New Rules for Filing Your 2022 Return

The deadline for filing your income tax and benefit return is May 1, 2023 this year, as April 30 falls on a Sunday. According to the CRA, “your return will be considered filed on time if the CRA receives it or it is postmarked on or before May 1, 2023. Similarly, your payment will be considered on time if it is received by the CRA or processed at a Canadian financial institution on or before May 1, 2023”.

Here is a summary of new rules introduced for 2022 returns:

Climate Action Incentive

If you are eligible to receive Climate Action Incentive Payments, you must file a tax return even if you did not receive any income in the year. If you reside outside a census metropolitan area, tick the box under ‘Climate action incentive payment’ on page 2 of your return to apply for the rural supplement.

Claiming home office expenses

The rules for claiming home office expenses for employees working from home due to the COVID-19 pandemic remain unchanged from 2021 and the flat-rate method is still available for 2022 personal returns. The flat rate amount is equal to $2 per day you worked at home due to COVID-19, up to a maximum of $500 where conditions are met. 

Self-employed individuals
Self-employed individuals may be able to claim a refundable air quality improvement tax credit.  According to CRA, “If you were self-employed or a member of a partnership in 2022, you may be eligible to claim a refundable tax credit equal to 25% of your total ventilation expenses to improve ventilation or air quality at your place of business. Your total ventilation expense for 2022 is the amount of qualifying expenditures made or incurred during the qualifying period starting September 1, 2021, and ending December 31, 2022, to a maximum of $10,000 for each qualifying location.”

Housing tax credits
The amount used to calculate the first-time home buyers’ tax credit has increased to $10,000 for a qualifying home purchased after December 31, 2021. The government also announced an increase in the amount for the home accessibility tax credit to $20,000.

COVID-19 benefit repayments
The CRA created the T1B Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year. According to CRA, “if taxpayers repaid benefit amounts before January 1, 2023, they may choose when and how to claim the deduction on their tax return.” You have the option to claim your repayments as a deduction in the year you made the repayment or in the year you received the benefits. You may also split the deduction between your tax returns, as long as you do not deduct more than what you repaid.