(Please see the beginning of the article in our previous posts).
Elections Canada boxes
When filing your taxes, checking “Yes” to the two questions related to Elections Canada ensures that you’re on the list of electors at your current address and ready to vote in any federal election. To register and vote in a federal election, you must be at least 18 years old and have Canadian citizenship. For more information, go to this Elections Canada web page.
What’s new on the income tax and benefit return
Simplified Northern Residents Travel Deduction – The CRA is launching the Simplified Northern Residents Travel Deduction, a pilot project to make it easier for northern residents to determine the lowest return airfare, one of the three amounts required to claim the travel deduction come tax time. Available on canada.ca/lowest-return-airfare, the simplified version features tables that identify the lowest return airfare amount found from airports with regularly scheduled commercial flights to a designated city. The airfare tables contain more than 135 airports, almost all of which are located in the prescribed zones.
Disability tax credit – For 2021 and later tax years, an individual diagnosed with type 1 diabetes is deemed to have met the two times per week and an average of at least 14 hours per week requirements for life-sustaining therapy.
First-time home buyers’ tax credit – 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.
Home accessibility tax credit – The annual expense limit of the home accessibility tax credit has increased to $20,000 for the 2022 taxation year.
Labour mobility deduction – The labour mobility deduction provides eligible tradespeople and apprentices working in the construction industry with a deduction for certain temporary relocation expenses. Eligible individuals may be able to deduct up to $4,000 in eligible expenses per year.
Medical expense tax credit (for surrogacy and other expenses) – The list of eligible medical expenses has been expanded to include amounts paid to fertility clinics and donor banks in Canada to obtain donor sperm or ova to enable the conception of a child by the individual, the individual’s spouse or common-law partner, or a surrogate mother on behalf of the individual. In addition, certain expenses incurred in Canada for a surrogate or donor may be considered medical expenses of the individual, if they are of a type that would be otherwise permitted as medical expenses of the individual.
Request to deduct federal COVID-19 benefits repayment in a prior year – Complete and attach Form T1B, Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year, to your 2022 income tax and benefit return to request to have the amount of federal COVID-19 benefits that you repaid in 2022 deducted on your 2020 or 2021 return or split between your 2022 return and the return for the year that you received the benefit. The CRA will then automatically reassess your return(s) to apply the deduction so that you do not need to make a separate request to change your prior year return(s).
Zero-emission vehicles – A used vehicle may now qualify as a zero-emission vehicle and may be included in Class 54 or Class 55, provided it is acquired after March 1, 2020, and becomes available for use prior to 2028 (and meets other criteria). The capital cost allowance (CCA) rate for class 54 is 30% and the CCA rate for class 55 is 40%. For such property, a higher deduction (up to a maximum of 100%) may apply for certain eligible vehicles (phase out starting after December 31, 2023).
What’s new with our services
Disability tax credit digitalized web application – The CRA has launched a fully digitalized web application for medical practitioners for the disability tax credit (DTC). This will make the DTC application process easier for persons with disabilities.
Change My Return modernization – Improvements have been made to the Change My Return service in My Account including a new layout, improved search functionality, new interfaces, and less restrictions.
Email notification – Change My Return & ReFILE supporting documents notification – When you use Change My Return or ReFILE, the CRA may ask you for supporting documents. You will receive an e-notification and a letter will be automatically generated (in the preferred official language on your file) advising that supporting documents are required. The letter will be available in the Mail section in My Account.
Payment arrangements – If you cannot pay an existing debt in full, you may be eligible for a payment arrangement. Payment arrangement options have been expanded to reflect current realities. The Payment Arrangement Calculator has also been added to My Account and My Business Account. This self-service tool allows you to submit a potential payment arrangement without having to contact the CRA. If the proposed payment arrangement does not meet the CRA payment policy, a CRA officer will reach out to complete the arrangement.
Taxpayer self-service – A new “Available payment(s)” section is available on the “Accounts and payments” page in My Account. A “Transfer payment(s)” option is available to taxpayers and their authorized representatives to transfer available payments to an existing tax balance or to a current year instalment within the Individual tax account, in real time.
Underused Housing Tax – Services for Underused Housing Tax will be added in both My Account and My Business Account for those that need to manage taxes on properties within Canada and that do not meet the usage requirements.
Protecting you from scams and fraud
To avoid scams and fraud, be aware of when and how the CRA might contact you. The Scams and fraud page provides information on the ways that the CRA may contact you, including by phone, email, mail and text message.
We strongly encourage you to monitor your CRA accounts regularly for any suspicious activity. You can find valuable information on how to secure your CRA accounts on our Security of your CRA My Account and My Business Account page.
The original article can be found here
*The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions, a further review should be done by a qualified professional.
No individual or organization involved in either the preparation or distribution of this text accepts any contractual, tortious, or any other form of liability for its contents.
For any questions, give us a call.
Do you need to prepare your records for year-end and for tax filing?
Let us help!
We offer a wide range of services, including bookkeeping, financial reporting, payroll processing, tax planning and more.
Get started with a free consultation to learn more about how we can help you!
