Tax Talk

Tax Talk for 2023

  • RRSP Contributions
  • Tax-free First Home Savings Accounts (FHSA)
  • Home Buyers’ Plan (HBP)
  • TFSA Contributions
  • 2022 Tax Information
  • What’s New for 2022 Personal Tax Filing Season
  • COVID-19 Benefits
RRSP Contributions

February is a great time to make contributions to your RRSPs. Not only will you be able to shelter the income and growth in your RRSP account for the entire calendar year, the RRSP contributions can be used as a deduction on your 2022 or 2023 income taxes.

  • The 2022 RRSP contribution deadline is Monday, March 1, 2023. The maximum contribution limit for 2022 is $29,210.
  • The 2023 maximum RRSP contribution limit is $30,780.

Please contact our office if you are uncertain as to how much RRSP contribution room you have for 2022. It is very important that you do not over contribute to your RRSP as the penalties for over contributing are severe.

Tax-free First Home Savings Accounts (FHSA)

The FHSA offers prospective first-time home buyers the ability to save $40,000 tax-free. Like registered retirement savings plans (RRSP), contributions to an FHSA would be tax deductible. Like tax-free savings accounts (TFSA), income and gains inside an FHSA as well as withdrawals would be tax-free.

You can contribute up to $40,000 over your lifetime and up to $8,000 in any one year, including 2023 even though the rules don’t come into effect until April 1, 2023.

Please contact our office or your financial advisors for the detailed rules of FHSA.

Home Buyers’ Plan (HBP)

The maximum amount you can withdraw from your RRSP under the HBP is $35,000 for withdrawals made after March 19, 2019. If you are not considered a first-time home buyer for the purposes of the HBP, and you experience a breakdown in your marriage or common-law partnership, you may be able to participate in the HBP after 2019 under certain conditions.

TFSA Contributions

The 2022 TFSA contribution limit is $6,500. The cumulative contribution limit since inception of the plan in 2009 is $88,000.

Please contact our office if you are unsure of your 2022 contribution room. We can confirm this online with the CRA. If you have unused room from previous years, it can be carried forward indefinitely. Withdrawals made previously can also be re-contributed to the plan in a subsequent year after withdrawal.

It is very important that you do not over contribute to your TFSA as the penalties for over contributing are severe.

2022 Tax Information

You can expect to receive your 2022 tax slips starting February 2023. The T3 slips should be received by the end of March. We will review your 2021 personal tax returns to ensure you are not missing any slips. If we have consent on file with the CRA we can download most slips on your behalf.

What’s New for 2022 Personal Tax Filing Season
  • First-time home buyers’ tax credit: The amount used to calculate the first-time home buyers’ tax credit has increased to $10,000 (from $5,000) for a qualifying home purchased after December 31, 2021.
  • Home accessibility tax credit: This non-refundable tax credit is available for eligible home renovation or alteration expenses that allow a qualifying individual to:
    • Gain access to, or be mobile or functional within, an eligible dwelling, or
    • Reduce the risk of harm to a qualifying individual when inside a dwelling or accessing it.

    For 2022, the annual expense limit increased to $20,000.

    Please contact our office if you are unsure about your eligibility to claim this credit.

  • Labour mobility deduction for tradespeople: Under this new deduction, eligible tradespeople and apprentices working in the construction industry may deduct up to $4,000 in eligible temporary relocation expenses per year (see Form T777 for more information).
  • Medical expense tax credit for surrogacy and other expenses: The list of eligible medical expenses was expanded as of 2022 to include amounts paid to fertility clinics and donor banks in Canada to obtain donor sperm or ova to enable a child’s conception by the individual, their spouse or common-law partner, or a surrogate mother on their behalf. In a related change, certain expenses incurred in Canada for a surrogate or donor are now considered medical expenses of the individual.
COVID-19 Benefits

The CRA has created a new form, “T1B Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year “ for those who want to:

  • Deduct a repayment made in 2022 on their 2020 or 2021 return (depending on when they received the benefit) instead of their 2022 return, or
  • Split the deduction between their 2022 return and the return for the year that they received the benefit.

Once the form is filed, the CRA will automatically reassess the prior year return(s) and apply the deduction so the taxpayer does not need to request changes separately. If this situation applies to you, please contact our office.

Note that benefits repaid after December 31, 2022 can only be deducted in the year in which the repayment is made.

Similar to 2020 and 2021, due to the ongoing pandemic and the number of people who had to work at home, the CRA is continuing the two methods for deducting home office expenses for 2022 – the Temporary Flat Rate Method and the Detailed Method.

Under the Temporary Flat Rate Method an employee can receive a deduction of $2/day for up to 250 days based on certain criteria set out by the CRA one of which states that the employee worked more than 50% of the time from home for a period of at least four consecutive weeks due to COVID-19 in 2022. This is a simplified method that does not require the employee to keep track of their expenses for claiming employment expenses during the pandemic.

