Tax season rolls around every year, but every year some of those changes can make a significant difference in your return. Here are the changes you should be aware of for the 2022 tax year.

High inflation, government plans and promises, and other economic factors have led to several important changes for Canadians expecting to file taxes in 2023. If you’re putting together your 2022 personal income tax return, here are changes that might affect how much you owe, how much you get back, or when and how you file.

2022 Tax Deadlines

While the official Canadian tax deadline is April 30, this date falls on a Sunday in 2023, pushing the deadline to May 1. Of course, it’s always best not to leave your taxes until the last minute.

As usual, the deadline for self-employed individuals is June 15, 2023.

2022 Adjusted Tax Brackets

Due to inflation, the government has decided to adjust tax brackets for 2022. If you were previously on the edge of a tax bracket and your income has stayed relatively stable, you may be shifted to a lower one.

The new federal tax brackets for 2022 are as follows:
• 15% on incomes up to $50,197
• 20.5% on incomes between $50,197 to $100,392
• 26% on incomes between $100,392 to $155,625
• 29% on incomes between $155,625 to $221,708
• 33% on incomes of $221,709 and above

COVID-19 Benefits

The federal government continued giving COVID-19 benefits throughout 2022, including the Canada Recovery Caregiving Benefit (CRCB), the Canada Recovery Sickness Benefit (CRSB), and the Canada Worker Lockdown Benefit (CWLB).

If you received any of these benefits, you will also receive a T4A slip noting the amount you were paid. You should include this amount in your total income as part of your 2022 tax return, which may change how much you owe.

Home Tax Credits

Taxpayers should be aware of two tax credits related to homes. If you bought a home for the first time in 2022, note that the first-time home buyers’ tax credit was increased to $10,000 from a previous $5,000.

If you renovated a home this year to make it safer or more accessible to seniors or people with disabilities, you can also claim an increased home accessibility tax credit of up to $20,000.

Basic Personal Amount

As previously promised by the federal government, the Canadian Pension Plan maximum contributions have increased by 2.7%. The maximum pensionable earnings under the plan are $64,900, with a basic exemption of $3,500. Note that self-employed individuals must account for both employee and employer contributions.

Canadian Pension Plan

Also, as promised, the Basic Personal Amount (a non-refundable tax credit) has been increased to $14,398. The credit is on course to improve to $15,000 by 2023.

Tax time can be stressful, but it will go a lot smoother if you prepare for some of the main changes. As long as you fill everything out correctly, there shouldn’t be any surprises, and you may even reap some savings!