Tax season is upon Ontario residents, and the Canada Revenue Agency (CRA) has introduced some updates to benefits, credits, and services that taxpayers should keep in mind.
To start, the deadline to file taxes on Ontario remains April 30, 2023, however since the date falls on a Sunday, the CRA confirmed in a recent news release, a return will be considered filed on time if the CRA receives it, or it is postmarked, on or before May 1, 2023.
Take advantage of the other notable changes announced by the CRA below to ensure you receive the benefits and credits you're entitled to.
Simplified Northern Residents Travel Deduction
A pilot project that aims to make it easier for northern residents to determine the lowest return airfare, which is one of the three amounts required to claim the travel deduction. The simplified version, which is available from the week of February 20, 2023, will feature tables that identify the lowest return airfare amount from airports with regularly scheduled commercial flights to a designated city.
Canada Dental Benefit
The new interim Canada Dental Benefit provides financial support to eligible families earning less than $90,000 per year. The benefit is available to 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.
One-time top-up to the Canada Housing Benefit
The government has introduced a one-time $500 payment to help lower-income renters facing housing affordability challenges. Applications are open until March 31, 2023.
First-time home buyers' tax credit
The 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.
Home accessibility tax credit
For 2022 and later tax years, the annual expense limit of the home accessibility tax credit has increased to $20,000.
Climate action incentive payment (CAIP)
Eligible taxpayers will receive the CAIP four times a year, with the April 14, 2023, issuance recommended for electronic filers who submit their returns by March 10, 2023.
Organ and tissue donation initiative
Starting with the 2022 tax year, Ontario residents can indicate whether they want to receive information about becoming an organ and tissue donor. By ticking the "yes" box in the consent section of their return, they authorize the CRA to give their name and email address to Ontario Health.
Disability tax credit
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.
Payment arrangement options have been expanded to reflect current realities, and the Payment Arrangement Calculator has been added to My Account and My Business Account.
The advantages of filing include the ability to receive federal and provincial benefit and credit payments, even if a taxpayer has no income to report or if their income is tax-exempt.
The average amount of benefits received by eligible Ontario residents in 2022 were $6,700 in Canada Child Benefit payments, $460 in Goods and Services Tax/Harmonized Sales Tax Credit payments, and $183 in Climate Action Incentive Payments.
Taxpayers can file their returns electronically starting from February 20, 2023.