Tax season is upon British Columbia residents and the Canada Revenue Agency (CRA) is getting ready to answer questions from taxpayers and make it easier and quicker for them to file their 2022 income tax and benefit return.
The CRA wants to make sure each taxpayer receives the benefits and credits they are entitled to. There are many advantages of filing an income tax and benefit return every year.
The deadline for most British Columbia residents to file their income tax and benefit returns for 2022 is April 30, 2023. Since 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.
Updates to 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 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. The airfare tables contain more than 135 airports, almost all of which are located in the prescribed zones.
Canada Dental Benefit – The new interim Canada Dental Benefit is available to eligible families earning less than $90,000 per year.
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. For more information, go to https://www.canada.ca/en/services/taxes/child-and-family-benefits/top-up-canada-housing-benefit/who-apply.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.
Payment arrangements – If you cannot pay an existing debt in full, you may be eligible for a payment arrangement. Payment arrangement options have been expanded to reflect current realities.
Advantages of filing
You will be able to file your 2022 income tax and benefit return electronically starting on February 20, 2023. There are many advantages to filing your taxes. Canadians who had a tax refund in 2022 received an average of $2,092. Another advantage to filing is that you may be eligible to receive federal and provincial benefit and credit payments. Last year, eligible British Columbia residents received an average of:
- $6,100 in Canada child benefit (CCB) payments
- $450 in goods and services tax/harmonized sales tax (GST/HST) credit payments
To receive benefits and credits, you need to file an income tax and benefit return – even if you have no income to report for 2022 or if your income is tax exempt.
Getting started
Steps to get ready for filing – Not sure where to start? Visit https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/get-ready-taxes.htmlfor the latest tax information. We have eight steps that will help you prepare to file.
Register for My Account – Over 2.4 million British Columbia residents are already registered for My Account. My Account is our online portal for individuals where you can find your tax information and access many of the slips you need to file your income tax and benefit return.
Learn about your taxes – The CRA has launched a free online learning tool 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.
Need help doing your taxes? – If you have a modest income, a simple tax situation, and require assistance, a Community Volunteer Income Tax Program (CVITP) volunteer may be able to do your taxes for free. The CVITP helped over 91,300 British Columbia residents complete and file tax returns last year. To find a clinic, please visit our Free tax clinics page.
