Canada Tax Filing Deadlines 2024: A Comprehensive Guide Stepping into the new year, it’s important for everyone across Canada to be aware of the upcoming tax filing deadlines in 2024. At Advanced Tax, we have a deep understanding of tax, bookkeeping, and accounting services, ready to get you through this process. We’ve compiled an overview of the key deadlines that individuals and businesses need to take note of for the upcoming tax season. We do it to ensure you manage your financial responsibilities effectively. Personal Tax Filing Deadlines 2023 RRSP Contribution You have until February 29, 2024, to contribute to your RRSP for the 2023 tax year. RRSP contributions are fully tax-deductible. They reduce taxable income dollar-for-dollar until the assigned deduction limit. The RRSP deduction limit is either the lesser of 18% of the previous year’s income or the CRA’s annual limit. Income Tax Return Filing The deadline for filing income tax returns for individuals is April 30, 2024. Self-employed individuals get an extended deadline until June 17, 2024. This is due to the usual June 15 deadline falling on a Saturday. Tax payments, including those for self-employed individuals, are due by April 30, 2024. Deceased Taxpayers For anyone who has passed away between January and the end of October 2023, the filing deadline for the year of death is April 30, 2024. If the death occurred in November or December 2023, the deadline is six months from the date of death. Outstanding taxes would be due on their respective filing dates. RRSP Conversion Turning 71 in 2024 requires converting your RRSP to a registered retirement income fund (RRIF) or a life annuity by December 31, 2024. Plan this conversion in early December to make sure your financial plans aren’t affected by it. Underused Housing Tax Filing Deadlines Owners of residential property that are affected by the Underused Housing Tax (UHT) need to file their UHT return for the 2022 calendar year by April 30, 2024. The payment needs to be completed by this date as well to avoid penalties or interest. Business Tax Filing Deadlines T4 Employment-Income Slips Businesses need to send out T4 employment-income slips by February 29, 2024. These slips are used for reporting different remuneration types, such as salary, wages, bonuses, and taxable benefits. Filing a T4 slip is mandatory if pension adjustments, CPP, QPP contributions, EI premiums, or income tax deductions were applied, or if the remuneration exceeds 0. Find out more information on filing the T4 slip and summary forms from the CRA’s website at this link. T4A Forms Businesses making payments like pensions, lump-sum payments, annuities, or other income, including fees or commissions to non-residents, should file T4A forms by February 29, 2024. Reporting taxable group term life insurance benefits on T4A slips is obligatory if the amount surpasses . T5 Forms To report investment incomes in Canada, T5 forms need to be filed. They are due by February 29, 2024. It’s important to note that T5 slips should not be used for reporting investment income paid to non-residents. Utilizing the Canadian Tax Filing Deadlines for 2024 At Advanced Tax, we understand the importance of meeting these deadlines. Not only is this key for compliance with Canadian tax regulations, but it lets us help you save on your taxes. Our team is committed to assisting you with your tax, bookkeeping, and accounting needs. Feel free to reach out to us for personalized assistance on your tax journey. Remember, staying informed is the first step towards financial success.
