WEYBURN - Canadian residents can start filing their 2024 taxes with the Canadian Revenue Agency. There are many good reasons to complete the income tax and benefit on time, especially for those residents who qualify for a refund, benefits or credits.
For those who receive their income tax package by mail, they will notice that the paper package is a lot thinner than usual, by approximately 30 pages. There is no longer a line-by-line instruction in the paper package, as the majority of paper filers rely on information from the prior year, and the ‘What is New’ section.
Residents are encouraged to file electronically, as it is fast, and returns are generally processed within two weeks.
There are quite a few new services that are available for residents when they file this year. Lisa Ko, media spokesperson with the Canadian Revenue Agency, highlighted some of the key changes.
“The CRA has made it faster and easier than ever for persons with disabilities and their medical practitioners to complete the Digital Disability Tax Credit (DTC) application form, by introducing a new fully digital application process.”
Applicants can now complete part of the application form online in My Account, which means that they no longer need to print and complete the form by hand, and take it to their medical practitioner. To further simplify the process, the applicant's portion of the form will be pre-populated with information already on file at the CRA. Once completed, the applicant will receive a reference number to give to their medical practitioner who will use it to complete their part of the form.
“With access to that generated code, it makes filing the DTC a lot more convenient, for those who are submitting their medical claims,” said Ko.
First-home buyers now have access to a new registered plan, called the First Home Saving Account (FHSA), which allows them to set aside money to buy or build a new home. The good news is that contributions to the FHSA can be deducted from tax returns, as it is considered a registered plan for those individuals. Contributions to the FHSA can also be withdrawn, totally tax free, to start making down payments.
The CRA also helps individuals who are applying for the multi-generational home renovation tax credit, a new refundable tax credit that allows eligible individuals to claim renovations costs to create a secondary unit within their home. “For those families who are creating a secondary unit for a senior, or an adult who is eligible for the disability tax credit, can claim up to $50,000 in qualifying expenditures,” explained Ko.
There were also changes in the home office expenses, as the temporary flat rate method that was used during the COVID pandemic years will not apply for 2023 claims. “It is important that employees who are claiming a deduction for their home office expenses remember to keep track of everything, and complete a detailed T2200,” explained Ko.
As always, there are free tax clinics for those who have a modest income and require help with their tax returns. There are also many professional tax experts available by booking an appointment with a local business.
The deadline to complete tax returns is April 30. The CRA encourages residents to file their tax returns on time, to avoid delays to any refund, benefit or credit payment, or to also avoid late-filing penalties.
