Blog - Jones & O'Connell LLP

It’s The Time of Year to Spread Some Cheer!

12/24/2025 11:22:19 AM

Our team at Jones and O’Connell LLP stepped up to make a difference this season by making a donation including toys and other essentials to the local Community Care of St. Catharines and Thorold. There was enough for more than twenty-five children to wake up to presents on Christmas Morning. Banded together and organized by Amy Jones, and the support of our Partners, Wayne O’Connell, Ryan Jones and Edwin Leung. We hope this spreads so

Year-end tax planning strategies to consider before December 31

12/24/2025 11:30:28 AM

December 31, 2025 marks not just the end of the calendar year, but the end of the 2025 tax year for every individual Canadian taxpayer. Most Canadians are thinking about anything but income taxes during the holiday season, but the reality is that December 31 is often a critical date when it comes to determining how much tax one will pay for 2025. In some cases, steps need to be taken by December 31 in order to obtain administrative relief from i

Buying a first home – the current rules on qualifying for a mortgage

12/24/2025 11:29:42 AM

In recent months, the housing market pendulum has swung more toward affordability for first-time home buyers than it has in several years, for two reasons. First, after years of price increases, the average cost of a home in Canada has (according to the Canadian Real Estate Association) declined by about 3.4% over the past year. At the same time, cuts made by the Bank of Canada in interest rates have resulted in lower mortgage lending costs. In

Planning for charitable donation tax credit claims for 2025

12/24/2025 11:29:01 AM

As the holiday season approaches, the year-round appeals for charitable donations which every Canadian receives will inevitably increase – and there’s no shortage of need, or of worthy causes which merit support, both domestically and internationally. Generally, those appeals are met, as Canadians have a well-deserved reputation for supporting charitable causes, through donations of both money and goods. Our tax system sup

Getting source deductions right in 2026

12/8/2025 3:06:13 PM

For most Canadians, tax planning for a year that hasn’t even started yet may seem premature. However, most Canadians will start paying their taxes for 2026 with the first paycheque they receive in January of 2026, less than two months from now. And while the overall rate of inflation has eased from the 8.1% high recorded in June 2022, the cost of necessities (especially groceries) continues to outpace the general rate of inflation. Managin

Making use of the First Home Savings Account program

11/12/2025 4:11:31 PM

The Canadian tax system provides a number of opportunities for taxpayers to save on a tax-assisted basis. Most Canadians are familiar with registered retirement savings plans (RRSPs) and many are also aware of the availability of the tax-free savings account (TFSA). The newest (and probably least well known) such tax-assisted savings opportunity is the first home savings account (FHSA), which was introduced by the federal government in the 2023

Year-end planning for your RRSP, RRIF, and TFSA

12/8/2025 3:00:49 PM

Even Canadians who have no more than a basic knowledge of our tax system are usually aware that the deadline for making registered retirement savings plan (RRSP) contributions is March 1, and that contributions to one’s tax-free savings account (TFSA) can be made at any time during the tax year. As well, most Canadians who have opened a registered retirement income fund (RRIF) are aware that they are required to withdraw a specified amount

Accessing home equity in retirement

11/12/2025 4:26:45 PM

It’s an acknowledged fact that the cost of living has been on a steady upward trend for the past several years. Making that trend even more problematic is the reality that such cost increases have been greatest in areas where eliminating or cutting back on expenditures is hardest. Food prices, especially, have increased significantly. According to Statistics Canada’s research, “as of July 2025, Canadians were paying 27.1% more

Maximizing the medical expense tax credit for 2025

11/12/2025 4:24:58 PM

Notwithstanding the fact that Canada has a publicly funded health care system, the reality is that each year millions of individual Canadians incur medical and para-medical expenses (like prescription drug costs) which can be significant and which are not covered by that public health care system. Absent a private health insurance plan which provides reimbursement for such expenses, they must be paid for on an out-of-pocket basis. The financial

When are home office expenses deductible in 2025?

11/12/2025 4:23:25 PM

For individual Canadians, one of the few positive aspects of the recent pandemic was the opportunity it provided to work from home – first as a mandated public health necessity and later as a choice provided by employers. For most employees, working from home was a welcome option which provided better work-life balance and a break from the cost and aggravation of the daily commute. In addition, having a work-from-home arrangement allowed e

CRA makes changes to the Voluntary Disclosures Program

11/12/2025 4:22:12 PM

Canada’s tax system is what is known as a “self-assessing” one, in which taxpayers are expected (in fact, in most cases, required) to take the initiative to prepare and file an annual tax return by a specified deadline, to report all taxable income on that return, claim allowable deductions and credits, and pay any balance of income tax owed for the year. It’s a system which depends heavily on the co-operation of taxpayer

New Quarterly Newsletters

11/12/2025 4:20:35 PM

Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues. They can be accessed below. Corporate: Issue #73 Corporate Personal: Issue #73 Personal The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more inf

Some tax breaks for the upcoming post-secondary school year

11/12/2025 4:18:58 PM

As September approaches, students who are beginning post-secondary education this year have received one or more offers of admission and then chosen a college or university, have hopefully been offered a place in a university residence or have secured off-campus housing, and are making final plans to make the move away from the family home for the first time. While choosing courses for the upcoming fall semester and anticipating the independence

