Tax Season 2023: Everything you need to know this year

This tax filing season brings several changes you should be aware of. For those who worked from home during the pandemic, the $2-a-day deduction for home office expenses is no longer available. Instead, employees must have been required to work from home for at least a month and need a signed T2200 form from their employer to deduct expenses.

 

Late tax payments now incur a higher interest rate of 10%. Experts advise filing on time and paying as early as possible to avoid penalties and interest.

 

First-time homebuyers can benefit from the new First Home Savings Account, allowing annual contributions of up to $8,000, with a lifetime limit of $40,000. These contributions are tax-deductible, and the income earned is tax-free when used to purchase a home.

 

The Multigenerational Home Renovation Tax Credit offers a 15% credit on renovation costs up to $50,000 for creating a secondary unit for dependent family members.

 

New rules also target home flippers, with profits from properties sold within a year now taxed as business income.

 

Trust reporting rules have expanded to include bare trusts, requiring trustees to file tax information if the trust holds assets of $50,000 or more.

 

Lastly, tradespeople can now deduct up to $1,000 for tool-related expenses, double the previous limit.

 

For more information on these changes and how they might affect your taxes, consider consulting a tax professional.