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Client Communication:

Updates to Personal Tax in Recent Years

New for 2021 Personal Tax

  • Ontario Seniors' Home Safety Tax Credit - if eligible and you incurred renovation expenses in order to improve safety and accessibility or assist a senior be more functional or mobile at home, please contact us to discuss and provide receipts
  • Climate Action Incentive (CAI) - The Government of Canada has changed the payment method for this previous refundable credit claimed annually on the personal income tax returns to quarterly tax-free payments made through the benefit system starting in July 2022. For couples and families, the taxpayer who is assessed first by the CRA for any taxation year will be the recipient of the CAI payments

New for 2022 Personal Tax

Ontario Staycation Tax Credit:

  • The temporary Ontario Staycation Tax Credit is a personal income tax credit for eligible Ontario residents to claim 20% of qualified, short-term accommodation expenses for vacations taken between January 1-December 31, 2022 in Ontario, up to a maximum of $1,000 for an individual and $2,000 for a family. So that translates to a maximum savings of $200 or $400, respectively. Eligibility requires HST be charged on the accommodations. Be sure to keep your receipts!

Other Notable Updates:

  • Work from home deductions – as a result of the COVID-19 pandemic, many taxpayers have been working from home. If this applies to you and you have no other employment related expenses, you may be eligible to claim the temporary flat rate of $2/day as working from home deductions, to a maximum of $500 for 2021. No employer documentation is required for this deduction. All you need to provide is the total number of days worked at home in 2021, not including statutory holidays or vacation days
  • The 2021 cumulative lifetime capital gains exemption is $892,218
  • The Medical expense tax credit has been expanded to allow expenses related to service animals who are specially trained to perform specific tasks for a patient with a severe mental impairment that helps the patient cope with the impairment. Eligible expenses paid include the cost of the animal, the care and maintenance of the animal (food and veterinary care), reasonable travel expenses paid for the patient to attend a school, institution, or other facility that trains in the handling of these animals, and reasonable board and lodging expenses paid for the patient's full-time attendance at a school, institution, or other facility that trains in the handling of such animals
  • Individuals who sell their principle residence will have to report the sale on their tax return. Reporting will be required for sales that occur on or after January 1, 2016 but there is likely no tax implications

Planned for 2023

The CRA will start the process of switching to providing a Notice of Assessment electronically to all taxpayers who have their returns electronically filed. The electronic Notice of Assessment will be made available in My Account. In order for you to retrieve your electronic Notice of Assessment, you must be registered for My Account and provide a valid email address. To register or access your My Account, please visit https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html

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