Claiming a tax credit for adoption expenses

11/12/2025 4:17:16 PM

The process of adopting a child is often a lengthy one, in which a myriad of requirements must be met and legal processes followed. Where the adoption is an international one, the process can be even lengthier and more complex, as often the legal requirements of more than one government must be satisfied, and international travel is required. No matter whether an adoption takes place entirely in Canada or involves another country, there are nume

Making the most of the Tax-Free Savings Account program

11/12/2025 4:14:35 PM

Tax-free savings accounts (TFSAs) have been a part of the Canadian tax system since 2009, and the TFSA program can be utilized by more Canadians than any other tax-advantaged savings program. And Canadians have clearly recognized the benefits: Canada Revenue Agency statistics show that, as of 2022, nearly 18 million Canadians had opened a TFSA. There are a number of benefits to saving through a TFSA and some of those benefits cannot be obtained

When the CRA comes calling – dealing with the return verification process

11/12/2025 4:12:37 PM

By the time the end of summer approaches, the tax return filing deadline for all Canadian individual taxpayers has passed, and nearly all tax filers will have filed the required return for the 2024 tax year and received a Notice of Assessment from the Canada Revenue Agency (CRA) with respect to that return. It can, therefore, be extremely unsettling for taxpayers to receive unexpected correspondence from the CRA at this time of year, especially

Using the CRA’s online services – signing up for My Account

11/12/2025 3:41:49 PM

Over the past few decades the Canada Revenue Agency, like many other organizations and businesses, has gradually shifted to providing more and more of its services online, through its website. The Agency has been remarkably successful in bringing the Canadian taxpayer along with those efforts to the point where the vast majority (93%) of all individual income tax returns are now filed by electronic means, through the CRA website. That statistic

Making the RRSP decision when you turn 71

11/12/2025 3:39:31 PM

According to numbers released by Statistics Canada there were, as of July 1, 2024, an estimated 2.5 million Canadians aged 65 to 69 and around 2 million Canadians who were between the ages of 70 and 74. That being the case, it’s likely that during the 2025 calendar year, hundreds of thousands of Canadians will reach the age of 71 and, for retirement income planning purposes, that is a very consequential birthday. Over the past several deca

Receiving a first Instalment Reminder from the Canada Revenue Agency

11/12/2025 3:36:36 PM

By the time summer arrives, Canadian taxpayers have filed their income tax returns for the previous year, have received a Notice of Assessment from the tax authorities with respect to that return, and have either saved or spent their tax refund or, less happily, have paid any balance of tax owing. It’s therefore a surprise when, in mid to late July, unexpected mail arrives from the Canada Revenue Agency (CRA), and the information in that m

New Quarterly Newsletters

11/12/2025 3:34:07 PM

Two quarterly newsletters have been added – one dealing with personal issues, and one dealing with corporate issues. They can be accessed below. Corporate: Issue #72 Corporate Personal: Issue #72 Personal The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more inf

When help is available under the CRA’s Taxpayer Relief Provisions

11/12/2025 3:30:46 PM

While most Canadians are familiar with the obligation to file an annual tax return and to pay income taxes owed by the end of April each year, there are in fact many more tax filing and payment deadlines imposed on individuals or businesses throughout the calendar year. Fortunately, the rate of compliance with those requirements is high, as most Canadian taxpayers meet their tax obligations, consistently filing returns and making any required pa

Trade war supports for Canadian employees – changes to the Employment Insurance system.

11/12/2025 3:27:34 PM

The current trade and tariff dispute between Canada and the United States has affected individuals and businesses in virtually all provinces and industries. On an individual level, those most affected are often employees who work in industries (like steel and aluminum) for which the US tariff barriers are especially high, or those in businesses which import their raw materials from, or export a large percentage of their finished products to, the

Getting tax help with summer child care costs

11/12/2025 3:22:52 PM

The work-from-home arrangements which were ubiquitous throughout the pandemic and, to a lesser degree, for a couple of years afterwards, are now largely a thing of the past for most Canadians. One of the consequences of the return to the office was the need for parents who work outside the home to arrange for (and pay for) child care – sometimes for the after-school period and sometimes for the entire day. While arranging child care for ju

The cost of moving – what’s deductible and what’s not

11/11/2025 3:05:22 PM

As of the end of May 2025, there were just under 202,000 properties listed for sale on the Canadian Real Estate Association’s Multiple Listing Service. While each of those properties and each property sale is different, all of them involve a move to a new location – sometimes a move up to a bigger and better property in the same town or city, sometimes a downsizing move, and sometimes a move to a new city or even another province. As

The Start of a New Benefit Year - What Can You Receive in 2025-2026?

