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What's New by Month in 2022
Life in the Tax Lane January 2023
Topics in this month's 10-minute video for Canadian Tax and Financial Professionals: 2023 Automobile Limits | Individual Instalment Interest | Tax Loss Selling - Corporations | COVID-19 Suspicious/Fraudulent Claims | Tips and Gratuities - GST/HST | EFILE Revocation.
2023 Lifetime Capital Gains Exemption
The exemption for 2023 is $971,190 for Small Business Corporation shares, and $1M for qualified farming or fishing property. Long-term planning is required for this, and professional advice is recommended!
Are Your Tax Credits Changing for 2023?
Turning 65 in 2023? Other tax credits changing? Complete a 2023 TD1 form to give to your employer. Your TD1 forms determine your tax withholdings. Working part time = maybe no tax withholdings.
2022/2023 Investment Income Tax Calculators - All Provinces
These simple calculators show the tax advantage of receiving Canadian dividends over other types of investment income, even if the OAS clawback is increased. Separate calculator for Quebec.
2023 Automobile Operating Cost Benefit
The taxable operating cost benefit for an employer-owned vehicle used by an employee is increased to $0.33 per km, based on kms of personal use by the employee. The rate for automobile sales people is increased to $0.30 per km.
2023 Passenger Vehicle Expense Limitations
The ceilings for capital cost allowances are being increased to $36,000 for Class 10.1 and $61,000 for Class 54. Deductible leasing costs are increased to $950 per month for new leases in 2023. The maximum interest deduction for new automobile loans remains at $300 per month.
2023 Tax-Free Motor Vehicle Allowances
The per km rates that can be paid tax-free to employees and deducted by employers are increased by $0.07 for 2023 to $0.68 per km for first 5,000 km and then $0.62 per km, $0.72 and $0.66 for employees in the Territories.
Federal Budget 2023 Consultations
Have your say by completing the questionnaire, or prepare a formal submission, by February 10, 2023.
The CRA Dental Benefit portal is open until Friday June 30, 2023 for applications related to the first benefit period of October 1, 2022 to June 30, 2023, for children under 12 years of age.
One-Time Rental Housing Benefit Top-Up
The CRA Rental Benefit portal is open until Friday March 31, 2023, for applications for the tax-free $500 rental housing benefit for eligible persons who have paid rent in 2022 for their principal residence and who apply for the benefit.
Quebec Refundable Work Premium Tax Credit
Persons with employment or self-employment income may be eligible for a refundable tax credit. The 2022 amounts vary from $1,025.21 for a single person to $4,523.20 for a couple with children, if one spouse has a severely limited capacity for employment.
RRSP Contributions 1st 60 Days of 2022
These contributions should have been recorded on Schedule 7 of your 2021 tax return. If you omitted them, you need to adjust your 2021 tax return to avoid problems with your 2022 tax return.
Quebec 2023 Tax Credits and Deductions Subject to Automatic Indexation
The Quebec Ministry of Finance confirmed that the indexation factor for 2023 is an increase of 6.44% to those amounts subject to indexation.
Life in the Tax Lane December 2022
Topics: Taxable Benefits - Gift Cards | Fall Economic Statement/Bill C-32 | Extension of Time to Object | Underused Housing Tax | Shared Custody - Redetermined Prior Period Benefits | 2023 Personal Indexation Amounts |CERB/CRB Eligibility - Prior Period Earnings
If you turned 71 in 2022, your RRSP must be converted to a RRIF, or used to purchase an annuity, by Saturday, Dec 31, 2022. If you turned 65, you may want to convert some of your RRSP to a RRIF to take advantage of the pension income tax credit, and perhaps pension splitting with your spouse.
Tax-Free Savings Account (TFSA) Withdrawals
A TFSA withdrawal in any year increases the TFSA room in the following calendar year. If you are thinking of making a withdrawal soon, make it before Saturday, Dec 31st so that your TFSA room will increase by the 2022 withdrawal amount on Jan 1, 2023.
Taxpayer Relief Deadline December 31, 2022
Time's running out to file requests under the taxpayer relief provisions for the 2012 tax year and any reporting period that ended in the 2012 calendar year. If a tax debt arose from an earlier tax year, penalties/interest accumulated from 2012 to 2022 could still be reduced as a result of a 2022 request for leniency.
Last Trading Date for 2022 Gains & Losses to be Recorded in 2022
The last trading date for 2022 for Canadian and US publicly traded stocks is Wednesday December 28th. Stocks purchased or sold after this date are settled in 2023, so any capital gains or losses on sale apply to the 2023 tax year.
