Not sure what Mike is getting at about the neutral and grounds. In your main panel (which I presume is the only panel in your house), the neutrals and grounds should be tied together.
12/2 gets you a 20A circuit. That's not a lot of power, even at 240v. What size breaker is it connected to? That might give you a better idea of the wire gauge.
But you're correct that replacing the heater with a receptacle is all you'd need to do.
Personally, I'd investigate the difficulty of pulling a run of 8/3 from the main panel into the garage to feed a subpanel. Then you'd never have to worry about anything, ever again...