Tax season | What’s new in your 2022 tax return?

Each year brings its share of new measures. Here are five to keep in mind so you don’t miss out on the amounts to which you are entitled.

Self-employed

Self-employed workers have the possibility of spending 100% of their vehicle acquired in 2022 used in the context of their work.

The measure could apply to a real estate broker, who often travels by car as part of his work, gives the example of tax expert Sébastien Hamel, CPA, at Panorama corporate taxation.

The measure was announced in the 2021 federal budget. Self-employed workers were added in the February 2022 bill enforcing the budget provisions.

The measure makes it possible to immediately charge the depreciation relating to certain assets such as passenger vehicles and zero-emission vehicles. Other categories of property are also covered, but not real estate. “A photographer who has renewed his equipment in 2022 could spend it on his declaration,” says Luce Morin, CPA, owner of Activ accounting and tax services, in Lachine.

However, it is impossible to create a loss with this capital cost allowance of 100% of the acquisition cost, adds Mr.^me Morin.

Typically, vehicles are depreciable at a rate of 30% of their purchase value or 45% for accelerated investment incentive property.

Federal forms T2125 and provincial forms TP-130.AD must be completed.

The measure applies to both new and used goods.

To give an idea of ​​the amounts involved, the maximum amount allowed as capital cost allowance (CCA) has been increased to $34,000 in 2022 for Class 10.1 passenger vehicles and $59,000 for Class 54 passenger vehicles. zero emissions.

Assets in class 10.1 are now subject to a recapture of depreciation on the resale of the vehicle.

As the use of 100% CCA immediately involves significant amounts, the tax authorities will watch the situation closely. It is better to consult a tax specialist to ensure compliance with the conditions.

For example, getting your hands on the federal incentive to purchase a zero-emission vehicle disqualifies it from Class 54 for CCA purposes. However, claiming the rebate under the Quebec Roulez vert program has no impact.

Work from home: the $2 a day still available

COVID-19 has made its presence felt in 2022. Governments are logically continuing to apply the deduction for work-from-home expenses. Let us remember that the province was confined at home until mid-February 2022.

The rule is that the employee is entitled to deduct expenses if they have worked more than 50% of the time from home for at least four consecutive weeks, due to COVID-19.

Under the simplified method, the employee is entitled to $2 per day.

If we exclude weekends, four weeks of vacation and ten public holidays, there are still 230 eligible days. Someone who telecommutes three days a week starting on 1^er April would thus have worked from home 162 days at $2 a day, a credit of $324.

The detailed method could prove to be advantageous for a tenant, for example, since it is generally more advantageous for him to declare work expenses at home than in the case of a landlord.

The Ministère des Finances du Québec has put an interactive calculation tool online.

Surrogate mother

For couples using a surrogate mother, it will be possible for the first time in 2022 to claim the sums paid to a surrogate mother as medical expenses. These are sums that can be significant.

In Canada, the payment of a surrogate mother is illegal. But she can get expenses reimbursed by the parents, including her medical expenses. Prior to 2022, parents could not claim these amounts under the medical expense tax credit.

cabin owners

Owners of cottages or houses in rural areas, know that Quebec has extended for five years, until 2027, the refundable tax credit for bringing residential wastewater treatment facilities up to standard. Previously, the credit applied for contracts entered into before 1^er April 2022.

The amount you are eligible for is 20% of expenses over $2,500. The maximum credit amount is $5,500. It is cumulative over the period from 2017 to 2027. Only amounts paid in 2022 are eligible for the credit. “It’s good to know because people won’t think of that,” recognizes Luce Morin, CPA. We accountants provide question forms to clients so they don’t forget credits. But it is clear that we do not put on our form: have you changed your septic tank? “, she continues.

Dental care

If you have children under the age of 12 and a family income of less than $90,000, you could receive part of the new Canadian dental benefit. To be eligible, the child must have received dental care since the 1^er October 2022, and these must have been paid out of household pocket. He must not have access to a private dental insurance plan.

Depending on net household income, the benefit is $260, $390 or $650 tax-free, and is used to cover the costs of the 1^er October 2022 to June 30, 2023. A second eligibility period opens on June 1^er July 2023 until June 30 of the following year.

For example, for a family income ranging from $80,000 to $90,000, the benefit is $260 per eligible child.

In Quebec, the Régie de l’assurance maladie covers several dental treatments for children under 10, such as annual exams and fillings.

The benefit is obtained by applying directly to the Canada Revenue Agency separately from the income tax return. You must have filed a tax return in 2021 to be eligible.