The Canada Revenue Agency has said that it will not extend the 2022 tax filing date if there is a worker’s strike which means you are still expected to file on time.
Sharie Rideout, owner of Ledgers Cochrane, Airdrie, and Bow Valley provides some important tax news and tips.
First and foremost, people will get an extra day to file this year says Rideout, “This year, the filing deadline is normally April 30th, but it is May 1st this year because of April 30th falling on a Sunday.”
If you have not already done so, it is a good idea to register for direct deposit if you are anticipating a refund, especially considering the looming Canada Revenue Agency worker’s strike. Rideout says, “If you are on direct deposit, you’ll be able to hopefully get the refund even if they do go on strike, as long as it falls within CRA normal guidelines.”
A couple of new features this year, the first-time home buyer’s credit has increased from $5000 to $10,000 and the home accessibility credit has also increased to $20,000 for the 2022 tax year, “So, people want to make sure that get or take advantage of the if it applies to them,” says Rideout.
Rideout says, “An important thing to note that has affected a lot of people that took the COVID-19 benefits is people have had to repay in some cases and Revenue Canada is usually providing a letter to people who have had to repay with the amount that they are allowed to claim. Either amending the year that they took the benefits in, or they can also claim in on their 2022 tax return.”
One of the most important changes for this tax year filing affects anyone that owns more than one home and may have to claim the Underused Housing Tax. Rideout says, “It is going to apply to people who have rental properties, who have vacation homes, things like that. Most people likely won’t be subject to the 1% fair market value tax that applies to the underuse housing tax as long as the property is rented or falls within other exclusion guidelines, the tax is more directed at people who do not live in Canada or non-residents of Canada who have second homes here or rental properties here. Rideout highly suggests that people affected by the change contact an advisor as failing to file carries a hefty fine of $5000 per person. Fortunately, they have extended the deadline for the claim from April 30 to November 1.” Since this tax tends to be rather complicated and is a six-page form, Rideout recommends contacting a tax advisor for the Underused Housing Tax.