No one loves tax time other than perhaps CPAs and the CRA. But there are some new and notable changes that may have you paying less this year.
But you still want to file on time because there may be a refund waiting for you. According to the latest statistics from the CRA, 60% percent of filers are eligible for refunds, and the average refund is $1,960. And, if you owe money, the only thing worse than paying taxes is paying interest and penalties on top of it for filing late.
I spoke with CBC radio stations across the country this morning and our own Jean Paul Nyereka, Vice President of Money Wise Workplaces weighed in with iHeartradio Kelowna radio yesterday. You can catch his tips here.
This year, the tax deadline falls on May 1st and with all the recent tax changes, it might mean paying less, so you'll definitely want to dig in to all that's available for you and your family. Here's the top tax changes, credits and deductions to take note of:
- Repaying COVID-19 benefits.
- You can claim up to $500 for work-from-home expenses.
- The Basic Personal Amount (BPA) has been increased.
- Tax brackets have shifted to account for inflation.
- The TFSA limit has been increased.
- New OAS limit amounts.
- CPP maximum contributions have been increased.
- RRSP dollar limit is increased.
- A number of new federal tax credits you'll want to be aware of.
- New federal tax brackets for 2022
- Tax deductions and credits for students
- New tax benefit for renters
The Chartered Professional Accountants of Canada also have an excellent article on the recent tax changes and you can find it here.
Lastly, if you're low income, make sure that you still file your taxes to take advantage of the GST/HST credit, the Canada Child Benefit and more. If you need help with your taxes, remember the free tax clinics are back. You can walk in, drop off or book an appointment. Learn more here.