The value of HBTC is calculated by multiplying $5000 Canadian dollars by the lowest personal income tax rate (15% in 2022).
5. Housing Accessibility Tax Credit (HATC)
For tax years 2022 and beyond, the annual spending limit for the Housing Accessibility Tax Credit has been increased to $20,000.
HATC is a non-refundable tax credit for qualifying home renovation or alteration expenses that enable a qualifying individual to enter, act or function within a qualifying dwelling, or reduce Risk of harm to eligible individuals while in or upon entering a residence. You can apply for this benefit if you are an eligible individual or an individual who is eligible.
HATC is calculated by applying the lowest personal income tax rate (15% for 2022) to the lesser of current $10,000 and qualifying expenses related to a qualifying dwelling for the tax year. Taxpayers can claim up to $1,500 in tax credits.
Eligible expenses must be incurred for work performed or goods purchased for the improvement of an eligible personal residence.
6. Disability Tax Credit
For tax years 2021 and beyond, a patient diagnosed with type 1 diabetes is considered to have met the life-sustaining treatment requirement of 2 14-hour sessions per week.
