6 Tax Credits and Expenses to Claim in 2022
May 12, 2022
In Canada, it is best to file your tax as and when due, as failure to comply usually attracts some consequences. Thankfully, you can leverage certain tax benefits and claims to save some money when filing in the 2022 tax season in Canada.
However, understanding the different tax write-offs and figuring out which ones apply to you can be challenging. The Canada Revenue Agency (CRA) has provided some details about these tax benefits. And here, you’ll learn about each of them and how you can save some extra bucks using these tax credits.
Canada Workers Benefit (CWB)
The Canada workers benefit is:
— Canada Revenue Agency (@CanRevAgency) March 29, 2021
✔️ Accessible
✔️ Refundable
✔️ Improved
Here’s how it can help eligible individuals and families who earn a low income: https://t.co/3bBi6yBbcd #CdnTax pic.twitter.com/Qh4s1oas6D
The CWB applies to low-income earning individuals or families in Canada. It comprises a basic amount and a supplement for disabled persons. The amount you can receive via the CWB depends on two fundamental factors: your income level and your place of residence.
You can claim this refundable tax credit while filing your income tax returns if you are eligible. You can also obtain up to 50% of the CWB in advance if you do not want to wait until tax time.
To qualify for the CWB, you must be 19 years or older, a working income earner, and have lived in Canada throughout the year.
Climate Action Incentive
We’ve made changes to the Climate Action Incentive payment. Here’s what you should know if you live in #Alberta, #Saskatchewan, #Manitoba, or #Ontario: https://t.co/MznZ1GswdF #CdnTax pic.twitter.com/S84cD7czzt
— Canada Revenue Agency (@CanRevAgency) March 9, 2020
The Climate Action Incentive aims to mitigate the federal pollution pricing cost. The tax credit has a standard amount, although residents of rural areas or small communities can also get an additional supplement.
Eligible candidates automatically receive this incentive when they file their taxes, and the criteria for eligibility include:
- You must reside in any of Saskatchewan, Manitoba, Ontario, or Alberta.
- You must not be less than 19 years old.
- You must have a spouse or common-law partner (or have had in the past) or be a parent staying with your child (or have been in the past).
Home Office Expenses
If you’re an employee working from home due to #COVID19, there are 2 methods to claim the home office expenses deduction:
— Canada Revenue Agency (@CanRevAgency) February 4, 2021
🏘️ Temporary flat rate — claim $2/day, up to $400
🏘️ Detailed — claim actual amounts, supported by documentation and receipts. https://t.co/Hvnj4IG30g pic.twitter.com/3H1PhUcfGL
For the 2022 tax season, Canada also provides tax write-offs for people who worked from home in 2020 or 2021. Through this tax benefit, you can recover up to $500 under the temporary flat rate method. If the sum of your expenses is above $500, you can apply using the detailed method.
The temporary method covers expenses such as rent, electricity, home internet access, etc. On the other hand, the detailed method covers the work-space-in-the-home, office supplies, and phone expenses. The Home Office Expenses is best suited for employees.
Medical Expenses
How and when to claim eligible medical expenses this #tax season: https://t.co/CEWLf2caWW pic.twitter.com/0vvth5wG4m
— Canada Revenue Agency (@CanRevAgency) March 23, 2017
According to the CRA, you can apply to claim eligible medical expenses if you fulfill the following conditions:
- You, your spouse, or your common-law partner paid for the eligible medical expenses.
- You made the payment within a 12-month period ending in 2021
- You did not get this tax benefit in 2020.
Examples of eligible expenses under this tax benefit include ambulance services, assisted breathing devices, laser eye surgery, prenatal treatments, etc. You can claim these amounts in full whether you paid them in Canada or not.
Home Buyers Amount
Did you purchase a new home this year? Find out if you’re eligible to claim $5K with the Home Buyers’ Amount: https://t.co/x5nZtwQyUi #CdnTax pic.twitter.com/LdqG8hpCTM
— Canada Revenue Agency (@CanRevAgency) March 29, 2019
If you’re eligible for the Home Buyers’ Amount, you can regain up to $5,000 from your tax returns, provided you bought your first home within the past 12 months. To be eligible, you or your partner must have acquired an eligible property, having not lived in “your own” home within the past four years.
Child Care Expenses
Whether your #childcare provider flies in on an umbrella or not, find out here what childcare expenses you can claim: https://t.co/AXThGr2flB #UmbrellaDay https://t.co/HiRAzzhScE pic.twitter.com/S5lt6ZuMkl
— Canada Revenue Agency (@CanRevAgency) February 10, 2018
This tax benefit allows you to claim some expenses related to childcare, such as daycare, day cramps, etc. In some cases, you can still claim this tax write-off if you have lived with another person. Although some other additional factors may apply, you must be the only caregiver of the child to qualify.
Bottom Line
It is easier to save some money off your tax when you understand the tax benefits and claims available to taxpayers in Canada. To maximize tax savings and ensure compliance, it’s recommended that you consult a corporate tax advisor who understands your industry and business. Accountero regularly connects businesses with the best-in-class financial and tax experts in Canada. It’s ‘built for founders’ financial platform offers digital bookkeeping on a free tech-stack, high-level reports for business owners, forecasting tools and on-demand access to professionals like fractional CFOs, tax advisors, and funding experts and more, who can help with tax planning. Talk to us today so we can help you to stay focused on your business growth, while our experts manage the finances.
Accountero is a tech-powered service provider offering bookkeeping, tax advisory and fractional CFO. Accountero is not a public accounting firm and does not offer services that require a public accounting practice license.
