New Canada Revenue Agency (CRA) Changes For Tax Returns 2024

Last Updated On 25 February 2024, 9:56 AM EST (Toronto Time)

A few modifications have been made to Canada’s taxes, which you should be aware of before filing your return this year.

So, the Canada Revenue Agency (CRA) has announced all of the updates, which include new tax credits, revisions to the T1 notice of assessment, a new approach to claiming home office expenses, and more.

Tax season in Canada has begun on February 19, 2024, and you have until April 30, 2024, to file your taxes and pay any amounts owed.

Here’s the summary about the new changes to 2023 income tax return from the CRA when you file your taxes in 2024.

COVID-19 benefit repayments

Line 23200 of your 2023 Income Tax and Benefit Return allows you to claim a deduction for federal, provincial, and territorial COVID-19 benefit repayments made in 2023.

Income Tax Package

Beginning in 2024, the CRA will no longer print line-by-line instructions on paper income tax returns.

This implies that there will be a 30 page reduction in each paper bundle.

First Home Savings Account

Beginning April 1, 2023, contributions to a First Home Savings Account are normally deductible, and qualified withdrawals are tax-free.

If you created an FHSA in 2023, you can deduct up to $8,000 of contributions paid by December 31, 2023, on your 2023 tax return.

Your notice of assessment may also include a table for FHSA balances, similar to the RRSP table.

You may also like: New Tax Brackets in Canada For 2024 and Important Dates

Home office expenditures for employees

For 2023 taxes, the interim flat rate method for claiming a deduction for home office expenses is no longer applicable.

If you want to claim home office expenditures in 2023, follow the comprehensive method and have your employer sign Form T2200, Declaration of Conditions of Employment.

Deduction for Tools

Starting in 2023, tradespeople’s qualified tools will be eligible for a $1,000 maximum employment deduction, up from $500.

The threshold for eligible expenses under the apprentice mechanics tools deduction has also adjusted.

Advanced Canada Workers’ Benefit

Advanced Canada Workers Benefit payments are now distributed automatically under the new Advanced Canada Workers Benefit program.

If you received the benefit in the previous tax year, there is no need to apply or complete a tax form.

As a result, the Canada Workers Benefit Advance Payment Application (Form RC201) was discontinued last year.

Multigenerational house improvement tax credit

The multigenerational home renovation tax credit is a new refundable tax credit that allows qualified homeowners to claim some remodelling costs to establish a secondary apartment within their home for a qualifying individual to reside in.

You can claim up to $50,000 in eligible expenses for each qualifying renovation, with a maximum credit of $7,500 per claim.

The Disability Tax Credit

The disability tax credit has a new totally digital application process, which allows applicants to complete Part A of the application form online in CRA My Account or by phone.

Additionally, the applicant’s section of the form will be pre-populated with information currently on file with the CRA.

Once the online form is completed, the applicant will be given a reference number to give to their medical practitioner, who will then utilize it to complete Part B of the form.

Payments exceed $10,000.

Remittances or payments to the Receiver General of Canada shall be done electronically starting January 1, 2024, if the sum exceeds $10,000.

You may incur a penalty unless you are unable to appropriately remit or pay the amount owed electronically.

T1 Notice of Assessment

The T1 notice of assessment and notice of reassessment have been updated to provide more detailed and understandable information.

Because of changes in the manufacture of the check notice, you will receive a paper T1 notice of assessment and a check separately if you are seeking a refund and have not signed up for direct deposit.

Residential Property Flipping Rule

Changes to the Residential Property Flipping Rule take effect on January 1, 2023, and any gain from the sale of a housing unit located in Canada (or the right to acquire a housing unit located in Canada) that you owned or held for less than 365 consecutive days prior to its sale is considered business income rather than capital gain.

Return of Fuel Charge Proceeds to Farmers Tax Credit

Self-employed farmers and individuals who are members of a partnership operating a farming business with one or more permanent establishments in Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, or Saskatchewan can now take advantage of the return of fuel charge proceeds to farmers tax credit.

When are Canadian taxes due in 2024?

April 30, 2024.

Gagandeep Kaur Sekhon

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.