Deadlines:

Stay informed this tax season with deadlines including filing due dates and payment deadlines for 2024. Canadians are strongly encouraged to file their tax returns by the filing deadline to ensure that their benefit payments can continue without interruption.

For additional information on any dates and deadlines please refer to the official CRA website.

Updates:

Find key changes to this tax season that will affect your tax returns and processes. The below information is based on CRA and Ontario's official websites. For more information on each updates please visit the referenced websites.​
Do not hesitate to contact us for any questions or queries.

Current Interest Rate on Overdue Tax:

Canadians who owe taxes to the CRA will be subject to an interest rate of 10% in the first quarter of 2024. 

Deduction for Tradesperson’s Tools Expense:

Starting in 2023, employees can deduct up to $1,000 for tradesperson's tools expenses (increased from $500).

Electronic Payments:

Newly enacted legislation requires taxpayers to make payments over $10,000 electronically (through online banking or with the payment slip at a financial institution) or pay a penalty of $100 per payment. This means that mailing cheques for greater than $10,000 to the CRA will now result in a $100 penalty per cheque.

Electronic T-slips:

Financial institutions may now issue slips electronically without notifying taxpayers. Be sure to check with your financial institutions to ensure you have copies of all the slips that they are issuing you this year.

CRA Correspondence:

We do not receive notifications when the CRA sends you mail, either physically or electronically, please make sure to check your CRA account regularly for important notices and notify us if you would like assistance in responding to any CRA audits or reviews.

Multigenerational Home Renovation Tax Credit:

This new refundable tax credit is available for up to $7,500 (15% of $50,000) of the costs of a qualifying renovation to an eligible dwelling that is completed to allow a qualifying individual to live with a qualifying relation. You can claim the credit for qualifying expenditures made or incurred starting in 2023. Find more information at this link.

Residential Property Flipping Rule:

Starting on January 1 2023, a new deeming rule applies to ensure profits from flipping residential real estate are always fully taxed. The rule deems profits from dispositions of residential property (including rental property) that was owned for less than 365 days to be taxable business income instead of capital gain, with exemptions for death, breakdown of a marriage or common-law partnership, eligible relocations, and other life events. Residential Property Flipping Rule - Canada.ca.

Tax-Free First Home Savings Account (FHSA):

This account gives prospective first-time home buyers the opportunity to save $40,000 on a tax-free basis, similar to a Tax-Free Savings Account (TFSA). Starting in 2023, the full annual limit of $8,000 is available. The FHSA is a new registered account to help individuals save for their first home. Starting in 2023, contributions to an FHSA are deductible and the income earned in an FHSA is not taxable. Qualifying withdrawals from an FHSA to purchase a first home are also not taxable. The qualifying non-taxable withdrawal (i.e., when buying a first home) must meet certain conditions. For details and eligibility, please visit https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html

Trust Reporting Rule Changes:

The CRA has expanded the definition of trusts and the reporting rules surrounding trusts beginning with tax years ending after December 30, 2023. These reporting requirements now apply to many individuals who have previously not been considered trustees of any trust. If you hold an asset in your name on behalf of anyone else, including a spouse, children, grandchildren, or parents, then you may be subject to these new reporting requirements. Please follow this link to help you determine if the new rules apply to you, or visit the government webpage regarding these requirements. These rules apply to situations as simple as a parent registering a child’s vehicle in a parent’s name or having a joint bank account or investment account where the assets belong to only one person. Please carefully consider the financial/asset arrangements of you and your family to see if these reporting requirements could apply to you.

Tax Benefits Gone for 2023 tax year:

Some tax benefits from prior years no longer apply for 2023, including:

• Staycation tax credit (Ontario).

• Work from home due to Covid-19 deductions. Employees now require a signed and completed Form T2200 from their employer indicating the period from which 50% of their work was from home to claim home office deductions.