Category Archives: Business
Unlocking Financial Benefits: The Essential Guide to Newcomer Tax Filing in Canada Are you a recent immigrant to Canada, ready to explore new opportunities? This blog aims to provide crucial insights into Newcomer Tax Filing in Canada, making the transition to the Canadian tax system easy and stress free. The information lets you make informed decisions for maximizing tax benefits and credits while complying with Canadian tax laws. Residency and Social Insurance Number (SIN): Building a Solid Foundation for Newcomer Tax Whether you hold permanent residency, refugee status, or a temporary permit, determining your residency status for income tax purposes is pivotal. It is essential to distinguish between your immigration and residency status. Residency status is established based on your residential ties in Canada. Acquiring a Social Insurance Number (SIN) is a critical step in this process, serving as a confidential 9-digit identifier necessary for various purposes. In situations where obtaining a SIN poses challenges, the Canada Revenue Agency (CRA) may issue a temporary tax number (TTN) to facilitate access to benefits, credits, tax filing, and online services. Benefits and Credits: Financial Support for Newcomers Canada provides a variety of benefits and credits designed to support newcomers financially. To qualify for these, either you or your spouse/common-law partner must be a resident for income tax purposes. Obtaining a SIN from Service Canada and applying for eligible benefits and credits allows you to start receiving payments. It is important to note that filing your first tax return is not a prerequisite for accessing these benefits and credits in your initial year in Canada. To qualify for certain benefits and credits, temporary residents on visas must live in Canada for 18 months straight. On the 19th month, they need to have a valid permit before applying. If you have children, fill out and sign Form RC66, Canada Child Benefits Application to apply for all child and family benefits. This includes the GST/HST credit. In the case you don’t have children, fill out and sign Form RC151. This is for the GST/HST Credit and Climate Action Incentive Payment Application for Individuals Who Become Residents of Canada. Even if your residency is only partial for the year, filing a tax return becomes essential if tax payment or refund claims are necessary. Consistent tax return filing is crucial to maintaining eligibility for benefits and credits, regardless of your income level. World Income Reporting: A Holistic Approach to Newcomer Tax Compliance When filing your tax return, it is imperative to report your world income (in Canadian dollars) for the part of the year you were considered a resident of Canada. This encompasses income from all sources within and outside Canada. While certain types of income may be exempt under a tax treaty, accurate reporting remains mandatory. For the period when you were not a resident, specific types of income earned in Canada must be reported. This includes employment income, taxable capital gains, and certain benefits. The reporting ensures adherence to Canadian tax regulations. Deemed Disposition and Foreign Income: Key Considerations for Newcomers If you owned properties (other than taxable Canadian properties) upon immigrating to Canada, the CRA deems it a disposition. This involves selling and immediately reacquiring the properties at fair market value. Maintaining a record of the fair market value is crucial for future calculations of gains or losses. If you dispose of the property, meaning you sell, give, or it is destroyed or stolen, the capital gain or loss is calculated based on the value at immigration. You do not need to pay Canadian taxes on these previously owned foreign properties unless they are disposed of post-immigration. As a resident of Canada, you may receive income from your previous country or region. This subjects you to tax obligations in both locations. Exploring tax treaties and claiming a federal foreign tax credit for taxes paid in the other country or region can optimize your tax situation. Foreign Property Reporting: Meeting Obligations with Form T1135 If you own foreign property exceeding $100,000, filing Form T1135 is mandatory. The reporting is mainly based on the cost amount, not the fair market value. In cases of acquisition through gifts, bequests, or inheritances, the fair market value at the time of receipt is used instead. Our tax experts are committed to ensuring newcomers a seamless transition into the Canadian tax system. If you have questions or need any help, feel free to reach out to our expert team. Welcome to Canada. Get personalized assistance to build your financial success together!
Key Changes to Tax Numbers for the 2024 Tax Year The year is coming to an end, and we are getting ready for the 2024 tax season. The upcoming year brings changes across the board regarding income tax, pension amounts, benefits for dependants, and the tax brackets themselves. Keep the following list of tax numbers as a reference for the upcoming year to make sure that you’re making the most out of your taxes. Indexation Increase for 2024 Tax Numbers Every year’s amounts for specific personal income tax and benefits are indexed to inflation. This is based on the Consumer Price Index data that is reported by Statistics Canada. Most amounts are affected on January 1 of the relevant year. The goods and services tax credit, Canada child benefit, and Child disability benefit come into effect on July 1. This is to align with the beginning of the program year for payments of the benefits. The indexation increases for 2024 are at 4.7% and here are some key places it takes effect. Updated Tax Bracket Thresholds for 2024 Above these amounts are the incomes at which the relevant federal tax brackets begin: Bracket 2023 Amount 2024 Amount 20.5% $53,359 $55,867 26% $106,717 $111,733 29% $165,430 $173,205 33% $235,675 $246,752 Updated 2024 Tax Amounts for Dependants The indexation increase has affected a credits, amounts, and benefits for those with children or other dependents. Here are the key amounts to consider: Description 2023 Amount 2024 Amount Canada Caregiver Amount for Children Under 18 $2,499 $2,616 Canada Caregiver Amount for Other Infirm Depends 18 or Over $7,999 $8,375 Canada Child Benefit (CCB) (Base Benefit for Children Under 6) $7,437 $7,787 Canada Child Benefit (CCB) (Base Benefit for Children from 6 to 17) $6,570 $6,275 Child Disability Benefit (CDB) $3,173 $3,322 Disability Amount $9,428 $9,872 New Tax Numbers for Seniors in 2024 Aging citizens have the following updated tax numbers to consider: Description 2023 Amount 2024 Amount Age Amount (Claimed by People Aged 65 or Older) $8,396 $8,790 Lifetime Advanced Life Deferred Annuities (ALDA) Dollar Limit1 $160,000 $170,000 Old Age Security (OAS) Repayment Threshold2 $86,912 $90,997 1An ALDA is a life annuity in which the annuity payment must be started before the year end of the year that the taxpayer turns 85. 