An annual tradition, filing taxes is akin to spring cleaning. You might wonder where the year went. Maybe you had a baby, got married, got divorced, got laid off… When you file your 2022 taxes, it is time to reflect on everything and anything from the past year that impacts your tax bill.
Despite the complexity, it remains essential to file (and pay) your taxes on time. Of course, to do that, you need to know when to file. The deadline for filing is different depending on your situation. To help you better understand when to file your 2022 taxes, we’ve broken down the specifics for the most common situations. Let’s take a look.
When Can I File My 2022 Taxes In Canada?
Your tax deadline varies based on the type of tax return you’re filing. Typically, any amount owing becomes due and payable on the date of the deadline. To avoid interest, it’s important to know which category represents your return (and to file on time).
Individual Tax Return Deadline
The earliest you can file your tax returns electronically is in February 2023. The last day to file taxes for the 2022 year is May 01, 2023. Generally, the deadline is April 30th, but it’s moved to May 01st since it lands on a Sunday. Unless you have made other arrangements with Revenue Canada, this is the day any amount owing becomes due. After this time, it will begin to accrue interest.
Do you owe money to the CRA? Check out what you should do if you owe money to the CRA.
Self-Employed Tax Return Deadline
Those who are self-employed have a later deadline, the last day to file is Thursday, June 15, 2023. The deadline also applies to the spouse of self-employed individuals.
Due Dates For Installment Payments
If you arrange to pay portions of your tax bill throughout the year, the payments must be submitted quarterly. The due dates are March 15, June 15, September 15, and December 15. Failure to meet these deadlines results in needing to pay a higher amount. This applies to both employed and self-employed individuals.
Due Dates For Final Tax Returns
This applies to those who are representing the estate of a deceased person. Let’s say you are the Executor of a will. As Executor, you must complete the final tax return of the deceased. If the person died before October 31, 2022, the deadline for the final return is May 01, 2023 (since April 30, 2023, falls on a Sunday). If the person died between November 1st and the end of the year, the return is due six months after the death occurred.
What Happens If You Miss The Tax Deadline In Canada?
Missing a deadline is never a good thing — but missing your tax deadline is possibly the worst deadline to miss. In addition to the extra stress you face from racing the clock, filing your taxes late comes with costly expenses.
Late Tax Filing Penalty
If you miss your tax deadline, then Revenue Canada will charge you five percent of any amount owing. Every subsequent month, an additional one percent is added to the total. For those who are late filing for previous years, the penalty increases to ten percent upfront and an additional two percent every month. The maximum penalty period is 20 months.
Example: If you owe $2,000 on your income tax bill and you file two months late, you will get a late penalty of $100 (five percent of the total). If you pay the full amount within the month, you will owe $2,100.
Were you to pay three months late, the added penalty would increase. One percent of $2,000 is $20. It gets added to the total every month, raising the amount to $2,160.
Are you struggling to pay your taxes? Find out if bankruptcy is the right solution for your tax debt.
Late Tax Filing Interest
On top of the penalty fee, Revenue Canada will also charge interest on the amount owing. The percentage of interest depends on the type of taxpayer. For individuals, it is five percent while corporate entities pay one percent in interest.
2022 Tax Changes You Should Know About
New deductions have been introduced by the Canadian government. Additionally, there are specific filing protocols if you received benefits due to the COVID-19 crisis. To file your taxes correctly, it’s important to understand the specifics.
The Basic Personal Amount (BPA) Is Higher
Your 2022 taxes might make you a little richer. The Basic Personal Amount is now $14,398. The government will not tax you on the first $14,398 that you earned.
The Federal Tax Brackets Have Changed
One good think to come out of life getting that much more expensive is this: the federal tax brackets have shifted so that you might catch break. These brackets also affect your provincial tax rate.
The first $13,498 of income you earn is tax free. It is your Basic Personal Amount. These adjusted tax brackets apply to any taxable income you have. That means anything over the BPA.
|Federal Tax Rate||Federal Income Tax Brackets|
|15%||Applicable to taxable income up to $53,359|
|20.5%||Applicable to taxable income over $53,359 up to $106,717|
|26%||Applicable to taxable income over $106,717 up to $165,430|
|29%||Applicable to taxable income over $165,430 up to $235,675|
|33%||Applicable to taxable income over $235,675|
Work From Home Tax Benefit
It is a little different this year. A lot of people are still working from home and the allowable deduction is now $2 for each day that you worked from home during the pandemic. If, on the other hand, you kept records of the your expenses, you can report that total instead.
