What’s new for Canadian taxes in April 2022?

Let’s review what’s new with the Canada Revenue Agency (CRA), Revenu Québec, and H&R Block this month which might affect your tax situation. This monthly update includes:

• Updates to the Federal budget
• Updates to the Ontario budget
• Updates to the Newfoundland & Labrador Budget

Federal budget updates

The federal budget was tabled on April 7, 2022 and there were many new additions or updates to existing tax measures. Below, see the changes that could impact Canadians.

Personal amounts

Personal amounts increased this year to keep up with inflation. The basic personal amount is now $14,398 with a net income under $155,625, and $12,719 with a net income over $221,708. There were increases to other personal amounts, which you can see in the chart below.

Tax-Free First Home Savings account

The Tax-Free First Home Savings Account (FHSA) will be introduced to help people save for their first home. Like RRSPs, contributions to an FHSA will be deductible and income will accrue in the plan tax-free. Qualifying withdrawals to purchase a first home will be non-taxable. Unlike the RRSP Home Buyers’ Plan, they will not have to be paid back. There will be an annual contribution limit of $8,000 and a lifetime limit of $40,000. Unused annual contribution room will not be carried forward.

The Home Buyers’ Plan will continue in effect under the existing rules. However, taxpayers will not be permitted to make both an FHSA withdrawal and an HBP withdrawal in respect of the same qualifying home purchase.

Multigenerational Home Renovation Tax Credit

For 2023, a new Multigenerational Home Renovation Tax Credit will be introduced for renovations incurred to create a secondary dwelling for seniors or disabled taxpayers to live with a qualifying relative. The credit will be refundable and will be calculated as 15% of eligible expenses up to a maximum of $50,000.

New residential property flipping rule

Also for 2023, a new rule will deem profits from homes owned for less than 12 months to be business income opposed to capital gain. This means that the full amount of the gain will be included in income (instead of just 50%) and that this will ensure people don’t take advantage of the principal residence exemption.

Labour mobility deduction for tradespeople

In 2022, a deduction up to $4,000 per year has been introduced for workers in construction who incur expenses for temporary relocations that don’t qualify as moving expenses. Previously, people would have had to be moving permanently. They have to prove that they are maintaining a residence during the period of relocation that is temporary, that’s at least 150km closer than the taxpayers permanent residence to the work location, and the relocation must last for at least 36 hours.

Medical expense claims for surrogacy

In 2022, medical expenses have been updated for surrogacy to include:

• Medical expenses with respect to a surrogate mother or donor (for example, expenses paid by an intended parent to a fertility clinic for an in vitro fertilization procedure with respect to a surrogate mother or for hormone medication for an ova donor)
• Reimbursements of expenses paid by the taxpayer to the surrogate mother or donor
• Fees paid to fertility clinics and donor banks in order to obtain donor sperm or ova.

Of note, these expenses have to have taken place in Canada.

Below is an overview of the updates from 2021 to 2022.

Personal Amount	2021	2022
Basic personal amount	$13,808** (net income <$151,978) $12,421** (net income >$216,511)	$14,398** (net income <$155,625) $12,719*** (net income >$221,708)
Spouse or common-law partner / Amount for eligible dependant (If eligible for Canada caregiver amount)	$16,103** (net income <$151,978) $14,716** (net income >$216,511)	$16,748*** (net income <$155,625) $15,069*** (net income >$221,708)
Canada caregiver amount for children under 18	$2,295	$2,350
Canada caregiver amount for other infirm dependants age 18 or older Threshold	$7,348 $17,256	$7,525 $17,670
Home Buyers’ Amount	$5,000	$10,000
Home accessibility expenses (maximum claim)	$10,000	$20,000
Adoption expenses (maximum claim)	$16,729	$17,131
Disability amount	$8,662	$8,870
Disability supplement Child care expense threshold	$5,053 $2,959	$5,174 $3,030
Medical expenses, 3% net income threshold	$2,421	$2,479

* If net income >$150,473 but <$214,368, the top-up amount of $931 is phased out.

** If net income >$151,978 but <$216,511, the top-up amount of $1,387 is phased out.

*** If net income >$155,625 but <$221,708, the top-up amount of $1,679 is phased out.

Ontario budget updates

The Ontario budget was tabled on April 28, 2022, and some updates will impact Ontario residents.