Automatic Advance For Canada Workers Benefit (CWB)
Starting in 2023, those who were eligible for the CWB in 2022 will be provided quarterly advance payments, with residual entitlements calculated on the 2023 tax return. It appears that advance payments in excess of recalculated entitlements will not have to be repaid.
Alberta 2023 Budget Consultations
Complete an online survey by January 15, 2023, or send a written submission.
The limit for 2023 is $6,500. Any person who was 18+ in 2009 and has never contributed to a TFSA will have $88,000 contribution room in 2023.
Canada's 1% Underused Housing Tax
All owners of residential property located in Canada, other than many Canadian citizens or permanent residents of Canada must file a declaration by Apr 30/23 as to the current use of the property in 2022. Some Canadian citizens or permanent residents will also have to file a declaration, including owners of private corporations owning residential property. The tax is 1% of the value of underused or vacant property.
BC Speculation and Vacancy Tax Expanded
Effective for the 2023 tax year, to be reported in 2024, the tax is expanded to 6 more municipalities, including 4 on Vancouver Island.
Municipal Vacant Home Taxes Ottawa and Toronto
Both Ottawa and Toronto have passed by-laws to implement a tax of 1% of the assessed value of residential property that has been vacant for more than 6 months in a year, starting with the 2022 calendar year.
New Brunswick 2023 Personal Tax Rates Reduced
New Brunswick announced November 1, 2022 that their personal income tax rates would be reduced for 2023, with one bracket being eliminated.
Saskatchewan 2022/2023 Tax Changes
SK's Bill 89 extends the zero% small business tax rate, and thus delays the increase in the non-eligible dividend tax credit, both by 1 year.
A will allows you to choose your executor, the guardian of your children, and how your assets are distributed. It allows your estate to be settled more easily, quickly and cheaply than if you die without a will.
CPP Maximum Pensionable Earnings for 2023
The 2023 maximum pensionable earnings are up 2.6% for 2023, to $66,600 up from $64,900. The CPP contribution rate for employees and employers is 5.95%, and 11.9% for self-employed. Maximum employee/employer contributions will be $3,754.45, with $7,508.90 for self-employed.
QPP Contribution Rates for 2023
The Quebec Pension Plan maximum pensionable earnings for 2023 is $66,600, with a contribution rate of 6.4%. Maximum employee/employer contribution will be $4,038.40, with $8,076.80 for self-employed.
October 2022Life in the Tax Lane November 2022
Topics in this month's free 10-minute video:
2022/2023 Quebec Detailed Tax & RRSP Savings Calculator
Updated with 2023 amounts indexed for inflation, includes most types of income, tax deductions and credits. Great tax planning tool, helps figure out your RRSP contributions, or your OAS clawback.
2022/2023 Detailed Tax & RRSP Savings Calculator
Updated with 2023 amounts indexed for inflation. Includes income from employment, capital gains, Cdn dividends, OAS, CPP, and more, as well as most tax deductions and credits. Great tax planning tool, helps figure out your RRSP contributions, or your OAS clawback.
Federal Fall Economic Statement
The 2022 Fall Economic Statement will be presented on November 3rd at 4 pm E.T.
Ontario Low-income Individuals and Families (LIFT) Credit
The LIFT credit was increased for 2022. See our examples for a single person and a couple. Use our Detailed Tax & RRSP Savings Calculator to see your own LIFT credit amount.
Ontario Non-Resident Speculation Tax (NRST) Increase
Effective Oct 25/22, the NRST rate is increased from 20% to 25%. This land transfer tax applies to residential property anywhere in Ontario, not just select areas. It applies to foreign buyers, including certain trusts with foreign trustees or foreign beneficiaries.
2018 to 2023 Basic Canadian Income Tax Calculator
Super-simple calculator! See summary of taxes and marginal tax rates all provinces for each type of income - Canadian eligible and non-eligible dividends, capital gains and other income. Compare scenarios easily by changing type/amount of income, province, or tax year.
Our 2023 tax rate tables are available, providing combined federal and provincial/territorial marginal tax rates for capital gains, both types of Canadian dividends, and other income. Federal indexation is 6.3%.
Bill C-30 Goods and Services Tax Credit
Bill C-30, which doubles the GST credit for 6 months, received Royal Assent Oct 18, 2022. Eligible Canadians who already receive the credit will automatically receive their payments starting in early November.
