Partner announcement
CRA Business Authorizations
CRA Personal Authorizations
Tax updates - new policies and programs, helpful links, and some uncertainty! What’s new for 2024 personal taxes? There has been quite a lot of tax uncertainty this year again! We have compiled a short list of issues that could affect our clients’ 2024 personal income tax filings, for your information. Some of this is good news! Please have a quick read and see what might apply to you, so that you can discuss with your tax preparer.
Introduction
Partner Announcement
Update for 2023
It is a good idea for all individuals and business owners to set up access to their CRA personal or business accounts. By doing so, you are able to view important information like CRA mail, account balances, apply for benefits, request information, and more. Each individual and business has one account already set up, but perhaps has not accessed by anyone yet. By knowing your CRA account balance, you can ensure that there are no balances owing that you do not know about, and thus keep unnecessary interest payable as low as possible. Each province has their own log in system, so you may have to make an account for each provincial jurisdiction that you deal with. The link for CRA My Account (individuals) is here. ( https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html ) The link for CRA My Business Account (corporations, partnerships) is here. ( https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/business-account.html ) Gaining access to each of these is similar. You can either use the same log in as a “sign-in partner” which includes most major banks or using a CRA username and password. The former is self-explanatory if you have an account, so this blog will focus more on the latter. For most people using the sign-in partner is easier since you do not need to remember another login. How to Register for an Account Upon clicking one of the above links depending on your needs, navigate down to CRA Register. The link you require you to enter your social insurance number, which can be found on an old tax return, T4 slip, among others if not available immediately. New Paragraph
Happy New Year!
The Tax Free Savings Account (“TFSA”), established in 2009, is an excellent way for individuals to save money and grow their wealth in a tax-free manner subject to certain conditions. Anyone who is over eighteen years of age (nineteen in some provinces) and has a valid Social Insurance Number can open a TFSA and immediately have access to the full TFSA limit. TFSA Limit As of January 1, 2022, the TFSA limit will rise by $6,000, and the aggregate limit in 2022 is $81,500. Any unused amounts in the year can be carried forward to the next year. You can have multiple TFSA accounts with different providers, but the total in these accounts cannot be more than the year’s limit. You or any of your authorized representatives can check your available TFSA room on CRA’s My Business Account or phone the CRA at 1-800-267-6999. Be sure not to overcontribute, otherwise the penalties are very harsh. Contributions and Withdrawals Contributions to the TFSA come from after-tax income, and unlike an RRSP, does not grant any tax deductions. On the other hand, withdrawals from the TFSA are also not taxed, and TFSA room is not lost after a withdrawal (but the re-contribution must be made in the next year or later). Banks, credit unions, insurance companies, and trust companies can open help you to open a TFSA account.
