Information on the Home office Expense Due to Covid-19
The Canada Revenue Agency (CRA) continues to make the home office expenses deduction available to more Canadians, and simplified the way employees can claim these expenses on their personal income tax return for the 2022 tax year. Employees with larger claims for home office expenses can still choose to use the existing detailed method to calculate their home office expenses deduction.
Employees who worked from home more than 50% of the time over a period of a least four consecutive weeks in 2022 due to COVID-19 will now be eligible to claim the home office expenses deduction for 2022. The use of a shorter qualifying period will ensure that more employees can claim the deduction than would otherwise have been possible under longstanding practice.
A temporary flat rate method will allow eligible employees to claim a deduction of $2 for each day they worked at home in that period, plus any other days they worked from home in 2022 due to COVID-19 up to a maximum of $500. Under this new method, employees will not have to get Form T2200 or Form T2200S completed and signed by their employer.
A copy of Employees Working from home questionnaire to see if you qualify is available in the worksheets tab.
Canada Recovery Caregiving Benefit (CRCB) - (until May 7, 2022)
The Canada Recovery Caregiving Benefit (CRCB) will provide $500 per week (taxable, tax deducted at source) for up to 26 weeks per household for workers unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19, or because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19. This benefit will be paid in one-week periods.
Canada Worker Lockdown Benefit
(replacing the Canada Recovery Sickness Benefit (CRSB))
The benefit will provide $300 per week (taxable, tax deducted at source) to eligible workers who are unable to work due to a local lockdown anytime between October 24, 2021 and May 7, 2022.
Canada Recovery Sickness Benefit
Until May 7, 2022 and to increase the maximum duration of this benefit by two weeks (six weeks total).
The CRSB provides $500 ($450 after taxes withheld) per week for up to a maximum of four weeks, for workers who:
- are unable to work for at least 50% of the week because they contracted COVID-19
- are self-isolated for reasons related to COVID-19
- • have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19.
To access information on Canada's Covid-19 Transition to new benefits, please follow the link below:
On Going Credits and Updates
Canada Worker's Benefit
The working income tax benefit (WITB) has been renamed as the Canada Workers Benefit (CWB).
The CWB is an enhanced, more accessible, refundable tax credit that is intended to supplement the earnings of low-income workers. As of the 2022 tax year, you may choose to include or not include tax-exempt income when you calculate the CWB. The benefit has two parts: a basic amount and a disability supplement.
Disability Support Deduction
For individuals who have an impairment in physical or mental functions and have paid for certain medical expenses can, under certain conditions, claim the disability supports deduction.
If you paid for expenses so that you could:
- Go to School
- Do research for which you received a grant
Only the person with the disability can claim expenses for this deduction.
Cliamate Action Incentive
The climate action incentive (CAI) Will now be issued as a quarterly benefit starting in April 2023. For couples, the credit will be issued to the spouse or common law partner whose tax return is assessed first.
First payments will be April 15, 2023 through to January 2024.
Payments are based on:
- First Adult - $488
- Sponsor - $244
- Family of Four - $976
Teacher and Early childhood educator school supply credit
This measure will allow an employee who is an eligible educator to claim a 25% refundable tax credit based on an amount of up to $1,000 of purchases of eligible teaching supplies by the employee in a taxation year.
Principal Residence Exemption
The principal residence exemption is an income tax benefit that generally provides you an exemption from tax on the capital gain realized when you sell the property that is your principal residence.
Starting with the 2016 tax year, individuals who sell their principal residence will have to report the sale on Schedule 3, Capital Gains of the income tax and benefit return. Reporting will be required for sales that occur on or after January 1, 2022 for the year.
Child Benefit Credit
You must apply for the Canada Child Benefit. A link to this application form can be found on our CRA DOCUMENTS page.
If you delay in filing your tax return or do not file for numerous years, you may be required to re-apply for the Child Benefit by filing out a full application. The CRA will only re pay three years of credit. Any year payments beyond the 3 years will be lost.
Child Care Expense Deductions
The Government has increased the dollar limits of the Child Care Expense Deduction from $7,000 to $8,000 per child under the age of 7; from $4,000 to $5,000 per child aged 7 to 16; from $10,000 to $11,000 per child who are eligible for the disability tax credit.