Transfer Capital Losses to a Spouse
Capital losses can be transferred to a spouse by utilizing the superficial loss rules. Your spouse must hold the shares for more than 30 days after your disposition before selling the shares.
Deadline Extension for All CEBA Loans
Banks have started to contact CEBA clients. The repayment deadline is now Dec 31, 2023 for all CEBA loans. Clients who are deemed ineligible will have no forgiveness, but when the loan is repaid can deduct the amount previously included in income.
GST/HST Credit, Dental Benefit, Rental Housing Benefit
CRA online portals have been created in order for applications to be made for the upcoming dental and rental benefits. The portals aren't taking applications yet, but there are questions on them that should be reviewed, to make sure you're ready to apply.
Life in the Tax Lane October 2022
This month's topics:
Capital Gains and OAS Clawbacks
Capital gains can increase OAS clawbacks, even if there are capital losses carried forward to completely offset the gains. See our article to find out how to avoid this.
Jamie Golombek's Fight With CRA Over Home Office Expenses During COVID
Yes, it's finally over, with CRA allowing almost all of Mr. Golombek's home office expenses, shortly after he filed an appeal to the Tax Court, but Tax Court wasn't needed.
Tips and Gratuities - GST/HST, CPP, EI
Tips and gratuities may or may not be GST/HST taxable, and they may or may not be subject to deductions by the employer for Canada Pension Plan contributions and Employment Insurance premiums.
2023 Employment Insurance Rates
The maximum premiums for employees and employers are increasing by 5.2% in 2023 except for Quebec, where employees and employers paying the maximum will pay 7.9% more.
How much can be earned in Canadian dividends (when there is no other income) before regular income taxes are payable, and before alternative minimum tax applies?
All tax comparisons have been revised to reflect the Alberta 2022 indexation.
Should you pay down debt, or contribute to your RRSP? Our calculator may help you, but unless your RRSP returns are going to be consistently higher than the rate on your mortgage or other loan, it is better to pay down your debt.
This calculator may help you decide between contributing to TFSAs or RRSPs. If you're in the lowest tax bracket (federally up to $50,197 in 2022), use TFSAs first!
2021/22 Investment Income Tax Calculator - Revised for AB 2022 Indexation
This calculator shows the big difference in taxes payable on different types of investment income. Even when the age credit and OAS are clawed back, Canadian dividends/capital gains result in the least taxes payable when compared to other types of income such as foreign dividends and interest.
Detailed Canadian Income Tax and RRSP Savings Calculator 2021/22 - Revised for AB 2022 Indexation
This calculator includes the most common (and some less common) types of income, deductions and tax credits - use for your 2022 tax planning.
Basic Income Tax Calculator (Enhanced) - Revised for AB 2022 Indexation
Super-simple calculator for 2022 and earlier years: great for estimating taxes on eligible & non-eligible Cdn dividends, capital gains and other income. Shows all provinces, marginal tax rates, compares 2 scenarios to get the tax difference. Very useful for individuals as well as tax professionals and financial planners!
Alberta 2022 Non-Refundable Personal Tax Credits
Our table of 2022 non-refundable tax credits has been revised to reflect the Alberta 2022 indexation.
Alberta Personal Tax System Indexation
Premier Kenney announced that indexation of the Alberta Personal would begin again, retroactive to January 1, 2022. Our tax rate tables have been revised.
How Much Money Do You Need To Retire?
Answer: $1,061,246. Unfortunately, it's not that simple, and depends on your goals. We have some tools that can help you plan ahead for your retirement.
Barter and Cryptocurrency Transactions - Tax Implications
Do you trade goods or services which you would normally sell in the course of your business? Have you started using crypto for transactions, or investing in crypto? There can be sales tax or income tax implications.
How Are RRSPs and RRIFs Taxed at Death?
RRSP/RRIF proceeds are included in decedent's taxable income, but tax can be deferred by rolling over to spouse beneficiary or certain other beneficiaries.
Life in the Tax Lane September 2022
Topics: GST/HST Input Tax Credit - REOP | Accelerated Investment Incentive Property - Renovations | CCA Retroactive Adjustment |Disability Tax Credit Changes | Draft Legislation Electronic Filing & Payments and Trust Reporting Rules.
Sale of Capital Property Made in a Foreign Currency
It appears that the CRA policy about converting the proceeds of disposition (but not the adjusted cost base) to Cdn$ has changed - the annual average exchange rate in effect at the time of the sale can be used.
