Tax Return Changes For 2022 In Canada

Tax rules change every year and 2022 tax year is no exception. We have consolidated all the tax changes by province for your easy consumption. Review the federal change and the province specific changes applicable to you. If you have any questions, you can Contact Us with subject ‘new tax changes’.

Federal Tax Changes

COVID-19 related payments

You may have received federal, provincial, or territorial government COVID-19 payments such as the Canada Emergency Response Benefit. If these amounts are taxable, you will have received a slip, such as a T4A or T4E. They will also be available under My Account on CRA site and can be downloaded automatically using Auto-Fill My Return feature for filing your tax return.

Request to deduct federal COVID-19 benefits repayment in a prior year

A new form T1B (Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year) has been added to request to have the amount of federal COVID-19 benefits that you repaid in 2022 deducted on your 2020 or 2021 return or split between your 2022 return and the return for the year that you received the benefit. The CRA will then automatically reassess your return(s) to apply the deduction so that you do not need to make a separate request to change your prior year return(s).

Critical mineral exploration tax credit

The critical mineral exploration tax credit (CMETC) is a new 30% investment tax credit for the exploration of specified minerals. The CMETC will only apply to expenditures renounced under eligible flow-through share agreements entered into after April 7, 2022 and before April 1, 2027.

First-time home buyers’ tax credit – Line 31270

First-time home buyers’ tax credit has been increased to $10,000.

Home accessibility tax credit – Line 31285

The annual expense limit of the home accessibility tax credit has increased to $20,000.

Employment Expenses for Working at Home Due to COVID-19 – Line 22900

If you worked from home in 2022 due to Covid-19, you may be able to claim work-space in the home expenses and supplies. You can choose simplified method to claim upto $500 without any receipt or you can choose detailed method with all the receipts to claim work-space in the home expenses and supplies. New form T777S has been included for claiming these expenses.

Labour mobility deduction for tradespeople – Line 22900

The labour mobility deduction provides eligible tradespeople and apprentices working in the construction industry with a deduction for certain temporary relocation expenses. Eligible individuals may be able to deduct up to $4,000 in eligible expenses per year as part of employment expenses.

Medical expense tax credit (for surrogacy and other expenses) – Line 33099

The list of eligible medical expenses has been expanded to include amounts paid to fertility clinics and donor banks in Canada to obtain donor sperm or ova to enable the conception of a child by the individual, the individual’s spouse or common-law partner, or a surrogate mother on behalf of the individual.

Basic personal amount – Line 30000

This has increased for most taxpayers to $14,398 whose income is less than $155,625. If your income is more than $221,708, you can claim basic personal amount of $12,719.

Spouse or common-law partner amount – Line 30300

This has increased for most taxpayers to $14,398 whose income is less than $155,625. If your income is more than $155,625, maximum for spouse amount will be limited to your basic personal amount.

Amount for an eligible dependent – Line 30400

This has increased for most taxpayers to $14,398 whose income is less than $155,625. If your income is more than $155,625, maximum amount for eligible dependent will be limited to your basic personal amount.

Alberta tax changes in 2022

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

• Basic personal amount increased to 19,814 ;
• Maximum age amount increased to 5,521 ;
• Maximum spouse amount is now 19,814 ;
• Maximum amount for an eligible dependent is now 19,814 ;
• Maximum BC caregiver amount for dependent increased to 11,470 ;
• Maximum disability amount increased to 15,284 ;
• Maximum adoption amount for eligible child increased to 13,552 ;

British Columbia tax changes in 2022

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

• Basic personal amount increased to 11,302 ;
• Maximum age amount increased to 5,069 ;
• Maximum spouse amount is now 9,678 ;
• Maximum amount for an eligible dependent is now 9,678 ;
• Maximum BC caregiver amount for dependent increased to 4,946 ;
• Maximum disability amount increased to 8,477 ;
• Maximum adoption amount for eligible child increased to 17,131 ;

Training tax credit – Form T1014

Training tax credit has been extended until Dec 31, 2024.

Manitoba tax changes in 2022

Change in provincial non-refundable tax credit

• Basic personal amount increased to 10,145 ;

Renters tax credit

Renters tax credit is a new refundable credit for renters of residential properties. This replaces the renters component of the education property tax credit.

Property tax changes for homeowners

Changes have been made to the education property tax credit, seniors school tax rebate and school tax credit for homeowners.

Community enterprise development tax credit

The community enterprise development tax credit has been made permanent.

Manitoba small business venture capital tax credit for individuals

Small business venture capital tax credit has been made permanent.

New Brunswick tax changes in 2022

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

• Basic personal amount increased to 11,720 ;
• Maximum age amount increased to 5,282 ;
• Maximum spouse amount and amount for an eligible dependent increased to 9,186 ;
• Maximum caregiver amount for dependent increased to 5,108 ;
• Maximum amount for infirm dependent increased to 5,109 ;
• Maximum disability amount increased to 8,757 ;

Newfoundland and Labrador tax changes in 2022

Dividend tax credit for other than eligible dividends

Dividend tax credit for other than eligible dividends has been changed to 3.2%.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

• Basic personal amount increased to $9,803 ;
• Maximum age amount increased to $6,258 ;
• Maximum spouse amount and amount for an eligible dependent increased to $8,011 ;
• Maximum caregiver amount for dependent and amount for infirm dependent increased to $3,113 ;
• Maximum disability amount increased to $6,615 ;
• Maximum adoption amount for eligible child increased to $13,230 ;

Nova Scotia tax changes in 2022

Children’s sports and arts tax credit

You can claim fees paid in 2022 to a person or partnership for the registration or membership of a qualifying child in an eligible program or a club, association, or similar organization, whether inside or outside of Nova Scotia. The maximum amount that can be claimed for 2022 is $500 per child.

