Tax Season 2023: What You Need to Know!!

2022 IMPORTANT TAX INFORMATION YOU SHOULD KNOW!
Monday, November 28, 2022
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As you begin to get ready to prepare your 2022 tax return, we want to make sure you’re aware of important deadlines and changes, so you have everything you need to file your return with minimal hassle.

 

-The tax filing deadline for individuals - is May 1, 2023, as April 30 the usual tax deadline falls on Sunday.

-Tax filing deadline for self-employed - June 15, 2023. If you owe, pay by April 30, 2022, to avoid penalties.

-RRSP contribution deadline - March 1, 2023.

-The maximum RRSP contribution limits for 2022 - $29,210, 2023 - $307,30, and 2024 - $31,560

-TFSA annual limit - $ 6,500 for 2023.

-The basic Personal Amount For 2022 – Is $14,398.00 for individuals with a net income of $155,625.00 or less.

-The maximum pensionable earnings are $64,900 for 2022, which will increase to $ 66,600 in 2023.

-The maximum insurable earnings are $60,300 for 2022 and will increase to $61,500 in 2023.

-Age amount Individuals who are 65 years old at the end of the tax year can claim $7,898 for 2022. 

-OAS Clawback - Individuals whose world net income exceeds $81,761 in their 2022 tax return may have to pay back part of or the whole OAS pension received. And will be reflected on July 2022 to June 2023 pay period.

-Canada Child benefit - The maximum amount that can be received from July 2022 to June 2023: 

Child under six: $6,997/Child

Age 6 -17: $5,903/Child

-Quarterly Climate Action Incentive Payment for Ontario 2023 -2024:

First adult: $122

Second adult: $61

Each child: $30.50

Family of 4: $244

Payment dates:  April 2023, July 2023, October 2023, and January 2024.

-Work-from-home expense - The maximum amount that can be claimed - is $500

-Air Quality Investment Tax Credit: Eligible businesses can claim 25% of their qualifying ventilation upgrades to a maximum of $10,000 (creating a $2,500 tax credit).

-Ontario Staycation Credit –if you stayed in an Ontario hotel, motel, cottage, or campground during 2022 Ontarians will be eligible for a one-time tax credit … up to $1,000 individually or $2,000 as a family.

-NEW Tax-Free Home Savings Account (FHSA) – Canadians Will Be Able to Open And Contribute At Some Point In 2023:

Lifetime Contribution Limit: $ 40,000

Yearly Contribution Limit: $ 8,000

 

Canada’s federal income tax rates for the 2022 Tax Year

Federal: Income Tax Rate     Income Brackets
0%  up to $14,398
15%  $50,197 or less
20.5%     $50,198 to $100,392
26%      $100,393 to $155,625
29%  $155,626 to $221,708
 33%    more than $221,708

 

Ontario’s personal income tax brackets for the 2022 Tax Year

Ontario: Income Tax Rate     Income Brackets
0%  up to $16,230
5.05% $46,226 or less
9.15% $46,227 to $92,454
11.16%      $92,455 to $150,000
12.16%   $150,001 to $220,000
13.16%  more than $220,000
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