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26Jan 24

Are you ready for tax season?

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Every tax year brings about changes to the hows and whys of tax-filing. Here’s what’s new for your 2023 returns.

 

Basic Personal Amount increased

The BPA is a tax credit all individuals can claim on their taxes. For example, if you made less than $150,473 in 2023, your BPA is $15,000, which is over a $1,000 increase since 2021. Less taxes equal happier Canadians!

 

Tax Brackets shifted

Every year, our government adjusts tax brackets upward to account for inflation. The shift for 2023 was the largest in recent years, giving a bigger boost for earners on the margins. Learn more about tax brackets at our Tax Basics workshop.

 

COVID-19 benefits expired

The 2023 tax year will be the first year you won’t be able to claim the $500 for the COVID work-from-home expense and the Canada Worker Lockdown Benefit which offered temporary income support during the pandemic. Does this mean it’s finally over?

 

Increase in unpaid tax penalty

Beginning in 2024, the unpaid tax penalty will go from 8% (of the unpaid tax when the return was due) to 10%, plus 2% of this unpaid tax for each complete month that the return is late, up to a maximum of 20 months. Keep your wallet happy by filing and making payments on time. If you need help keeping track of payment due dates, use a calendar, agenda book or this budget planner from Foundations.

 

Disability Tax Credit goes digital

In 2023, the CRA revealed a new way to apply for the Disability Tax Credit. What was once a lengthy process is now a slightly less lengthy one! From now on, individuals can complete Part A through their CRA My Account and their doctor can submit Part B digitally using a reference number. Learn more about it here.

 

Limits went up

The TFSA contribution limit, the RRSP annual dollar amount, and the Canada Pension Plan contribution limit all increased this year with the largest jump being the CPP’s at 6.5%. And remember, you can roll over unused limits. It’s never too late to start saving!

 

 

CWB supports financial literacy across Saskatchewan

“CWB is pleased to partner with Foundations Learning & Skills Saskatchewan to provide financial literacy workshops. While doing our taxes is not something that many of us look forward to each year, the process should go a lot smoother by taking advantage of these helpful tax tips.”
-Kelly Walker, Senior AVP & Market Lead Saskatoon District.

Canadian Western Bank takes pride in actively participating in the growth, development, and sustainability of our communities Learn more about how CWB gives back.

 

Thank you, Canadian Western Bank, for having an impact in our community!

 

Hungry for more money management information? Keep an eye on our registration page for the next workshop series. Past participants have this to say:

“Got knowledge about benefits and credits available and tax return filing centers. Workshop was full of important information for those who are filing their 1st return.”

“Everything was useful. Thank you so much! Now I know how to file my taxes, where to go to get help or information, what are forms T1 and T4, the difference between benefits and credits.”