Published on February 15th, 2023.

The tax season can be a stressful period for many. To help ease the tax filing process, here is some general information that will help you prepare for the upcoming 2023 tax season. 

Dates and Deadlines

• February 20th, 2023: Opening of CRA NETFILE for those who wish to file their taxes early 
• March 1st, 2023: Deadline to make contributions to an RRSP 
• May 1st, 2023: Deadline for most Canadians to file their 2022 income tax and benefit return 
• June 15th, 2023: Deadline for self-employed to file their 2022 income tax return 

Payment Dates

All taxes owed must be paid by May 1st, 2023, to avoid interest charges and penalties from the CRA. 

Filing Your Personal Taxes Online Using NETFILE

NETFILE is a CRA-approved tax service that allows Canadians to file their personal taxes online. As mentioned previously, NETFILE services open Monday, February 20th, 2023, and Canadians can begin electronic filing then. Some CRA-certified tax software include the ReFILE, Auto-fill my return, and Express NOA services. It is crucial to ensure that your tax software is certified by NETFILE. Additionally, you can only file a maximum of 20 returns per computer or online account using NETFILE-certified tax software in Canada for each tax year.

Tax Deductions and Credits

Before filing your personal taxes, research all tax deductions and credits you are eligible for to help reduce the amount of tax you owe and thus must pay. Tax deductions are subtracted from your total income, reducing your taxable income and ultimately the amount of tax you owe. On the other hand, tax credits are refundable and non-refundable amounts that reduce the amount of tax you pay. It is crucial to file your taxes accurately to claim any eligible tax deductions and credits. 

Some popular Canadian tax deductions and credits include:

• GST/HST Credit
• Ontario Trillium Benefit
• Child Care Expense Tax Credit
• Climate Action Incentive Benefit
• Tuition Tax Credit
• Medical Expense Tax Credit
• Charitable Donations Tax Credit

Tax Changes for the 2023 Tax Season

There have been several tax changes that you should keep in mind when filing your personal tax return. Some of these changes include:

• Repayment of all or part of the COVID-19 benefits you received in 2022 including the CRB (if your net income is over $38,000 after some adjustments), CSRB, and the CRCB 
• The home office expense deduction claim limit reached to $500 
• The Basic Personal Amount (BPA) increased to $14,398 for the 2022 tax year 
• The TFSA contribution limit increased to $6,500 for 2023 
• The Canada Pension Plan (CPP) and Québec Pension Plan (QPP) maximum contributions increased by 2.7% 
• The RRSP limit increased to $29,210 for the 2022 tax year; it is crucial to note that your RRSP contribution limit is maxed at 18% of your income for the tax year 

Additionally, the federal tax brackets have been changed for the 2022 taxable income and they are as follows:

• 15% on the first $50,197 
• 20.5% on $50,198 to $100,392 
• 26% on $100,393 to $155,625 
• 29% on $155,626 to $221,708 
• 33% on $221,709 and greater 

Filing Your 2022 Tax Return

Now that you have more information, you should be prepared for the 2023 tax season. If you have any questions or doubts, or are in a complex tax situation, always seek an accountant or tax professional for help. We are here to answer all your inquiries and provide help with your taxes. Contact us to learn more about our tax services for personal and corporate taxes!

Sources:

File your taxes online: Certified tax software 

Tax Deadline 2023: When Is the Last Day to File Taxes? 

The 9 Biggest Tax Changes Canadians Need to Know in 2023