News changes in 2023 (Federal)

Advanced Canada workers benefit (ACWB)

Canada Workers benefit (CWB) is discontinued and the amount will be reported on Schedule 6. This is a tax credit for low income worker. With the new ACWB, the advance payment to family will be higher to help cope with the rising cost of living. Anyone who received the CWB in 2022 will receive the advanced payments, there is no need to apply.

Deduction for tools

If you are an employee and your employer requires you to pay expenses to earn your employment income, the maximum deduction for eligible tools has increased from $500 to $1000.

First home savings account (FHSA)

Starting April 1, 2023, contributions to an FHSA are generally deductible and qualifying withdrawals made from an FHSA to purchase a qualifying home are tax free. If you opened one or more FHSAs in 2023, complete Schedule 15, FHSA Contributions

Property flipping

Starting January 1, 2023, any gain from the disposition of a housing unit (including a rental property) located in Canada, or a right to acquire a housing unit located in Canada, that you owned or held for less than 365 consecutive days before its disposition is deemed to be business income and not a capital gain, unless the property was already considered inventory or the disposition occurred due to, or in anticipation of certain life events.

Home office expense

The temporary flat rate method does not apply to 2023. Only the detailed method is left and that requires Form T2200 from your employer, signed and completed.

Payment over $10,000

As of January 1, 2024, remittances or payments to the Receiver General of Canada should be made as an electronic payment if the amount is more than $10,000. Payers may face a penalty unless they cannot reasonably remit or pay the amount electronically.

To know more

Please visit the Canada Revenue Agency official website !