Saving for your first home? Find out how a First Home Savings Account can help
Canadians can save for a home tax-free using the First Home Savings Account (FHSA). Prospective first-time home buyers can contribute or transfer from their RRSP up to $40,000 towards buying or building their first home.
Home office expenses for employees – What you need to know for the 2023 tax-filing season
The Canada Revenue Agency is currently updating its webpages and Form T2200 for the 2023 tax year. The updated form, which will be made available at the end of January 2024, along with other T1 related forms, will be easier to complete for employees who are only claiming a deduction for home office expenses.
Businesses: Here are the top changes this year that will affect business taxes in 2024
This year, there have been many announcements about changes that will affect business taxes in 2024. We have pulled them together here for quick reference, along with a list of resources that can help you manage these changes and your tax affairs in the new year.
Not today, scammer! Find out if it’s really the CRA contacting you
Scammers continue to pose as the Canada Revenue Agency (CRA) and other government departments and agencies, to trick you into giving them money or personal information. Unfortunately, they’re still having some success. The amount of money that people have lost to scams and fraud has increased over the years.
Taxpayer relief deadline is December 31, 2023 for requests related to 2013
The Canada Revenue Agency (CRA) would like to remind taxpayers and registrants that they have until December 31, 2023, to make a taxpayer relief request related to the 2013 tax year or reporting period.
If you want to ask for penalty and interest relief, you must send your request within ten years from the end of the calendar year or fiscal period of concern.
Get a head start on your taxes by using the CRA’s digital services
It’s almost that time of year again: tax season. Many of us put off filing our income tax and benefit returns until the last minute or avoid filing altogether. By not filing, you might be missing out on certain benefit and credit payments, or a potential refund.
The Canada Revenue Agency (CRA) is here to help you file, so you’re not scrambling at the last minute before the deadline.
Issuers of tax slips can now distribute T4, T4A and T5 slips more conveniently and efficiently
Issuers of T4A and T5 slips can now distribute them by email or using an employer or payer’s secure electronic portal without obtaining written or electronic consent from the employees or recipients before distributing the slips. Previously, issuers were required to request express consent in order to provide these slips electronically, but do not need to now, under certain conditions.
Individuals can now receive T4A and T5 slips more conveniently and efficiently
Recipients of T4A and T5 tax information slips no longer have to provide permission to receive them through a secure portal.
A T4A slip identifies amounts paid during the calendar year for certain types of income from many different sources, including self employed commissions and RESP educational assistance payments. T5 slips are used to report the various types of investment income that residents of Canada have to report on their income tax and benefit returns.
Employers and pension plan administrators: Changes coming to T4/T4A reporting
Beginning with the 2023 tax year, issuers (including employers and pension plan administrators) of the T4 Statement of Remuneration Paid and T4A Statement of Pension, Retirement, Annuity, and Other Income must report on a T4 or T4A slip whether, on December 31st of the taxation year to which the information return relates, a payee or any of their family members were eligible to access dental insurance, or dental coverage of any kind, including health spending and wellness accounts, due to their current or former employment.
Do you own a home and wondering if there are tax incentives that can help? Here’s what you need to know!
Whether you are new to Canada and trying to make your way, or are a Canadian resident wondering about housing options for the future, you are likely thinking about costs. The cost of living is high and we need to find ways we can stretch our dollars to where they need to go. We all have things to learn when it comes to managing our personal finances, and even more so as life circumstances change.
In November, we celebrate Financial Literacy Month by inviting organizations across Canada to come together to talk about personal finances, and how to manage different aspects of them. It is not always easy to know where we can get help to manage our money or to understand what mechanisms are out there for us. This November, help us get that conversation going.
Are you a first-time home buyer? Do you know there are tax incentives that could help you purchase your first home?
November is Financial Literacy Month, a time for organizations across Canada to come together to talk about personal finances, and how to manage different aspects of them. When we think about how best to manage our money, and what we want to accomplish with it, purchasing a first home is often at the top of the list. Let’s face it, it is not always easy to know what mechanisms are out there that we can take advantage of. That is why, in November, various financial organizations are talking about available financial tools and resources to get the conversation going!
