Tax Season 2024: Things To Note
- by Monica J. Weissmann, CFP, CIM, MEE
If you live in Canada, you are probably in the process of filing your income tax returns. Here are some key things to keep in mind for this year's tax season:
April 30th – most Canadian must file their tax return. This is also the deadline to make a payment for those who owe money to the CRA including self-employed individuals.
June 15th – Canadian who are self-employed, along with their spouses or common-law partners must file their tax returns.
Chartered Professional Accountants of Canada say there are a number of changes in store for the 2024 tax filing season:
• From 2020 to 2022, eligible employees could claim $2 for each day worked from home due to the COVID-19 pandemic up to an annual maximum of $400 in 2020 and $500 in 2021 and 2022.
• Employers were not required to complete and sign a T2200 form, nor were employees required to keep documents to support their claims.
• For 2023 and future years, employees must now follow a more detailed method to make these claims.
• Taxpayers no longer having to apply for advance payments of the Canada Workers Benefit when they file their tax returns. Those payments are now issued automatically.
• The new First Home Savings Account program also came into force and allows prospective homebuyers to start saving for up to 15 years once they open an account, with an annual $8,000 deposit cap and a lifetime contribution limit of $40,000.
• Tax payers can now claim the Multigenerational Home Renovation Tax Credit. It’s a refundable credit meant to assist with the cost of renovations that create a secondary unit for a senior or adult eligible for the disability tax credit. The credit is available for up to $7,500 or 15 per cent of the costs of a qualifying renovation incurred after Dec. 31, 2022.
• Those with a modest income and simple tax situation who need help filing their returns can speak with volunteers at a free tax clinic in their area, or make a virtual appointment. Details are available online through the CRA’s free tax clinics page.
• The deadline for filing Unused Housing Tax (annual 1% tax on the ownership of vacant or underused housing in Canada) is now April 30th, 2024.
• If you have set up an in-trust-for (ITF) account, you could be subject to new trust reporting rules that apply for taxation. These new rules could require you to file a T3 Trust Income Tax and Information Return within 90 days of the year-end, even if there is no income or activity to report. For the 2023 tax year, bare trusts have been granted temporary relief and won’t be subject to late-filing penalties. Going forward, the penalty is $25 for each day the return is late, with a minimum penalty of $100 and maximum penalty of $2,500.
References:
The Canadian Press, City News
Advisor.ca
