6 Tax Credits & Expenses You Can Claim In 2022 That Could Save You Money When Filing
Tax time is on it's way!
Are your ready for April 30? For those looking ahead to tax time, the Canada Revenue Agency (CRA) has shared details of some tax credits that could help Canadians save money when filing.
Tax benefits and claims can get confusing when you try to sit down and understand what credits and benefits you might qualify for.
From first-time buyer credits and work from home support, to climate action incentives and more, here's what tax credits are out there that could help get some extra cash into your pocket this year.
Canada Workers Benefit
The Canada workers benefit (CWB) is a refundable tax credit that aims to help help individuals and families who are working and earning a low or modest income.
Eligible people can claim the CWB when filing their income tax return.
Some families and individuals can also get half of this benefit in advance, so you don't have to wait until tax time to get a financial boost.
With the Canada's Worker Benefit, there is also a supplement for those with a disability.
Climate action incentive
Residents of Alberta, Saskatchewan, Manitoba and Ontario may qualify for this tax-free credit, which is designed to offset the cost of federal pollution pricing.
It consists of a standard amount, plus a supplement for residents of small or rural communities.
To be eligible, you must be 19 years old or older, have (or have previously had) a spouse or common-law partner, or be (or previously have been) a parent who lives with their child.
If you file your tax return and you're eligible, you will automatically get this payment.
Home office expenses
Working from home is still very much a reality for many Canadians. And so, if you're one of the folks who've put together a home office, this is one way you can reduce the amount of income you pay tax on.
If you worked from home for more than 50% of the time over the past year, you can claim a deduction of up to $500 for home office expenses.
As an employee, you may be able to claim for things like "work-space-in-the-home expenses, office supplies, and certain phone expenses."
Medical expenses
Eligible medical expenses, which may include things like prosthetics, service animals and laser eye surgery, for example, can be claimed at tax time and could mean some deductions.
"You can claim only eligible medical expenses on your tax return if you, or your spouse or common-law partner: paid for the medical expenses in any 12-month period ending in 2021 and did not claim them in 2020," the CRA explains.
The agency has an expansive list and the requirements of each potential claim on their website.
Home buyers' amount
If you bought your first home over the past year, you can claim up to $5,000 for an eligible property.
Eligible first-time buyers can claim this non-refundable tax credit if you (or your partner) have a qualifying home and have not lived in a property you owned in the previous four years.
Child care expenses
People living in Canada who are the sole caregiver of a young person can claim childcare expenses on their taxes.
There are some caveats and additional factors, but importantly you still qualify for the benefit if another person has lived with you in a lot of cases.
Child care expenses that can be claimed include, but aren't limited to, daycare, day camps and more.