Getting ready to file your personal taxes?

These updates and resources will help put you on track to meet the deadline 

Canada’s federal tax deadlines are approaching, and these helpful updates and resources will help you file your personal taxes (this year due on May 2, 2022 since April 30 falls on a Saturday) with ease.

KNOW WHAT’S CHANGED

Each year, there are updates Canadians need to be aware of when filing their personal taxes, particularly with the shifts and changes in response to COVID-19.

Those who received COVID-19 benefits should review tax treatment updates, including changes to targeted interest relief.

Simplified home office expense rules, introduced for 2020 tax returns for employees working from home due to the pandemic, are once again available. For those using the flat rate method, the maximum claim has been increased to $500 (from $400 last year) for a maximum total of 250 working days (up from 200 days last year). There are two methods that can be used to determine the deduction. These rules will apply next year as well.

Those eligible for the climate action incentive (CAI) payments will receive refundable credits in quarterly payments starting July 2022 in applicable provinces. Although the credit will not be claimed on your return, you will be required to tick a box on Schedule 14 of your return if you live outside a census metropolitan area.

Finally, administrative relief extended for Canadian-resident cross-border workers with respect to 2020 tax obligations will also apply in 2021.

TAKE ADVANTAGE OF DIGITAL SERVICES

There are quite a few digital filing services offered by the CRA including Auto-fill my return and NetFile, both of which can be accessed through tax preparation software. If you need to make a change to your tax return, you can do so via your CRA My Account profile or using ReFile, if you are using software that includes this feature.

Accessing or managing your personal income tax and benefit information, managing your tax affair or updating personal information can be done with a My Account profile or the MyCRA mobile app. Benefit recipients can quickly access benefit and credit eligibility and payment details with the MyBenefits CRA mobile app.

The CRA also provides email notifications with updates if a valid email address is on file with one of these online accounts. An individual can also gain access to another person’s account to manage personal taxes on their behalf, via the Represent a Client service.

Other digital services include the Tax Information Phone Service (TIPS), downloadable forms and publications, a child and family benefits tax calculator for those eligible, a non-resident tax calculator, disability tax credit tools and electronic mailing lists that you can be added to in order to receive CRA updates on subjects of interest.

Refunds and payments can be initiated in several ways including direct deposit ad pre-authorized debit.  

Caledon Accounting’s Blogs are intended for informational purposes only and do not constitute advice or an opinion on any issue. We would be please to provide additional details or advice about specific situations if desired.

Source: Sophie Nicholls Jones (2022, March 16). Guidance to help you stay ahead this tax season. CPA, Canada Tax News. https://www.cpacanada.ca/en/news/canada/2022-03-16-tax-resources