Tax Breaks You Should Know About for 2024

As we usher in the new year, it's time for Canadians to start preparing their tax returns for the 2023 tax year. While the tax filing deadline is Tuesday, April 30, it's important to start preparing ahead of time to take full advantage of the numerous tax breaks and credits offered by the CRA. Here are some of the most important tax breaks that you should be aware of this tax season, along with some of the key changes to Canada's tax code for 2024.

Basic Personal Amount

The basic personal amount (BPA) for the 2023 tax year is $15,000. This non-refundable tax credit can be claimed by all taxpayers and is an excellent way to reduce (or even eliminate) your income taxes. If you earn $60,000, for example, you can subtract the $15,000 BPA and will only be taxed on the remaining $45,000.

Homebuyers' Amount

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. If you've recently purchased a home and have not applied for this tax break before, you can also file for it retroactively.

Work from Home Expenses

With the percentage of Canadians working from home on the rise, it's important to know that you can write off a number of home office expenses if you're a small business owner or an employee who works from home. These expenses include utilities, home internet fees, rent paid for your home, and maintenance and repair costs, among others.

Moving Expenses

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.

Key Changes to Taxes for 2024

While no new tax credits were introduced this year, several important changes were made to Canadian tax codes for the 2024 tax season. These changes won't affect your 2023 tax returns but may affect your bottom line when filing next year's taxes. Some of the key changes include higher federal income taxes and contributions, an increase in maximum pensionable earnings (CPP), higher Employment Insurance (EI) premiums, increased carbon and alcohol taxes, and new reporting requirements for bare trusts.

What's the Best Way to Take Advantage of Tax Breaks?

To ensure that you're getting all the breaks you're owed, you can 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. Don't wait until the last minute to start preparing your taxes. Take advantage of the numerous tax breaks and credits offered by the CRA and save yourself both time and money.

If you're a Canadian taxpayer looking to take advantage of the numerous tax breaks and credits offered by the CRA, start preparing your tax returns ahead of time and take advantage of the information and tips shared in this blog post. Don't miss out on the opportunity to save time and money. 

Contact SMR CPA your trusted accountant to ensure that you're getting all the breaks you're owed. Start preparing today!

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