Everything You Need to Know About Tax Season 2022 in Canada
April 25, 2022 | Written by: Sohail Afzal
It’s that time of year again! The snow is starting to melt, the birds are beginning to sing, and tax season is just around the corner. In Canada, tax season runs from January 1st to April 30th. If you’re a Canadian citizen or resident, it’s important to file your taxes every year. Failing to do so can result in hefty fines and penalties. This year, make sure you’re prepared for tax season by learning about the changes and updates that will be taking place. This year’s tax season might look different than seasons past due to changes in the federal budget, but don’t worry—we’re here to help make sure you’re prepared. Here’s everything you need to know about tax season 2022 in Canada.
What Should Self-Employeed People Know About Tax Season 2022?
If you’re self-employed, the first thing you need to know is that the deadline to file your taxes has been moved up to June 15th. This change was made in order to align with the new federal budget. You’ll have until September 30th to pay your tax bill if you owe money. In addition, if you’re owed a refund, you can expect to receive it within eight weeks of filing your return.
What’s new for Corporations in Tax Season 2022?
For corporations, the biggest change is the introduction of the carbon tax. This tax will be applied to fuel consumption and will be based on the amount of greenhouse gas emissions produced. The tax will be phased in over a period of four years, starting in April 2022. The government has also announced that it will be increasing the small business deduction limit from $500,000 to $750,000. This change will come into effect on January 1st, 2023.
What About Personal Taxes?
For individuals, the biggest change is eliminating the public transit tax credit. This credit was introduced in 2006 and allowed Canadians to claim a tax credit for the cost of public transit passes. The government has also announced that it will be introducing a new Canada Training Benefit. This benefit will provide financial assistance to workers who need to take courses or training programs to improve their skills. The benefit will be available starting in January 2023.
Changes to Tax Brackets
The government has also announced changes to the tax brackets for 2022. These changes are as follows:
- The first tax bracket will be increased from $12,298 to $13,000
- The second tax bracket will be increased from $47,285 to $50,000
- The third tax bracket will be increased from $85,475 to $90,000
Elimination of the Education and Textbook Tax Credits
The government has announced that it will eliminate the education and textbook tax credits for 2022. These credits were previously available to students enrolled in a post-secondary education program.
As you can see, a few changes are taking place for tax season 2022. But don’t worry—we’re here to help make sure you’re prepared. We’ll ensure you get the maximum refund or pay the least amount of taxes possible. Contact us today to learn more about how we can help you with your taxes.
What Should Small Business Owners Know About Tax Season 2022?
If you’re a small business owner, it’s important to note that the tax rate for corporations has been lowered from 15% to 13%. This change is effective January 2021 and will apply to the 2022 tax year. In addition, the government has introduced a new Small Business Deduction (SBD) of $2000. This deduction can be claimed on eligible business expenses, such as office rent, supplies, and equipment.
What You Need to Know About Filing Your Taxes Online
The good news is that filing your taxes online is easier than ever before. Several different software programs are available that can help you complete your return with ease. The CRA also offers a number of online tools and resources that can help you understand the tax filing process. If you’re new to filing your taxes online, we recommend checking out the CRA’s e-File service. This service allows you to file your return electronically and receive your refund faster.
We hope this blog post has provided helpful information on what to expect during tax season 2022 in Canada. If you have any questions or concerns, speak with your accounting firm or tax professional. They will be able to provide you with the guidance and support you need to ensure a successful tax season. Thanks for reading, and happy filing!
What are you most looking forward to about tax season 2022? Let us know in the comments below!
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.