2024 Tax Guide
We are here to help Canadians. That’s why as income tax season approaches, with family budgets tighter than ever and Canadians falling further and further behind, it’s imperative that you receive all the benefits you qualify for. Take a look through this Tax Guide and find some of the tax savings you may claim. Many were created by the previous Conservative government.
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Please feel free to contact my office with any questions you may have.
Questions about your taxes?
Contact the Canada Revenue Agency at 1.800.267.6999 or
online at canada.ca/en/revenue-agency
Deadlines:
The due date for filing an income tax and benefit return and paying any related tax balance due is April 30th, 2024.
If you are self-employed, you have until June 15th to file a return. However, to avoid late penalties, the CRA encourages you to file by April 30th.
To avoid a disruption in your benefits, it is important to file your taxes on time!
Savings for All Canadians
Goods and Services Tax (GST) Credit
Four times a year, this tax-free payment helps individuals and families with modest incomes offset all or part of the GST they pay.
If you have a spouse or common-law partner, only one of you can receive this credit. When you file your tax return, CRA will determine your eligibility and will advise those who are eligible to receive the credit.
Medical Expense Deductions
This credit applies to a number of eligible expenses – from home care services, to laser eye surgery, to orthopedics. The previous Conservative government expanded the deduction, as well as the list of expenses, to include costs associated with certain types of service animals (e.g. diabetes alert dogs). The amount you can claim is the total of your expenses, minus $2,635 for 2023, $2,759 for 2024, or 3% of the claimant’s income (whichever is less). There is no limit on the amount of eligible expenses a taxpayer can claim for himself or herself, a spouse or common-law partner, or a child under 18.
Carbon Tax
When the Liberals introduced their carbon tax, they promised Canadians that they would get more back from their carbon tax rebate than what they paid in the carbon tax. The independent Parliamentary Budget Officer confirmed what Canadians already know. You pay more in the carbon tax than you get back in the rebate. The rebate is paid in equal quarterly payments in January, April, July, and October. Conservatives will axe the carbon tax so you keep more of your hard-earned money.
Canada Training Credit
The Canada Training Credit (CTC) is available for eligible tuition and other fees paid for courses taken in 2020 and subsequent tax years. Beginning with the 2019 tax year, an eligible individual can accumulate $250 in each year toward their CTC limit, up to a maximum of $5,000 in a lifetime, which can be accessed to help cover up to half of eligible tuition and fees associated with training. Note that it is only available for individuals between the ages of 26 and 65 who are Canadian residents, with income between $10,000 and the top of the third tax bracket, and for eligible courses. Contact CRA to check eligibility.
Savings for Families
Child Care Expense Deductions
You can claim payments you have made to someone who has looked after your child while you either earned an income from employment, operated a business alone or, as an active partner, attended school or conducted research.
The previous Conservative government increased the dollar limits that parents can claim up to $8,000 per child who is under the age of seven, up to $5,000 for each child aged 7 to 16 (and for infirm children over the age of 16), and $11,000 for any children who are eligible for the Disability Tax Credit.
Canada Caregiver Credit
You can claim $2,499 on your 2023 tax return under the Canada Caregiver Credit if you support a spouse, a common-law partner or a dependent with a physical or mental impairment.
If you are eligible for the Canada caregiver amount for your spouse or common-law partner, or an eligible dependent 18 years of age or older, and their net income is less than $26,782, you may be able to claim an additional amount up to a maximum of $7,999.
Disability Tax Credit
This non-refundable tax credit, in some cases, may be claimed by a person with severe and prolonged impairment, or their caregiver. Where eligibility is approved, the federal amount in 2023 for an adult over 18 is $9,428. For a child, the total amount is $14,928.
Child Disability Benefit
If your child is eligible for the disability tax credit, they may also be eligible for the Child Disability Benefit in recognition of the additional costs that can add up when caring for a child with a severe disability. It is an amount of up to $3,173 per eligible child.
Registered Disability Savings Plan
The previous Conservative government introduced the Registered Disability Savings Plan (RDSP) to ensure long-term financial security for Canadians and families who are dealing with severe disability. A grant from the Canada Disability Savings Grant may also be available, and for low and modest income individuals, the Canada Disability Savings Bond may apply.
