Over the past year, economic instability has been notable, attributed to the ongoing developments surrounding COVID-19 and heightened inflation and increased cost of living.
In this article, we will share some of the tax credits and deductions that you may be able to claim on your income tax return this year to help you save money.
The Goods and Services Tax/Harmonized Sales Tax Credit (GST/HST credit) is a non-taxable amount paid four times a year to individuals and families with low and modest incomes to help offset the goods and services tax/harmonized sales tax (GST/HST) that they pay.
The grocery rebate was also introduced in the 2023 federal budget to provide targeted inflation relief to Canadians. The amount is calculated based on the recipient’s family situation in January 2023 and the 2021 adjusted family net income. This was a tax free payment meant to help alleviate the higher cost of basic necessities.
B.C. Family Benefit
The B.C. family benefit provides a tax-free monthly payment to families with children under the age of 18. Budget 2023 permanently increased the B.C. family benefit amounts and added a new supplement for lower-income single parent families starting in July 2023.
BC Climate Action Tax Credit
The BC climate action tax credit (BCCATC) is a tax-free payment made to low-income individuals and families to help offset the carbon taxes they pay.
For July 2023 to June 2024, the BCCATC provides a credit of up to $447 for an individual, $223.50 for a spouse or common-law partner and $111.50 per child ($223.50 for the first child in a single parent family). The maximum quarterly amounts are $111.75 for an individual, $55.87 for a spouse or common law partner (and first child in a single parent family) and $27.87 per child. For single individuals with no children, the credit is reduced by 2% of his or her adjusted net income over $39,115. For families, the credit is reduced by 2% of their adjusted family net income over $50,170.
The payment is combined with the quarterly payment of the federal GST/HST credit.
Canada Child Benefit
The Canada child benefit (CCB) is administered by the Canada Revenue Agency (CRA). It is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age. The CCB may include the child disability benefit and any related provincial and territorial programs. Every July, your benefit payment is recalculated based on your adjusted family net income from the previous year.
Canada Workers Benefit
The Canada Workers Benefit (CWB) is a refundable tax credit to help individuals and families who are working and earning a low income. The CWB has two parts: a basic amount and a disability supplement. You can claim the CWB when you file your income tax return.
Canada Caregiver Credit
Do you support a spouse or common-law partner, or a dependant with a physical or mental impairment? The Canada caregiver credit (CCC) is a non-refundable tax credit that may be available to you. An individual is considered to depend on you for support if they rely on you to regularly and consistently provide them with some or all of the basic necessities of life, such as food, shelter and clothing.
Home Accessibility Tax Credit
Renovations that make homes safer or more accessible for seniors or the disabled may qualify for the Home Accessibility Tax Credit (HATC). If you are a senior or hold a valid disability tax certificate or are supporting a qualifying individual, you can claim up to $20,000 in expenses.
Tax time can be stressful for many Canadians. With so many records and information to keep track of, it can be intimidating. If you’re unsure which tax deduction & tax credits you may be eligible for, it may be a good idea to consider hiring an accountant to help you file. While your accountant may charge money upfront, the amount that they could help you save may be far more.
Contact us now to get more information and to book an appointment.