7/8/2025 2:00:52 PM

Most Canadians, understandably, think of our income tax system as a government “program” that takes money out of their paycheques and out of their pockets. And, while it’s certainly true that virtually every Canadian who earns an income must allocate a portion of that income to paying federal and provincial personal income taxes, that’s not the whole picture. Our tax system does, in fact, provide Canadians with a number of

Coming Clean with the Tax Authorities - Making a Voluntary Disclosure

7/8/2025 1:59:00 PM

While it’s unlikely that they do so with any great degree of enthusiasm, the vast majority of Canadians prepare their annual tax return each spring and file that return on time. That’s necessary, because the Canadian tax system is a “self-assessing” one, in which the onus is completely on the taxpayer to ensure that a return in prescribed form is completed and provided to the tax authorities. On that return, the taxpayer p

Cargivers - Getting Help Through the Tax System

7/8/2025 1:54:26 PM

Regardless of their particular circumstances, Canadians who act as unpaid caregivers for disabled, elderly, or chronically ill relatives carry a heavy physical and emotional burden. The weight of those responsibilities is often made greater by financial stresses, particularly where the situation requires full-time caregiving, to the extent that the caregiver is unable to work outside the home in paid employment. In addition, caring for someone wh

A Mid-Year Check-Up on Your Taxes for 2025

7/8/2025 1:53:27 PM

By mid to late June 2025, most taxpayers have filed their tax return for the 2024 tax year and a Notice of Assessment has been issued by the Canada Revenue Agency outlining the Agency’s conclusions with respect to the taxpayer’s income, tax deduction, and tax credit claims and the amount of tax payable for 2024. Most taxpayers hope for (and in fact do receive) a refund while others are disappointed to find out that they owe additional

Financing the Political Process - The Political Contribution Tax Credit

7/8/2025 1:52:15 PM

To win elections, politicians need votes. And to run the election campaigns needed to garner those votes, they need an organization, volunteers, and money – a lot of money. To wage the federal election held last month, the major political parties needed to raise and spend millions of dollars. Their task of raising that money was undoubtedly made somewhat easier by the fact that Canadian taxpayers who donate money to political parties or can

When You Don't Agree with the CRA - Disputing Your Notice of Assessment

7/8/2025 1:50:47 PM

While no two tax returns filed with the Canada Revenue Agency are identical, all such tax returns have one thing in common. Once those tax returns are filed, the CRA will review the income amounts reported and the tax deduction and credit claims made, and issue a Notice of Assessment (NOA) outlining its conclusions with respect to the taxpayer’s tax situation for the year. When all goes well, the figures listed and the tax result obtained o

When Keeping You with the Mortgage Payments Becomes a Problem - Where (and Where Not) to Turn for Help

7/8/2025 1:49:35 PM

At first glance, it might seem that the financial pressures experienced by Canadian families would have eased over the last year or so. The spike in interest rates which started in early 2022 has abated, with the Bank of Canada cutting its benchmark rate several times since mid-2023. As well, the rate of inflation, which had reached 6.8% in late 2022, began moderating during 2023 and now (as of March 2025) stands at 2.3%. It would seem, then, tha

Fixing a Mistake on Your (Already Filed) Tax Return

7/8/2025 1:48:10 PM

It’s likely that very few Canadians view completing and filing the annual tax return as anything other than an unpleasant chore to be endured, with a sigh of relief once it’s finally done. The goal, for both the taxpayer and the Canada Revenue Agency (CRA), is for the return to then be “assessed as filed”, meaning that the CRA agrees with the income information provided, the deductions and credits claimed, and the final ov

Firm Announcement: New Assurance Manager

7/8/2025 2:05:00 PM

We are pleased to announce the appointment of Hunter Amos as our new Assurance Manager. In this role, Hunter will be leading our assurance team in providing assurance services to our clients. Hunter began his employment with Jones & O’Connell LLP as a Senior Accountant in 2022 and obtained his CPA designation in February 2024. He continues to build his experience in the assurance field, and we are confident that he wil

What to do When You Can't Pay Your Tax Bill on Time

4/10/2025 2:45:58 PM

Most taxpayers sit down to do their annual tax return (or wait to hear from their tax return preparer) with some degree of anxiety. In most cases taxpayers don’t know, until their return is completed, what the “bottom line” will be, and it’s usually a case of hoping for the best and fearing the worst. Most taxpayers are, of course, hoping for a refund – the bigger the better. And for most taxpayers, that hope is

Planning to Avoid the Old Age Security Clawblack

4/10/2025 2:45:00 PM

When Canadians gather together the information slips, receipts, and other documents needed to prepare and file their annual income tax return, their biggest concern is likely whether completing that return will result in the need to pay a tax amount owing. Taxpayers who are recipients of Old Age Security (OAS) benefits share that concern, of course, but they can face an additional unpleasant result when completing their tax return – finding

Making Sure You Don't Fall Victim to a Tax Scam

4/10/2025 2:43:21 PM

Most Canadians live their lives with only very infrequent contact with the tax authorities and are generally happy to keep it that way. Sometime between mid-February and the end of April 2025 the majority of Canadian taxpayers will file a return for 2024 with the Canada Revenue Agency. Once that return is processed, the CRA will issue a Notice of Assessment. Most taxpayers will then receive a tax refund, usually by direct deposit to their bank ac

How, When and Where to Pay Your Taxes for 2024

4/10/2025 2:42:10 PM

Notwithstanding the considerable complexity of the Canadian income tax system, there is one rule which applies to every individual taxpayer living in Canada, regardless of location, income, age, or circumstances. That rule is that income tax owed for a year must be paid, in full, on or before April 30 of the following year. This year, that means that individual income taxes owed for 2024 must be remitted to the Canada Revenue Agency (CRA) on or b