Used Zero-Emission Vehicles (ZEVs) 100% Capital Cost Allowance (CCA)
Due to a legislative change in 2021, used vehicles purchased after March 1, 2020 are eligible to be included as ZEVs for enhanced CCA rates in the first year.
2022 Top Marginal Tax Rates in Canada
There are only 2 provinces with a top marginal tax rate less than 50%. The province with the highest rate is NL, lowest is SK. BC has the lowest provincial average rate for $100K of other income.
2022 Tax Comparisons Dividends vs Interest
Taxes paid at varying levels of eligible and non-eligible dividends and interest for all provinces and territories. The lowest-tax provinces for $70K of eligible dividends are AB and BC.
2022 Seniors Tax Comparisons Dividends vs Interest
Compare taxes paid in each province/territory by a senior with eligible dividends vs other income (foreign dividends, interest, etc.) - see how the taxes (including OAS clawback) are significantly lower with eligible dividends. BC is the lowest tax province in these analyses.
2022 Tax Comparisons Employment Income
BC, Ontario, and Alberta are the lowest tax provinces for a single person earning $80,000. See also comparisons for a single income family with 2 children.
Tax-Free First Home Savings Account (FHSA)
Draft legislation includes many changes re the FHSA. Contribution room can be carried forward, undeducted contributions can be deducted in a subsequent year, many other changes.
Combining Spousal and Non-Spousal RRSPs or RRIFs
Many people have both a spousal and a non-spousal RRSP. In many cases it would be more useful, and perhaps save some administration fees, if the two accounts could be combined into one.
Deemed Disposition of Property
A taxpayer can be deemed to have disposed of capital property at fair market value (FMV) in many situations including: In-kind transfers of securities | Gifts of property | Change in use of property | Emigration from Canada | and death of a taxpayer. Capital gains can result.
Registration of estate as employer | Executor responsibilities | Deemed disposal of assets on death | Digital assets owned at death | Information by province | Canada & CRA resources.
Do you want to disinherit dependent children, or reduce estate gifts to children or a spouse? This can be challenged!
Basic Tax Calculator (Enhanced)
This super-simple calculator is great for estimating taxes on eligible & non-eligible Cdn dividends, capital gains and other income. Shows all provinces, marginal tax rates, and compares 2 scenarios to get the tax difference. Very useful for individuals as well as tax professionals and financial planners!
Life in the Tax Lane August 2022
This month's topics:
How is Canadian Personal Income Tax Calculated?
Federal and provincial income taxes are calculated separately. Both are done on the same tax return, except for Quebec. Using a progressive tax system, tax rates increase as income increases.
2022 Donation Tax Credit Rates
The only rate change for 2022 is the top rate for Newfoundland and Labrador, because of their new top rate income tax bracket.
Official Donation Receipt For Income Tax Purposes
An official donation receipt for income tax purposes is required in order to for a donor to claim a charitable tax credit (personal) or deduction (corporate). Charities are NOT REQUIRED to issue these, so make sure they will before you donate. Know what's included in an official receipt.
Personal Services Business (PSB)
An incorporated contractor who is considered an "incorporated employee" is a PSB, and is subject to higher corporate income tax rates and limited expense deductions.
GST/HST on Meals and Entertainment Expenses For Businesses
If $100 + $14 HST is paid for meals expense there is an input tax credit of $7. The 50% allowable expense is only $50, not $53.50.
Free in 30! / Financial Freedom
Achieving financial independence is definitely more difficult now than in 1968 when we bought our first home, but the steps to achieve it haven't really changed.
See our Business Information page with links to information on corporate and self-employed income tax, business expenses, employees and payroll, payroll taxes, and more.
Life in the Tax Lane July 2022
Topics in this 10-minute video include:
Bill C-19, Budget Implementation Act, 2022, No. 1 Royal Assent
This bill includes the increase in the Home Accessibility Tax Credit, luxury tax on cars, boats and aircraft, immediate expensing of capital assets, making assignment sales of residential housing GST/HST taxable, and many other measures.
2022 Sales Tax Rates PST RST QST GST HST
There have been no changes to sales tax rates so far for 2022, but NL and SK have made some changes to what is taxable or exempt.
Bill C-8 Receives Royal Assent
This bill includes the 1% Underused Housing Tax, enhanced School Supply tax credit, extended Northern Residents Deduction and other measures.
Selling Capital Property Non-Arm's Length For Less than Market Value
This could result in deemed proceeds of FMV to the seller while the recipient must use actual transaction amount as their cost, resulting in double taxation of the difference between FMV and transaction amount.