Low-income Individuals and Families Tax (LIFT) credit

The LIFT credit was introduced in 2019 to ensure that single workers in Ontario with employment income less than $30,000 and no other income don’t have to pay provincial taxes. And in 2022, the minimum threshold increased to $32,500. For families, the threshold went from $60,000 to $65,000. Also, individuals earning less than $50,000 and families with income less than $82,500 annually will now receive some benefits. It’s all explained in the table below.

Ontario Seniors Care at Home tax credit

Seniors 70 or older whose provincial tax rate is too low to benefit from the non-refundable tax credit for medical expenses are getting a new refundable credit, calculated at 25% of their claimable medical expenses up to $6,000, for a maximum credit of $1,500. This amount will be reduced by 5% of family net income over $35,000.

Here are some of the updates from 2021 to 2022.

Personal Amount	2021	2022
LIFT Credit updates Maximum benefit Phase-out rate	$850 10%	$875 5%
Ontario Personal Amounts Basic Age Threshold	$10,880 $5,312 $39,546	$11,141 $5,440 $40,495
Spouse or common-law partner/ amount for an eligible dependant Threshold	$9,238 $924	$9,460 $946
Ontario caregiver Threshold	$5,128 $17,544	$5,252 $17,965
Adoption expenses (maximum claim)	$13,274	$13,274
Pension income amount	$1,505	$1,541
Disability	$8,790	$9,001
Disability supplement Childcare/ attendant care expense threshold	$5,127 $3,003	$5,252 $3,075
Medical expenses 3% of net income threshold Maximum claim for other dependants Maximum claim for attendant care Maximum claim for van adapted for a wheelchair Maximum claim for moving to a more accessible dwelling	$2,462 $13,274 $15,046 $7,523 $3,009	$2,521 $13,593 $15,407 $7,704 $3,081

Newfoundland & Labrador budget update

The Newfoundland & Labrador budget was tabled on April 7, 2022. Here are the updates that could affect residents of Newfoundland & Labrador.

Newfoundland & Labrador Income supplement

For the July 2022 to June 2023 benefit period, the amounts used to calculate the income supplement has been increased:

• The basic credit has been increased from $220 to $242
• The additional credit has been increased from $230 to $253 and is now phased in at the rate of 5.06% of family net income over $15,000 instead of the previous 4.6%
• The amount for a spouse or common-law partner has been increased from $60 to $66
• The amount for disabled taxpayers has been increased from $200 to $220

The phase-out of the benefit will stay at 9% of family net income over $40,000.

Newfoundland & Labrador Seniors Benefit

For the July 2022 to June 2023 benefit period, the seniors’ benefit has been increased from $1,313 to $1,444. This is paid to single seniors aged 65 or older at any time during 2022 or to a married or common-law couple where at least one is a senior.

The phase-out of the benefit will stay at 11.66% of family net income over $29,402 and fully phased out for seniors with family net income over $41,786.

Prenatal Infant Nutrition Supplement

Formerly known as the Mother Baby Nutrition Supplement, this supplement has increased from $100 to $150 per month. The one-time payment provided during the month of the baby’s birth will also increase from $100 to $150. It’s paid to low-income women who are pregnant and families with children under one year old.

Here are some of the updates from 2021 to 2022.

Personal Amount	2021	2022
Basic amount	$9,536	$9,803
Age Threshold	$6,087 $33,359	$6,258 $34,293
Spouse or common-law partner/ amount for an eligible dependant Threshold	$7,792 $780	$8,011 $802
Infirm dependants aged 18 or older Threshold	$3,028 $6,508	$3,113 $6,690
Adoption expenses	$12,870	$13,230
Caregiver Threshold	$3,028 $14,800	$3,113 $15,214
Disability	$6,435	$6,615
Disability supplement Childcare/ attendant care expense threshold	$3,028 $2,574	$3,113 $2,646
Medical expenses 3% net income threshold	$2,077	$2,135

Ready to file? H&R Block can help you understand all of the tax changes of the season. Choose from one of four convenient ways to file: File in an Office, Drop-off at an Office, Remote Tax Expert, or Do It Yourself Tax Software.