Adoption Expense Tax Credit
This credit is a 15% non-refundable tax credit that allows adoptive parents to claim eligible adoption expenses relating to the completed adoption of a child under the age of 18. The previous Conservative government created this initiative and increased the maximum amount of eligible expenses up to $15,000 per child, indexed to inflation. For the 2022 tax year, the maximum is $17,131.
Savings for Seniors
Home Accessibility Tax Credit
While in Government, Conservatives introduced the Home Accessibility Tax Credit. Seniors and persons with disabilities who are eligible for the Disability Tax Credit can qualify for tax relief of 15% on up to $20,000 in eligible expenses. To be eligible, expenses must be incurred in relation to a renovation allowing for better mobility and functionality or reducing the risk of harm.
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Doubling the Pension Income Amount
The previous Conservative government doubled the maximum amount of eligible pension income that can be claimed from $1,000 to $2,000. This results in even more savings that will make a real difference for pensioners.
Increasing the Age Amount
While in government, Conservatives also increased the Age Amount by $2,000 to help low and middle-income seniors. Based on these increases and adjustments for inflation, in 2023 the Age Amount allows seniors to claim up to $8,396 on their 2023 tax return, depending on the individual’s net income.
Pension Income-Splitting
The previous Conservative government introduced pension income-splitting to help ease the tax burden and deliver fairness for Canadian pensioners.
Generally, each individual Canadian pays taxes on their full income earned. Pension income-splitting allows any Canadian resident who receives qualifying pension income to allocate to their spouse (or common-law partner), with whom they reside, up to one-half of that income. By doing so, a pensioner and their family can dramatically reduce their tax load.
Increasing the Age Limit for Converting RRSPs to RRIFs
Registered Retirement Savings Plans (RRSPs) provide one of the best opportunities for Canadians to save for the future. Since RRSP contributions below your RRSP deduction limit are not taxable, they are an ideal way to plan for retirement. However, some Canadians have been restricted by the way RRSPs are structured. Even though they chose to work past 69 years of age, it was a requirement to convert their RRSP into a Registered Retirement Income Fund (RRIF) and were forced to begin making taxable withdrawals.
The previous Conservative government increased the age limit for converting RRSPs to RRIFs from 69 to 71. Now, more Canadians have the freedom to choose when they convert their RRSPs.
Savings for Working Canadians
The previous Conservative government increased this exemption to $800,000. (As it is indexed for inflation, the lifetime capital gains exemption is $913,630 for the 2022 tax year). Additionally, Conservatives also increased the limit specifically for farm and fishing businesses to $1 million. Conservative Bill C-208, passed in the last Parliament, has made it easier for family-owned businesses and farms to be passed down to children or grandchildren.
Eligible Educator School Supply Tax Credit
Eligible educators can claim a 25% refundable tax credit on up to $1,000 of supply purchases per year. Some examples include flashcards, art supplies, writing materials, books for the classroom and more.
Volunteer Firefighters’ Tax Credit
This is a 15% non-refundable tax credit based on an amount of $3,000 for volunteer firefighters who perform at least 200 hours of service per year. Delivered by the previous Conservative government, the option to claim the exempt amount of up to $1,000 for honoraria will remain in lieu of the credit, if desired.
Search and Rescue Volunteer Tax Credit
This is a 15% non-refundable tax credit based on an amount of $3,000 to acknowledge the valuable contributions of ground, air and marine search and rescue volunteers, who perform at least 200 hours of service per year. Delivered by the previous Conservative government, the option to claim the exempt amount of up to $1,000 for honoraria will remain in lieu of the credit, if desired.
Tradespersons’ Tools Deduction
This tax deduction on tools, delivered by the previous Conservative government, helps those tradespeople who often must pay for their work expenses up front out of their own pockets.
Meal Expenses of Long-Haul Truck Drivers
The Canadian tax system generally limits business-related meals, entertainment, and other expenses to be deductible only up to 50%. The previous Conservative government raised the deductible portion of meal expenses for long-haul truck drivers to 80%.
Lowering of the Small Business Tax Rate
In 2015, the previous Conservative government introduced a tax measure to lower the small business tax rate from 10.5% to 9% by 2019. A reduced small business tax rate of 9% is now in effect.
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Lowering of the Small Business Tax Rate
The previous Conservative government introduced a tax measure to lower the small business tax rate for Canadian-controlled private corporations to 9%, and the rate remains at this 9% today.
