Tax law changes that affect most taxpayers:
- Request to deduct federal COVID-19 benefits repayment in a prior year
By default, your repayment will be deducted on your 2022 tax return. You may use form T1B, Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year, 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). - Air quality improvement tax credit
If you were self-employed or a member of a partnership in 2022, you may be eligible to claim a refundable tax credit equal to 25% of your total ventilation expenses to improve ventilation or air quality at your place of business. - Disability tax credit
For 2021 and later tax years, an individual diagnosed with type 1 diabetes is deemed to have met the two times and 14 hours per week requirements for life-sustaining therapy. - 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
The annual expense limit of the home accessibility tax credit has increased to $20,000. - Labour mobility deduction for tradespeople
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. If you are eligible, use form T777 to claim this deduction.
Provincial Tax Changes
- Manitoba
Changes have been made to the education property tax credit, seniors school tax rebate and school tax credit for homeowners.
The renters tax credit is a new refundable credit for renters of residential properties. This replaces the renters component of the education property tax credit. - Nova Scotia
A new refundable tax credit – children’s sports and arts tax credit, has been introduced. You can claim fees paid in 2022 that you or your spouse or common-law partner paid 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. - Ontario
The temporary Ontario seniors’ home safety tax credit and Ontario jobs training tax credit has been extended for 2022.
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. Ontario residents can claim a credit for 20% of their 2022 qualifying expenses for leisure accommodation in Ontario of up to $1,000 as an individual or up to $2,000 as a family.
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. Tax Chopper calculates this credit automatically based on your age and income.