2022 personal income tax updates

In this article, you'll learn about the following changes:

• Updated federal forms
  • Climate Action Incentive Payment (formerly Schedule 14)
  • Business consent
  • Rep ID on T183
  • T777 - Statement of Employment Expenses
  • T5013 – Statement of Partnership Income
  • T2038 - Investment Tax Credit
• New federal forms
  • T1B - Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year
  • T2039 - Air Quality Improvement Tax Credit
• Updated provincial forms
  • Manitoba
  • Nova Scotia
  • Ontario
  • Prince Edward Island
  • Yukon

Updated federal forms

Climate Action Incentive Payment (formerly Schedule 14)

• The CRA has discontinued Schedule 14 for the 2022 tax year.
•  In Pro Tax, the form has been renamed Climate Action Incentive Payment (CAIP). Its purpose is solely for estimating the total Climate Action Incentive benefit payable, similar to the GST/HST worksheet.
• You must still indicate whether the taxpayer resides outside a census metropolitan area for them to receive the additional rural supplement. For married or common-law individuals, the rural supplement will be issued to the spouse or common-law partner whose return is assessed first. As this is determined by CRA, there is not a way to indicate a preferred spouse.
• Beginning in 2023-24, residents of Newfoundland, Nova Scotia and Prince Edward Island are eligible for the CAIP. All residents of Prince Edward Island are entitled to the 10% rural supplement, which is automatically included in the total benefit.

Business consent

Starting in October 2022, CRA expanded the Confirm my Representative service to include authorization requests for business received using EFILE software.  The Business Consent form in Pro Tax now includes additional instructions reminding preparers to have their client go to My Business Account to confirm requests within 10 business days.

Rep ID on T183

• Representatives can now use their Rep ID on the T183.
• For 2022 returns and later, Pro Tax will populate the Rep ID entered in Tax Settings. The inclusion of the Rep ID on T183 is optional for 2022 T1 returns.

T777 - Statement of Employment Expenses

• The form has been updated to include the new Labour Mobility Deduction for an Eligible Tradesperson. To deduct eligible temporary relocation expenses, complete the section for line 11.
• Enter the amount of expenses incurred and the related employment income earned as an eligible tradesperson for each temporary relocation. Additional relocations can be entered on T777Details.

T5013 – Statement of Partnership Income

Box 237 for Return of Fuel Charge Proceeds to Farmers Tax Credit has been split to indicate the province for which the credit applies: Ontario, Manitoba, Saskatchewan or Alberta.

T2038 - Investment Tax Credit

• New 30% non-refundable investment tax credit for critical mineral exploration tax credit (CMETC) for specified minerals.
• Line 67175 for CMETC has been added to T2038 and T2038S.

New federal forms

T1B - Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year

• The Income Tax Act was amended to allow individuals the option to claim a deduction for repayments made before January 1, 2023 of certain federal COVID-19 benefit amounts they were not entitled to receive (or chose to repay) on their tax return for the year they received the benefit, rather than on the return on which they repaid the benefit.
•  Individuals may request to deduct the amount of 2022 repayments on their 2020 or 2021 return by completing form T1B. The CRA will automatically reassess the 2020 and/or 2021 returns to apply the deduction to the individual’s tax return as indicated on the form.

T2039 - Air Quality Improvement Tax Credit

• There is a new air quality improvement tax credit for 2022 and 2023 tax years only.
• Line 47557 - Air quality improvement tax credit has been added to the T1.

Updated provincial forms

Manitoba

The following lines have been added to form MB479:

• 61163 Number of days resident for education property tax credit
  • The education property tax credit now requires taxpayers to indicate the number of days in the year that they qualified to claim the credit for each address and the net school taxes paid.
• 61165 and 61167 - Renters tax credit
  • A new refundable tax credit has been added to replace the renters component of the education property tax credit. The credit is based on the amount of rent paid and the number of months rented during the year.

Line 61250 - Total rent assist benefits received has been removed from MB479.

Nova Scotia

The following has been added to NS 479:

• The Volunteer firefighters and ground search and rescue tax credit has been moved from NS428 to NS479.
• Line 62410 - Children’s sports and arts tax credit.
  • The new refundable tax credit allows parents with children under the age of 19 to claim a maximum of $500 per child for expenses paid for eligible artistic, cultural and physical activity programs.

Ontario

The following lines have been added to the Form ON479:

• 63051 and 63052 - Ontario Staycation Tax Credit
  • The Ontario Staycation Tax Credit allows residents of Ontario to claim a refundable tax credit of 20% of eligible accommodation expenses incurred in 2022, up to a maximum of $1,000 for an individual, or $2,000 for a family.
  • Details of the accommodation expenses should be entered on the ONCredits worksheet.

• 63095 - Ontario Seniors Care At Home Credit
  • The Ontario Seniors Care at Home Tax Credit is a refundable personal income tax credit on eligible medical expenses for individuals who turned 70 or older in the year, or have a spouse or common-law partner who turned 70 or older in the year, and are a resident of Ontario at the end of the tax year.
  • The credit is equal to 25% of claimable medical expenses up to $6,000, for a maximum credit of $1,500. This amount is reduced by 5% of family net income over $35,000 and fully phased out at $65,000. The credit can be claimed in addition to the non‐refundable federal and Ontario medical expense tax credits for the same eligible expenses.

Prince Edward Island

Line 63510 - Volunteer firefighter and volunteer search and rescue tax credit has been added to PE428.

• Individuals who qualify for the federal Volunteer firefighters’ amount at line 31220 are now able to claim a refundable provincial tax credit of $1,000 on line 47900 for provincial credits on the T1.

Yukon

YT428 - Yukon First Nations income tax credit and Business investment tax credit and the carryback to prior years have been moved from Form YT479 to Form YT428.