Important Update
I have adapted my business to be remote processing over the past year as Covid became a public health issue and due to the increasing cost of having a rental business in town.
All documents (scans or pics from your phone are fine) can be sent to me directly through the secure link on my web site. (This data transfer service is fully secured in Canada.)​
I service all provinces/territories in Canada, except Quebec.
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Tax News
IMPORTANT TAX BREAKS AND CREDITS YOU CAN CLAIM
Although the CRA hasn’t introduced any new tax credits this year, these are some of the most common tax breaks you may want to discuss with your accountant or tax preparer to help you save more on your taxes.
Basic personal amount
The basic personal amount (BPA) for the 2024 tax year is $15,705. This non-refundable tax credit can be claimed by all taxpayers and is an excellent way to reduce (or even eliminate) your income taxes.
Taxpayers who earn less than $15,705 are exempt from paying federal income taxes since their total annual income is below the threshold. Those who earn more than $15,705 can use the basic personal amount to reduce their total tax liability.
If you earn $60,000, for example, you can subtract the $15,705 BPA and will only be taxed on the remaining $45,295.
Homebuyers
Introduced in 2009, the Homebuyers’ Amount allows disabled and/or first-time home buyers to claim a non-refundable tax credit of $10,000, provided they purchased a qualifying home that falls into one of these categories:
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Single-family house
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Condominium
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Semi-detached house
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Mobile home
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Apartment in duplex, triplex, fourplex, or apartment building
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Townhouse
If you’ve recently purchased a home and have not applied for this tax break before, you can also file for it retroactively. For homes purchased in 2021 or earlier, you can claim a $5,000 credit, and for homes purchased in 2022 or 2023, you can claim the full $10,000 credit.
Work from home expenses
The percentage of Canadians working from home has tripled since 2010, according to a report from Statistics Canada. While working from home comes with a number of perks and benefits, it also comes with increased home office expenses.
As a small business owner, you can write off a number of home office expenses. However, employees who work from home can also get credit for their extra expenses, including:
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Utilities (electricity, heat, water)
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Home internet fees
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Rent paid for your home
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Maintenance and repair costs
In late January 2024, the CRA will be releasing an updated home office expense sheet to make calculating your deductions easier. If you work from home, be sure to keep an eye out for it.
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Moving expenses
In 2023, many Canadians moved away from more expensive city centres like Vancouver and Toronto to reduce their cost of living.
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The good news is that if you moved more than 40 kilometres away and moved to accept a new job, work position, or school, you can deduct many of your associated moving costs.
Major changes to taxes for 2024
While there weren’t any new tax credits introduced this year, there were several important changes made to Canadian tax codes for the 2024 tax season. While these won’t affect your 2023 tax returns, they may affect your bottom line when filing next year’s taxes.
Here are some of the key changes that will affect your taxes in 2024, according to the most recent report from the Canadian Taxpayers Federation.
Higher federal income taxes
Due to rising payroll taxes, Canadian employees will see an increase in their federal income taxes. The increases aren’t major but still represent a creeping bracket. Here’s how much more you can expect to pay in federal income taxes next year, based on your income:
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$30,000 - $9 more tax
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$40,000 - $12 more tax
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$50,000 - $15 more tax
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$60,000 - $18 more tax
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$80,000 or more - $347 more tax
Increase in maximum pensionable earnings (CPP)
The maximum pensionable earnings for CPP will increase from $66,600 to $68,500, which will result in a $113 CPP tax increase for both employers and employees in the 2024 tax year.
Increase Employment Insurance (EI) tax rate
In 2024, both employees and employers will be subject to higher EI taxes. Employees will pay a total of $1,049 in EI taxes with a maximum of insurable earnings of $63,200, which is a $47 increase from the 2023 tax year.
Carbon tax
On April 1, 2025, the Government of Canada removed requirements for provinces and territories to have a consumer-facing carbon price. This ended the Federal Fuel Charge, and will end the quarterly Canada Carbon Rebate payments. Elligible Canadians will receive their final payment in April 2025, or whenever they file their 2024 tax return.
What is the best way to take advantage of tax breaks?
Thanks to free and low-cost e-filing software, filing your taxes has never been easier. However, the downside is that many taxpayers fail to take full advantage of tax credits.
The easiest way to make sure that you’re getting all the breaks you’re owed is to enlist the help of a trusted accountant or tax preparer. However, if you’re filing yourself, you can still prepare by reading up on all of the major tax credits and using a trusted tax filing software that will help guide you through all of your potential deductions.