One of the keys to optimizing your tax situation in Canada is taking full advantage of available deductions and tax credits. These tools can significantly reduce your taxable income, leading to lower overall tax liability or even a potential tax refund. Let’s explore some common deductions and credits that you can utilize to maximizing your […]
Tax Implications of Becoming a New Parent
In order to assist new parents, the Canada Revenue Agency (CRA) has implemented maternity and parental leave benefits to provide additional support during the care of their newborns. However, a recent survey uncovered that nearly one-third (29%) of Canadians experienced higher-than-anticipated tax deductions during their parental leave. As new parents, it is crucial to be […]
Tax Disparities Based on Residency: Does Location Affect Taxes?
A recent survey we conducted reveals that every Canadian believes their province has the highest tax burden. But is that perception accurate? In Canada, our income tax rates are influenced by two factors: our income level and our place of residence. It is commonly perceived that Quebecers bear the highest tax burden among all provinces for […]
Cryptocurrency Taxation: CRA’s Treatment of Bitcoin
As cryptocurrencies are a relatively recent development, it is necessary to establish taxation regulations to help Canadians fulfill their tax obligations. In 2014, the Senate conducted a study on cryptocurrency taxation and proposed measures to assist Canadians in filing their taxes. The Canada Revenue Agency (CRA) is now implementing these guidelines by disseminating information. What […]
Affordable Living for Stylish Economic Development Plan
The 2024 federal budget proposes two significant policy initiatives aimed at promoting economic development and innovation. This is the first federal budget after the 2023 elections, and the finance minister is committed to driving sustainable and affordable economic growth. Chrystia Freeland, the Canadian deputy prime minister and minister of finance, released the 2024 federal budget […]
How do Tax-Free Capital Dividends function in 2024?
Capital dividends are a unique form of dividend that Canadian-controlled private corporations (CCPC) can distribute to their shareholders without incurring any taxes. To keep track of these tax-free dividends, the Canada Revenue Agency (CRA) maintains a capital dividend account (CDA). The purpose of capital dividends is to enhance the integration of the Canadian tax system […]
Comprehensive Guide to NETFILE in Canada
What is NETFILE and How Does it Work? NETFILE is an electronic tax filing service provided by the Canada Revenue Agency (CRA), allowing you to submit your tax returns online. This secure service is supported by various software providers, including H&R Block, to ensure the protection of your personal information from cyber threats. Initially launched […]
Protecting Personal Info Online During Tax Season
The impact of technology on information protection is significant. Innovative methods have been developed to preserve information, but there is a constant effort to improve protecting personal info and security as hackers and identity thieves find new ways to access personal data. While some individuals take the necessary steps to safeguard their information, others may […]
Underused Housing Tax: Are You at Risk?
The Underused Housing Tax is a 1% tax levied on non-Canadian citizens or permanent residents who own vacant or underutilized residential property in Canada. In simpler terms, this tax applies to individuals who possess residential property but do not construct anything on it, leave it vacant, or rarely use it. Implemented since January 1, 2023, […]
Are you eligible for the Canada Caregiver Amount?
If your parents took care of you when you were growing up, you’re likely eager to reciprocate that care now. The great news is that the Canada Revenue Agency (CRA) also wants to show their appreciation. If you have an elderly parent or relative, you might qualify for the Canada caregiver amount. This tax credit […]