Sign up for direct deposit and file electronically to get your refund faster
Tax season has officially kicked off and many Canadians will turn to the Canada Revenue Agency (CRA) for guidance.
For most Canadians, the deadline to pay their taxes and file their return for 2022 is April 30, 2023. Because this date is a Sunday, a return will be considered filed on time if the CRA receives it, or it is postmarked, on or before May 1, 2023. A payment will be considered made on time if the CRA receives it, or a Canadian financial institution processes it, on or before May 1, 2023.
Over 28 million income tax and benefit returns were filed online in 2022. Electronic returns filed on time are generally processed within two weeks. If you are registered for direct deposit and you file online, you may be able to get your refund in as little as eight business days.
The CRA has launched a free online learning tool (https://www.canada.ca/en/revenue-agency/services/tax/individuals/educational-programs.html )to help you do your taxes on your own. This tool provides you with lessons that help you understand what taxes are, why we pay them, how to understand your paycheques, pay stubs and income tax slips, and finally, how to do your taxes for the first time.
New benefits, credits and services
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 the week of February 20, 2023, 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.
Canada Dental Benefit – The new interim Canada Dental Benefit is available to eligible families earning less than $90,000 per year. It provides financial support for parents and guardians of children under 12 years old if they receive dental care in Canada and do not have access to private dental insurance. In order to receive this benefit, you need to have filed your 2021 tax return.
One-time top-up to the Canada Housing Benefit – The government introduced a one-time $500 payment to help lower-income renters facing housing affordability challenges. Applications are open until March 31, 2023. To obtain the one-time payment, you need to have filed your 2021 tax return. For more information on the eligibility requirements and how to apply, go to https://www.canada.ca/en/services/taxes/child-and-family-benefits/top-up-canada-housing-benefit.html.
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 – For 2022 and later tax years, the annual expense limit of the home accessibility tax credit has increased to $20,000.
Disability tax credit – For 2021 and later tax years, an individual diagnosed with type 1 diabetes is considered to have met the two times and 14 hours per week requirements for life-sustaining therapy. For more information, go to Disability tax credit.