Volunteer firefighters and ground search and rescue tax credit

Volunteer firefighters and ground search and rescue tax credit has been moved from Form NS428 to the new Form NS479 for 2022 and later tax years.

Ontario tax changes in 2022

Ontario seniors’ home safety tax credit

This refundable tax credit has been extended for 2022. It would provide up to $2,500 to senior homeowners, renters or people who live with relatives who are seniors, in order to allow them to continue to live independently and safely. The new refundable tax credit is 25% of up to $10,000 in eligible expenses made by or on behalf of an eligible individual for the year. The credit can be shared between more than one individual as long as the total of the eligible expenses does not exceed the $10,000 maximum.

Job training tax credit

This refundable tax credit has been extended for 2022. This would provide up to $2,000.00 to an eligible individual for eligible tuition and other fees paid for courses taken by the individual in 2022. Only an individual, who has a positive Canada training credit limit for the 2022 tax year is eligible for the tax credit. The maximum tax credit will be an amount up to, but not exceeding, the lesser of 50% of the amount allowed on line 32000 on the federal Schedule 11 and $2,000.00.

Ontario staycation tax credit

A temporary, refundable Ontario staycation tax credit has been introduced for individuals or families who have qualifying expenses for leisure accommodation in Ontario in 2022. You can claim upto $2,000 of expenses for a family leisure accommodation.

Ontario seniors care at home tax credit

A refundable Ontario seniors care at home tax credit has been introduced to help low to moderate income seniors with their cost of eligible medical expenses. You can claim up to $5,000 of medical expenses to claim $1,500 of refundable tax credit.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

• Basic personal amount increased to $11,141 ;
• Maximum age amount increased to $5,440 ;
• Maximum spouse amount and amount for an eligible dependent increased to $9,460 ;
• Maximum caregiver amount for dependent and amount for infirm dependent is $5,252 ;
• Maximum disability amount increased to $9,001 ;
• Maximum adoption amount for eligible child increased to $13,593 ;

Prince Edward Island tax changes in 2022

PE volunteer firefighter and volunteer search and rescue personnel tax credit

PE volunteer firefighter tax credit has been increased to 1000 and new volunteer search and rescue personnel tax credit has been added. You can claim $1,000 for this refundable tax credit if you meet the condition to claim similar credit on federal lines 31220 or 31240.

Change in dividend tax credit

Dividend tax credit for non-eligible dividend has been reduced to 1.30%.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

• Basic personal amount increased to $11,250 ;
• Maximum spouse amount and amount for an eligible dependent increased to $9,555;

Quebec tax changes in 2022

Tax credit for home-support services for seniors – Line 458

A number of changes have been made to the tax credit for home-support services for seniors.

• Tax credit rate has been increased from 35% to 36%.
• Tax credit will be reduced if your family income is over a certain amount. For dependent seniors, the reduction is based on a single threshold. For non-dependent seniors, it is based on two thresholds.
• For seniors living in an apartment building, the maximum monthly rent for calculating your eligible expenses has been increased from $600 to $1,200/month. There is now a $600 minimum monthly rent for calculating your eligible expenses.

Tax credit for childcare expenses – Line 455

Beginning in 2022, receipts for childcare services will no longer be accepted. Everyone who provides paid childcare services in Québec will be required to provide an RL-24 slip for their services so that parents can claim the tax credit.

Tax credit for the upgrading of residential waste water treatment systems – Line 462 Point 33

The period for entering into a contract with a qualified contractor has been extended five years to March 31, 2027.

Home buyers’ tax credit – Line 396

For a qualifying home purchased on or after January 1, 2022, the maximum tax credit has been increased from $750 to $1,500.

Medical expenses – Line 381

The list of eligible medical expenses has been expanded to include amounts paid to fertility clinics and donor banks in Canada to obtain donor sperm or ova to enable the conception of a child by the individual, the individual’s spouse or common-law partner, or a surrogate mother on behalf of the individual.

Additional tax credit for a large cultural donation – Line 395

The donation deadline of January 1, 2023, for the additional tax credit for a large cultural donation (equal to 25% of the eligible amount of the donation) has been eliminated.

Change in dividend tax credit – Line 128 and 415

The rate of the dividend tax credit applicable to the actual amount of ordinary dividends went from 4.6115% to 3.9330%.

Tax credit for taxi drivers and taxi owners – removed

Tax credit for taxi drivers and taxi owners has been removed as of 2022.

Deduction for patronage dividends received from a cooperative

The deduction for patronage dividends received from a cooperative was extended for three years instead of being eliminated as planned on January 1, 2023.

Quebec prescription drug insurance plan

The maximum premium for 2022 remains $710.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

• Deduction for workers on line 201 increased to $1,235 ;
• Basic personal amount on line 350 increased to $16,143 ;
• The amount for a person living alone increased to $1,850 on schedule B ;
• Age amount increased to $3,395 on schedule B ;

Saskatchewan tax changes in 2022

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

• Basic personal amount increased to $16,615 ;
• Maximum age amount increased to $5,061 ;
• Maximum spouse amount and amount for an eligible dependent increased to $16,615 ;
• Maximum caregiver amount for dependent and amount for infirm dependent increased to $9,789 ;
• Maximum disability amount increased to $9,789 ;