You have until Friday June 24, 2022 at 3 pm Pacific time to share your views on the 2023 Budget.
GST/HST on Assignment Sales of Residential Housing
Canada Revenue Agency issued GST/HST Notice 323 re GST/HST Treatment of Assignment Sales, proposed by the 2022 Budget.
2022 Provincial Political Contribution Tax Credits
The only change for 2022 is the Ontario refundable political contribution tax credit, as it is the only province that increases its tax credit for inflation.
Life in the Tax Lane June 2022
Topics in this 10-minute video include:
Do you know your rights and responsibilities as an employee or employer? Learn about labour laws, including minimum wages rates, vacation and statutory holiday entitlement.
Late Filing Penalties and Interest
How to file a late tax return, learn what your exposure is to interest and penalties.
Federal & Provincial/Territorial Rebates for Fuel-Efficient Vehicles
Maximum MSRPs have increased for the Federal and Quebec rebate programs. Rebates are also available for BC, NB, NL, NS, PEI, QC and YT. ON has no rebates, but has other benefits for "green" vehicles.
Nunavut 2022 Budget - May 26, 2022
The Nunavut Budget did not have any new tax measures.
BC Increased Rebates for Charging Stations
For a limited time, rebates for EV charging stations will be increased from 50% to 75% of eligible purchase and installation costs.
Changing/Amending Your Tax Return
Discovered a missed tax slip? Missed expenses? It's not difficult to change your tax return, and can be done with the tax software you used to NetFile your return.
Start Your Tax Planning for 2022
Plan ahead so that you are prepared to file your 2022 tax return next year without too much difficulty. Most important to do during the year: store all tax-related documents in one place. If your tax situation is getting more complicated, find a tax professional now, not next tax season!
Unlocking Your Locked-in Pension Accounts
Our article includes links to provincial and federal pension regulators. Contact your pension plan regulator to determine the options for your locked-in account - don't rely solely on your financial institution.
2022 Corporate Income Tax Rates
The only changes for 2022 are the small business (CCPC) rates for PEI, reduced to 1% on Jan 1/22, and SK, reduced to 1% on July 1/22.
Nova Scotia Non-Resident Property Tax Scrapped
The NS Premier announced on May 5th that this tax would be removed but the non-resident deed transfer tax would proceed as planned.
Immediate Expensing of Capital Assets
Bill C-19 tabled April 28, 2022 includes this provision, so claims can be included when you file T2 returns. Returns already filed must wait for Royal Assent before requesting adjustments.
Ontario 2022 Budget - April 28, 2022
Deficits in the billions for at least another few years; LIFT Credit enhancement; New Seniors Care at Home Refundable Tax Credit; Cultural Media Tax Credits modernized.
Topics in this 10-minute video include:
Joint Ownership Avoids Probate
Unfortunately, joint ownership can cause major problems if intentions are not properly documented, leaving questions as to beneficial vs legal ownership. The latest court case involves a BC $3 million lottery winner.
Gift to Spouse for TFSA Contribution - Attribution Rules
When an individual gives funds for their spouse to contribute to a TFSA, once the funds are withdrawn from the TFSA, income and capital gains from those funds will be taxed in the hands of the individual, not the spouse.
Spouse or Common-Law Partner Tax Credit
If your spouse has low income, you may be able to claim a spousal amount tax credit, even if the spouse is a non-resident. If you separated or divorced during the year, this credit may still be available.
RRIF Withdrawals Withholding Tax
There is no tax withheld from the minimum withdrawal amount. Tax is withheld from the amount withdrawn in excess of the minimum amount.
Lending to a Spouse or Child for Investments
Funds loaned to a lower-income spouse or a child can be used to purchase investments, and tax on the investment income will be paid by the lower-income spouse or child at a lower marginal rate. The prescribed rate is currently 1% but will go up to 2% starting July 1, 2022.
Tax issues for students and/or parents: eligibility for tuition, education and student loan interest tax credits, private school tuition fees, deducting moving expenses, child care expenses.
If you've rented out your principal residence, or moved into your former rental property, this change in use causes a deemed disposition, which may result in a capital gain.
Manitoba 2022 Budget - April 12, 2022
New Renters Tax Credit; Increased Education Property Tax Rebate; Exemption and threshold increased for Health and Post-Secondary Education Tax Levy; Community Enterprise Development and Small Business Venture Capital tax credits made permanent.
Attendant care costs can be claimed for persons who are eligible for the disability amount, and in some situations for persons who do not qualify for the disability amount. A limit on attendant care expenses applies if the taxpayer claims the disability amount.
