Filing taxes can be a daunting task and one that, if not done correctly, can cost you a lot of money. With the 2022 Canadian personal income tax due by April 30th, here are ten things that you definitely want to check off your list when filing!
Introduction
#1: Important Deadlines For Filing Your 2022 Income Tax
There are a few key things to remember when filing your Canadian personal income tax by April. First, make sure you have all of the necessary paperwork. This includes your T4 forms from your employer, any interest statements from your bank, and any receipts for expenses you plan to claim.
Next, be aware of the deadlines. You must file your return by April 30th in order to avoid penalties. If you owe money, you must also pay by this date. However, if you are owed a refund, there is no penalty for filing after the deadline.
Finally, make sure you take advantage of all the deductions and credits you are eligible for. There are many different ones available, so do some research to see which ones apply to your situation. By doing this, you could end up saving a lot of money on your taxes!
#2: Eligible Deductions For 2022 Personal Income Tax
There are a number of deductions that you may be eligible for when filing your Canadian personal income tax. Here are some of the more common deductions:
-RRSP contributions: You can deduct up to 18% of your previous year’s income, up to a maximum contribution of $26,230 in 2019.
-Child care expenses: You can deduct child care expenses if you paid for child care so that you could work or go to school.
-Home office expenses: If you work from home, you may be able to deduct a portion of your rent, utilities, and other home office expenses.
-Moving expenses: If you moved for work or school, you may be able to deduct some of your moving expenses.
#3: RRSP Contributions For 2022 Personal Income Tax
There are a few different types of RRSP contributions, and the rules for each are a little different. The most common type of contribution is the deductible contribution. This is the money you put into your RRSP that you can deduct from your income, up to a certain limit. The other type of contribution is the non-deductible contribution. This is money you put into your RRSP that you can’t deduct from your income.
The limit for deductible RRSP contributions is 18% of your previous year’s earned income, up to a maximum amount. For example, if you earned $50,000 last year, your deduction limit would be $9,000 (18% of $50,000). If you earned more than $140,000 last year, your deduction limit would be capped at $25,920 (the maximum amount for 2019).
Non-deductible RRSP contributions don’t have a limit. You can contribute as much money as you want to your non-deductible RRSP. However, keep in mind that any earnings on your non-deductible contributions are taxable when you withdraw them from your RRSP.
If you’re making both deductible and non-deductible contributions to your RRSP, be sure to keep track of how much is in each account. You’ll need to know this information when you withdraw money from your RRSP, so that you can calculate the tax payable on the withdrawal correctly.
#4: Taxable Benefits
There are a number of benefits that are taxable, and it’s important to be aware of them so you don’t miss anything when you’re filing your taxes. Here are some of the most common taxable benefits:
-Employment insurance benefits
-Pension income
-Social assistance payments
-Childcare expenses
-Tuition credits
Be sure to check with the CRA to see if any other benefits you receive are taxable.
#5: Other Expenses You Can Claim
If you have other expenses that you think you can claim, make sure to keep all your receipts and documentation in case the CRA asks for more information. Remember, you can only claim expenses that are related to earning your income. Some examples of other expenses you might be able to claim include:
-Interest paid on money borrowed to earn income
-Professional dues and subscriptions
-Safety equipment required for your job
-Supplies used for your job
-Cost of traveling away from home overnight for work
-Child care expenses if you have to work or go to school
#6: Tracking Your Investments
When it comes to tracking your investments, there are a few key things you need to keep in mind. First and foremost, you need to keep track of all the money you invest. This includes any money you put into stocks, bonds, mutual funds, and so on. Secondly, you need to keep track of the performance of your investments over time. This means tracking how much money you make or lose on each investment. Finally, you need to keep an eye on the overall performance of your portfolio. This will give you an idea of how well your investments are doing compared to other investments.
#7: CRA My Account Security
When it comes to filing your Canadian personal income tax, one of the most important things to remember is to keep your CRA My Account secure. Here are a few tips to help you do just that:
Never give your CRA My Account login information to anyone, not even a family member or friend.
Only access your account from a secure computer or device.
Be sure to log out of your account completely and close all browser windows when you’re finished.
Enable two-step verification for an extra layer of security.
Keep your contact information up-to-date so the CRA can reach you if there’s ever an issue with your account.
By following these simple tips, you can help keep your CRA My Account safe and secure.
#8: Children and Spouse Benefits
If you have children, there are a number of tax benefits to which you may be entitled. The Canada child benefit (CCB) is a tax-free monthly payment made to eligible families to help them with the costs of raising children under age 18. To receive the CCB, you must complete an annual application.
The amount of CCB paid is based on the number of children in the family and the family’s income. Families with higher incomes receive a smaller benefit than those with lower incomes. Families with children under age 6 also receive an additional supplement. The supplement is paid as part of the CCB and does not have to be applied for separately.
If you are married or common-law partners, you can choose to split your eligible pension income with your spouse or partner. This can result in a lower overall tax bill for both of you. You can only split pension income that was received during the year – you cannot split retroactive payments or lump-sum payments.
There are also a number of credits and deductions available to families with children, such as the Child Care Expense Deduction, the Children’s Fitness Tax Credit, and the Education and Textbook Tax Credits. Be sure to take advantage of all the credits and deductions to which you are entitled in order to maximize your tax savings!
#9: Filing Status Options
There are five main filing statuses in Canada: single, married, common-law, widow(er), and separated. The status you choose will determine how much tax you owe and which credits and deductions you’re eligible for.
If you’re married or common-law, you can choose to file jointly or separately. Filing jointly usually results in a lower tax bill, but if one spouse has unpaid taxes or debts, it could be advantageous to file separately.
Widow(er)s can often continue to use the married filing status for two years after the death of their spouse. Separated taxpayers may be able to file as single or head of household if they meet certain criteria.
In most cases, you’ll want to choose the filing status that results in the lowest tax liability. However, there may be other factors to consider, such as qualifying for certain deductions or credits. Be sure to speak with a tax professional if you’re unsure which status is best for your situation.
#10: Getting
If you’re like most people, you probably dread tax season. But, if you want to avoid any penalties or interest charges, it’s important to make sure you file your Canadian personal income tax by April 30. Here are 10 things to make sure you don’t miss when filing your taxes:
1. Make sure you have all the required documents. This includes your T4 slip from your employer, any receipts for expenses, and any other relevant documentation.
2. Know what deductions and credits you’re eligible for. There are a number of deductions and credits that can help reduce your tax bill. Make sure you know what these are so that you can take advantage of them.
3. Use the right tax form. There are a number of different tax forms available, so make sure you use the one that applies to your situation.
4. File electronically if possible. Filing online is the easiest and quickest way to file your taxes, and it can help you avoid mistakes.
5. Pay any taxes owed on time. If you owe taxes, make sure you pay them by April 30 in order to avoid penalties and interest charges.
6. Keep records of your return for future reference. Once you submit your return, keep a copy for yourself in case you need to reference it in the future