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
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!
