Tax season is upon us once again and with the 2022 tax filing deadline fast approaching, MooseJawToday.com spoke with Canada Revenue Agency (CRA) spokesperson Zeeshan Ahmed to get the agency’s latest tips, updates, and guidelines.
For many people, tax season can be a confusing and stressful time. Creating an online account with the CRA helps Canadians get it done faster, with less stress, while staying up to date with the latest information.
Online CRA accounts make claiming benefits, filing taxes much easier
“The biggest thing that I want to let Saskatchewan residents know is that there’s around a billion dollars worth of benefit payments and tax refunds just waiting to be claimed,” Ahmed said. “What that means is that if you’ve ever received a cheque from (the CRA), and forgotten or misplaced it, rest assured we surely didn’t.
“All you have to do is log into your online CRA account and check the ‘uncashed cheques’ section to see if there’s any outstanding payments. This could potentially mean hundreds, if not thousands of dollars for some families.”
That possibility should serve as an excellent incentive to create an online account with the CRA, but there are plenty of others, such as setting up direct deposit, receiving mail and notifications electronically, and easily applying for eligible benefits.
Go to canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html to set up your account, or search 'CRA My Account' on any internet search engine.
“A lot of people don’t realize how convenient it is to have that set up, it just makes your life so much easier,” Ahmed added.
File taxes before the deadline to avoid stress and penalties
The next thing to keep in mind is the filing deadline. For most Canadians, the deadline for filing their 2022 tax return is April 30, 2023 — effectively May 1, because April 30 is a Sunday. However, if you or your spouse are self-employed, the deadline is June 15, 2023.
It's important to file your tax return on time to avoid late-filing penalties and interest charges.
One of the key steps in preparing your tax return is to gather all the necessary documentation. This includes your T4 slip, which shows your employment income, and any other tax slips you may have received from banks, investment companies, or other sources. You should also gather any receipts or documents related to deductible expenses, such as medical expenses, charitable donations, and child care expenses.
Once you have all your documentation, it's time to start filling out your tax return. If you are comfortable doing your own taxes, you can use tax software to file online or download and print paper forms to fill out.
If you are not comfortable doing your own taxes, you can hire a tax professional or attend a Community Volunteer Income Tax Program clinic, such as the one the Salvation Army in Moose Jaw runs throughout the year.
“The best way to file your taxes is to use one of the free online tax programs we have,” Ahmed explained. “You can do it in under 10 minutes and if you have a direct deposit setup through your online CRA account, you can get your refund within two weeks.”
Tax code changes include climate incentives and digital news subscriptions
The Canada Revenue Agency (CRA) has made some changes to the tax code for the 2022 tax year. The basic personal amount, which is the amount you can earn before paying any tax at all, has increased to $12,719 for the federal side and $16,615 for the province of Saskatchewan.
Other changes include the introduction of a new tax credit for digital news subscriptions, a redesign of the climate action incentive payment structure, and the new Tax-Free First Home Savings Account (FHSA), which offers an exceptional way to save for a first home purchase.
“The (FHSA) is kind of like the love child of an RRSP and a TFSA,” Ahmed said, “so it’s the best of both worlds for first time homebuyers. … You get a deduction when you put money in, and you don’t have to pay taxes when you pull the money out.”
It is important to take advantage of every tax credit and deduction that you are eligible for. This can help reduce the amount of tax you owe and potentially result in a refund. Some commonly claimed deductions include medical expenses, charitable donations, and tuition fees.
Protect yourself from scammers
Lastly, Ahmed cautioned Saskatchewan residents to protect themselves from scammers by being familiar with their taxes and their CRA account and knowing how to get authentic answers to tax questions.
“I definitely want everyone to be wary of scams. They’re still around, and they’ve gotten much more complicated,” he said. “The best thing you can do to protect yourself is one word: Awareness. If you have your online account, you’re familiar with your tax returns, you know your numbers, then you have much less chance of being shaken and/or harassed into a decision you’ll regret or giving information to someone who isn’t supposed to have it.”
If you are not sure whether a call, email, or text is from a genuine government representative, do not give them what they ask for — the government will never require payment through gift cards, for example.
Wait, ask questions, get advice from family or friends, and contact the CRA directly for verification. If they seem aggressive or threatening, hang up! They are trying to pressure you into making a hasty decision and are almost certainly a scammer.
If you have any questions or concerns about your tax return, contact the CRA. They have a dedicated help line for taxpayers at 1-800-959-8281, and their website is a great resource for finding answers to common questions.