Provincial Credits and Measures
Support for Individuals
Support for Businesses
Ontario Staycation Tax Credit
If you are an Ontario Resident at December 31, 2022, you can claim eligible expenses you or your family paid for accommodation expenses for leisure stay of up to a month in Ontario. The limit for the claim is $1,000 for an individual and $2,000 for the family. Only one person of the family can claim the credit. For more information please click the link to read more: https://www.ontario.ca/page/ontario-staycation-tax-credit
The Low-Income Individuals and Families Tax Credit (LIFT)
The non-refundable Low-income Individuals and Families Tax (LIFT) Credit provides up to $850 in Ontario Personal Income
Tax relief to low-income Ontario taxpayers who have employment income, including those earning minimum wage.
With this credit, a single person who works full-time at minimum wage (earning nearly $30,000) with no other income will receive $850
in Ontario tax relief and pay no Ontario Personal Income Tax. Those who earn more than $30,000 will receive less tax relief.
A tax filer who is a Canadian resident, lived in any province or territory at the beginning of 2020 and who lives in Ontario at the end of the year will be eligible for this credit.
Tax filers who will not receive this tax relief will include those who have:
- No Ontario Personal Income Tax payable
- No employment income
- More than $38,500 in adjusted individual net income
- More than $68,500 in adjusted family net income, or
- Spent more than six months in prison during the year
Child Care Access Relief
The CARE tax credit would be on top of the existing Child Care Expense Deduction (CCED) and focus benefits on low- and moderate-income families. Families could receive up to $6,000 per child under seven, up to $3,750 per child between the ages of seven and 16, and up to $8,250 per child with a severe disability.
This new CARE tax credit would provide about 300,000 families with up to 75 per cent of their eligible child care expenses and allow families to access a broad range of child care options, including care in centres, homes and camps.
The Ontario Sales Tax credit - Ontario Energy and Property Tax credit, and Northern Energy Credit (currently paid MONTHLY) are combined in a new Ontario Trillium Benefit.
You will have the option to elect to receive this payment in one lump sum in June 2024.
If you wish to continue receiving the payment monthly you do not have to make the election. Please inform the tax preparer.
First-time donor super credit
Qualifying first time donors may receive an additional federal tax credit of 25% on the first $1,000 of monetary donations, over and above the amounts indicated on this page.
If you have a spouse or common-law partner, you can share the claim for the FDSC, but the total combined donations claimed cannot be more than $1,000.
An eligible first-time donor claims $700 of charitable donations in 2013 or subsequent years, of which $300 are donations of money. The charitable donations tax credit (CDTC) and the first-time donor’s super credit (FDSC) would be calculated as follows:
- On the first $200 of charitable donations claimed, the CDTC is ($200 x 15%) = $30
- On the donations claimed in excess of $200, the CDTC is [($700 − $200) x 29%] = $145
- On the donations that are gifts of money, the FDSC is ($300 x 25%) = $75
- The total of the CDTC and FDSC is $250
Tax Free Savings Account Conribution Continues
The annual TFSA dollar limit is $6,500 and will be subject to indexation. Contributions to a TFSA and the interest on money borrowed to invest in a TFSA are not tax deductible. The income generated in the TFSA is tax-free when withdrawn.
The Volunteer Firefighters Tax credit
Volunteer firefighters performing their volunteer firefighting services for at least 200 hours during the year may claim a new non-refundable tax credit calculated at 15% of $3,000. The credit will replace the exemption of up to $1,000 received from a government, municipality or public authority for those services and that volunteer firefighter will not be able to claim anymore.
The Medical Expense Tax Credit
The $10,000 limit applicable to medical expenses that a taxpayer may consider to calculate the Medical expense tax credit in respect of a dependent relative ( child over 18, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece, or nephew) is eliminated.
Ancillary fees and charges ( cost of examination materials) and examination fees paid for examinations required to obtain a professional status ( e.g. law bar or C.A. exam) or to be licensed to practice a profession or a trade in Canada are now eligible expenses to claim non-refundable tuition tax credit.
Basic Personal Amount
The new basic personal amount, the spouse, common-law amount, and the eligible dependent amount are increased from $13,808 to $14,398.
The age credit amount is $7,898. The net income level at which the credit starts is $ 39,826 or less. The age credit will be adjusted accordingly if your income is more than this amount but less than $92,479.
Personal Tax Brackets
2022 Federal Tax Rates:
- 15% on the first $50,197 of taxable income
- 20.5% on the next $50,195 of taxable income (on the portion of taxable income over $50,197 up to $100,392)
- 26% on the next $55,233 of taxable income (on the portion of taxable income over $100,392 up to $155,625)
- 29% on the next $66,083 of taxable income (on the portion of taxable income over $155,625 up to $221,708)
- 33% of taxable income over $221,708
Provincial Tax Rates
2022 Provincial Rates will be:
- first $46,226 at 5.05%
- over $46,226 to $92,454 at 9.15%
- over $92,454 to $ 150,000 at 11.16%
- over $150,000 to $220,000 at 12.16%
- over $220,000 at 13.16%
For All Tax Rates Please Follow Link to CRA
Working Income Tax Benefit
The Working Income Tax Benefit (WITB) is a refundable tax credit intended to provide tax relief for eligible working low-income individuals and families who are already in the workforce and to encourage other Canadians to enter the workforce.
