As tax season approaches for Ontario residents, the Canada Revenue Agency (CRA) is gearing up to assist taxpayers with their queries and streamline the process for submitting their 2023 income tax and benefit returns.
The CRA is committed to ensuring that every taxpayer can access the benefits and credits due to them. Filing an income tax and benefit return annually brings numerous benefits.
Recent Enhancements to Benefits, Credits, and Services
Enhanced Northern Residents Travel Deduction:
The CRA introduces an improved pilot for the Northern Residents Travel Deduction, simplifying how northern residents can identify the minimum return airfare necessary for claiming this deduction at tax time. Starting the week of February 20, 2024, on canada.ca/lowest-return-airfare, this streamlined approach includes tables listing the lowest return airfare from over 135 airports, primarily within the designated zones.
Interim Canada Dental Benefit:
This new benefit offers financial aid to qualifying families with an annual income below $90,000, assisting with dental care costs for children under 12 who lack private dental insurance in Canada.
One-Time Canada Housing Benefit Supplement:
A one-time $500 support payment has been introduced to aid lower-income renters dealing with affordability issues. For further details, visit the Canada Housing Benefit section.
Increased First-Time Home Buyers’ Tax Credit
The calculation base for the first-time home buyers’ tax credit has been raised to $10,000 for homes purchased after December 31, 2022.
Raised Home Accessibility Tax Credit Limit
From the 2023 tax year onwards, the maximum annual expenditure for the home accessibility tax credit has been increased to $20,000.
Climate Action Incentive Payment (CAIP)
Eligible recipients will automatically receive the CAIP quarterly. To facilitate the April 14, 2024, payment, it is advised that electronic returns for 2023 be filed by March 10, 2024, especially for those with spouses or common-law partners. Missed April payments will be included in the next issuance following the assessment of returns.
Organ and Tissue Donation Consent
Starting with the 2023 tax year, Ontario residents can express their interest in receiving information about organ and tissue donation through their tax returns by consenting to share their contact details with Ontario Health.
Disability Tax Credit Update
As of the 2022 tax year, individuals with type 1 diabetes are automatically considered to meet the requirements for life-sustaining therapy.
Flexible Payment Arrangements
For those unable to settle debts in full, the CRA has broadened payment arrangement options and introduced a Payment Arrangement Calculator in My Account and My Business Account, allowing for easier proposal submissions.
Filing Benefits
Electronic filing for the 2023 income tax and benefit return begins on February 20, 2024. Joining the vast majority of Ontarians who file online can significantly expedite refund processing, potentially within just eight business days. In the previous year, direct deposit facilitated the issuance of over 13 million refunds to Canadian taxpayers, accounting for 78% of all refunds.
Filing your taxes offers several advantages, including an average tax refund of $2,092 in 2023. Additionally, filing enables eligibility for federal and provincial benefits and credits, with Ontario residents receiving an average of:
$6,700 in Canada Child Benefit (CCB) payments
$460 in Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit payments
$183 in Climate Action Incentive payments
To access these benefits and credits, it’s essential to file an income tax and benefit return, even if you had no income in 2023 or your income was tax-exempt.
Don’t let the looming tax deadline stress you out. Let our experienced professionals guide you through the process, ensuring you’re on the right track. Our team is dedicated to providing personalized support and expert advice to help you achieve the best possible outcome.
Join us today and take advantage of our free consultation services in Scarborough. Let’s work together to make tax season a breeze!
Contact us info@alphaoasis.com or call 416 289 9777