Tax season officially began on Monday, the first day Canadians can start filing their taxes online.
The Canada Revenue Agency (CRA) has indicated that those who file their tax returns on paper should also have already received their tax packages in the mail.
Most Canadians must file their taxes by April 30, which is also the deadline to make a payment for those who owe money to the CRA.
However, self-employed Canadians, as well as their spouses or common-law partners, have until June 15. Since this day falls on a Saturday, the CRA will consider a return to be on time if it is received or mailed on or before June 17.
Self-employed Canadians must still pay the amounts owed to the CRA before the April 30 deadline to avoid paying interest.
Changes
The Chartered Professional Accountants (CPA) of Canada organization is citing a number of changes for the 2024 tax filing season.
CPA Vice President of Taxation John Oakey wrote in an article posted on the organization’s website that the temporary flat-rate method for deducting home office expenses, such as rent, electricity, Internet and office supplies are no longer available.
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 or keep documentation supporting their expenses.
For 2023 and beyond, employees must now follow a more detailed method for making these claims, Oakey says.
Other notable changes, he adds, include the fact that taxpayers will no longer have to request advance payments of the Canada Workers Benefit when they file their taxes. These payments are now made automatically to those who were eligible to receive the benefit in the previous tax year.
Last April, rules governing the new Tax-Free First-Time Home Buyer Savings Account (CELIAPP) also came into force, intended to help Canadians save for their first home.
Contributions to CELIAPP are deductible and income earned in this account is not taxable. Eligible withdrawals from a CELIAPP to purchase a first home are also not taxable.
The program allows prospective buyers to start saving for up to 15 years once they open an account, with an annual deposit cap of $8,000 and a lifetime contribution cap of $40,000 .
Mr. Oakey also points out that taxpayers can now claim the tax credit for the renovation of multigenerational homes. This is a refundable credit intended to cover part of the cost of renovations for the creation of a secondary unit for a senior citizen or an adult eligible for the disability tax credit.
The credit is available up to $7,500 or 15% of eligible renovation costs incurred after December 31, 2022.
The CRA says it processed more than 18 million refunds for the 2022 tax year, for an average of $2,262. About 78% of refunds were made by direct deposit while the rest were sent by check.
People with modest incomes and simple tax situations who need help filing their returns can speak with volunteers at a free tax clinic in their area or make a virtual appointment, says the federal agency .
Details are available online on the CRA’s free tax clinics page.