Updated: Oct 24, 2022
All Canadians can benefit from three things thanks to the Canada Revenue Agency (CRA). In October, Canada's inflation jumped 4.7%, the most in 18 years. Energy and housing prices drove inflation.
In 2022, the CRA is making changes to tax credits to keep up with inflation. Every Canadian can get three benefits from the CRA. Make sure you get every advantage. If you hire a tax consultant from CLaTAX, they will assure that your annual tax bill for 2022 tax return includes all tax credits and incentives. You'll save money by doing this. Taxpayers can use our tax analysis to get tax breaks and set up their plans so that they fit with their tax decisions. So, taxes wouldn't go up as much as they could have.
Basic Personal Amount (BPA) Tax Credit The CRA boosted BPA by $590 to $14,398 for 2022, on which the minimum federal tax rate of 15% won't apply. This will save you $2,160 (15% of $14,398) if your 2022 taxable income is less than $155,625.
Minimum Taxable Amount The minimum amount of income that is taxed has also gone up by $1,177, to $50,197. If your taxable amount is less than this amount, you will pay a 15% federal tax rate. Age Amount Tax Credit The Canada Revenue Agency (CRA) raised the age amount for 2022 by $185, bringing it to $7,898. This will lower your federal tax bill by $1,185, or 15% of $7,898.