TFSA
The maximum contribution to the tax-free savings account will increase to $7,000. It is currently $6,500. At the beginning of January, the cumulative ceiling will reach $95,000. When the TFSA was created in 2009, you could deposit $5,000 per year. The maximum amount is recalculated each year based on inflation. The contribution limit for the CELIAPP (tax-free savings account for the purchase of a first property) will not change.
Workers’ funds
All Quebecers will no longer have access to tax credits totaling 30% provided by contributions to the FTQ Solidarity Fund and the Fondaction de la CSN. “If taxable income for 2022 exceeds $112,655, in 2024, we are not entitled to the credits at all. Neither at the federal nor at the provincial level,” summarizes Natalie Hotte, CQFF tax specialist and partner at Raymond Chabot Grant Thornton.
Accessibility to credits is now determined based on income two years previously. And this maximum taxable income will change each year. For your 2025 contributions, the maximum taxable income for 2023 will increase from $112,655 to $119,910. By reducing access to these funds for wealthier employees, around 60,000 new savers should be able to benefit from them, according to Quebec estimates.
In addition, the minimum holding time of 2 years of these funds for those aged 65 and over and retirees will increase to 3 years on 1er June 2024. It will then increase to 4 years in June 2025 and to 5 years in June 2026.
RRQ
If you are one of the 2.2 million Quebecers to whom the Quebec Pension Plan pays an amount each month, know that it will be increased by 4.4% starting in January. Over the previous five years, the average increase in pensions had been 2.9%, with a peak of 6.5% in 2023.
Annuities are indexed annually to take into account inflation. For 2024, the calculation was based on the average consumer price index for the period November 2022 to October 2023.
- The average annual retirement pension of $7,184 will increase to $7,500, a difference of $316 ($26 per month).
- The average pension for people aged 65, which currently stands at $9,700, will increase to $10,127 (+$427 or $36 per month).
- The surviving spouse’s pension will be increased by $229 ($5,182 to $5,411).
- The disability pension will jump by $575 ($13,078 to $13,653).
That’s not all. Starting in January, people aged 65 and over who are still working will be able to stop contributing to the QPP, if they wish. In doing so, their employer will also suspend their payments to the plan. In addition, it will be possible to wait until age 72 to claim your retirement pension, rather than 70 as is currently the case. Each year of deferral increases the amount obtained.
The Social Security pensionrite of old age
Inflation will also increase the amounts paid by Ottawa to seniors. The first payment for 2024 is scheduled for January 29, but the indexation rate has not yet been revealed, mentions Employment and Social Development Canada. For people aged 65 to 74, the current maximum amount is $707.68 per month, it reaches $778.45 for those aged 75 and over.
GST
Ottawa announced the elimination of the GST on counseling and psychotherapy services “so people can receive the mental health support and care they need.” The patients of these professionals will therefore save 5%. The date of entry into force is not known, the measure must first be adopted, which should be done by Christmas or in January.
Itaxes
Many vulnerable people miss out on benefits to which they are entitled because they do not file their income declaration. To help them, The Canada Revenue Agency will test a new automatic return filing service in 2024. Affected taxpayers will receive written notice. This is excellent news.
Federal tax brackets will increase by 4.7%. In Quebec, the tax brackets will be indexed by 5.08%.
This means that the basic personal amount – this bracket of income on which we do not pay taxes – will increase to $18,056 in Quebec, particularly useful information for students withdrawing their RESP. In Ottawa, it is $14,156 or $15,705 depending on your income level.
Renovamulti-generational housing
You will be able to claim this new refundable tax credit in your next income tax return filed in Ottawa if you have renovated your home to add a “self-contained secondary unit” allowing a senior or a disabled adult to live with you. You can claim up to $50,000 in eligible expenses. The tax credit is 15% of your costs, for a maximum of $7,500.
Sala increaseire?
Faced with the expectations of workers who are suffering the effects of inflation and interest rate increases, and in a context of labor shortage, only 2% of employers are considering a salary freeze for 2024. The vast The majority instead forecast increases of around 3.7%, on average. This is the second largest increase in 15 years, according to the Order of Certified Human Resources Advisors. In general, the salaries of unionized employees follow the inflation curve less since collective agreements are valid for several years. But this time, the strike of 420,000 Common Front workers in health, social services and education could create a big exception.