By: Maya Dura, International Relations Advisor, International Relations & Treaties Office, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency (CRA)

Tax season has officially kicked off, and many Canadians will turn to the Canada Revenue Agency (CRA) for guidance. The CRA is ready to answer questions from taxpayers and to provide them with services to make it easier and quicker to file their 2022 income tax and benefit returns.

For most individuals, the deadline to pay their taxes and file their return for 2022 is April 30, 2023. Since this date is a Sunday, a return will be considered filed on time if the CRA receives it, or it is postmarked, on or before May 1, 2023. A payment will be considered made on time if the CRA receives it, or a Canadian financial institution processes it, on or before May 1, 2023.

In 2022, more than 28 million income tax and benefit returns were filed online. Electronic returns filed on time are generally processed within two weeks.

The CRA’s top priority is to ensure those who are eligible for benefits and tax credits receive them. 

New benefits, credits, and services available for Canadians:

Simplified Northern Residents Travel Deduction – The CRA has launched the Simplified Northern Residents Travel Deduction, a pilot project to make it easier for northern residents to determine the lowest return airfare, one of the three amounts required to claim the travel deduction come tax time.

Canada Dental Benefit – The new interim Canada Dental Benefit is available to eligible families earning less than Can$90,000 per year. It provides financial support for parents and guardians of children under 12 years old if they receive dental care in Canada and do not have access to private dental insurance. 

One-time top-up to the Canada Housing Benefit – The Government of Canada introduced a one-time Can$500 payment to help lower-income renters facing housing affordability challenges. Applications are open until March 31, 2023. 

First-Time Home Buyers’ Tax Credit – The amount used to calculate the credit has increased to Can$10,000 for a qualifying home purchased after December 31, 2021.

Home Accessibility Tax Credit – For 2022 and later tax years, the annual expense limit of this credit has increased to Can$20,000.

Disability tax credit ­– For 2021 and later tax years, an individual diagnosed with type 1 diabetes is considered to have met the two times and 14 hours per week requirements for life-sustaining therapy. 

New Taxes:

 Underused Housing Tax – Canada has a new 1% annual Underused Housing Tax on the ownership of vacant or underused housing in Canada. The tax usually applies to non-resident, non-Canadian persons. In some situations, however, it also applies to Canadian individuals and corporations. If you’re an affected owner of residential property in Canada, you must file a return for the underused housing tax by April 30, 2023, for each property you owned on December 31, 2022.

By: Maya Dura, International Relations Advisor, International Relations & Treaties Office, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency (CRA)