It’s Tax Time – Key Considerations for 2023

April 26, 2023
It’s Tax Time – Key Considerations for 2023
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The deadline to file your 2022 personal taxes with the Canada Revenue Agency (CRA) is fast approaching. The last day to submit your taxes and make payments for any amounts owing without penalty is April 30th, 2023. Since April 30th falls on a Sunday, your return and payment must be received by the CRA by May 1st.

The CRA advises filing your return before the due date to avoid being charged interest and penalties and to prevent a disruption to your benefit and credit payments. To help make your tax filing a bit less challenging this year, we’ve outlined some key considerations below.

  • Home office expenses: For 2022, the federal government has extended the temporary flat rate method(opens in a new tab) to calculate deductions for home office expenses, which was introduced due to the COVID-19 pandemic. The maximum amount that can be claimed is $400 per individual in 2020 and $500 per individual in 2021 and in 2022. Alternatively, you can use the more detailed method to calculate your home office expenses deduction, which requires a T2200(opens in a new tab) form.
  • COVID-19 benefit payments: If you received federal, provincial or territorial government COVID-19 benefit payments, you will receive a T4A slip to report these payments as income. If you received and repaid federal COVID-19 benefits in 2022, your T4A slip for 2022 will show the net amount of federal COVID-19 benefits received.
  • Deductions for federal COVID-19 benefits repayment in a prior year: The CRA has introduced the T1B Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year(opens in a new tab) form if you want to:
    • deduct a repayment made in 2022 on their 2020 or 2021 return (depending on when you received the benefit) instead of their 2022 return, or
    • split the deduction between your 2022 return and the return for the year that they received the benefit.
    Once the form is submitted, the CRA will automatically reassess the prior year return(s) and apply the deduction, so you do not need to request changes separately. Note: Benefits repaid after December 31, 2022, can only be deducted in the year in which the repayment is made.
  • First-time home buyers’ tax credit: If you purchased your first home in 2022, you can benefit from an increased tax credit. The amount used to calculate the first-time home buyers’ tax credit has increased to $10,000 (up from $5,000) for a qualifying home purchased after December 31, 2021.
  • Home accessibility tax credit: This is a non-refundable tax credit (up to $20,000 for 2022) 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.
  • Disability tax credit: This credit was recently introduced for 2021 and later tax years, if you are diagnosed with type 1 diabetes and have met the two times and 14 hours per week requirements for life-sustaining therapy, you may be eligible for this credit. For more information, read CRA’s Guide RC4064, Disability-Related Information(opens in a new tab) or visit the 'Tax credits and deductions for persons with disabilities'(opens in a new tab) page.
  • Medical expense tax credit (for surrogacy and other expenses): CRA has expanded the list of eligible medical expenses to include amounts paid to fertility clinics and donor banks in Canada to obtain donor sperm or ova to enable the conception of a child by the individual, the individual’s spouse or common-law partner, or a surrogate mother on behalf of the individual[1]. Additionally, certain expenses incurred in Canada for a surrogate or donor are considered medical expenses of the individual. For more information, visit Canada.ca(opens in a new tab).

To learn more about the tax advantages and strategies in retirement, read our ‘Managing your taxes’ page.

Important – Particularly during tax season, you should be aware of common scams(opens in a new tab) which impersonate the CRA and attempt to defraud people.

Please note, OPB is not responsible for the content on external websites. This article provides general information relevant to PSPP members. This article is not to be relied on as legal, financial or tax advice. We recommend you speak with a tax specialist for advice on your personal tax situation.

For detailed and personalized advice about the PSPP, or retirement planning more generally, please contact one of OPB's Client Service Advisors. You can do this by logging into e-services and using the Book my 1-on-1 feature.

1. Canada Revenue Agency - Line 33099 and 33199 – Medical expenses for self, spouse or common-law partner, and your dependent children under 18 years of age, for someone who died ↩