2022 Income Tax Guide for Canadians: Deadlines, tax tips and more

You’ll find lots of good info to help you prepare. Here’s a table of contents for the guide’s topics, plus in-depth coverage for many of them. 

When are T4s due, tax deadline for 2022 and other important dates

April 30th may be burned into your brain as the date when taxes are due, but this year that is not the case—it falls on a Sunday in 2023. Does the CRA strike impact the date? Nope. Find out when to file your taxes, when T4s are due, and other important dates for your 2022 tax return. 

What if you miss the deadline to pay and file? You will be charged interest on your unpaid taxes. The interest rate for late payment of taxes is currently 7%. There is also a late-filing penalty of 5% of your balance owing, and you add another 1% for each full month you’re late, to a maximum of 12 months. Those amounts are doubled to 10% and 2%, respectively, if you failed to file and pay on time in previous years, too.

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Tax claims for Canadians: Changes to income taxes for 2022

You thought 2020 had tax changes due to lockdowns and work-from-home mandates—2022 comes a long and says “hold my beer.” This was the year we first heard about the tax-free first home savings account, which will offer tax breaks on contributions and tax-free withdrawals, but it’s not available until 2023. But there are other new tax credits you can start claiming now and MoneySense shares the 10 changes to claims that—if they apply to you—can help reduce how much income tax you pay. 

For example: Is your income low enough to receive the Canada workers benefit? Did you buy a zero-emission vehicle in 2022? If you’re a teacher, did you spend money on school supplies? Those are just some of the new federal credits. We also give you insights on provincial and territorial changes to tax claims, too. But what about tax claims that many Canadians and non-residents forget about? There are quite a few. So, read this before you gather your receipts and other documents. 

Read: 2022 Income Tax: New tax credits for Canadians

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Prepping your taxes, including the 2022 tax brackets 

Even if someone else does your taxes, you still have some prep to do. You will have to gather your documents to file your 2022 taxes, and here is a list to consider:

• T-slips, including: 
  • T4 (employment income); 
  • T4A (self-employment/pension/annuity income); 
  • T5013 (partnership income); 
  • T4A-P (Canada Pension Plan); 
  • T4E (employment insurance benefits); 
  • T3, T5, T5008 (interest, dividends, capital gains); 
  • T4A-OAS (Old Age Security); 
  • T4RSP (RRSP income); 
  • T4RIF (RRIF income); 
• Other forms that you can use to summarize income and expenses for your taxes: 
  • T2125 (statement of business or professional activities);
  • T776 (rental income and expenses); 
  • T2200/T2200S (employment expenses)
• Log of other income, such as tips

In addition to this list, you may also need receipts for the following: registered retirement savings plan (RRSP) contributions, school-related costs and income (such as tuition, scholarships, student loan interest, teaching supplies, etc.), childcare, medical expenses, charitable donations, digital news subscriptions, home buying expenses (Home Buyers’ Plan, moving expenses, etc.), sale of assets (real estate, investments, etc.) and more.

Here is a handy list of all the tax brackets in Canada for every province and territory. They can help you estimate what you may owe by figuring out where you are income-wise, which may help to plan accordingly for last minute RRSP contributions. 

Read: The 2022 tax brackets in Canada, based on annual income and broken down by province, too

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RRSP contribution room

The deadline for RRSP contributions is March 1, 2023, for the 2022 tax year. One of the biggest benefits of putting money into an RRSP is that it lowers the amount of income tax you’ll pay, both this tax year and in the long term. (It’s a myth that RRSPs are considered risky.) Whatever you contribute (up to your RRSP contribution limit) is deducted from your taxable income, meaning you could owe less tax or receive a bigger refund. It’s not until you withdraw from your RRSP that that amount is added to your taxable income. The ideal time is when you are retired and in a lower tax bracket than you were during your working years. So, you save in the long run, too. 

Read: The best RRSP investments

Read: How much to take out of your RRSP in your 60s

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TFSA contribution room 

There actually isn’t a deadline for contributing to your tax-free savings account (TFSA), but you cannot go over the contribution limit without penalty. What is the limit? For 2022, the limit is $6,000, and for 2023, it is $6,500. But try the MoneySense TFSA calculator to figure out your lifetime limit, which is based on your age. 

It’s important to note, though, that contributions to your TFSA in 2022 will not affect your taxable income like RRSP contributions. Instead, it is a registered account where any growth in your investments—including interest, dividends and capital gains—is not considered taxable income. You won’t get a tax break for contributing, but you won’t pay tax when you earn income or make a withdrawal, either. Consider making a resolution to contribute to your TFSA each year. 

Read: TFSA vs RRSP: How to decide between the two

Read: What types of tax-free savings accounts (TFSAs) exist?

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How GICs are taxed in Canada

Guaranteed investment certificates (GICs) earn income from interest, which you may need to report on your tax return each year, depending on the type of GICs you buy: registered or non-registered. Find out the types of GICs available to Canadian investors, where you can hold them and how to plan for tax time. 

Read: What types of GICs are available in Canada?
Read: Why GICs are a good addition to an RRSP or a TFSA
Read: How GIC returns are taxed in Canada

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Tax tips for Canadians 

You may have heard the best tax tip from a friend of a friend, but there’s no guarantee that it will work for you. Maybe that particular tax claim has expired, or maybe you don’t qualify. And that’s the exact reason we rounded up 17 tax tips that are worth bookmarking. Divorced? There’s a tip for you. Have U.S. investments? We have a tip for that, too.

Read: 2022 tax season primer: Our roundup of the best tax tips for Canadians

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How to get started doing your tax return

OK, OK. Doing your taxes isn’t exactly exciting weekend plans. But, like all things that you need to do—exercising, having a medical checkup, writing a will, etc.—deciding to start is the first step. Plus, you don’t want to be late on filing your tax returns, as it can cost you at least 5% of the 2022 balance you owe right away.

So, don’t procrastinate. But if you do, only delay by reading this: How to do your taxes and beat procrastination.

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Complicated tax situations and more

Some tax situations are more complex than others. For example, if you invest in crypto, your earnings could be taxed as capital gains or business income, depending on the nature of your trading activities. Also, do you have withholding tax to claim? Have you received a W-8 BEN form? Canadians who hold U.S. investments (from stocks to real estate) will have to note this activity in their tax return, too. And if you’ve been named the executor of someone’s estate, you’ll need to prepare their final tax return—which is actually two returns, one for the person and one for their estate.

This is just a sample of tax return circumstances that aren’t the everyday norm. These articles can help. (Read more about taxes.)

Read: The final tax return after death: How it gets done
Read: What you should know about cryptocurrency tax
Read: Tax planning for Canadians who invest in the U.S.

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More helpful reading for filing your 2022 income tax return:

• The MoneySense Guide to Personal Income Tax 2021
• The MoneySense Guide to Personal Income Tax 2020
• Can you save tax by moving into your rental property?
• How spouses with joint accounts should claim capital losses
• Tax-efficient retirement strategy options for Canadians
• How it works: Capital gains tax on the sale of a property

About Lisa Hannam

Lisa Hannam is the editor-in-chief at MoneySense.ca. She is an award-winning editor with over 20 years of experience in service journalism.

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