Home Buyers Plan
The RRSP withdrawal limit for the Home Buyers' Plan is $35,000 for a single owner and $70,000 for two joint owners.
First-time Home Buyers Credit
First-time home buyers purchasing a qualifying home may claim a non-refundable First-Time Home Buyers Credit (FTHBTC) of $750 for the year of acquisition.
To qualify you or your spouse or common law partner acquired a qualifying home and you did not live in another home owned by you or your spouse or common law partner in the year of acquisition or in any of the four preceding years.
First-time Home Savings Account
Starting in 2022, The Government introduced the Tax-Free First Home Savings Account (FHSA), A tax-free vehicle to save up for the purchase of the home. An individual can save up to $40,000 lifetime, and $8,000 in 2023. The withdrawals are tax-deductible on their personal tax return, but the withdrawals must be used to purchase a home. If a taxpayer doesn’t reach the contribution in any year, the remainder is carried forward. For more information please click the link to read more: https://www.canada.ca/en/department-finance/news/2022/08/design-of-the-tax-free-first-home-savings-account.html
For Individuals Entitled to Claim Disability Tax Credit
The same credit may be claimed for a home acquired by or for an individual entitled to claim a disability tax credit, provided it is more accessible or better suited for the individual and also used as a principle residence within one year from date of acquisition.
For further information on non-refundable credits, please follow the link below to Canada Revenue Agency:
The Registered Disability Saving Plan
A Registered Disability Savings Plan (RDSP) is a savings plan that is intended to help parents and others save for the long-term financial security of a person who is eligible for the Disability Tax Credit.
Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59 years of age. Contributions that are withdrawn are not to be included as income for the beneficiary when paid out of a RDSP. However, the Canada disability savings grant, Canada disability savings bond and investment income earned in the plan will be included in the beneficiary’s income for tax purposes when paid out of the RDSP.
Note: The deadline for opening a RDSP, making contributions and applying for the matching grant and the income-tested bond for the 2022 contribution year is March 1, 2023
The Senior Homeowners' Property Tax Grant
The Senior Homeowners' Property Tax Grant is available to seniors paying at least $500 for property taxes and incomes not exceeding $35,000 for a single and $50,000 for a couple, is increased from $250 to $500. This grant is eliminated if the income reaches $50,000 for a single or $60,000 for a couple.
Ontario Child Benefit (OCB) Program
The Ontario Child Benefit program t will go to low-income families with children under 18 years of age, those working and those on social assistance.
OCB payments are delivered with the CCTB in a single monthly payment. Under the OCB, you may be eligible to receive up to $125.75 per month for each child under 18 years of age. If your adjusted family net income is above $20,000, you may receive a partial benefit.
You can get more information on the OCB program at https://www.ontario.ca/page/ontario-child-benefit
RRSP Contribution and The Benefits of RRSP's
Deadline is March 1, 2023
RRSP'S continue to be one of the best tax shelters the average tax payer can take advantage of. Each $1000 contribution could be worth up to $430 in tax savings.
The maximum dollar amount you can contribute to your RRSP is limited to 18% of your previous years earned income, up to an annual limit.
You can find your RRSP deduction limit on your Notice of Assessment for the previous tax year or by calling:
TIPS Line at CRA 1-800-959-267-6999
RRSP Deduction: Age Limit Change
The age limit to contribute to an RRSP has been increased from 69 to 71 years of age. The taxpayer can contribute to a spousal RRSP until the end of the year in which the spouse reaches 71 years of age and claim the deduction for these contributions.
Claim donations for up to five (5) years. Bring any old, unused receipts.
2021 Notice of Assessment
Please bring in your Notice of Assessment, Revenue Canada may have important information to tell us about your account.
Elected Split-Pension Amount
Starting in 2007, a taxpayer can split his or her pension income with his or her spouse. Pension splitting can reduce tax payable.
Authorizing Us as Your Representitive
As your representative we are able to handle reviews with CRA and adjust your file should you omit any information or receipts. When you sign the Authorizing a Representative form, you allow us to represent you in dealings with CRA. CRA will confirm this authorization with a letter once processed.