Taxation Season has Commenced –File Your Returns by April 30 

By Mohsin Abbas – The Milton Reporter

Tax season has officially kicked off and Canada Revenue Agency (CRA) is committed to help all taxpayers, new or old, in filing their dues with the deadline ending before May 1, 2023. There were over 17 million refunds issued in 2022, amounting to a total of almost $37 billion in refunds issued to Canadians. Also, 78% of refunds were issued by direct deposit.

“The 2023 tax season is underway and whether or not you had any income last year, filing your return can let you obtain important benefits and credits such as the new Canada Dental Benefit or the one-time top-up to the Canada Housing Benefit. These key programs created by our government aim to make life more affordable, and the CRA is here to help you access them,” Diane Lebouthillier, Minister of National Revenue.

An online portal ‘My Account’ would be very beneficial for those who want to pay their dues electronically, with returns processed in two weeks. It is an online portal for individuals where all the tax information can be found and accessed by the users and they can also change their personal information, such address, phone number, and marital status. Those who own a business can also sign up for ‘My Business Account’.

Some new features have also been incorporated by CRA to facilitate residents.

CRA has introduced a free online learning tool to assist users in filing their tax returns as the tool provides lessons that help in understanding taxes, and important documentation like paycheques, stubs income tax slips and how to actually do one’s taxes.

Another initiative is Community Volunteer Income Tax Program (CVITP), which is designed for people who have a simple tax situation, and also require assistance. In such a situation, CVITP volunteer may be able to do the user’s taxes for free. To find a clinic, please visit Free tax clinics page. For Quebec residents, please visit the Income Tax Assistance – Volunteer Program page for more information.

“We are here to help you. Reporting your income is beneficial for several reasons, especially with the rise in the cost of living. This can include getting additional benefits and credits to help support you and your family,” said Gillian Pranke, Assistant Commissioner about the features for assistance.

For people who cannot pay an existing debt in full, would be eligible for a payment arrangement. Payment arrangement options have been expanded to reflect current realities. And the Payment Arrangement Calculator has also been added to features of My Account and My Business Account. This self-service tool allows users to submit a potential payment arrangement without having to contact the CRA. If the proposed payment arrangement does not meet the CRA payment policy, a CRA officer will reach out to complete the arrangement.

“Filing taxes can be quite overwhelming especially when you are new to the system, but these steps and assistance have really helped me,” said Sameen Rahman, who moved to Canada last year.

For northern residents, CRA is launching the Simplified Northern Residents Travel Deduction, a pilot project to make it easier to determine lowest return airfare, one of the three amounts required to claim the travel deduction during taxation season. Available the week of February 20, 2023, on canada.ca/lowest-return-airfare, the simplified version features tables that identify the lowest return airfare amount found from airports with regularly scheduled commercial flights to a designated city. The airfare tables contain more than 135 airports, almost all of which are located in the prescribed zones.

The new interim Canada Dental Benefit is available to eligible families earning less than $90,000 per year. It provides financial support for parents and guardians of children under 12 years old if they receive dental care in Canada and do not have access to private dental insurance. In order to receive this benefit, residents need to have filed their 2021 tax return. The CRA’s online application My Account is the fastest way to apply for this benefit. For more information, Canada Dental Benefit can be visited.

Another initiative that the government has introduced is a one-time $500 payment to help lower-income renters facing housing affordability challenges. Applications are open until March 31, 2023. To obtain the one-time payment, applicants need to have filed 2021 tax return. For more information on the eligibility requirements and how to apply, go to One-time top-up to the Canada Housing Benefit.

Some other new features for this year are that he amount used to calculate the first-time home buyers’tax credit has increased to $10,000 for a qualifying home purchased after December 31, 2021. However, for 2022 and later tax years, the annual expense limit of the home accessibility tax credit has increased to $20,000.

Catering to people with disability, for 2021 and later tax years, an individual diagnosed with type 1 diabetes is considered to have met the two times and 14 hours per week requirements for life-sustaining therapy. For more information, go to Disability tax credit.

You may be eligible for other benefits and credits. You can find more information on our Tax credits and benefits for individuals page.

Speaking about her experience as an online tax filer, Mary Page said that it is very convenient: “It doesn’t take a lot of time, and I have all under one roof for my taxes.”