What's New on the Tax Return for 2024

3/19/2025 3:39:07 PM

While the tax return form that Canadians prepare and file each spring might look identical to the form that was used the previous year, the reality is that our tax system is constantly changing, and that change is reflected in amendments made to each year’s tax return form, which in turn affect the tax situation of every Canadian taxpayer. Some of the changes to the annual return happen “automatically”, as Canadian federal incom

The CPP Post-Retirement Benefit - Deciding Whether to Continue Contributing

3/19/2025 3:37:52 PM

A few decades ago retirement, for most Canadians, was an event which marked the change from full-time work to not working at all. Usually, that transition took place at age 65, following which the new retiree would begin to receive Canada Pension Plan (CPP) and Old Age Security (OAS) benefits, and perhaps monthly payments from an employer-sponsored pension plan. While that scenario is still possible, it no longer represents the retirement reality

Some Last-Minute Tax Filing Strategies - What (and What Not) to Claim

3/19/2025 3:36:36 PM

While it’s true that the best year-end tax planning starts on January 1 of the tax year, the reality is that most Canadians don’t turn their attention to their tax situation for 2024 until the spring of 2025, when the deadline for filing a tax return for 2024 approaches. And while that means that there is plenty of time to get the return prepared and filed, it also means that the most significant opportunities to reduce or minimi

How to Prepare and File Your 2024 Tax Return

3/19/2025 3:35:28 PM

Each spring, Canadian individual taxpayers must turn their attention to the filing of an individual income tax return for the tax year which ended on the previous December 31. And, while it’s doubtful that many of them do so with any degree of enthusiasm, the rate of compliance with the requirement to file a tax return in Canada is in fact very high. Last year, more than 33 million individual income tax returns (for the 2023 tax year) were

RRSPs, TFSAs, and FHSAs – Making the Annual Choice

3/19/2025 3:34:27 PM

For most taxpayers, the first few months of the year can seem to involve a seemingly unending series of bills and payment deadlines. During January and February, many Canadians are still trying to pay off the bills from holiday spending. The first income tax instalment payment of 2025 is due on March 17, and the need to pay any tax balance for the 2024 tax year comes just six weeks after that, on April 30. Added to all of that, the deadline for m

Reporting Online Income on the 2024 Tax Return

3/19/2025 3:33:27 PM

The Canadian tax system casts a very wide net, in which each resident of Canada is taxable on all sources of income worldwide, with very few exceptions. In addition, Canada has what is known as a “self-assessing” system, in which Canadian residents voluntarily file an annual tax return on which they report all income earned during the previous year, claim any available deductions and credits, and pay any resulting amount of tax owing.

Pension Income Splitting for the 2024 Tax Year

3/19/2025 3:32:29 PM

For most Canadian retirees, careful financial management is a necessity. Most live on an annual income which is less than that which they enjoyed during their working years, and opportunities to increase that income in any significant way are limited. As well, in recent years, inflation (especially with respect to food and shelter costs) has meant that more and more of that income must be allocated to necessities. One of those necessities is, of

How to Respond to a Tax Instalment Reminder

3/19/2025 3:30:53 PM

While virtually every working Canadian pays income taxes, the process by which those taxes are collected throughout the year is largely invisible to the taxpayer. That’s certainly the case for employees, because income taxes (and other statutory deductions like Canada Pension Plan contributions and Employment Insurance premiums) are, as required by law, deducted by the employer from every dollar of salary or wages paid, and remitted to the

Canada Pension Plan Contributions for 2025

1/21/2025 2:04:01 PM

As of 2024, there are two contribution levels for the Canada Pension Plan (CPP). Income amounts and employee contribution percentages for 2025 for each contribution level are as follows. First tier contributions for 2025 are set at 5.95% of pensionable earnings between $3,500 and $71,300. Second tier contributions for 2025 are set at 4.0% of pensionable earnings between $71,300 and $81,200. The maximum employee CPP contribution in 2025

Employment Insurance Premiums for 2025

1/21/2025 2:13:24 PM

The Employment Insurance premium rate for 2025 is set at 1.64%. Yearly maximum insurable earnings are increased to $65,700, making the maximum employee premium $1,077.48. As in previous years, employer premiums are 1.4 times the employee premium. The maximum employer premium for 2025 is therefore $1,508.47.

Federal Individual Tax Credits for 2025

1/21/2025 2:02:09 PM

Tax credit amounts on which individual non-refundable federal tax credits for 2025 are based, and the actual tax credit claimable, will be as follows:

Federal Individual Tax Rates and Brackets for 2025

1/21/2025 2:00:47 PM

Federal individual tax rates and brackets for 2025 (January 2025) The indexing factor for federal tax credits and brackets for 2025 is 2.7%. The following federal tax rates and brackets will be in effect for individuals for the 2025 tax year. Income level Federal tax rate $16,129 - $57,375

Tax Deadline and Limits for the 2025 Tax Year

1/21/2025 1:59:33 PM

Each new tax year brings with it a schedule of tax payment and filing deadlines, as well as some changes with respect to tax saving and planning opportunities. Some of the more significant dates and changes for individual taxpayers for 2025 are listed below. Registered retirement savings plan (RRSP) deduction limit and contribution deadline The RRSP current year contribution limit for the 2024 tax year is $31,560. In order to make the maximum cur

