There are several challenges that you might face when preparing your income tax returns, particularly with regard to the documents to gather, tax credits you might be entitled to or even tax changes that could have an impact on your situation.
To make your life easier, we reviewed what’s new for 2023. Here are the changes that we think you should know about.
First-time Home Buyer Credit
If you bought your first home in 2022, the First-Time Home Buyer Credit rose from $5,000 to $10,000.
Home Accessibility Tax Credit
The qualifying expense limit of the Home Accessibility Tax Credit jumped from $10,000 to $20,000.
Medical Expense Tax Credit
Certain expenses for in vitro or artificial insemination treatments in 2022, as well as medical expenses paid by surrogate mothers or sperm donors, are now recognized. Remember that the main condition for benefitting from this tax credit is to claim a credit for all medical expenses (including an amount paid for health insurance coverage paid to an insurance provider) paid during the year which were not reimbursed.
Teleworking expenses
If the pandemic led you to work from home for all of 2022, you can claim the tax credit for teleworking expenses. This claim may be made using the detailed or simplified method. On one hand, the detailed method enables you to account for all of your teleworking expenses. Be aware that, to use this method, employers must provide forms T2200S and TP64.3. However, the simplified method allows you to claim a deduction of $2 per day of telework up to a maximum of $500. Please note that the maximum number of eligible days is 250.
If you’re not sure whether to use the simplified and detailed method, the link provided below can help you decide which calculation method is best for you.
Revenu Québec : Choose the method of calculating teleworking expenses that is the most advantageous for you, Calculators, Ministère des Finances (gouv.qc.ca)
Revenu Canada : Home office expenses for employees – Canada.ca
Refunds for COVID-19 benefits
If, during the year, you repaid COVID-19 benefits, you will be able to claim a deduction for reimbursements made in the income tax return for the year in which the amount was received, rather than in the current year’s tax return.
Tax credits specific to a province
Quebec :
- The monthly rent limit to benefit from the tax credit for home-support services rose from $600 to $1,200. Click here to find out more about eligible services and expenses..
- Individuals providing childcare services will now be required to issue a Relevé 24.
In Ontario:
A new vacation tax credit for Ontario residents
- This credit is eligible for accommodation expenditures paid during a recreational trip in an establishment in the province for a period of at least one month.
- Maximum accommodation expenses for individuals of $1,000 and for families, $2,000. The credit corresponds to 20% of the amounts incurred.
To know more about the 2023 tax changes, consult Raymond Chabot Grant Thornton’s 2022-2023 Tax Planning Guide here.
Regardless of your needs, our experts are here to help you prepare your income tax returns so you can benefit the most.