Questions and answers about filing your taxes
1. Are there any housing updates? What housing tax credits or incentives should you be aware of? First Home Savings Account The First Home Savings Account (FHSA) is a new registered plan that helps first-time home buyers to save to buy or build a qualifying home. Contributions to an FHSA are generally tax-deductible and qualifying withdrawals made from an FHSA to buy or build a qualifying home are tax-free. For more information about the FHSA, go to canada.ca/fhsa. First-Time Home Buyers’ Tax Credit The amount used to calculate the First-Time Home Buyers’ Tax Credit (HBTC) has been increased to $10,000, from the previous $5,000. This change applies to qualifying homes purchased after December 31, 2022, and it can result in a non-refundable tax credit of up to $1,500 for eligible home buyers. Home Accessibility Tax Credit The home accessibility tax credit (HATC) is a non-refundable tax credit that allows a qualifying individual (a senior, or an individual who is eligible for the disability tax credit) or an eligible individual (who can claim certain tax credits for a qualifying individual) to claim amounts paid for a qualifying renovation or alteration made to an eligible dwelling in Canada. Qualifying expenditures of up to $20,000, for a tax credit of up to $3,000 may be claimed. Generally, a qualifying renovation enables a qualifying individual to gain access to their dwelling, be mobile or functional within the dwelling, or reduce their risk of harm within the dwelling or when accessing the dwelling. Multigenerational Home Renovation Tax Credit The multigenerational home renovation tax credit (MHRTC) can assist with certain qualifying expenditures paid for a qualifying renovation to create a self-contained secondary unit within an eligible dwelling. The secondary unit must allow a qualifying individual (a senior or an adult eligible who is eligible for the disability tax credit) to live with a qualifying relation. The MHRTC is a refundable tax credit up to a maximum of $7,500 for each eligible claim. Any portion of the credit that exceeds the amount required to offset the claimant's tax liability can be refunded to the claimant. Property flipping Beginning on January 1, 2023, any profit from selling a housing unit, which includes rental properties, or from selling a “right to purchase” a housing unit in Canada, will be treated and taxed as business income instead of a capital gain if you owned and held it for less than 365 consecutive days prior to selling it. However, there are exceptions if the property was already considered inventory of the taxpayer or the sale was prompted by certain existing or anticipated life events. For more information about flipped property and life-event exceptions, go to T4037 Capital Gains 2023.
2. Do you need to file an income tax and benefit return? You need to file your income tax and benefit return to receive, or continue to receive, the benefits and credits you’re entitled to, such as the Canada child benefit, the Canada workers benefit, the goods and services tax/harmonized sales tax credit, the Canada Carbon Rebate, the guaranteed income supplement and related provincial and territorial payments. You may even receive a refund. Even if you had no income to report in 2023, or your income is tax exempt, you must still file an annual income tax and benefit return to receive benefit and credit payments you are entitled to. There are other reasons that you may need to file, including if you owe tax. You can find out more at Do you have to file a return?
3. When is your income tax and benefit return due? 1. The tax-filing deadline for most individuals is April 30, 2024, and the deadline to pay any balance due for personal income tax returns is also April 30, 2024. The deadline for contributing to a Registered Retirement Savings Plan (RRSP) is February 29, 2024. Filing by April 30, 2024, avoids any late-filing penalty and interest if you have a balance owing. Filing a return early and online will help you receive your refund faster and avoid interruptions to any benefit and refund payments. If you cannot pay the full balance owing, you can make a payment arrangement with the CRA. In certain circumstances, the CRA may grant relief from penalties and interest. 2. If in 2023, individuals or their spouses or common-law partners were self-employed, the filing deadline is June 15, 2024. Because this date is a Saturday, we will consider a return as filed on time if the CRA receives it, or it is postmarked, on or before June 17, 2024. If you have a balance owing for 2023, it still must be paid by April 30, 2024. If you cannot pay the full balance owing, you can make a payment arrangement with the CRA. In certain circumstances, the CRA may also grant relief from penalties and interest.? 3. Those who are grieving the loss of a loved one may feel overwhelmed when taking on the role of an executor. When someone dies, their legal representative must file a final T1 Income Tax and Benefit Return, called the Final Return, to report the deceased person’s income from various sources up until the person's death, and the deductions and credits the deceased person is entitled to claim. If the person who died had eligible income, their representative can also file other optional T1 returns. A T3 trust income tax and information return (T3 return) might also need to be filed for the estate of the person who died. The due date to file the Final Return and pay a balance owing is: April 30 of the year following the death (if the death occurred between January 1 and October 31 inclusive) 6 months following the death, on the same calendar day as the date of death (if the death occurred between November 1 and December 31 inclusive) If the deceased person or their spouse or common-law partner was self-employed (operating a business) in 2023, see Filing and payment due dates - Prepare tax returns for someone who died for information on the due date to file the Final Return
4. What documents do you need before filing your income tax and benefit return? The information on a T4 slip is important when preparing and filing an accurate income tax and benefit return with the CRA. If you are registered for My Account, you can get a copy of your T4 slip and other tax slips online. However, not all slips will be available right away. You may have to visit My Account regularly to access them. Your employer should have given it to you before the end of February. There are several other types of tax information slips, such as the T4A, T4A (OAS), T4A(P), and T4E. Even if you don’t have all your tax slips, we encourage Canadians to file by the deadline to avoid penalties and interest. You can use your pay stubs or statements to calculate income and any related deductions and credits you can claim. You should keep a copy of all those documents in case we ask to see them later. Note: T4 slips do not apply to self-employed individuals. Also note that T3 slips are issued before the end of March.