I hope that 2022 has treated you well. There have been a few changes during the year.
Please read through this letter and the attached checklist of income and deductions, and use it to assemble your information for me. If you had a proprietorship (self-employed income) or rental income, there are additional checklists created just for you. If you need either one, just let me know, and I’ll send it to you.
You can also download them here.
E-file Opens: February 20th (not yet confirmed by CRA)
(first date to file)
First 60 Days for RRSP: ends March 1st
Standard Filing Date: May 1st (Apr 30th is a Sunday)
Interest Start Date: May 1st (April 30th is a Sunday)
(interest date for proprietorships owing tax or CPP)
Filing Date (self-employed): June 15th
Personal tax brackets (Provincial and Federal), personal exemption and other tax credits (age, dependent, etc.) have been adjusted for inflation.
Increases in federal personal credit are scheduled for 2023. No additional adjustments for inflation for this tax credit are planned (an increase of $602 over 2022). The federal personal credit for 2022 is 14,398.00.
The tax-free savings accounts (TFSAs) additional contribution room for 2023 is $6,500. If you have not made any TFSA contributions to date, your total contribution room would be $88,000. If you have made TFSA contributions in the past, please contact me to find out your current limit. Any withdrawals made in 2022 will increase your 2023 limit.
Significant changes to the CPP maximum annual pensionable earnings and contribution rates continue on January 1st, 2023. In 2023 the contribution rate increases to 5.95% from 5.70%, and the maximum annual pensionable earnings increases to $66,600. (Employee contributions increased by a maximum of $254.65 over last year)
Many of you worked from home during the pandemic, and you may be entitled to claim an “office-in-home” deduction this year. To qualify, you must have worked at home for more than 50% of your scheduled work time during four consecutive weeks (it doesn’t matter if you’re part-time or full-time, just the percentage you worked at home). Details are similar to last year, and the government has confirmed an extension of this option for 2022. You can claim $ 2.00 per day working from home credit to a maximum of $500.(250 days to reach max claim) No confirmation by CRA on this credit for 2023. This could indicate that this option may not be available for 2023.
CRA has been moving to require My Account for all taxpayers. (Several benefits are now only available through this or by calling in by phone) This year this has been expanded to the authorization process for business accounts. This has not yet happened for personal tax authorizations, but I expect to see this change in the next few years.
CRA has increased the interest rate on outstanding balances to 8% starting January 2023.
There are three designations for TFSA: Estate, Beneficiary and Successor holder. Only a spouse (Married or Common Law) can be the successor holder. This designation allows the transfer of the balance without impact to the TFSA room of the successor, so it is worth checking to ensure that this is set up correctly.
There were several non-taxable payments during the year. Payments could include GST (including extra November payment), BC climate tax credit, rent subsidy top-up, and children’s (under 12) dental coverage credits. I have a link to the details of dental and rent subsidy programs included on my business Facebook page
Outside of CRA, amounts from ICBC (fuel and rebate amounts) and Hydro credits would be considered a reduction of premiums and would be non-taxable