Firm Announcement: Welcoming a New Partner

7/8/2025 2:04:05 PM

The new year starts with an exciting announcement for Jones & O’Connell LLP, as we celebrate the designation of a new Partner to the firm. Our new Partner has distinguished himself through his ability to inspire those around him. His hard work and commitment to quality is shown by the impact he has made on our clients, colleagues and community in which we operate. He demonstrates strong values by delivering exceptional client service an

Tax Consequences of Holiday Gifts and Celebrations

12/23/2024 9:25:49 AM

It seems incongruous, in the season of holiday gifts and celebrations, to consider the possible tax implications and consequences of those traditions. But, in some circumstances, the unwelcome spectre of an income tax bill arising from such activities does intrude. Fortunately, there are never any tax consequences to the exchange of gifts and holiday celebrations with family and friends. However, where gifts are given and/or holiday celebrations

Tax Planning Steps to Take Before December 31, 2024

12/23/2024 9:24:28 AM

December 31 , 2024 marks not just the end of the calendar year, but the end of the 2024 tax year for every individual Canadian taxpayer. And while the thoughts of most Canadians during the holiday season are focused on anything but their 2024 income taxes, the reality is that December 31 can be a critical date when it comes to determining how much income tax one will pay for 2024. In some cases, steps need to be taken by December 31 in order to o

Some New Tax Breaks From The Federal Government

12/23/2024 9:26:57 AM

On November 21, the federal government announced two new measures intended to relieve some of the financial stress currently being experienced by most Canadian families and households. That financial stress arises, in large measure, from the steady increase in the cost of goods and service over the past two years – and, while inflation has decreased significantly over the past several months, price increases for non-discretionary expenditur

Figuring Out When You Can Afford to Retire

12/23/2024 9:23:17 AM

While almost everyone looks forward to retirement and an end to the day-to-day demands of working life, there’s also no question but that the decision to give up a regular paycheque is a stressful one. Particularly when the cost of life’s necessities – especially food and housing – seem to be continually increasing, individuals wanting to retire have to wonder whether they can actually afford to do so, or whether it would

Claiming Home Office Expenses for 2024

11/29/2024 11:58:34 AM

It has been nearly five years since the start of the pandemic, and the work-from-home arrangements which became a necessity during that time have now become a choice for employers and employees. Relatively few employees still work from home on a full-time basis – many have returned to the office full-time and many more likely now utilize some kind of hybrid arrangement, dividing their work week between their employer’s work site and a

Year-End Planning for Your RRSP, RRIF and TFSA

11/29/2024 11:56:35 AM

For most Canadians, the subject of making RRSP or TFSA contributions, or making RRIF withdrawals, isn’t usually top of mind at year-end. Most Canadians know that the deadline for making contributions to one’s registered retirement savings plan (RRSP) comes 60 days after the end of the calendar year, around the end of February, but relatively few are aware that in some circumstances an RRSP contribution must be (or should be) made by D

Looking Ahead to 2025 - Getting Source Deductions Right From The Start

11/29/2024 11:53:11 AM

For most Canadians, tax planning for a year that hasn’t even started yet may seem premature or even unnecessary. However, most Canadians will start paying their taxes for 2025 in less than two months, starting with the first paycheque they receive in January. For most Canadians, (certainly for the vast majority who earn their income from employment), income tax, along with other statutory deductions like Canada Pension Plan contributions an

New Rules for Reporting of Income from Online Sales

11/29/2024 11:50:59 AM

Canada’s income tax system is a self-assessing one, in which residents of Canada are expected (and in most cases, required) to file an annual tax return in which all sources of worldwide income are reported, and the amount of tax owed on that income calculated and paid. While the onus is on individual Canadians to determine the sources and amounts of income which have been received during the year, the process is not entirely an “hono

Tax Planning for Year-End Charitable Donations

11/29/2024 11:48:40 AM

While the need for charitable donations for any number of causes is a year-round reality, appeals for such donations tend to increase as the holiday season and the end of the calendar year approach. And generally, those appeals are met, as Canadians have a well-deserved reputation for supporting charitable causes, through donations of both money and goods. Our tax system supports that generosity by providing both federal and provincial tax credit

Claiming the Canada Carbon Rebate

11/29/2024 11:45:22 AM

Residents of the eight Canadian provinces in which the federal fuel charge (more commonly known as the federal carbon tax) is levied are entitled to claim and receive the federal Canada Carbon Rebate (CCR). That rebate (formerly known as the Climate Action Incentive Payment) is a non-taxable payment made four times a year (in April, July, and October of 2024 and January 2025) to help offset the cost of that federal carbon tax. For 2024, residents

Deciding When to Begin Receiving Old Age Security Benefits

11/29/2024 11:41:47 AM

The Old Age Security (OAS) program is one of the two major federal benefit programs available to older Canadians – the other being the Canada Pension Plan (CPP). While both programs provide taxable monthly payments to Canadians, there are significant differences between the two. The Canada Pension Plan is a contributory system, with Canadians contributing a percentage of income earned during their working years, and with the amount of benef

