Preparing Your Income Tax Returns Updates

Not all facts and figures are available at the time of publication. The government is also continuously making new tax-related announcements in response to the pandemic, so tax changes will inevitably occur after this book is published. Therefore, this website will provide you with a complete list of tax changes pertaining to preparing personal income tax returns that occurred after the publication date.

Alberta: Indexation of Personal Income Tax Announced

Bill 2, the Inflation Relief Statutes Amendment Act, 2022, was introduced in the Alberta Legislature and received first reading on December 7, 2022. If passed, the legislation and supporting regulations will enact, among other measures, personal income tax indexation retroactive to the 2022 tax year.

Specifically, Alberta’s basic personal amount will increase to $19,814 from $19,369 for 2022, an increase of 2.3%. Other credit amounts and tax bracket thresholds will also rise by the same percentage.

For additional details, review Bill 2.

New Refundable Tax Credit Granting a New One-Time Cost of Living Amount

The government announced a new refundable tax credit granting a new one-time cost of living amount of up to $600 where the individual’s 2021 new income does not exceed $54,000. Where the individual’s net income for 2021 is greater than $54,000 but does not exceed $104,000, the payment will be up to $400. Individuals will not have to apply to receive the tax assistance provided they have filed their 2021 tax return by June 30, 2023. The amount of the credit will be paid as of December 2022.

2022 Fall Update on Québec’s Economic and Financial Situation

The 2022 Fall Update on Québec’s Economic and Financial Situation was presented on Thursday, December 8. Only one major announcement affects the 2022 year. As of the 2022 taxation year, the maximum amount for an eligible senior considered in the calculation of the refundable senior assistance tax credit is increased to $2,000 from $411. This amount is also no longer subject to annual indexation. A mechanism will be introduced as of the 2023 tax year to revalue the current 5% reduction rate. The 2022 credit will be paid in the spring of 2023 following the filing of the tax return for the 2022 tax year.  Due to the increase in this credit, the refundable tax credit for seniors’ activities will be eliminated in respect of registration or membership fees paid after December 31, 2022.