Tax Return Filing Deadlines for Your 2022 Return It’s that time of the year again and that means gathering all your documents, receipts, and information for your tax filing. This guide will go over some important tax return filing deadlines you need to know for this year. It is important to file your return early or at least before the due date. This way, you can avoid being charged interest and penalties along with disruptions to your benefit and credit payments. Some benefit and credit payments that can be affected by late or not filing include: Key Tax Return Filing Deadlines Here are some tax return filing deadlines that you should keep in mind: Date Deadline March 1, 2023 RRSP, PRPP, & SPP contribution deadline. April 30, 2023 Deadline to pay your taxes if any amounts are owed for 2022. April 30, 2023 Deadline to file your personal tax return. June 15, 2023 The self-employed tax return filing deadline. *If a due date is on a Saturday, Sunday, or public holiday that is recognized by the CRA, the return or payment is on time if the CRA receives it or it is postmarked on or before the next business day. For tax shelter investments, the tax return filing deadline is on April 30, 2023 instead of June 15, 2023. Getting Prepared for the Tax Return Filing Deadlines To get ready for your 2022 tax return filing, start gathering your documents that relate to any income you’ve earned and those relating to deductions you can claim. Consider how you want to file your return, whether it will be digital or paper. Income to report includes COVID-19 benefits, self-employment income, foreign investment income, income from assets, or other earnings. Income from assets includes rental income but if you have any other business income coming in to your person, they should be identified on your report as well. Some key documents regarding deductions include RRSP, PRPP, and RPP deductions. On top of that, documents regarding pension adjustments, annual union or professional dues, child care expenses, employment expenses, capital gains, disability tax credit amounts, student loan interest, tuition, education, and textbook amounts. The CRA has a full list of any deductions, credits or specific documents you may need here. Tax slips are also key for filing your tax return and will be mailed or emailed to you. They can also be found online through your My CRA account. Here are some of the more common tax slips you may receive: T4 Slips T5 Slips Other Tax Slips Get started on filing your tax return with us by contacting us or visiting our office in Richmond, BC. Use the buttons below to call us, get in touch through email by filling out a simple form, or drop in to our tax office in Richmond, British Columbia.
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Disability Tax Credit and Your Income Tax Return The disability tax credit reduces income tax for people with physical or mental impairments. Alternatively, it can also be used by their supporting family members to reduce what they may have to pay in income tax to reduce costs related to the impairment. Keep in mind that if the disability tax credit, or the DTC, is more than what is owed on the tax return, none of the remaining credit will be refunded by the CRA. Getting the Disability Tax Credit 1. Applying for the DTC To apply for the disability tax credit, the impaired and a medical practitioner need to certify the effects of the impairment. 2. Claiming the DTC on Your Tax Return Once the application for the DTC is approved, then the disability amount can be claimed on a tax return. Applying for the Disability Tax Credit The impaired needs to have a medical practitioner to certify the effects of the impairment in order to apply for the disability tax credit. Refer to the list below to find which medical practitioner can certify unique impairments. Medical Practitioner Impairment Medical Doctor All Impairments Nurse Practitioner All Impairments Optometrist Vision Audiologist Hearing Occupational Therapist Walking, Feeding, Dressing Physiotherapist Walking Psychologist Mental Functions Speech-Language Pathologist Speaking An application can be completed via a digital or paper form. Each method includes a section for the medical practitioner and the impaired individual. This form is to be submitted to the CRA to begin the review of the application. The individual is then mailed a notice of determination within 8 weeks of receiving it. It can take longer if information is missing. Claiming the Disability Tax Credit Either the individual with the impairment can claim the DTC or it can be transferred. The full amount does not need to be transferred, rather just what is remaining. This can be to a supporting family member that was identified in the application for the disability tax credit. If they were not added into the initial application, a request to the CRA must be made. The request will be signed and includes details of the support the family member provides for the basic necessities of life to the impaired. If the impaired individual is 18 or older on the last day of the year, the base disability amount can be claimed. For those 17 and younger on the last day of the year, there is an additional supplement for children. Disability Amounts for the 2022 Tax Year Keep in mind that if you were eligible for the DTC in past years but did not claim it, you still can. An impaired individual can claim the disability tax credit going back up to 10 years. They can either ask the CRA in writing to adjust them or work with an accountant to do it themselves. Find out more info by visiting the CRA’s section on the disability tax credit by clicking here.
