2024 Tax-Filing Season Guide: Planning Your 2023 Taxes
As we enter the 2024 tax filing season, we want to ensure you have the strategies and deadlines needed to optimize your 2023 tax year return. This guide serves as a checklist for the specific rules, new credits, and administrative changes that defined the previous financial year.
(For current year data, please refer to our 2024 Tax Reference Guide: Rates & Limits).
2024 Filing Deadlines & Limits
Registered Retirement Savings Plans (RRSP)
The most immediate priority for the 2024 filing season is the RRSP contribution window.
The Deadline: To count against your 2023 income, your contribution must be made by February 29, 2024.
Pro-Tip: You can contribute to your RRSP at any point during the year to maximize tax-free growth.
Tax-Free Savings Accounts (TFSA)
The annual TFSA dollar limit for 2024 was set at $7,000. Your maximum cumulative limit depends on your age and previous contribution history. If you need help calculating your specific room, our team can provide a detailed review.
2023-24 Strategy & Compliance Updates
New Trust Reporting Requirements
A significant change for this filing season involves new reporting for trustees, including "bare trusts". Whether formal or informal (such as holding an account joint with your children), you may now be subject to filing requirements. We recommend discussing these accounts with your accountant to ensure compliance.
Changes to Home Office Deductions
With the pandemic transition largely complete, the government has discontinued the "flat rate" method for work-from-home expenses for the 2023 tax year. To claim these deductions now, individuals are required to file the T2200 form.
Property & Credits Checklist
Toronto Vacant Home Tax (VHT)
Owners of residential property in Toronto must declare their occupancy status annually.
2024 Deadline: The declaration for the 2023 tax year is due by February 29, 2024.
Multigenerational Home Renovation Tax Credit
This new refundable credit supports the creation of self-contained secondary units for relatives. You can claim 15% of eligible expenses (up to $50,000 in costs), resulting in a maximum credit of $7,500.
The JCIC Commitment
While the tax landscape evolves every year, our commitment to your financial well-being remains constant. We encourage you to reach out to our team to discuss how these 2023-24 strategies can best optimize your personal situation.
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Disclosure:
Although we obtain information contained in our newsletter from sources we believe to be reliable, we cannot guarantee its accuracy. The opinions expressed in the newsletter are those of JCIC Asset Management, its editors and contributors, and may change without notice. Any views or opinions expressed in the newsletter may not reflect those of the firm as a whole. The information in our newsletter may become outdated and we have no obligation to update it. The information in our newsletter is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. It is provided for information purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor or a group of investors. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. We strongly advise you to discuss your investment options with your Relationship Manager prior to making any investments, including whether any investment is suitable for your specific needs.
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