Under the Detailed Method an employee who has worked more than 50% of the time from home for a period of at least four consecutive weeks in 2022, has kept all their supporting documents and receipts for the expenses and received a signed form T2200S, Declaration of Conditions of Employment for Working at Home Due to COVID-19, can claim a percentage of expenses such as:

  • Rent paid for a house or apartment where you live;
  • Electricity, water and heat;
  • Home internet access fees;
  • Office supplies;
  • Employment use of a basic cell phone service plan.

The traditional method of claiming employment expenses using form T2200, Declaration of Conditions of Employment, is also still available to those who have used this method in prior years.

Tax Talk for 2022

For 2022, there is no personal or corporate tax rate changes nor are there changes to the capital gains inclusion rate nor principal residence exemption rules.
  • RRSP Contributions
  • Home Buyers’ Plan (HBP)
  • TFSA Contributions
  • 2021 Tax Information
  • Zero-emission Vehicles
  • COVID-19 Benefits
RRSP Contributions

February is a great time to be contributing to your RRSPs. Not only will you be able to shelter the income and growth in your RRSP account for the entire calendar year, the RRSP contributions can be used as a deduction on your 2021 or 2022 income taxes.

  • The 2021 RRSP contribution deadline is Monday, March 1, 2022. The maximum deduction limit for 2021 is $27,830.
  • The 2021 maximum RRSP deduction limit is $29,210.

Please contact our office if you are uncertain as to how much RRSP contribution room you have for 2021. It is very important that you do not over contribute to your RRSP as the penalties for over contributing are severe.

Home Buyers’ Plan (HBP)

The maximum amount you can withdraw from your RRSP under the HBP is $35,000 for withdrawals made after March 19, 2019. If you are not considered a first-time home buyer for the purposes of the HBP, and you experience a breakdown in your marriage or common-law partnership, you may be able to participate in the HBP after 2019 under certain conditions.

TFSA Contributions

The 2022 TFSA contribution limit is $6,000. The cumulative contribution limit since inception of the plan in 2009 is $81,500.

Please contact our office if you are unsure of your 2022 contribution room. We can confirm this online with the CRA. If you have unused room from previous years, it can be carried forward indefinitely. Withdrawals made previously can also be re-contributed to the plan in a subsequent year after withdrawal.

It is very important that you do not over contribute to your TFSA as the penalties for over contributing are severe.

2021 Tax Information

You can expect to receive your 2021 tax slips starting February 2022. The T3 slips should be received by the end of March. We will review your 2020 personal tax returns to ensure you are not missing any slips. Also if we have consent on file with the CRA we can download most slips on your behalf.

Zero-emission Vehicles

If you are self-employed or claiming employment expenses, you may be able to claim a temporary enhanced first-year CCA of 100% for eligible zero-emission vehicles. Eligible vehicles must be acquired after March 18, 2019, and become available for use before 2028.

COVID-19 Benefits

If you were required to repay all or a portion of the Canada Emergency Response Benefit (CERB) that you received, you are able to repay the CERB amount before January 1, 2023 and then choose to claim the deduction in the year you made the repayment or in the year you received the benefits. You may also split the deduction between your tax returns for the years when you received the benefits and when you repaid them. If this situation applies to you, please contact our office.

Similar to 2020, due to the ongoing pandemic and the number of people who had to work at home, the CRA is continuing the two methods for deducting home office expenses for 2021 – the Temporary Flat Rate Method and the Detailed Method.

Under the Temporary Flat Rate Method an employee can receive a deduction of $2/day for up to 250 days based on certain criteria set out by the CRA one of which states that the employee worked more than 50% of the time from home for a period of at least four consecutive weeks due to COVID-19 in 2021. This is a simplified method that does not require the employee to keep track of their expenses for claiming employment expenses during the pandemic.

Under the Detailed Method an employee who has worked more than 50% of the time from home for a period of at least four consecutive weeks in 2021, has kept all their supporting documents and receipts for the expenses and received a signed form T2200S, Declaration of Conditions of Employment for Working at Home Due to COVID-19, can claim a percentage of expenses such as:

  • Rent paid for a house or apartment where you live;
  • Electricity, water and heat;
  • Home internet access fees;
  • Office supplies;
  • Employment use of a basic cell phone service plan.

The traditional method of claiming employment expenses using form T2200, Declaration of Conditions of Employment, is also still available to those who have used this method in prior years.

CEBA loan repayment has been extended to December 31, 2023. If loan is paid back by then, there is a debt forgiveness of up to $20,000.

