Source: Canada Revenue Agency – https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/what-you-need-know-2023-tax-filing-season.html
Filing and payment deadlines
The deadline for most Canadians to file this return is April 30, 2023. Since April 30, 2023, falls on a Sunday, your return will be considered filed on time if the Canada Revenue Agency (CRA) receives it, or it is postmarked, on or before May 1, 2023.
If you or your spouse or common-law partner are self-employed, you have until June 15, 2023, to file on time. Filing your return before the respective deadline will allow you to avoid interruptions to any benefit or credit payments you may be entitled to.
If you have a balance owing, your payment is due on April 30, 2023. Your payment will be considered on time if the CRA receives it, or a Canadian financial institution processes it, on or before May 1, 2023.
Climate action incentive payment
The Climate action incentive payment (CAIP) is a tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing. You may be eligible for the CAIP if you are a resident of Alberta, Saskatchewan, Manitoba, or Ontario.
To get the CAIP, you and your spouse or common-law partner (if applicable) must each file an income tax and benefit return for the year and be an eligible individual. The CRA will automatically determine your eligibility when you file your return. If you have a spouse or common-law partner, only one of you can get the CAIP for the family. The CAIP will be paid to the spouse or common-law partner whose return is assessed first. No matter which one of you receives the CAIP, the amount will be the same.
If you are eligible to receive the CAIP, we recommend that you and your spouse or common-law partner (if applicable) file your 2022 returns electronically by March 10, 2023, to help in receiving the April 14, 2023, issuance. If you don’t receive the April issuance, the payment will be included in a subsequent payment after your return is assessed.
The CAIP also includes a supplement for residents of small and rural communities.
This year, you may also be eligible for the CAIP if you are a resident of Newfoundland and Labrador, Nova Scotia, or Prince Edward Island. The same eligibility rules and filing requirements mentioned above will apply. You will not be eligible for the April 2023 payment because the federal fuel charge will only apply to these provinces as of July 1, 2023. If you are eligible, you will automatically receive your first payment in July 2023.
Canada Dental Benefit
Applications for the new interim Canada Dental Benefit opened on December 1, 2022, for eligible families with an adjusted family net income of less than $90,000 in 2021. It provides financial support for parents and guardians of children under 12 years old if they receive dental care services and do not have access to a private dental insurance plan. Children already covered under another government dental program may also be eligible if the dental costs are not fully paid by that program.
Parents and guardians can apply for a maximum of two payments for each eligible child.
One-time top-up to the Canada Housing Benefit
The government introduced a tax-free one-time $500 payment to help lower-income renters facing housing affordability challenges. As of December 12, 2022, this benefit is available to renters who, among other eligibility criteria:
- have an adjusted family net income for 2021 of $35,000 or less for families, or $20,000 or less for individuals
- paid at least 30 per cent of their 2021 adjusted family net income on eligible rent for any of their principal residence(s) in Canada in the 2022 calendar year
Applications are open until March 31, 2023. To obtain the one-time payment, you need to have filed your 2021 tax return.
Please note: My Account is the quickest, easiest and most secure way to apply for the new Canada Dental Benefit and one-time top-up to the Canada Housing Benefit. You should also register for direct deposit. By registering for direct deposit, your money will be deposited directly into your account at a financial institution.
Elections Canada boxes
When filing your taxes, checking “Yes” to the two questions related to Elections Canada ensures that you’re on the list of electors at your current address and ready to vote in any federal election. To register and vote in a federal election, you must be at least 18 years old and have Canadian citizenship. For more information, go to this Elections Canada web page.
What’s new on the income tax and benefit return
Simplified Northern Residents Travel Deduction – The CRA is launching 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. Available on canada.ca/lowest-return-airfare, the simplified version features tables that identify the lowest return airfare amount found from airports with regularly scheduled commercial flights to a designated city. The airfare tables contain more than 135 airports, almost all of which are located in the prescribed zones.
Disability tax credit – For 2021 and later tax years, an individual diagnosed with type 1 diabetes is deemed to have met the two times per week and an average of at least 14 hours per week requirements for life-sustaining therapy.
First-time home buyers’ tax credit – The amount used to calculate the first-time home buyers’ tax credit has increased to $10,000 for a qualifying home purchased after December 31, 2021.
Home accessibility tax credit – The annual expense limit of the home accessibility tax credit has increased to $20,000 for the 2022 taxation year.
Labour mobility deduction – The labour mobility deduction provides eligible tradespeople and apprentices working in the construction industry with a deduction for certain temporary relocation expenses. Eligible individuals may be able to deduct up to $4,000 in eligible expenses per year.
Medical expense tax credit (for surrogacy and other expenses) – The list of eligible medical expenses has been expanded to include amounts paid to fertility clinics and donor banks in Canada to obtain donor sperm or ova to enable the conception of a child by the individual, the individual’s spouse or common-law partner, or a surrogate mother on behalf of the individual. In addition, certain expenses incurred in Canada for a surrogate or donor may be considered medical expenses of the individual, if they are of a type that would be otherwise permitted as medical expenses of the individual.
Request to deduct federal COVID-19 benefits repayment in a prior year – Complete and attach Form T1B, Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year, to your 2022 income tax and benefit return to request to have the amount of federal COVID-19 benefits that you repaid in 2022 deducted on your 2020 or 2021 return or split between your 2022 return and the return for the year that you received the benefit. The CRA will then automatically reassess your return(s) to apply the deduction so that you do not need to make a separate request to change your prior year return(s).
Zero-emission vehicles – A used vehicle may now qualify as a zero-emission vehicle and may be included in Class 54 or Class 55, provided it is acquired after March 1, 2020, and becomes available for use prior to 2028 (and meets other criteria). The capital cost allowance (CCA) rate for class 54 is 30% and the CCA rate for class 55 is 40%. For such property, a higher deduction (up to a maximum of 100%) may apply for certain eligible vehicles (phase out starting after December 31, 2023).
Protecting you from scams and fraud
To avoid scams and fraud, be aware of when and how the CRA might contact you. The Scams and fraud page provides information on the ways that the CRA may contact you, including by phone, email, mail and text message.
We strongly encourage you to monitor your CRA accounts regularly for any suspicious activity. You can find valuable information on how to secure your CRA accounts on our Security of your CRA My Account and My Business Account page.