What’s new for Canadian taxes in February 2022.

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

• RRSP contribution deadline for 2021 returns

• NETFILE is open – start filing your 2021 returns

• Recalculation of Guaranteed Income Supplement (GIS) payments for seniors who received CERB

• The Canada Workers Lockdown Benefit (CWLB) and Local Lockdown Program end in March

• British Columbia has more paid sick days for workers

• New requirements for reporting trusts have been delayed

RRSP contribution deadline for 2021 returns

The deadline to contribute to your Registered Retirement Savings Plan (RRSP) was March 1, 2022. This means you’ll need to report any contributions you made to your or your spouse’s RRSP between the following dates on your 2021 return:

• March 2 and December 31, 2021; and
• January 1 and March 1, 2022.

If your contributions are more than your RRSP deduction limit, you might need to pay a penalty tax.

NETFILE is open – start filing your 2021 returns

NETFILE opened on February 21, 2022. This means you can start filing your federal and Québec 2021 returns!

Our Do It Yourself Tax Software is fully certified and ready to use for both federal and Québec returns.

The deadline to file is April 30, 2022 but since this falls on a Saturday, you’ll have until the next business day which is May 2, 2022. If you’re self-employed, the deadline is June 15, 2022. Keep in mind, if you’re self-employed but owe taxes this year, your deadline to pay what you owe is still April 30, 2022.

If you were eligible for interest relief last year because you received COVID-19 emergency benefits, you’ll be charged interest on the unpaid amount of taxes you owe from your 2020 return after April 30, 2022.

Ready to start preparing your tax return? H&R Block can help you get through this year’s tax changes. 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.

Recalculation of Guaranteed Income Supplement (GIS) payments for seniors who received CERB

Many seniors discovered their Guaranteed Income Supplement (GIS) payment was lowered in July 2021 because they received the Canada Emergency Response Benefit (CERB) in 2020.

To remedy this, seniors whose GIS payments were lowered in July 2021 will receive an additional one-time payment. Also, starting in July 2022, the CRA won’t include COVID-19 emergency benefits when calculating someone’s eligibility for the GIS. More information about the recalculation and one-time payment are coming soon.

The Canada Workers Lockdown Benefit (CWLB) and Local Lockdown Program end in March

The federal government announced on December 19, 2021 that it expanded access to the Canada Workers Lockdown Benefit (CWLB) and Local Lockdown Program until March 12, 2022. These relief measures were originally set to expire on February 12, 2022.

This means the CWLB will continue to help support Canadians for another month in regions where provincial or territorial governments are limiting businesses to at least 50% capacity. After March 12, 2022, the CWLB will only be available to employees who can’t work because of government imposed public health lockdowns.

Under the Local Lockdown Program, businesses who are limited to at least 50% capacity will be eligible for a subsidy of up to 75% of their wage and rent costs until March 12, 2022. After March 12, 2022, the subsidy rate will decrease to 25%.

British Columbia has more paid sick days for workers

As of January 2022, most workers in British Columbia are now eligible for up to 5 days of paid sick leave for any illness or injury, which is an increase from the 3 days of unpaid leave announced in 2021.

This paid sick leave applies to all employees covered by the Employment Standards Act (ESA), which includes part-time, temporary, or casual employees. Unfortunately, it doesn’t cover:

• employees in federally regulated sectors;

• self-employed workers; and

• employees in professions and occupations explicitly excluded from the ESA.

These support payments will be subject to payroll deductions (including tax and EI deductions) when you receive them. You’ll find this amount included with your regular salary in box 14 of your T4 slip. You’ll need to report this amount when you prepare and file your return.

New requirements for reporting trusts have been delayed

The new federal reporting requirements for trusts that were supposed to start in 2021 have been delayed and will now apply to trusts that begin after December 30, 2022. The Québec Ministère des Finances announced that similar reporting requirements for trusts in Québec will also be delayed until next year.

The following types of trusts won’t need to follow the new reporting rules:

• Graduated rate estates

• Qualified disability trusts

• Trusts that have been created for less than three months at the end of the year

• Trusts that hold assets that have a fair market value less than $50,000

• Trusts that qualify as a non-profit organization (such as clubs, societies, etc.)

For more information on the new reporting requirements for trusts, visit to the CRA website.

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