Filing With a Spouse / Marital Status
Joint investment income; tax credits and deductions; how to report your marital status and when to update CRA on a change in your marital status.
What If I Can't Afford to Pay the Tax I Owe?
Always file your tax return on time, even if you can't afford the tax, in order to avoid late filing penalties!! Then talk to Canada Revenue Agency.
Canadian residents may split certain pension income with their resident spouse or common-law partner, if certain conditions are met. This may allow the spouse to claim the pension income tax credit.
Tuition is claimed for the year in which the courses are taken. Some provinces no longer provide this credit. Other credits can be "lost" due to the order in which tax credits must be taken.
2022 Federal Budget - April 7, 2022
Tax-Free First Home Savings Account; Increased Home Buyers' and Home Accessibility Credits; New home reno credit; Property flipping rule; Business tax incentives; Flow-through share changes; Bill C-208 fix; CCPC changes, and much more.
Newfoundland and Labrador 2022 Budget - April 7, 2022
No personal tax or fee increases; elimination of 15% tax on home insurance for 1 year; 3 new business tax credits.
Accessing Former Spouse's Tax Information
Video Tax News provides information on a recent Federal Court case which addressed a taxpayer's request to access her ex-spouse's income tax information.
RRSP MPP and DPSP Contribution Limits
The RRSP contribution limit for 2022 is $29,210 and for 2023 will be $30,780.
CRA Dedicated Telephone Service (DTS) for Income Tax Service Providers
The DTS provides free technical help from experienced CRA officers for small and medium income tax service providers.
Canada Pension Plan Retirement Benefits
Retirement benefits can start as early as age 60, with reduced benefits, or as late as 70, with increased benefits. Those receiving the pension before age 70 and still working will continue to pay into CPP, and will receive post-retirement benefits starting the following year.
Life in the Tax Lane April 2022
Recovery of CERB overpayments; COVID-19 protocol costs; Canada Digital Adoption Program; Money received from offshore accounts; Underused Housing Tax (can affect Canadians); Accessing former spouse's tax information.
The federal budget will be tabled on April 7, at approximately 4 pm EDT.
Nova Scotia 2022 Budget - March 29, 2022
New refundable tax credits for children's sports and arts, and for fertility and surrogacy costs; tax exemption for employment income earned by eligible skilled trades; new deed transfer tax and property tax for non-residents.
Auto-Fill My Return - Always Reconcile to Your Own Records!
The Auto-fill feature allows tax return software to automatically fill in the tax slips in the income tax return. There are reports of some 2021 tax slips missing, so make sure you check this.
Foreign Spin-Offs - Tax Deferral for Distributions
Eligible spin-offs of foreign corporations can be done on a tax-free basis by filing an election with your tax return. CRA provides a list of spin-offs that have been approved for tax deferral.
2022 Climate Action Incentive (CAI) Amounts
The 2022 CAI amounts, which will be paid in quarterly instalments, were announced on March 23, 2022 by the Department of Finance.
Eligible Dependant/Equivalent to Spouse Tax Credit
Eligibility; When can it not be claimed; Only 1 credit per household; Child not resident in Canada; Shared custody; Spouse deceased during year; Additional caregiver amount for infirm dependant.
Saskatchewan 2022 Budget - March 23, 2022
Small business corporate tax rate returns to 1% Jul 1/22 and to 2% Jul 1/23; tobacco tax increases; PST will be on additional items but removed from audiobooks; changes to education property tax, VLT commissions; proposal to take over the carbon tax charges.
Quebec 2022 Budget - March 22, 2022
No personal or corporate income tax changes; $500 one-time cost of living support payment to adults earning up to $100,000; $3 billion deficit for fiscal 2022-23 followed by surpluses in subsequent years.
New Brunswick 2022 Budget - March 22, 2022
Increases for basic personal amount and low-income tax reduction threshold; 3-year phased-in provincial property tax rate reductions; 1-year cap on allowable rent increase.
Internet and Cell Phone Use Expenses
Both can affect business deductions, employee taxable benefits, employment expenses, and GST/HST ITCs. It's important to have business/personal cell phone usage documented to have it accepted by CRA.
New Enhanced Basic Income Tax Calculator
Need to do a quick estimate of taxes payable, and compare 2 different cases? Compare 2 provinces same year, 1 province different income for the same year, or 1 province same income for 2 different years.
