Personal income tax: What's new for 2021?

2/4/2022

I am reaching out to let you know what is new for 2021 Personal Income Tax Season!

What is the deadline to file your taxes in 2022?
- On or before April 30, 2022
- On or before June 15 for the self-employed

It's important to file before the due date to avoid penalties and late fees, but also to get your refunds and benefits as soon as possible.

When is the last day to invest in RRSPs?
The final date for 2021 RRSP contributions is March 1, 2022. All the contributions you make before this date are going to be used to reduce your taxable income for 2021! Contact your Financial Advisor today to check your RRSP's room and save money on taxes.
When can you start filing?
The earliest day to file is February 21 as CRA is still updating tax rates and all the necessary information to process your taxes.

When can you expect your refund?
This date is not written in stone and CRA will no guarantee a fix timeline, the expected date would be:

2 weeks if you file your taxes online
8 week if you file your taxes by paper
16 weeks if you file from out of the country

What is the best way to get ready?
Open a "My business" account with CRA to access all your slips, sort out oll your medical expenses, donations and political contributions, documents regarding sale or properties, Income and expenses for activities such as business, rentals, foreing business, etc.

Principal Residence Reporting
All taxpayers who sell their home must report the sale on their tax return, even if it was their principal residence for the whole time they owned it. There are substantial penalties for not reporting the sale. If you sold your home in 2021,provide us with all the details.

Foreign Property Disclosure
Canadian resident individuals who held property outside Canada with a total cost of more than $100,000 CAD at any time in the tax year must comply with special reporting to the CRA. There are substantial penalties for non-compliance.

Business & Rental Income and Expenses:
You will report your gross income and deduct allowable expenses related to running your business, rental properties. If you have questions regarding the expenses you can claim send us an email and we can share the list with you.

Employees working from home
CRA has extended to 2022 the "Home Office Expenses" claim and increase it from $400 to $500. This method can be used for tax years 2020, 2021 & 2022. You can still use both the Simplified and the Regular method. Follow CRA link to know more details:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses.html

Still have questions? Leave us a comment! Let us know when you are ready!

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Author

Dayani Castro is a Cuban-born, proud Canadian bookkeeper and tax consultant known for bringing calm, clarity, and confidence to entrepreneurs who want more than “just bookkeeping.”

She arrived in Canada in 2008 with her daughter, a suitcase, and a determination to create a different kind of future. She wanted independence, opportunity, and stability for her family. Starting over from zero taught her the power of community, clarity, and resilience.

In 2012, she opened her own firm with a simple mission: to help other immigrants and small business owners avoid the confusion and financial stress she once faced. Today, she supports clients across Ontario with reliable monthly bookkeeping, practical tax guidance, and clear explanations that often make people say, “Now it finally makes sense.” Her vision goes far beyond balanced books and always is looking for learning opportunities to improve her skills and help others.

Dayani helps people build the kind of financial confidence that opens new possibilities for their business, their family, and their community.

IMPORTANT: this blog is for informational and educational purposes only.