Titanium HQ welcomes you to our Spring 2022 Personal Tax Update Let’s take 5 minutes to update you on the 2021 Tax Filing Deadlines, supply you with a link for our 2021 Tax Checklist and talk about some of the 2022 Personal Income Tax Changes and start you on the right foot for your 2022 tax planning regimen.
2021 Tax Filing Deadlines:
- most income slips are due including T4s and T5s. (T3s are due 90 days after the trust’s year end so that could be the end of March)
- last day to contribute to your RRSP for tax year 2021
- T1 Personal Income Tax Returns are due April 30
- T776 Rental income returns are also due April 30
- April 30 is the final day to pay any income taxes due for 2021
- Tip: even if you can’t file your return, remember to make your expected payment to minimize penalties
- The 2021 tax filing deadline for self-employed income is June 15. Good news – your spouse can also file on this date.
2021 Tax Checklist
Are you looking for our 2021 Tax Checklist? Our 2021 tax checklist can be found here:
2021 Tax Updates
Work From Home Deduction
Canada extends the temporary flat rate method for deducting work from home expenses and increases the limit to $500. Now you can claim up to 250 work from home days at $2 per day to a max of $500. This greatly simplifies the home office deduction for most people.
Amounts received related to Covid-19 are generally taxable and will be added to your income. Certain clawbacks can be required if your income is over $38,000.0
So far in 2022 we’ve seen the following 2022 Tax Changes including:
CRA indexed tax brackets and certain tax credits to the Consumer Price Index. The indexation increases for 2021 was 1.0% and will be 2.4% for 2022. The ceiling for CCA for vehicles increased from $30,000 to $34,000 and deductible leasing costs increase from $800 to $900 per month.
2022 sees the TFSA Contribution room expanded by $6000. This increase brings the lifetime contribution room to $75,500 if you’ve never utilized the TFSA. We see loads of customers every year with taxable investment income and all of their TFSA room intact; it pains me to see people pay tax unnecessarily. As a reminder, all of the investments you can hold in an RRSP are also eligible for holding in your TFSA. That includes stocks, bonds, GICs, mutual funds – you can even write options on your holdings.
2022 Tax Planning Tips
Here’s a few 2022 Tax Tips to get your year started off on the right foot:
CRA My Account – Most of our customers know that we can access your CRA accounts online but did you know that you can also access your CRA documents online? If you’re worried about CRA spoofs, this is a great way to verify their inquiry. Get copies of your Notice of Assessments, T-slips, and CRA mail online. CRA has produced a video on how to sign up for My Account:
Just a reminder to use our client portal to send us documents and retrieve your returns but don’t forget to tell us when your uploads are ready. We’ll be adding 2021 folders to everyone’s directories and sending reminders links this week.
If you have any tax questions about these topics or any others, do not hesitate to contact us. Give us a call and we can set up a free 10-minute telephone call. Have a great spring and we’ll see you soon. Learn more about our tax services!