Canada Revenue Agency announces maximum pensionable earnings and contributions for 2024
The maximum pensionable earnings under the Canada Pension Plan (CPP) will be $68,500—up from $66,600 in 2023. The basic exemption amount for 2024 remains at $3,500.
Starting in 2024, a higher, second earnings ceiling of $73,200 will be implemented and used to determine second additional CPP contributions (CPP2). As a result, pensionable earnings between $68,500 and $73,200 are subject to CPP2 contributions.
New reporting requirements for trusts as of December 31, 2023
The Government of Canada has introduced new reporting requirements for trusts. These changes were made as part of Canada’s international commitment to the transparency of beneficial ownership information as well as its continuous efforts to ensure the effectiveness and integrity of the Canadian tax system.
Crypto-asset exchanges: your records, obligations and responsibilities
When filing your taxes, you have to report any income or capital gains from crypto-asset activities on your income tax return. To meet your obligations for proper record keeping, it is strongly recommended that you download and keep any information related to transactions involving your exchange accounts.
It is important to download this information at regular intervals while you still have access to your account. Failure to do so may result in you being unable to access this information if an exchange stops its operations. If you are unable to access your exchange information, it will be difficult to determine your income from crypto-asset activities, or to support amounts filed should the Canada Revenue Agency (CRA) conduct an audit.
New Canada Pension Plan (CPP) and Québec Pension Plan (QPP) boxes on the T4 slip
Second additional CPP and QPP contributions begin in 2024. After January 1, 2024, any employee who contributes to the CPP or QPP will make CPP2 or QPP2 contributions if and when their annual income surpasses the first earnings ceiling, the Year’s Maximum Pensionable Earnings (YMPE). Employers will make a matching CPP2 or QPP2 contribution.
The YMPE for 2024 will be made available at the beginning of November 2023.
Small Business Week is here: make sure you check out the Canada Revenue Agency’s information and resources that are tailored to the needs of entrepreneurs
This Small Business Week, October 15 to 21, the Canada Revenue Agency (CRA) is celebrating the passion and impact of Canada’s entrepreneurs, cornerstones of our neighbourhoods and communities. As you take this time to connect, learn and grow your business smarts, we are excited to share some tax information and resources that can help your business thrive. In the midst of challenges such as weather events, supply chain issues and worker shortages, we’re here to help make managing your business taxes as quick and easy as possible.
Warning: Watch out for tax schemes involving multilevel marketing businesses!
The Canada Revenue Agency (CRA) is always on the lookout for tax schemes and opportunities to warn Canadians about them. Has someone encouraged you to deduct expenses and claim business losses to offset taxable income? If so, this might be related to a tax scheme involving multilevel marketing (MLM).
Did you know that there are business services that can make it faster and easier for you to meet your tax obligations?
Hi, I’m Charlie! Charlie the chatbot. You can find me on the Canada.ca/CRA webpage where I can answer questions about your business and other tax-related matters. From April to July 2023, I was asked just over 854,000 questions in English and 156,000 questions in French. As we head into Small Business Week 2023, I am here to give you some information about business taxes based on questions that I’ve received from others.
New tax credit to help offset cost of adding a secondary unit for family
Building a secondary unit for a senior or a family member with a disability?
The Multigenerational Home Renovation Tax Credit (MHRTC), provides a refundable tax credit of up to $7,500 for constructing a secondary suite, starting in 2023.
The value of the credit is 15 per cent of eligible expenses or $50,000 (whichever amount is less). For example, if the qualifying expenditures totaled $50,000, it would result in a refundable tax credit of $7,500 ($50,000 x 15%).
Brush up on your tax literacy for back to school
It’s time to hit the books again! As you’re getting ready to go back to school, there are some important things about benefits, credits, and taxes to keep in mind. Get organized now so you’ll get the benefits and credits that you’re entitled to and save yourself some headaches later.