Finance Announces Additional Changes to Mortgage Lending Rules

11/29/2024 11:37:34 AM

In the 2024-25 Federal Budget released earlier this year, the federal government announced changes to the rules which govern mortgage lending in Canada. Those changes had two goals: making it easier for first-time home buyers to qualify for a mortgage, and providing an incentive to encourage the building of new residential properties in Canada. Finance Canada recently announced two additional changes to mortgage lending rules; the first of those

Year-End Planning for Medical Expense Claims

10/15/2024 11:28:36 AM

While the current state of the Canadian health care system is far from perfect, Canadians are nonetheless fortunate to have a publicly funded health care system, in which most major medical expenses are covered by provincial health care plans. Notwithstanding, there is a large (and growing) number of medical and para-medical costs – including dental care, prescription drugs, physiotherapy, ambulance trips, and many others – which must

When Help is Available Under the CRA's Taxpayer Relief Provisions

10/15/2024 11:27:33 AM

Canada’s tax system is a self-assessing one, meaning that the onus rests on individual taxpayers to file their annual return each spring and to pay any amounts owed. The compliance rate in Canada is high – most Canadian taxpayers comply with those tax obligations, filing returns and making any required payments on a consistent basis. Where such tax obligations aren’t met, however, the Canada Revenue Agency (CRA) has the authorit

The Benefits - and Costs - of Extending your Mortgage

10/15/2024 11:26:08 AM

The past five years have been a tough financial slog for most Canadian families, as they struggled to cope with the pandemic, followed by inflation which tripled from under 2% in mid-2020 to over 6% by the end of 2022, and, finally, interest rate increases which saw the Bank Rate go from less than 1% in April of 2020 to over 5% in April of 2024. While the relentless upward climb in both the rate of inflation and interest rates are finally showing

Claiming the Canada Child Benefit

10/15/2024 11:24:39 AM

The federal government provides a number of non-refundable tax credits and benefits to Canadians under the umbrella term “child and family benefits”, but likely the most widely available and most generous of those programs is the Canada Child Benefit (CCB). The CCB is paid as a non-taxable monthly benefit to Canadian residents who have and live with one or more children under the age of 18 for whom they are primarily re

When Are Legal Fees Deductible?

10/15/2024 11:22:59 AM

In most cases, the need to seek out and obtain legal services (and to pay for them) is associated with life’s more unwelcome occurrences and experiences – a divorce, a dispute over a family estate, or a job loss. About the only thing that mitigates the pain of paying legal fees (apart, hopefully, from a successful resolution of the problem that created the need for legal advice) would be being able to claim a tax credit or deduction f

Some Tax Breaks for the Upcoming Post-Secondary School Year

10/15/2024 11:21:58 AM

By the middle of August, most students who are beginning post-secondary education this fall have hopefully received an offer of admission from their college or university of choice and are in the final stages of planning the move away from the family home for the first time. While deciding where to live and choosing courses for the upcoming fall semester is undoubtedly exciting, the hard reality is that all such choices come with a price tag &nda

Making the RRSP Decision When You Turn 71

10/15/2024 11:20:43 AM

During the 2024 calendar year, hundreds of thousands of Canadians will reach their 71st birthday, and a significant percentage of that group are likely to have saved money for retirement through a registered retirement savings plan (RRSP). Every one of those individuals, whether they are retired, partly retired, or still in the work force, and regardless of the amount of savings accumulated in their RRSPs, will be required, by the end of the

Aging in Place - Benefiting from The Home Accessibility Tax Credit

10/15/2024 11:19:20 AM

Members of the baby boom generation who were born between 1946 and 1965 are now between 59 and 78 years of age, and make up about a quarter of the Canadian population. Many, if not most, are now retired, and the older members of that generation are likely experiencing the changes to physical health, strength, and agility that come with age. The process of aging is an extremely variable one – some individuals are healthier and more active at

When the Taxman Has a Few Questions About Your Return

10/15/2024 11:17:23 AM

By this time of the year, virtually all Canadian residents have filed their income tax return for 2023 and have received the Notice of Assessment issued by the Canada Revenue Agency (CRA) with respect to that tax filing. Most taxpayers, therefore, would consider that their annual filing and payment obligations are done and behind them for another year. It can, therefore, be a little surprising to receive a communication from the CRA in mid-summer

The Start of a New Benefit Year - What Can You Receive in 2024-2025?

10/15/2024 11:14:19 AM

How to Respond to a First Instalment Reminder from the Canada Revenue Agency

10/15/2024 11:12:35 AM

By the time summer arrives, nearly all Canadians have filed their income tax returns for the previous year, have received a Notice of Assessment from the tax authorities with respect to that return, and have either received their tax refund or, more grudgingly, paid any balance of tax owing. It’s a surprise, therefore, when unexpected mail arrives from the Canada Revenue Agency (usually in mid- to late July), and the information in that mai

Another Option for Retirement Income Planning

10/15/2024 11:10:57 AM

Most Canadians contemplate retirement with a mixture of anticipation and trepidation. While the benefits of an end to the day-to-day grind of work and commuting (while also having more free time to spend with family and friends) are undeniable, giving up a regular paycheque also means experiencing a degree of financial anxiety. For the majority of Canadians who are not members of a defined benefit pension plan, the overriding concern is how to ma

