The Tax-Free First Home Savings Account (FHSA) is a registered savings account that allows first-time home buyers who are at least 18 years old and a resident of Canada to save up to $40,000 tax-free and earn tax-free investment income within the account. 

Contributions of up to $8,000 per calendar year are tax-deductible, just like Registered Retirement Savings Plan (RRSP) contributions.
Withdrawals for a first-home purchase are tax-free, just like a general Tax-Free Savings Account (TFSA).  For more details, check out our blog post on the subject.

Your spouse’s Name, SIN, and Net Income are required to ensure that tax returns are correctly completed. These details are necessary for determining eligibility for the range of tax benefits, deductions, and credits available to your household. Tax credits for one spouse can be transferred to the other spouse, and there are rules about who can make claims for specific items like childcare.

Couples should do their taxes together as there are opportunities for minimizing overall tax for the couple by optimizing credit allocations. Please do this correctly to avoid re-assessments by CRA and additional tax bills (plus interest).

Some tax credits are allocated based on whether a person is an individual or in a relationship (married or common-law).  Individuals filing individually may miss opportunities or inappropriately claim credits they aren’t entitled to.  By sharing relevant details such as your spouse’s income and deductions, you can access valuable tax credits, reduce your taxable income, and ensure accurate reporting of your combined financial situation.

CRA is well aware of these situations and gets your tax address.  Don’t be surprised if you get reassessed because you filed as individuals when you should have filed as a couple.

A mileage logbook is essential for anyone using their vehicle for business purposes, whether you are self-employed, a contractor, or an employee.

In Canada, the onus of proof is on the taxpayer regarding tax deductions. You can claim the appropriate vehicle expenses and maximize your eligible deductions by keeping an accurate and up-to-date mileage log. Vehicles are where people frequently try to gain an inappropriate tax advantage – and CRA is aware of this.  If you are selected for review and cannot produce your mileage logbook, CRA will almost certainly disallow the expense claims and reassess you.

For more information about claiming vehicle expenses, check out our blog post!

With more people working in Hybrid or Work-from-Home environments, home office expenses are relevant to a broader group of Canadians. The onus of proof is on the taxpayer, so it’s a good idea to prepare a simple spreadsheet to outline your claim and why it’s justifiable.

You can deduct a percentage of your home’s expenses based on the home’s size and the dedicated workspace’s size. The costs that can be claimed vary depending on if you’re self-employed or an employee.  Employees’ expenses can vary depending on whether they receive a commission and what is included in the T2200 the employer provides.  Note that an employee must have a T2200 to claim home office expenses.

For more information about claiming home office expenses, check out our blog!

It’s important to remember that not all tax filers are entitled to a refund.  If you are entitled to a refund but are not up to date with your tax filings or owe the CRA money, you probably won’t receive the refund until you’ve caught up on your taxes. The government has the right to transfer refunds to amounts owing by the taxpayer, so if you owe money, you may not get the refund you expect, or you may not get a refund at all.

Direct deposit: Register with CRA for faster refunds.

E-filed returns: Refunds typically arrive within 2 weeks.

Paper-filed returns: Refunds may take up to 8 weeks.

The easiest way to pay taxes is through online banking using your SIN as the account number.  Your financial institution can guide you through the payment process.

Yes.  After filing your taxes last year, you must pay installments if you owe more than $3,000. If you fail to pay tax installments on the installment deadlines, you will be assessed installment interest. Should your situation change, these installments can be reduced, but if, in the end, you owe more than $3,000, you will be assessed installment interest.

Installments can be paid through your online banking porta

The best way to update your address is through CRA My Account. If you haven’t registered yet, we highly recommend it, as it allows easy access to tax documents and account updates.

Once you’ve signed up for online mail with CRA, these emails are sent to you. CRA does not email you attachments, so never click on an attachment from CRA (It’s a trap! They are likely phishing scams.)

Log into your CRA My Account portal to check the mail you received.

The Contribution room for 2024 is 18% of earned income, up to a maximum of $31,560.

Check your 2024 Notice of Assessment to confirm your personal RRSP limit

The 2024 TFSA contribution limit is $7,000. Unused contribution room from previous years carries forward.

If you qualify and open an FHSA in 2024, your contribution limit is $8,000.

CPP rates increased again for 2024, meaning higher deductions from paychecks. Self-employed individuals must pay both employer and employee portions on their tax returns.

Personal income tax is calculated based on both federal and provincial tax brackets. For the 2024 tax year, the federal and Ontario provincial tax brackets are as follows

It’s a good idea to have a plan ready BEFORE December 31st, as your contribution room will be affected by the timing of your contributions.  Remember, topping up RRSPs is not the best tax plan for everyone. Know what’s right for you, and if you don’t know, get help. Accountants and Financial Planners can help you get and stay organized and understand what’s best for you in the long run.