T4A Slip For COVID-19 Benefits
If you received benefits such as the Canada Recovery Benefit (CRB), Canada Sickness Recovery Benefit (CSRB) or Canada Recovery Caregiving Benefit (CRCB), you will receive a T4A slip from Revenue Canada. Those in Quebec will receive an RL-1 with the amount received stated in Box O. While the tax was withheld at the source for CRB payments, the initial CERB benefit did not withhold any amount. As such, you may owe money to the government as a result of these benefits. Whether or not you owe depends on your overall tax return.
Provincial COVID-19 One-Time Payouts
Some good news for your wallet. Any one-time COVID-19 payout that your province paid you in tax free for 2022. You do not have to report it on your income tax
Canada Pension Plan Maximum Contributions Are Higher
The maximum pensionable earnings for the Canada Pension Plan (CPP) is now $64,900, and the basic exmption is $3,500. That means slightly more money for you in your old age.
TFSA Limit Went Up
The annual limit on tour Tax Free Savings Account (TFSA) is higher. If you have had a TFSA since the beginning (2009) and did never made a deposit, your eligible amount is a maximum of $81,500
RRSP Limit Increased
You still can only contribute 18% of your annual income to your registered retirement savings plan (RRSP). However, there is a maximum amount that any Canadian, regardless of income, can put in their RRSP. This year, the maximum is $29,210.
Have you received any COVID-19 benefits? Check out how to file your taxes if you received COVID-19 benefits.
Ways To File Your Taxes In Canada 2023
There are multiple ways to file your taxes, thanks in large part to evolving software in our increasingly digital world. Because of the convenience factor, it is easier to file your taxes in a way with which you are comfortable, be that on paper or online. Options include:
- Mail-In Paper Returns: If you are more comfortable with filing taxes in the traditional manner, you can still do your taxes on paper and mail them to the government. You can order the paperwork online or download it and print off the documents.
- CRA FIle My Return Service: A service available for low-income individuals, it lets you file your taxes using the automated phone service. Those who qualify will receive paper correspondence from Revenue Canada to inform them of this program’s availability.
- Filing Online Using Software: Using either EFILE or NETFILE, you can file your taxes online. EFILE is used by tax professionals working on your behalf. NETFILE is the program approved by Revenue Canada that lets you file your own taxes. There are many different software programs available, ranging in cost-effectiveness and user-friendliness.
- Voluntary Tax Clinics: The Community Volunteer Income Tax Program has clinics throughout the country, meant to help those with lower income and basic tax returns. Experienced tax professionals facilitate the returns; and, due to the ongoing pandemic, the services are available by online video, telephone, and dropped-off paperwork.
There are many ways to file your taxes, even if you’re cutting it close to the deadline. If you are working on a budget, there are many no-cost ways to file. Many approaches take little more than a few minutes, provided you have a straightforward return. The added ease of filing can help you avoid missing a deadline.
When Will You Get Your Tax Refund?
If you electronically file your taxes before the deadline, the CRA will generally provide your tax refunds within 2 weeks. However, if you file by paper, your tax refund can take up to 8 weeks to reach you. Do keep in mind that these numbers are estimates and the CRA does not guarantee you will receive your refund within the period mentioned. Moreover, if the CRA requires additional information or if you’re getting audited, your refund may be delayed further.
Per the Income Tax Act, it is every Canadian’s legal responsibility to file and pay their taxes. Everything from the public healthcare system to roads to schools is funded using these taxes. By filing your taxes on time, and paying any owed amount promptly, you’re not only doing your civic duty, but you are also saving yourself from hefty penalties and interest costs. The sooner you file your taxes for 2022 the sooner you can plan for any owed amounts. It’s easier than ever to file your taxes. Once the task is done, you can rest easy knowing that you are settled up for earnings in the previous year.