Each day we get closer and closer to the end of April, which is the deadline for most Canadians to file their income tax and benefit return. Even though that seems pretty far away, it’s really never too early to start preparing everything you need for your taxes so that you can be stress-free when the time comes to do them.
While it’s important to always do your own research for your taxes, here’s what you need to know about some new and updated tax credits that may be available to you for your 2021 income taxes, to help you get ready for tax season in 2022.
Related: The 15 best money tips to set you up for success in 2022.
There will be a higher potential deduction for your home office expenses
Thanks to the pandemic, the government made it easier to claim deductions for home offices — since lots of people had to work from home in 2020 — and eligible Canadians will be able to make that claim again for 2021. The maximum amount employees can potentially claim has increased from $400 to $500.
There is an updated tax credit for teachers
The Enhanced Eligible Educator School Supply Tax Credit for teachers and early childhood educators allows eligible educators to claim a 25 per cent refundable tax credit (up from 15 per cent) on up to $1,000 of supplies. For educators who have had to work from home instead of school or daycare centres, this is still applicable, so keep track of all the supplies you’ve purchased.
There’s a new tax credit for news subscriptions
If you’re someone who loves to get your news fix and you’re subscribed to one of the qualified Canadian journalism organizations listed here, then you’re eligible for a new federal non-refundable tax credit. The credit applies to the amount you paid for your digital news subscription, and you may be able to claim up to $500 in eligible subscriptions.
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