Tax Talk for 2021

  • RRSP Contributions
  • Home Buyers’ Plan (HBP)
  • TFSA Contributions
  • 2020 Tax Information
  • Zero-emission Vehicles
  • COVID-19 Benefits
RRSP Contributions
  • February is a great time to be contributing to your RRSPs. Not only will you be able to shelter the income and growth in your RRSP account for the entire calendar year, the RRSP contributions can be used as a deduction on your 2020 or 2021 income taxes.
  • The 2020 RRSP contribution deadline is Monday, March 1, 2021. The maximum deduction limit for 2019 is $27,230.
  • The 2020 maximum RRSP deduction limit is $27,830.
  • Please contact our office if you are uncertain as to how much RRSP contribution room you have for 2020. It is very important that you do not over contribute to your RRSP as the penalties for over contributing are severe.
Home Buyers’ Plan (HBP)
  • The maximum amount you can withdraw from your RRSP under the HBP increased from $25,000 to $35,000 for withdrawals made after March 19, 2019. If you are not considered a first-time home buyer for the purposes of the HBP, and you experience a breakdown in your marriage or common-law partnership, you may be able to participate in the HBP after 2019 under certain conditions.
TFSA Contributions
  • The 2021 TFSA contribution limit is $6,000. The cumulative contribution limit since inception of the plan in 2009 is $75,500.
  • Please contact our office if you are unsure of your 2021 contribution room. We can confirm this online with the CRA. If you have unused room from previous years, it can be carried forward indefinitely. Withdrawals made previously can also be re-contributed to the plan in a subsequent year after withdrawal.
  • It is very important that you do not over contribute to your TFSA as the penalties for over contributing are severe.
2020 Tax Information
  • You can expect to receive your 2020 tax slips starting February 2021. The T3 slips should be received by the end of March. We will review your 2019 personal tax returns to ensure you are not missing any slips. Also if we have consent on file with the CRA we can download most slips on your behalf.
Zero-emission Vehicles
  • If you are self-employed or claiming employment expenses, you may be able to claim a temporary enhanced first-year CCA of 100% for eligible zero-emission vehicles. Eligible vehicles must be acquired after March 18, 2019, and become available for use before 2024.
COVID-19 Benefits
  • The CRA announced on February 1, 2021 that they have begun issuing T4A slips for those taxpayers who received CERB (Canada Emergency Response Benefit) payments which should be reported as income on their personal tax returns.
  • Due to the ongoing pandemic and the number of people who had to work at home, the CRA has introduced two new methods for deducting home office expenses for the 2020 tax year only–the Temporary Flat Rate Method and the Detailed Method.
  • Under the Temporary Flat Rate Method an employee can receive a deduction of $2/day for up to 200 days based on certain criteria set out by the CRA one of which states that the employee worked more than 50% of the time from home for a period of at least four consecutive weeks due to COVID-19 in 2020. This is a simplified method that does not require the employee to keep track of their expenses for claiming employment expenses during the pandemic.
  • Under the Detailed Method an employee who has worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020, has kept all their supporting documents and receipts for the expenses and received a signed form T2200S, Declaration of Conditions of Employment for Working at Home Due to COVID-19, can claim a percentage of expenses such as:
    • Rent paid for a house or apartment where you live;
    • Electricity, water and heat;
    • Home internet access fees;
    • Office supplies;
    • Employment use of a basic cell phone service plan
  • The traditional method of claiming employment expenses using form T2200, Declaration of Conditions of Employment, is also still available to those who have used this method in prior years.

Tax Talk for 2020

  • RRSP Contributions
  • Home Buyers’ Plan (HBP)
  • TFSA Contributions
  • 2019 Tax Information
  • Zero-emission Vehicles
RRSP Contributions
  • January is a great time to be contributing to your RRSPs. Not only will you be able to shelter the income and growth in your RRSP account for the entire calendar year, the RRSP contributions can be used as a deduction on your 2019 or 2020 income taxes.
  • The 2019 RRSP contribution deadline is Monday, March 2, 2020. The maximum deduction limit for 2019 is $26,500.
  • The 2020 maximum RRSP deduction limit is $27,230.
  • Please contact our office if you are uncertain as to how much RRSP contribution room you have for 2019. It is very important that you do not over contribute to your RRSP as the penalties for over contributing are severe.
Home Buyers’ Plan (HBP)
  • The maximum amount you can withdraw from your RRSP under the HBP increased from $25,000 to $35,000 for withdrawals made after March 19, 2019. If you are not considered a first-time home buyer for the purposes of the HBP, and you experience a breakdown in your marriage or common-law partnership, you may be able to participate in the HBP after 2019 under certain conditions.
TFSA Contributions
  • The 2020 TFSA contribution limit is $6,000. The cumulative contribution limit since inception of the plan in 2009 is $69,500.
  • Please contact our office if you are unsure of your 2020 contribution room. We can confirm this online with the CRA. If you have unused room from previous years, it can be carried forward indefinitely. Withdrawals made previously can also be re-contributed to the plan in a subsequent year after withdrawal.
2019 Tax Information
  • You can expect to receive your 2019 tax slips starting February 2020. The T3 slips should be received by the end of March. We will review your 2018 personal tax returns to ensure you are not missing any slips. Also if we have consent on file with the CRA we can download most slips on your behalf.
Zero-emission Vehicles
  • If you are self-employed or claiming employment expenses, you may be able to claim a temporary enhanced first-year CCA of 100% for eligible zero-emission vehicles. Eligible vehicles must be acquired after March 18, 2019, and become available for use before 2024.