Prepare for the RRSP Deadline in this Tax Season Throughout the year, you may have been contributing to your RRSP. To get the deduction for the 2022 tax year, the contributions must be done before the RRSP deadline of March 1, 2023. Ensure the contributions meet your registered retirement savings plan (RRSP) deduction limit which is the maximum amount you can deduct from contributions made to your RRSPs, PRPP, SPP and to your spouse’s or common-law partner’s RRSP or SPP for the year. Calculating Your Deduction Limit for the RRSP Deadline The RRSP deduction limit is calculated through: Over Contributing Past Your RRSP Deduction Limit If you contribute more than your RRSP deduction limit by more than $2,000, you have to pay a tax of 1 percent per month on them. This is the case unless you: Items to Claim RRSP Deductions On You Can Claim Deductions on: You Cannot Claim Deductions on: The RRSP deadline for contributions is approaching fast, so make sure you get yours in. To find out more information on where you can find your RRSP deduction limit, check out this link and review the list below. Get in touch with the best accountant Richmond BC to get started on your 2022 tax return to maximize your savings!
Property Transfer Tax Rates & Rules in BC Once you’ve purchased or gained interest in property registered at the Land Title Office in British Columbia, a property transfer tax return must be filed. This involves paying the property transfer tax unless there is an exemption you qualify for. The property transfer tax is based on the fair market value of the property which includes land and improvements. The fair market value is absed on the day it was registered with the Land Title Office unless it is a purchase of a pre-sold strata unit. These taxes are not property taxes which are paid annually while property transfer tax is on the purchase. General Property Transfer Tax Rates The general property transfer tax rates are: For properties that includes land classed as a farm only because it is an owner’s or farmer’s dwelling, up to 0.5 hectaries will be considered residential property. Fair Market Value in Property Transfer Tax The definition here for fair market value is the price that would be paid by a willin purchaser to a willing seller for a property. This includes land and improvements in the open market upon the date of registration. Open Market Transfers An open market transfer refers to a property transfer that anyone likely to be interested in purchasing the property can make an offer. This could be when a seller lists the property with a realtor or advertises the sale. In most situations, the purchase price is considered the fiar market value. This is as long as it is sold in the open market and registered within a few months of signing the sales contract. If the following criteria is met, you need to verify that the purchase price is fair market value: Non-Open Market Transfers If the property transfer didn’t take place in the open market, fair market value can be determined by a recent independent appraisal or the BC Assessment property valuation. BC Assessment property valuations show the property’s fair market value as of July 1 of the pervious year and the state of the property at October 31 of the same year. The BC Assessment property valuation should not be used when: For more information, visit BC’s website on property transfer tax. You can do so by clicking here.
Eligible Medical Expenses for Tax Returns That time of the year is coming up again and this is the best opportunity to get ready to file your tax return. Start collecting all the proof of any medical expenses you’ve incurred that haven’t been claimed. They must be paid for in any 12-month period ending in 2022 and have not been claimed in 2021. Even if the expense didn’t incur in Canada, you can still claim it on your return. Only the part of the expense that you or someone else have not been or will not be reimbursed for can be claimed. There is an exception to this and if the reimbursement is included in your income like as a benefit showed on your T4, and was not deducted anywhere else, it can be claimed. Common Medical Expenses Medical Expense Prescription? Certification in Writing? Form T2201? Air Conditioner Yes No No Air Filter, Cleaner, or Purifier Yes No No Altered Auditory Feedback Devices Yes No No Ambulance Service No No No Artificial Eye or Limb No No No Audible Signal Devices (Bells, Horns, etc) Yes No No Baby Breathing Monitor Yes Yes No Bone Marrow Transplant No No No Braces for a Limb No No No Braille Note-Taker Devices Yes No No Cancer Treatment No No No Catheters, Catheter Trays, Tubing, etc. No No No Computer Peripherals Yes No No Crutches No No No Deaf-Blind Intervening Services No No No Dental Services No No No Dentures and Dental Implants No No No Devices or Software Yes No No Diapers or Disposable Briefs No No No Driveway Access No No No Electronic Speech Synthesizers Yes No No Furnace Yes No No Hearing Aids (Personal Assistive Listening Devices) No No No Heart Monitoring Devices Yes No No For a full list of eligible medical expenses, see the CRA’s section on the Medical Expense Tax Credit by clicking the link here. How to Claim Eligible Medical Expenses You can claim medical expenses for yourself, spouse or common-law partner, and your dependant children under 18. Eligible medical expenses that you or your spouse/common-law partner paid for if they fall under the following criteria can also be claimed: How Much Can You Claim? For each dependent as well as yourself, complete the following to find out how much you can claim: This can also be claimed in the line on your provincial or territorial non-refundable tax credit form. What Proof Do You Need for Medical Expenses? In case the CRA asks to see proof of your medical expenses, make sure you keep the following if applicable: For more information, visit the CRA’s guide and list of common medical expenses by clicking here.