What’s new for your 2023 taxes?

There’s a lot of changes for your 2023 taxes – some big, some small. We’ll help you figure them out here.

 What’s new for 2023?

• First Home Savings Accounts (FHSA) – This great new program launched in April 2023. You can save up to $8,000 a year ($40,000 lifetime) and withdraw it tax-free for your first home. Check out our primer and FAQs.

• Advance payments for Canada Worker’s Benefit – The CWB is a benefit for low-income workers, normally paid as part of your tax return. Starting in July 2023, recipients automatically received advance payments of their 2023 benefit instead of having to wait until Spring 2024 when their 2023 tax return is filed.

  • Example: If you received the Canada Worker’s Benefit on your 2022 tax return, you may have automatically received half of your 2023 benefit starting in July 2023. If you remain eligible, the other half will be paid on your 2023 tax return (filed in Spring 2024).

  • Important! That also means your 2023 taxes might be higher since you received advance payments of this benefit throughout the year.

• Canada Dental Benefit – This program for eligible children under age 12 launched in December 2022 and rolled out in earnest in 2023. Households with an income under $90,000 may benefit from this program. Read more about it in our blog post.

• Multigenerational Home Renovation Tax Credit – This new credit launched this year. You can deduct up to $50,000 in eligible renovation and construction costs to construct a secondary suite for family members who are seniors or adults with disabilities. Read more about it here.

• Anti-flipping rules – Effective January 1, 2023, if you sell a home – including a rental property – within a year, you’ll automatically be considered to have “flipped” it. That means you’ll pay tax on the full amount of the gain. There are certain exceptions for things like family changes and changes in employment.

 Upcoming changes for 2024

• Canadian Dental Care Plan – This new public insurance will roll out to seniors, eligible adults with disabilities, and children under 18 starting December 2023 to June 2024. All other eligible Canadians will be able to apply starting in 2025.

• CPP increases – Starting January 1, 2024, you’ll pay an additional amount towards CPP, known as CPP2. For higher-income self-employed practitioners, it works out to an additional $376 in 2024 and an additional $776 in 2025 (estimated). The good news is that your benefit will be higher once you start receiving CPP.