For an informed statement | The Press

In March, the RRSP season is behind us, now is the time to complete your income tax return. Three new things to know about the 2023 declaration, to help yourself or to inspire your accountant.

Multigenerational home help

Old parents want to get closer to their favorite son while maintaining their privacy? The Canadian government offers up to $7,500 to pay part of the cost of developing an independent secondary dwelling (private entrance, own kitchen, bathroom and rest area) when municipal regulations allow it.

The refundable tax credit for the renovation of multigenerational homes provides a 15% credit on eligible expenses of up to $50,000.

The goal is to allow a specific individual, i.e. a person aged 65 and over or a disabled adult, to live with a loved one. The credit is requested by the owner of the home, whether the specified individual or the eligible relative.

Thus, a home owner aged 65 and over can set up an accessory dwelling unit for his adult son who does not suffer from any impairment and claim the credit. In this case, the elderly taxpayer becomes both the specified individual and the individual eligible for the tax credit, while his son is an eligible relative.

Please note, however, that the creation of independent secondary accommodation may have an impact on eligibility for the generous exemption on the entire main residence. “This is one of the main points to pay attention to before claiming the credit,” emphasizes Tommy Gagné-Dubé, professor of taxation at the University of Sherbrooke. There is also eligibility for the credit for people living alone and the Quebec tax credit for caregivers that could be at stake.”

Regarding the capital gain exemption on the sale of the principal residence, the Canada Revenue Agency has not yet decided the question, according to the Center québécois de formation en fiscalité (CQFF). This exemption can represent a tax saving much greater than the tax credit of $7,500 with the increase in real estate prices.

Filing your return pays off (even more this year)

Over the years, governments have introduced eligible assistance only to taxpayers who complete their income tax returns. Let’s think about the famous anti-inflation checks of $400 or $600 from Prime Minister Legault, announced in 2022. For latecomers, it is still possible to receive one by filing their 2021 declaration no later than June 30 .

This year, more than ever, it will be profitable to complete your income tax return, because the tax reduction of one percentage point for the first two tax brackets decreed by the provincial government is retroactive to 1^er January 2023.

Withholding taxes having been modified after June 30, employees therefore have six months of tax reduction to recover, simply by completing their 2023 return this spring.

“You will have to file your income tax return to receive the retroactive tax cut from January to June,” corroborates Professor Tommy Gagné-Dubé. Otherwise, as in the opposite case (amount owed to the government), Revenu Québec will make an appeal and possibly contribute. »

The maximum amount at stake is $407 for those who win a maximum of $98,540. Enough to find your tax preparer very good this year. For employees who earn $60,000, Revenu Québec will reimburse you $214.

Working from home: end of the simplified deduction of $2 per day

Bad news for white-collar employees who have acquired a taste for remote work: starting in 2023, the tax authorities withdrew the simplified method which granted a deduction of $2 per day, up to a maximum of $500. “The temporary measure is over, and it is normal that it is,” says Professor Tommy Gagné-Dubé.

This spring, teleworkers must fill out form T777, Statement of Employment Expenses, at the federal level and its equivalent at the provincial level, the TP-59. That’s not all. The employee must have his employer complete and sign form T2200, Declaration of Working Conditions, and its sister form TP-64.3 in Quebec.

“For our clients who qualify for the deduction,” suggests Jérémy Levasseur, tax director at Effisca, “we recommend that they request form T2200 from their employer. There are employers who don’t give it right away. I find it a bit boring. “But it’s worth it, he insists.

For every deductible dollar, there is $0.29 in tax savings.

Jérémy Levasseur, tax director at Effisca

However, employers who tolerate voluntary teleworking may refuse to sign the forms due to the fact that their employees are not required to work remotely.

Otherwise, employees must work at home a minimum of three days or more per week for at least four consecutive weeks to be eligible.

Expenses associated with property tax, mortgage loan and insurance are not deductible for the teleworker, but the rent, the Hydro-Québec account and the heating bill are, in proportion to the surface area used for work. . Benefit to tenants.