An overview of tax updates from June 2022.

As we close out another month, we've compiled a list of tax updates announced in June 2022 to help you stay up to speed with any changes that may impact you.

What was announced in June?

Canada Disability Benefit reintroduced.

The government has reintroduced legislation to implement a new benefit for low-income Canadians who live with disabilities. More details on how much it'll be and when it'll be implemented will follow at a later date.

Retroactive changes to the Disability Tax Credit passed.

Changes retroactive to 2021 have been made to improve access to the disability tax credit, including:

• The list expansion of “mental functions necessary for everyday life”.
• The reduction of the requirement for therapy to be administered at least three times each week to two times each week.
• The expansion and clarification of activities allowed to be counted as time spent receiving “life-sustaining therapy” to recognize certain components of therapy that are excluded under current rules.
• The expansion to allow time required by another person to assist in the therapy to be counted where an individual is incapable of performing therapy on their own.
• People with Type 1 diabetes will also now qualify for the disability tax credit without having to demonstrate how many hours of life-sustaining therapy they require.

Claims for Teachers’ and Fuel Tax Credits now being processed.

Teachers and farmers are now eligible for new tax credits after Bill C-8 became law earlier this month. This includes an expansion of the school supplies tax credit and a fuel tax refund for farmers in jurisdictions using the federal carbon price. The CRA is now processing returns which include claims for either of these two refundable tax credits.

Quebec harmonization with new federal tax measures.

The Quebec government announced it will harmonize various tax measures with those put in place by the federal government. The most significant measures to be included on the Quebec tax return are:

• The establishment of the Tax-Free First Home Savings Account
• The enhancement of the First-Time Home Buyers’ Tax Credit
• Borrowing by defined benefit pension plans
• The annual disbursement quota for registered charities
• Tax measures for kinship care providers and foster parents of indigenous children
• The residential property flipping rule

What to expect in July:

An increase to Old Age Security payments.

Recipients of the Old Age Security pension who are aged 75 and over will see a permanent 10% increase of their Old Age Security payments, as of July 2022. The first increase will be reflected on the July 27 payment date.

July benefit payment dates.

Beginning in July, individual benefits will change based on the income information reported on 2021 tax returns. Here’s a breakdown of when you can expect to receive payment if you are eligible:

• GST/HST Credit: July 5
• Ontario Trillium Benefit: July 8
• Climate Action Incentive (ON, MB, SK, & AB), which will include the April instalment: July 15
• Canada Child Benefit: July 20
• Québec Solidarity Credit: July 5
• Québec Family Allowance: July 4

H&R Block Tax Experts are always here to help you figure out how tax changes will affect your return, and look forward to helping you. Choose from one of four convenient ways to file: File in an Office, Drop-off at an Office, Remote Tax Expert, or Do It Yourself Tax Software.