2If net income exceeds the amounts, part or the entire OAS pension must be repaid. Other Important Tax Numbers for Taxpayers to Consider in 2024 For any taxpayer in Canada, there are several updates to tax numbers that need to be referred to when filing the 2023 income tax return or planning for the 2024 tax year. These limits, exemptions, and amounts will directly affect your 2023 and 2024 tax returns. Here are some relevant numbers to consider: Description 2023 Amount 2024 Amount Registered Retirement Savings Plan (RRSP) Contribution Limit $30,780 $31,560 Maximum TFSA Limit $6,500 $7,000 Yearly Maximum Pensionable Earnings (YMPE) $66,600 $68,500 Yearly Additional Maximum Pensionable Earnings (YAMPE)3 N/A $73,200 Maximum EI Insurable Earnings4 $61,500 $63,200 Lifetime Capital Gains Exemption $971,190 $1,016,836 Home Buyers’ Amount $10,000 $10,000 Home Buyers’ Non-Refundable Tax Credit $1,500 $1,500 Basic Personal Amount for Net Incomes Under the 33% Tax Bracket $15,000 $15,705 Basic Personal Amount for Net Incomes in the 33% Tax Bracket $13,520 $14,156 3As of January 1, 2024, there will be a second earnings ceiling to maximum pensionable earnings called the YAMPE. It is around 7% higher than the initial earnings ceiling (YMPE). The calculation is based on a percentage of wages between the YMPE and YAMPE amounts. Employees contribute 4% of what they earn while self-employed individuals contribute 8%. 4The EI premium rate has increased by 3% from .63 to .66 per 0 of insurable earnings for employees and from .28 to .32 for employers. This is due to the forecasted cumulative deficit in the EI Operating Account from the COVID-19 pandemic. It is estimated that the account will come to a near cumulative balance by 2030. What Do the Tax Numbers Mean for Your Personal Income Tax Return? As we get closer to the filing deadlines for the 2023 personal tax returns, it is important for every taxpayer to be planning their taxes for the upcoming year. This affects many financial decisions Canadian taxpayers make, from buying a home or contributing to their RRSP. Reading through your tax return may leave more questions than answers, but that’s why we’re here to help. Get ahead of your 2023 tax return by contacting us today. Our expert tax accountants help you make the most of it and give you the advice you need to prepare for the 2024 tax year and maximize your savings.
Diving into Canada’s Digital Adoption Program or CDAP Eligibility & Grants for Businesses The Canadian business landscape is becoming more digital day-by-day. To address this, the Canadian government launched the Canada Digital Adoption Program (CDAP). The program incorporates two pivotal grants: The Grow Your Business Online grant and the Boost Your Business Technology grant. As a dedicated CPA accounting firm, we assist in guiding businesses through not only the CDAP eligibility criteria but also the expansive benefits these grants offer. What Does CDAP Eligibility Mean? The Canadian government created the Canada Digital Adoption Program (CDAP) to provide small and medium-sized Canadian businesses with the tools they need to keep up with the changing, digital, business landscape. These tools include grants, interest-free loans, and advice from industry experts. In turn, businesses can increase sales from online sources, reduce costs, manage inventory effectively, and more. Boost Your Business Technology Grant The CDAP Boost Your Business Technology grant is here to improve business productivity, consolidate software, improve in cybersecurity, and assist with overall digital transformation. It helps reduce costs, speeding up operations, manage inventory and improve logistics. The grant is being utilized by business owners to ensure their technology is up to par with the competition. It is meant for businesses that have had at least half a million in annual revenue over the last three years, so not every small to medium-sized business will qualify. Benefits from the Boost Your Business Technology Grant This grant is a game-changer, offering businesses: Boost Your Business Technology Grant CDAP Eligibility To tap into the transformative benefits of the Boost Your Business Technology grant, your business must meet the following criteria: Grow Your Business Online Grant The CDAP Grow Your Business Online grant helps small and medium-sized companies get online visibility, increase sales through digital avenues, and implement security software. Additionally, it is used to connect with clients and customers, improve social media presence through marketing, and improve the overall user experience for online customers. This is done through implementing e-commerce aspects of the business through the micro-grant to assist with the costs of adopting digital technologies. It caters to most small to medium-sized businesses if they have an employee other than the owner or have at least ,000 in annual revenue. Benefits from the Grow Your Business Online Grant In the era of e-commerce, this grant offers: Grow Your Business Online Grant Eligibility Your business qualifies for the Grow Your Business Online Grant if it meets the following criteria: If a business meets any of the following criteria, it does meet the CDAP eligibility for the grant. CDAP Eligibility Enables Your Business for Digital Success Adapting to the digital age of business is necessary in maximizing the opportunities becoming available. Understand the CDAP eligibility criteria, resources, grants, and tools to unlock its transformative benefits. Our CPA accounting firm is here to guide you. Working with us ensures that your business not only meets the criteria but also maximizes the benefits of these grants. Embrace the future with confidence and let CDAP be the catalyst for your business’s digital success. Reach out to us today for support in navigating the process and making the most of your money.