Reinvested Distributions From Canadian Exchange Traded Funds (ETFs)
These are reinvested, not paid to you, requiring an increase to your ACB, reducing future capital gains. 2021 final amounts for iShares are now available.
Bookmark this page of links to resources on CRA; Service Canada; Courts and court decisions; Legislation; Foreign exchange, interest rates and CPI; Statistics Canada; Investment resources and more!
Deductible and Non-Deductible Investment Expenses
Besides interest expense, some other expenses can be deducted. Tax return preparation can be deducted in certain circumstances.
Political Contribution Tax Credits
There are separate tax credits for federal and provincial or territorial political contributions. Small political contributions are encouraged by the high tax credit rate on the first part of the contribution. Only the Ontario credit is refundable.
Principal Residence Exemption (PRE) Education Letters
Did you receive a letter from CRA suggesting that you review the exemption you claimed, and adjust if necessary?
Medical Expense Tax Credit (METC)
Medical expenses can be claimed by either spouse, or can be shared; How to determine the 12-month period for expenses; Medical expenses of a deceased person; Have both a spouse and a common-law partner?; Expenses for other eligible dependants.
Yukon 2022 Budget - March 3, 2022
No changes to personal or corporate income taxes were announced.
Northwest Territories 2022 Budget - Feb 22, 2022
No changes to personal or corporate income tax rates; Property mill rates and some fees increase by inflation.
In Kind Withdrawals from RRSP or RRIF
If shares are withdrawn from your RRIF their ACB will be the market value in C$ at the time of withdrawal. This is averaged with existing shares of the same stock in your non-registered accounts. The average ACB is the cost used for an in kind deposit to your TFSA.
CEBA Loan Repayment Extended Repayment Date
The extended repayment date will apply to "eligible CEBA loan holders in good standing", and if you qualify, your financial institution will contact you to provide details. If they don't contact you within a reasonable time, you should contact them.
Life In The Tax Lane March 2022
CRA processing issues - tax credits; Principal residence exemption letters from CRA; Working from home extended relief; Proposed changes CRA admin processes and reporting requirements trusts; Immediate expensing capital assets.
PEI 2022 Budget - February 24, 2022
Basic personal amount increase for 2023, new tax on vaping products, increased tobacco taxes, carbon tax increase as per plan.
Provincial/Territorial 2022 Budgets
The only confirmed future budget dates we have are Saskatchewan March 16th and New Brunswick March 22nd. We have probable timing for other provinces, but not even an estimate for the territories.
RRSP Deadline Tuesday, March 1, 2022
March 1, 2022 is the deadline for making your RRSP contributions for the 2021 taxation year. RRSPs are one of the best tax-saving tools available to Canadians, but if you're currently low income, TFSAs would likely be better for you.
There are a few different ways of splitting income, either with a spouse or child. Some methods of splitting income with a spouse are done only on the tax return, such as pension splitting.
Eligible Dependent / Equivalent to Spouse Tax Credit
Are you a single parent? Or, are you supporting a parent or other dependent relative? The equivalent to spouse tax credit may be available.
2021 OAS One-Time Payment of $500 Taxable
The one-time $500 payment made to OAS recipients aged 75+ is taxable, reported on line 13000 other income. The T4A for this may not be available online yet.
Filing Your Personal Tax Return
There are several ways to file your tax return, including NetFILE and EFILE, File My Return (by telephone), or printing and mailing your return.
The due date for 2021 tax returns & payments is May 2, 2022. Self-employed have until June 15th to file, but payment is due May 2nd.
Community organizations will complete and file your taxes for free if you have a simple tax situation and modest income. Another free option is to use the File My Return service by telephone.
Alberta 2022 Budget - February 24, 2022
No changes to personal/corporate income tax rates; Some education property tax rates increase; Lower tobacco tax rate for smokeless products; Online marketplaces to collect Tourism Levy.
BC 2022 Budget - February 22, 2022
No changes to personal/corporate income tax rates. New "clean buildings" and "clean technology" tax credits; PST exemptions for used ZEVs and heat pumps; PST on private vehicle sales based on greater of reported purchase price and average wholesale value.
BC PST Rebate on Select Machinery and Equipment
Most incorporated businesses can apply for a rebate of PST paid on capital assets purchased between Sep 17, 2020 and Mar 31, 2022. The deadline for applications is Sep 30, 2022.
Has CRA Rejected Your Claim for Home Office Expenses?
Tax expert Jamie Golombek had his 2020 claim for home office expenses for working from home during the pandemic rejected. Learn the steps he's taken to fight the reassessment.