A Mid-Year Checkup on Your Taxes

7/16/2024 12:34:59 PM

Many (if not most) taxpayers think of tax planning as a year-end exercise, one to be carried out in the last few weeks of the year, in order to take the steps needed to minimize the tax bill for that year. And it’s true that almost all strategies needed to both minimize the tax hit for the current year and to ensure that there won’t be a big tax bill come next April must be put in place by December 31 (the making of registered re

Claiming a Deduction for Moving Expenses

7/16/2024 12:33:28 PM

Each spring and summer, tens of thousands of Canadian families sell their homes and move – sometimes to a bigger and better property in the same town or city, and sometimes to a new city or even another province. At the same time, university students make the annual move from their university residences or apartments back to the family home for the summer. And, whatever the reason for the move or the distance to the new location, all moves

Getting Tax Help with Summer Child Care Costs

7/16/2024 12:32:30 PM

As the school year draws to a close, the thoughts of millions of Canadian parents turn to the question of how to find – and pay for – child care throughout the summer months. While many Canadians are still able to work from home for some portion of the work week, few (if any) have the kind of work arrangement which allows them to dispense entirely with child care arrangements during the summer months. Parents needing to arrange such c

Making a Voluntary Disclosure to the Tax Authorities

7/16/2024 12:31:17 PM

The Canadian tax system is a “self-assessing” one, in which taxpayers are expected (and, in most cases, required) to file an individual income tax return each spring. On that return the taxpayer provides a summary of income earned during the previous calendar year and claims available deductions and credits. Those calculations determine the amount of tax owed for the year and any amount owed must then, of course, be paid on or before

Dealing With The OAS Clawback

7/16/2024 11:17:31 AM

Most retired Canadians receive income from two government-sponsored retirement income programs – the Canada Pension Plan (CPP) and the Old Age Security (OAS) program. While benefits from both are paid to recipients by the federal government on a monthly basis, there are significant differences in how the two plans are funded, the amounts which can be received, and, most significantly for retirees, in how entitlement to benefits is determine

Disputing Your Notice of Assessment

7/16/2024 11:16:22 AM

This year, the Canada Revenue Agency (CRA) will receive and process more than 30 million individual income tax returns for the 2023 tax year. No two of those returns will be identical, as each such return will have its own particular combination of amounts and sources of income reported, and deductions and credits claimed. There is, however, one thing which every one of those returns has in common: for each and every one, the CRA will review the

More Help For First Time Home Buyers

7/16/2024 11:15:29 AM

As everyone knows, buying one’s first home – achieving that elusive first step on to the “property ladder” – has always presented a challenge, and that challenge has rarely been greater than it is now. The two unavoidable hurdles which must be cleared by first time home buyers are putting together sufficient funds for a down payment, and qualifying for mortgage financing under mortgage lending requirements which have

When You Make a Mistake on Your Tax Return

7/16/2024 11:14:20 AM

For the majority of Canadians, the due date for filing of an individual tax return for the 2023 tax year was Tuesday April 30, 2024. (Self-employed Canadians and their spouses have until Monday June 17, 2024 to get that return filed.) When things go entirely as planned and hoped, the taxpayer will have prepared a return that is complete and correct, and filed it on time, and the Canada Revenue Agency (CRA) will issue a Notice of Assessment indica

How to Know You're Really Hearing From the CRA

7/16/2024 11:11:13 AM

Most Canadians rarely have reason to interact with the tax authorities, and for most people, that’s the way they like it. In the vast majority of cases, Canadians file their tax returns each spring, receive their refund or pay any balance of taxes owing, and forget about taxes until filing season rolls around the following year. In many cases, however, things don’t run that smoothly, and it’s necessary for the Canada Revenue Age

How, When, and Where to Pay Your Taxes for 2023

7/16/2024 11:09:22 AM

Our tax system is, for the most part, a mystery to individual Canadians. The rules surrounding income tax are complicated and it can seem that for each and every rule there is an equal number of exceptions or qualifications. There is, however, one rule which applies to every individual taxpayer in Canada, regardless of location, income, or circumstances, and of which most Canadians are aware. That rule is that income tax owed for a year must be p

Reduing the 2023 Tax Bill - Some Tax Filing Strategies for Those Over Age 65

7/16/2024 11:07:34 AM

No one likes paying taxes, but for taxpayers who live on a fixed income having to pay a large tax bill can mean real financial hardship – and the majority of Canadians who live on fixed incomes are, of course, those who are over 65 and retired. Adding to their financial stress is the reality that such individuals have been coping, for the past two years, with inflationary increases in the cost of just about all goods and services, especiall

What to do When You Can't Pay Your Tax Bill on Time

7/16/2024 11:06:12 AM

Most taxpayers sit down to do their annual tax return, or wait to hear from their tax return preparer, with some degree of trepidation. In most cases taxpayers don’t know, until their return is completed, what the “bottom line” will be, and it’s usually a case of hoping for the best and fearing the worst. Most taxpayers are, of course, hoping for a refund – the bigger the better. And in most cases that hope is realiz

Reporting the Sale of a Principal Residence During 2023

7/16/2024 11:03:01 AM

While owning one’s own home brings with it many intangible benefits, home ownership also provides some very significant financial advantages. Specifically, it provides the opportunity to accumulate wealth through increases in home equity, and to realize that wealth on a truly tax-free basis. Anyone who was fortunate enough to purchase a home more than 10 or 15 years ago likely now owns a property which has a current market value of many tim