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Labour Mobility Expense Deduction
The labour mobility deduction provides a deduction of up to $4,000 per year for eligible transportation, meals and temporary lodging costs at temporary work locations to eligible tradespersons and apprentices engaged in certain construction activities.
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Canada Workers Benefit
This benefit, introduced by the previous Conservative government in 2007, is a refundable tax credit that supplements the earnings of low-income workers to ensure they aren’t penalized for getting a job. The Liberal government has since renamed and expanded the benefit.
For those low-income working Canadians with a disability who face even larger barriers to workforce participation, it provides an additional supplement.
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Canada Employment Amount
The Canada Employment Amount provides most employees of the public and private sector (excluding the self-employed) with help to offset the cost of work-related expenses such as home computers, uniforms and supplies. If you qualify for this amount, you can claim up to $1,287 on your 2022 tax return.
Apprenticeship Job Creation Tax Credit
Employers who employ an eligible apprentice in a skilled trade in the first two years of an apprenticeship contract (registered with the federal, provincial, or territorial government) can be eligible to receive a non-refundable tax credit equivalent to 10% of the salaries and wages paid to the apprentice. Introduced by the previous Conservative government, this can translate into tax savings for an employer of up to $2,000 per eligible apprentice.
Lower Taxes for Local Business Owners, Farmers and Fishermen
When an owner of a family farm, local business, or fishing enterprise passes from one generation to the next, the properties – or shares – are subject to a Capital Gains Tax. Previously, the first $500,000 of the value was tax-free.
Additional Compliance Obligations
New Reporting Requirements for Some Trusts
BARE TRUST REPORTING HAS BEEN CANCELLED FOR THE 2023 TAX SEASON, BUT MAY BE REQUIRED NEXT YEAR.
New reporting requirements have been introduced for certain kinds of trusts, including what are known as “bare trusts”. Affected trusts will be required to file an annual T3 Trust income tax and information return (T3 Return), including a Schedule 15, Beneficial Ownership Information of a Trust, if applicable, with the CRA for tax years ending after December 31, 2024.
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Sometimes bare trust situations arise almost incidentally, such as when parents co-sign a child’s mortgage, or list children as partial property owners while putting their financial affairs in order. Some people won’t necessarily know the situation applies to them.
Penalties for not filing correctly can be severe, with the Canada Revenue Agency able to charge up to $2,500 for late filings. The penalty can increase significantly if you miss filing more than once.
Higher Interest Rates for Late Taxes
The interest rate charged on overdue taxes, the Canada Pension Plan contributions, and employment insurance premiums will be 10%.
How to File Your Taxes
Many reading this will file taxes with an accountant or tax professional. This is a great way to ensure your taxes are done right.
In addition to hiring a tax professional, the CRA provides four additional methods to file your taxes (including low cost or free services).
Using Software
You will find a list of certified desktop, online, and mobile software products at Canada.ca/netfile-software. Some of these software products are free.
Filing By Paper
If you filed your taxes on paper last year, the CRA will automatically mail you the 2024 income tax package.
You can view, download and order forms and publications at Canada.ca/taxes-general-package. You can also call the CRA at 1.855.330.3305 to order forms and publications.
By Phone
The CRA offers an automated phone service called File my Return. This free service lets you complete and file your return by phone. The service is available to eligible Canadians who have low or fixed incomes and whose tax situation doesn’t change from year to year. If you are eligible for File my Return, the CRA will mail an invitation letter to you by mid-February.
Using the Community Volunteer Income Tax Program
Through the CRA’s Community Volunteer Income Tax Program, community organizations host free tax clinics for Canadians with a modest income and simple tax situation. Volunteers may be able to complete and file returns for free, by videoconference, by phone, or through a document drop-off arrangement. To find a tax clinic near you, go to Canada.ca/taxes-help.
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Tax Clinics in Battle River--Crowfoot
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ASA Tax Clinic *By Appointment Only
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Stettler Volunteer Centre
4804-50TH STREET STETTLER AB T0C2L0
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Viking/Beaver Family and Community Support Services
SOS Program Year Round Tax Filing
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Kneehill County - FCSS
PO BOX 400 THREE HILLS AB T0M2A0
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Big Country Community Adult Learning Association
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Tofield/Beaver County West FCSS
5407 50 STREET TOFIELD AB T0B4J0
tboastradley@tofieldalberta.ca
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Wainwright & District Family & Community Services