Here’s what to know before filing your taxes in 2022 – National

Tax time is here again, and with another year of the COVID-19 pandemic on the books, filers should be aware of changes to benefits, deductions, and certain taxable income.

To learn when to file and how to maximize your return and minimize what you owe, check out Global News’ 2022 tax guide below.

When is the 2022 tax deadline?

The deadline for filing your taxes with the Canada Revenue Agency is April 30 — sort of.

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Because the deadline actually lands on a Saturday this year, returns will be accepted until May 2. Returns must be received or postmarked by this date.

For individuals or families where one of the filers is self-employed, the deadline is extended to June 15. Be aware, however, that anyone who owes their taxes this year must send the payment before May 2, whether they are self-employed or not.


Click to play video: 'Tax Tips: Claiming Deductions, Credits, and Expenses'







Tax Tips: Claiming Deductions, Credits, and Expenses


Tax Tips: Claiming Deductions, Credits, and Expenses

Are COVID-19 benefits taxable?

Not all Canadians who have received COVID-19 relief, such as the Canada Recovery Benefit (CRB) or the Canadian Emergency Response Benefit (CERB), may not know not that these payments are considered taxable income.

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Robin Taub, a Chartered Professional Accountant (CPA), author and TurboTax spokesperson, told Global News that CRB recipients have income tax withheld at source, which is a departure from how the programs precedents such as CERB have been introduced.

“Some people got a surprise when they dropped off (and found out) what they owed, so it looks like they learned a lesson from that,” she says.

Some people may owe additional CRB taxes, despite the 10% withheld at source.

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Thousands of low-income CRB recipients have had their federal support cut, documents show

COVID benefit payments must be noted on a T4A slip issued by the CRA, either by mail or online through MyAccount.

Taub notes that the CRB has also implemented a clawback and that anyone who received the benefit but ended up earning more than $38,000 in net income will have to repay 50 cents on the dollar more than the amount they have. won last year.

Some recipients are also required to repay COVID-related benefits. When you file your tax returns, you can choose to claim a deduction on this amount in the year you repaid the benefit or the year you received it, or to split it between the two.

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The CRA has more clarity and a comprehensive list of frequently asked questions on how COVID-19 benefits are discussed at tax time on its website.

How much can I claim for working from home?

There are several ways to claim a work-from-home tax deduction, depending on your situation.

The standard income tax deduction for people working from home due to the pandemic increased this year to a maximum of $500, up from $400 the previous year.


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Tax advice if you work from home


Tax advice if you work from home

Bruce Ball, vice president of taxation at CPA Canada, told Global News in an email that the flat rate method has many advantages: it has the simplest method of calculation ($2 per work-from-home day until to a maximum of 250 days) and does not require your employer to sign tax forms.

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Read more:

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A more detailed method exists for employees who may be entitled to higher compensation due to working from home. This would see actual household expenses claimed and prorated to time spent working from home, and requires a signed T2200 form from your employer.

Should you go for the simpler $500 method or take the time to file a more detailed claim? There are a few factors that could affect this, but Ball says renting or owning your home can be a major factor.

“Under the itemized method, tenants generally have higher qualifying expenses than landlords and this generally produces a higher deduction compared to the flat rate method.”

Changes to the distribution of the carbon tax rebate

At the end of the tax filing process, some filers may notice a deflated return compared to previous years due to changes to the Climate Action Incentive (CAI), the government refund tied to the federal tax on carbon affecting Alberta, Saskatchewan, Manitoba and Ontario. residents.

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In previous years, filers eligible for the benefit claimed it directly on their taxes and received the refund as part of their total return.


Click to play video: '25% Carbon Tax Increase Takes Effect April 1'







A 25% increase in the carbon tax will take effect on April 1


A 25% increase in the carbon tax will take effect on April 1

The CAI is moving to a quarterly distribution this year, however, and it will not appear as a lump sum on residents’ tax returns. The CRA will automatically determine eligibility once the return is filed.

Eligible recipients will receive their first payment on July 15. This first payment will also be a double payment, since the first payment date of April 15 will have passed before the tax deadline.

A few other things to note

There are a few other changes and tips to keep in mind before you file your tax return this year.

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For teachers who pay out of pocket for school supplies, the Educator school supply tax credit expands to cover 25% of eligible costs, up from 15% previously, up to a maximum of $1,000.

Income rates and thresholds have changed for the Canada workers benefit, depending on your province or territory. A “secondary support exemption” was also introduced this year.

Some residents living in the north of the country are also eligible for new deductions up to $11 per day based on travel and living expenses this year.

Finally, Taub urges filers to take a break and do their taxes online. Those with a CRA MyAccount can use the “autofill” feature to automatically fill in tax information on file.

“It will just suck up that information,” she says. “All you have to do is review it and make sure it’s complete. But it takes some of the work out of the process.


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Alberta gas tax relief set to take effect


Alberta gas tax relief set to take effect

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