Some Last-Minute Tax Filing Strategies - What (and What Not) to Claim

7/16/2024 11:01:35 AM

Most Canadians don’t turn their attention to their taxes until sometime around the end of March or the beginning of April, in time to complete the return for 2023 ahead of the April 30, 2024 filing deadline. While that approach leaves plenty of time to get the return prepared and filed, it also means that the most significant opportunities to reduce or minimize the tax bill for 2023 are no longer available. Almost all such tax planning or s

Using Home Equity to Generate Cash Flow

7/16/2024 10:58:23 AM

For the past two years, Canadians have had to continually adjust their household budgets to accommodate price increases for nearly all goods and services. The impact of rising prices is felt most by those who are living on a fixed income and who, of necessity, spend a larger than average share of their income on non-discretionary expenditures like housing and food. And, while such individuals and families can be found in all age groups, retirees

What’s new on the tax return for 2023

7/16/2024 10:56:45 AM

While our tax laws require Canadian residents to complete and file a T1 tax return form each spring, that return form is never exactly the same from year to year. Some of the changes found in each year’s T1 are the result of the indexing of many aspects of our tax system, as income brackets and tax credit amounts are increased to reflect the rate of inflation during the previous year. Other changes, however, arise from the introduction by t

How and when to file your 2023 tax return

3/14/2024 9:23:38 AM

Each year, the Canada Revenue Agency publishes a statistical summary of the tax filing patterns of Canadians during the previous filing season. The final statistics for 2023 show that the vast majority of Canadian individual income tax returns – just over 92%, or just under 30 million returns – were filed by electronic means, using one or the other of the CRA’s web-based filing methods. About 2.5 million returns – or just

Taking advantage of pension income splitting

3/14/2024 9:22:36 AM

Income tax is a big-ticket item for most retired Canadians. Especially for those who are no longer paying a mortgage, the annual tax bill may be the single biggest expenditure they are required to make each year. Fortunately, the Canadian tax system provides a number of tax deductions and credits available only to those over the age of 65 (like the age credit) or only to those receiving the kinds of income usually received by retirees (like the p

RRSPs, TFSAs, and FHSAs - making the annual choice

3/14/2024 9:21:42 AM

If there is one invariable “rule” of financial and retirement planning of which most Canadians are aware, it is the unquestioned wisdom of making regular contributions to one’s registered retirement savings plan (RRSP). And it is true that for several decades the RRSP was the only tax-sheltered savings and investment vehicle available to most individual Canadians. In 2009, however, that reality changed with the introduction of T

How to respond to a tax instalment notice

3/14/2024 9:19:59 AM

Sometime during the month of February, millions of Canadians will receive some unexpected mail from the Canada Revenue Agency (CRA). That mail, entitled simply “Instalment Reminder”, will set out the amount of instalment payments of income tax to be paid by the recipient taxpayer by March 15 and June 15 of this year. Receiving an “Instalment Reminder” from the CRA won’t be a surprise for some recipients who have paid

Employment Insurance Premiums for 2024

3/14/2024 9:17:18 AM

The Employment Insurance (EI) premium rate for 2024 is set at 1.66%. Yearly maximum insurable earnings are set at $63,200, making the maximum employee premium $1,049.12. As in previous years, employer premiums are 1.4 times the employee premium. The maximum employer premium for 2024 is therefore $1,468.77.

Canada Pension Plan Contributions for 2024

3/14/2024 9:16:15 AM

Changes made to the Canada Pension Plan (CPP) beginning in the 2024 calendar year will create a two-tier contribution structure. First-tier contributions for 2024 are set at 5.95% of pensionable earnings between $3,500 and $68,500. Second-tier contributions for 2024 are set at 4.0% of pensionable earnings between $68,500 and $73,200. The maximum CPP contribution in 2024 for individuals making only first-tier contributions (those with pensionable

Federal individual tax rates and brackets for 2024

3/14/2024 9:14:22 AM

The indexing factor for federal tax credits and brackets for 2024 is 4.7%. The following federal tax rates and brackets will be in effect for individuals for the 2024 tax year. Income level Federal tax rate $15,705 - $55,867 15.0% $55,868 - $111,733 20.5% $111,734

Tax deadlines and limits for the 2024 tax year

3/14/2024 9:13:00 AM

Each new tax year brings with it a schedule of tax payment and filing deadlines, as well as some changes with respect to tax saving and planning opportunities. Some of the more significant dates and changes for individual taxpayers for 2024 are listed below. Registered Retirement Savings Plan (RRSP) deduction limit and contribution deadline The RRSP current year contribution limit for the 2023 tax year is $30,780. In order to make the maximum cur

Getting help from the Taxpayer Relief Program

3/14/2024 9:11:38 AM

While most taxpayers pay their annual income tax bill in full and by the tax payment deadline of April 30, there are many circumstances that could result in an individual’s being unable to meet their tax payment obligations in full or on time. Individuals who earn income from employment pay their taxes through deductions from their paycheques, but can still be faced with a tax balance owing when the annual return is filed. Newly retired Can