TD1 Forms Determine Your Tax Withholdings
Know how to complete the TD1 when you have multiple jobs or low income, or other situations where you might pay too much or too little tax.
Draft Legislation Released for Consultation - Feb 4, 2022
Draft legislation includes many Budget 2021 proposals. The deadline for submissions for most items is March 7, 2022.
Immediate Expensing of Capital Assets
Draft legislation released for consultation provides for expanded eligibility, to individuals and partnerships as well as CCPCs. Submissions will be accepted on this measure until March 7, 2022.
CPP, OAS and EI Tax Slips Online
Your 2021 CPP OAS and EI tax slips will be available in your My Service Canada Account on February 1st.
For 2021, as it was for 2020, "earned income" includes COVID-19 relief payments for which you receive a T4A or T4E, as well as EI benefits and QPIP benefits.
Working From Home Expenses Calculators
Both CRA and Revenue Quebec have calculators to help you determine the best method to use for claiming home office expenses.
NetFILE, EFILE and ReFILE available Feb 21, 2022
These services will be available starting Monday Feb 21, 2022 for filing 2018 to 2021 tax returns. If doing your own taxes, we recommend using tax software to NetFILE the return.
Life in the Tax Lane February 2022
Case for deferring CPP benefits | COVID treatment employment benefits and WFH expenses | Worker's Comp. re accident at home | Income-splitting loans | CRA focus areas | Expanded trust reporting rules.
Age Amount Tax Credit and Clawback
There are federal and provincial/territorial age amount tax credits for those aged 65+, which are reduced when income exceeds a certain threshold.
Why You Should File a Tax Return Even if You Don't Owe Tax
Filing a tax return allows you to receive refundable tax credits, GST/HST credit, and to establish eligibility for government benefits. The sale of a principal residence must be reported on a tax return.
Filing Your Tax Return - Income, Deductions, Tax Credits
Make sure you take advantage of available deductions and tax credits! See our info on this as well as reporting investment and other income, tax return due dates, filing with a spouse, dealing with CRA and more.
RRSP/RRIF Withdrawal Calculator
Use our calculator to determine your 2022 minimum annual withdrawal, and to estimate your earnings and withdrawals for the next 40 years. Works for non-registered also!
If your status as a "developing farm" has been revoked, it's important to know that there is no deadline for achieving gross annual value requirements for a developing farm, despite the "projected" date for doing this. Jan 31st is the deadline to appeal your assessment.
Ontario 2022 Budget Consultations
The deadline for submissions for Ontario's 2022 Budget consultations is February 11, 2022. Manitoba's consultations deadline is January 31, 2022.
CEBA Loan Repayment Deadline Extended
The repayment deadline is now Dec 31, 2023, for all eligible borrowers in good standing.
Old Age Security (OAS) Clawback
Your OAS is taxable, and if your net income before adjustments (which also means before deducting loss carry-forwards) exceeded $79,845 in 2021 you will have to repay 15% of your income over that amount, to a maximum of the total OAS you received.
Web Forms are now available for employers to file up to 100 T4 slips. Wages paid in Jan 2022 re Dec 2021 do NOT go on the 2021 T4 slip.
The 2022 threshold for the BC home owner grant is $1,975,000. Grant amounts have not changed. If there are multiple residences on 1 property, the assessed value may be able to be "partitioned" if it exceeds the threshold.
Record the Year End Mileage From Your Odometer!
If you haven't been keeping a trip log for the business use of your vehicle, best to start now. This is important for business owners as well as employees driving a company vehicle.
Transfer Shares to a Registered Account, But Not at a Loss!
You can make your RRSP contribution with an in kind transfer of shares. However, if you transfer shares on which there is a loss, the loss will not be deductible. If you transfer shares on which there is a gain, you will have a taxable capital gain.
Historical Returns on Investments - Stocks, Bonds, T-Bills
2021 was an amazing year for stocks. See returns for up to 72 years, and growth of $1,000 invested. Over the past 20 years one would lose money after inflation by investing in Cdn 3-month T-bills or Cdn government 1-3 year bonds.
Use our calculator to determine your returns for 2021 or any time period for a particular investment or investment account, or your entire portfolio.
Reporting Foreign Income and Expenses on the Tax Return
All income and expenses must be reported on your tax return in Canadian dollars. The average US exchange rate for 2021 is 1.2535, which can be used for dividends and proceeds of sale (as per CRA policy), but not for adjusted cost basis.
See also Prior Years:
Revised: May 01, 2023
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