Finally, a normal tax season, right?
Well, sort of.
Though the pandemic has mostly receded from public disruption, tax season 2022 could be a bit weird. To be sure, it won’t be as unusual as last year (or the year before). But the CRA has admitted that it’s facing some challenges due to COVID-19. Here’s what Canadians should know about the oddities surrounding the 2022 tax season.
1. Tax deadline is extended (kind of)
Last year, the CRA surprised everyone when they didn’t extend the tax deadline, even though the pandemic had made our 2020 taxes super hectic.
In 2022, the CRA hasn’t extended the tax deadline again, at least not yet. But the tax deadline doesn’t fall on April 30, as it normally does. Because April 30 is a Saturday — and the CRA isn’t that draconian — the tax deadline for 2022 is May 2.
To avoid being late, be sure you file your taxes on or by May 2. For those who still mail in taxes, your return has to be postmarked on or by that date. For those who are self-employed, you have to pay taxes owed by May 2, but you have until June 15 to file your taxes.
2. Work-from-home deduction
Yes, the CRA has brought back a fan favourite from 2021, while at the same time giving it a boost.
If you worked from home in 2021 because of the pandemic, you can deduct $2 for every day you worked remotely. For those who worked from home every day, that comes out to $500 (or 250 working days).
The tax rebate is basically a tax deduction. You’ll subtract $500 off your taxable income, which will reduce how much you owe in overall taxes.
One caveat: if your employer covers your work-from-home expenses, then you won’t qualify for this tax break. Otherwise, full speed ahead.
The CRA gives you two methods to claim this deduction. The “flat-rate” method will give you $2 a day. This method is simple, and you won’t have to do much calculating, aside from the days you worked from home (subtracting sick days and vacation time).
The “long method,” however, might allow you to deduct more than $500. It requires more work, but if you know that your “work-from-home” expenses exceeded $500, then the long-method could help you deduct more money from your taxes.
3. Expect delays
Finally, don’t expect your refund to land into your account as soon as you file. Don’t even expect it a week or two later. Though the CRA is working around the clock to check refunds, they’re likely facing the same challenge that all service-based organizations around Canada are facing: labour shortages and long delays.
So, be patient. Take some time to do your taxes right, snagging every deduction for which you qualify. And if you need help with your taxes, don’t hesitate to reach out to a tax professional — someone who can take your tax load off your hands and help you file it right.
