Whats New for Tax Filing in Canada 2023

2023-02-18

Canada Revenue Agency (CRA) released new changes for Canadian who are filing their 2022 income tax and benefit return in 2023.

Whats New for Tax Filing in Canada 2023

(Note: Some of the following may not be new changes for this year but new content in the past 1 or 2 years)

  • The deadline for filing tax and benefit returns for 2022 is April 30 (not for self-employed), 2023 but since this date is a Sunday, your return will be considered filed on time if the CRA receives it or it is postmarked on or before May 1, 2023.

  • The Climate Action Incentive payment (CAIP) is for eligible residents who are in Alberta, Saskatchewan, Manitoba, or Ontario. The CRA will check your eligibility and pay one of you for the family. You should file electronically by March 10, 2023, to get the payment in April 2023. In 2023, the residents of Newfoundland and Labrador, Nova Scotia, or Prince Edward Island may also be eligible.

  • The new Canada Dental Benefit helps net income of less than $90,000 in 2021 family pay for dental care for their kids under 12 who don’t have private insurance or other government coverage. Parents and guardians can apply for two payments per child.

  • One-time top-up to the Canada Housing Benefit: The government is giving a tax-free $500 payment to low-income renters who spend a lot of their income on rent. To get it, you need to meet some criteria and file your 2021 tax return by March 31, 2023. You can apply online and get direct deposit.

  • Simplified Northern Residents Travel Deduction: The CRA has a new pilot project to help northern residents claim the travel deduction. It has tables on its website (canada.ca/lowest-return-airfare) that show the lowest airfare from different airports to a city.

  • Disability tax credit: People with type 1 diabetes can now claim the tax credit for life-sustaining therapy more easily. --(Canada123.net. All rights reserved. Repost or reproduction or distribution without permission and proper attribution is prohibited.)

  • First-time home buyers' tax credit: The tax credit amount for first-time home buyers has increased to $10,000 after Dec 31, 2021

  • Home accessibility tax credit: The annual expense limit for the tax credit for home accessibility has increased to $20,000. --(Canada123.net. All rights reserved. Repost or reproduction or distribution without permission and proper attribution is prohibited.)

  • Labour mobility deduction: Eligible tradespeople and apprentices can deduct up to $4,000 for temporary relocation expenses.

  • Medical expense tax credit (for surrogacy and other expenses): The tax credit now covers more expenses related to donor sperm or ova and surrogacy.

  • Request to deduct federal COVID-19 benefits repayment in a prior year – You can use Form T1B to ask the CRA to deduct your COVID-19 benefits repayment from your previous or current return(s).

  • Zero-emission vehicles: You can now claim a higher deduction for some used zero-emission vehicles that you bought after March 1, 2020, and used before 2028.

Please get more details from the CRA official web page.

(Canada123.net. All rights reserved. Repost or reproduction or distribution without permission and proper attribution is prohibited.)

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