What You Should Know About Filing Your Personal Taxes in 2022

January 19, 2022 | Written by: Sohail Afzal

Personal Taxes

Our second pandemic tax season has ended, and we are again unsure of what to expect during the filing process. 

As many Canadians were forced to work from home last year due to COVID-19 lockdowns, taxpayers naturally wondered what employment-related expenses they might be able to deduct from their tax returns. Several questions were asked regarding the usage of masks, office furniture, and internet and telephone equipment. It seems that there have been concerns about how benefits provided by the federal government, such as the Canada Emergency Recovery Benefit (CERB) and its successor, the Canada Recovery Benefit (CRB), will be taxed. 

The same questions are being asked this year, as it’s unclear whether the emergency claims from 2020 will be carried over into the current year, changed, or eliminated. There is also uncertainty when the federal government will implement several new deductions, credits and benefits that were promised in the last budget. However, here is the latest information about filing your 2021 taxes.

When is Income Tax Due in 2022?

April 30, 2022, is a deadline for anyone who needs to file their 2021 personal income tax return and benefits statement. The deadline for those self-employed individuals is June 15, 2022. You have until April 30, 2022, to make the payment if you owe any taxes. 

What is the Canada Worker Lockdown Benefit?

In the aftermath of a minority government being elected by Liberals on the 20th of September, the party announced plans to assist Canadians, including the Canada Worker Lockdown Benefit. As a result of the CRB ending on Oct. 24, workers affected by lockdowns are now eligible for a new benefit of $300 per week, which came into effect on that same date. People who could not qualify for Employment Insurance can also take advantage of this benefit. This benefit is valid until the end of May 2022.

There is no difference between CERB and CRB in tax treatment, and both must be reported on your 2020 and 2021 tax returns. This is likely to be the case for the new benefit as well. If your tax bracket was higher in April 2021, then you might find yourself with a bigger tax bill.

What Expenses Can You Claim on a T2200?

Those who work remotely in 2020 will have the option to deduct up to $400 in-home expenses as part of their taxable income, without the need to keep receipts or get a signed T2200 form from their employers. In addition, employees could receive tax-free reimbursements for home office equipment, such as desks and chairs, up to $500 in 12 months. 

The government included a promise in its election platform that it will extend the above simplified deduction through the tax year 2022. It also promised that the amount would be raised to $500. As of yet, any specific details are not available. 

Is There Any Tax on Digital News?

The answer depends on how you look at it. You might be interested in taking advantage of this new federal non-refundable tax credit if you subscribe to a Canadian online news source. You must have paid for digital news subscription expenses after 2019 and before 2025, and the news sources must be listed as qualified Canadian journalism organizations to qualify. 

If you are eligible, you can claim this credit for 2020 through 2024 by filing a tax return with line 31350. If you have a federal personal income tax rate of 15 percent or lower, then the amount you can claim is calculated by multiplying the total of all your qualifying subscriptions by the minimum amount of the federal tax credit, up to a maximum claim amount of $500.

Final Thoughts

You read it. You have to file your taxes by April 30, 2022, if you don’t want to incur any charges or penalties. Make sure you contact a reliable and trustworthy accounting firm in Toronto that can help you prepare and file your taxes. At GTA Accounting, our CPA ensures that your taxes don’t have any mistakes and that you file them ahead of time. They also help you save as much money as you can through tax deductions and benefits.

Sohail Afzal CPA Toronto

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.

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