Navigating the StrongerBC Future Skills Grant for Business Growth In the rapidly changing field of finance, maintaining a competitive edge is crucial. As a reputable CPA accounting firm, we’re thrilled to share pivotal news from the heart of British Columbia – the StrongerBC Future Skills Grant. If you’re a business owner or employer aiming to stay ahead in the financial landscape, this grant provides a valuable opportunity for skill enhancement and business advancement. Exploring the StrongerBC Future Skills Grant The StrongerBC Future Skills Grant is a significant opportunity for residents of British Columbia, Canada. It offers the chance to upskill or reskill in the dynamic business environment. This grant is open to a diverse range of individuals, including students, adult learners, and professionals. The grant provides up to $3,500 to any British Columbian residents aged 19 years or older to take eligible short-term skills training at public post-secondary institutions. Any resident is eligible, regardless of their financial situation or needs. It will be available in the Winter 2024 semester for learners who started a program of study in the Fall 2023 semester using their future skills grant funding. In addition, their program should extend beyond their first semester. For detailed information and eligibility criteria, visit WorkBC’s dedicated page. If the resident has not accessed the StrongerBC Future Skills grant yet, the opportunity is still there in the Fall 2024 semester. Even if they have already used it, they can continue to do so until the maximum lifetime grant is maxed out at $3,500. The list of programs funded under the grant will also be refreshed. A refresh annually is needed to provide more diverse and updated skills training options for British Columbians. This allows them to bring higher value skills to any high opportunity occupations. Unlocking Benefits for Business Owners Now, let’s delve into how employers and business owners can strategically utilize this opportunity for the advancement of their teams and, consequently, their businesses. Investing in Team Skill Development As a business owner, recognizing the pivotal role of a skilled team is crucial for success. The StrongerBC Future Skills Grant enables proactive investment in your team’s professional development. By identifying specific skill gaps within your workforce and encouraging enrollment in relevant courses or training programs, you not only enhance individual capabilities but also fortify your business for the future. Staying Competitive in the Finance Sector In the dynamic realm of finance, maintaining competitiveness necessitates a commitment to continuous learning. Acknowledging the significance of staying abreast of the latest in tax regulations, accounting methodologies, and financial technologies, the StrongerBC Future Skills Grant allows your team to enroll in specialized courses aligning with the ever-evolving landscape of finance. This ensures your business not only keeps pace but leads the way. Maximizing the Impact of the Grant Here’s a practical guide for business owners aiming to optimize the impact of the StrongerBC Future Skills Grant: In conclusion, the StrongerBC Future Skills Grant is not merely a program; it’s a catalyst for growth, innovation, and success in the competitive world of finance. As a business owner, embrace this opportunity to empower your team and position your enterprise for a future of excellence. The financial landscape is evolving – ensure you’re not just keeping up but leading the charge! How We Can Help with the StrongerBC Future Skills Grant As an accounting and tax firm, we are your partners in ensuring financial success. Grants like the StrongerBC Future Skills Grant help your business stay ahead of the competition, while maximizing your money. Whether it’s a grant directly for your business like the Workplace Accessibility Grant, or this grant to empower your staff, we help your business get the resources it needs to succeed. Contact us today to find more about how we can take your organization to the next level.