Welcome to tax season! It’s the time of year when you can get the most out of your return. And if you’re feeling overwhelmed, don’t worry - there are experts who can help you breeze through it with ease!
2022 may have been a wild and difficult year, but don't worry - you made it through to 2023 and you have some fun tax tasks to look forward to! Welcome Spaces, with all its nerdy power, is ready to help you breeze through those tax questions that have been lingering on your mind.
Here are a few of the most common questions we get asked during Tax Season
1. So Covid is still around but what about Covid-19 deductions?
The CRB may be gone, but you can still make the most out of any pandemic-related deductions! If working from home has become the new norm for you, there are two fun-filled ways to claim expenses this tax season. It starts with the temporary flat rate method, which is super easy - just claim $2 per day, up to $500, with no need for receipts. But if you want to claim over and above the $500 cap, no problem! Gather your T2200S form and associated documents, then explore the CRA’s list of eligible expenses (the usual suspects, like rent and cell phone fees, are in the mix). It’s a little more work sure, but you can look forward to the sweet reward of deducting your work-from-home costs!
2. You’ve been taking on a side hustle with Uber or DoorDash? Here is how you can report your income and expenses.
Well first you should know that this side hustle, is considered self-employment income. I know, I know… it feels a little daunting, but bear with us and you will be up and running in no time. Income and expenses from this side job goes in the Business Income section of your return. Need to break out your operating costs, like fuel and mileage? You'll find it all on Form T2125, which is kind of a little "roadmap" to success. It has all the sections you need already there for you.
3. You’ve been reading the news? Your digital news subscriptions could make you eligible for a tax credit from the government.
In 2019, the government in Canada created a 15% tax credit of up to $300 dollars for anyone subscribing to a qualified Canadian journalism organization from 2020-2024- that means you can get back up to a delightful $45! And no need to worry about understanding the math- qualified organizations must include their QCJO designation number in each subscription receipt - so you can easily check if your media subscription qualifies for the tax credit.
4. Since cannabis is now legal, can you add it to your medical expenses on your tax return?
If the cannabis is doctor-approved, then the government can foot the bill! But, since it's legal now, there is a bit of red tape and criteria that need to be met before you can treat your bud like a medical expense. Don't worry - the CRA has got it all laid out like a bowl of Cheetos, so you can easily munch on your way to understanding the rules! Okay, enough with the cannabis jokes, to expense your cannabis you'll need a medical document that fits the Cannabis Regulations, be registered as a client of the holder of a licence for sale and make your purchases from the holder you are registered with - then you will be good to go!
5. You made the most of the COVID-induced housing boom and sold a rental property? Here's how to report it on your taxes.
You just cashed in on the Covid-19 housing boom and made a nice profit! Now it's time to put together your tax return. Firstly, if you previously claimed depreciation or CCA on this rental property, enter the sale amount in the CCA tab of your Rental Income. You might have to pay back some of the CCA you previously claimed, which will increase your rental income for the year, this page can help you. You'll also need to report the sale to calculate whether you made a Capital Gain or a Capital Loss. You can enter the details in the Capital Gains (or Losses) section. Be sure to include the selling price, any selling costs and other eligible expenses.
These are just a few tips to help you get your taxes done this season, but to get even more money back there are experts!