Please see the parts 1-3 of the article in our previous posts.
9) NEW! As of April 2023, individuals can contribute to the new tax-free first home savings account (FHSA). Eligible contributions are deductible, and withdrawals to purchase a first home are not taxable. Up to $8,000 can be contributed annually, to a maximum lifetime limit of $40,000. Contributions must be made in 2023 to be deducted against 2023 income.
10) Individuals 18 and older may deposit up to $6,500 into a tax-free savings account in 2023. An additional $7,000 may be contributed starting on January 1, 2024. Consider a catch-up contribution if you have not contributed the maximum amount for prior years. For those who have never contributed to their TFSA and have been building room since 2009, the total maximum contribution room in 2024 will reach $95,000. An individual’s contribution room can be found online on CRA’s My Account.
11) A Canada education savings grant for registered education savings plan (RESP) contributions equal to 20% of annual contributions for children (maximum $500 per child per year) is available. In addition, lower-income families may be eligible to receive the Canada learning bond.
*The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions, a further review should be done by a qualified professional. No individual or organization involved in either the preparation or distribution of this text accepts any contractual, tortious, or any other form of liability for its contents.
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