Tax Season 2024: What You Need to Know

1. Green Home Renovation Tax Credit

The Canadian government continues to encourage homeowners to make energy-efficient upgrades with a refundable 15% Green Home Renovation Tax Credit. Eligible expenses include the installation of solar panels, energy-efficient windows, and geothermal heating systems.

This credit applies to renovation costs incurred in 2024, with a maximum claim of $10,000 in expenses per household. This means you can get up to $1,500 back on your taxes.

Learn more about eligible upgrades here.

2. Temporary GST Rebate for Essential Items

In an effort to help families with rising living costs, the federal government introduced a temporary rebate on the GST for specific essential items like baby products and feminine hygiene products. This rebate is available from December 14, 2024, to February 15, 2025.

Make sure to keep your receipts for these purchases to claim the rebate during tax season.

3. Canada Workers Benefit (CWB) Expansion

The Canada Workers Benefit, which provides financial support to low-income workers, has been expanded in 2024 to include higher income thresholds. For example, a single worker earning up to $33,000 can now qualify, compared to $32,244 last year.

Eligible workers can receive up to $1,518 for singles or $2,616 for families. This increase makes the program more accessible to Canadians across various provinces.

Find more details on the CRA website.

Ontario: Staycation Tax Credit

Good news for Ontarians! The popular Staycation Tax Credit, initially introduced in 2022, has been extended for another year. Ontario residents can claim 20% of eligible travel accommodation expenses, such as hotel stays or camping fees, within the province, up to a maximum of $1,000 per individual or $2,000 per family.

This means families can get up to $400 back for their local vacations in 2024. Remember to keep detailed receipts to claim this credit.

Learn more about eligibility and expenses here.

British Columbia: Clean Buildings Tax Credit

British Columbia continues to lead the way in green initiatives with the new Clean Buildings Tax Credit. This credit is available to property owners who retrofit buildings to meet energy efficiency standards. Qualifying upgrades include heat pumps, LED lighting, and energy-efficient HVAC systems.

The credit is worth up to 10% of eligible retrofit costs and applies to projects completed between 2024 and 2026.

Alberta: Increased Basic Personal Amount

Alberta has increased its basic personal amount (the income you can earn tax-free) to $21,000 in 2024, up from $19,814 in 2023. This adjustment means more Albertans will pay less in provincial taxes.

1. Canada Child Benefit (CCB)

Parents will be pleased to know that the Canada Child Benefit continues to provide inflation-adjusted support in 2024. Families can receive up to $7,437 per child under six and $6,275 per child aged 6 to 17, depending on income.

Make sure your family status is up to date with the CRA to avoid missing out on payments.

2. Disability Tax Credit (DTC)

Families with dependents who have a disability can claim the Disability Tax Credit, which helps offset additional expenses. In 2024, the maximum non-refundable credit amount has been adjusted for inflation, making it even more beneficial.

Learn more about the DTC here.

1. Use Online Tax Tools

Platforms like TurboTax and Wealthsimple Tax are updated with the latest tax changes, making it easier for Canadians to file accurate returns.

2. Contribute to Your RRSP

Contributing to your Registered Retirement Savings Plan (RRSP) before the deadline (March 1, 2025) can lower your taxable income and increase your refund. Remember, the contribution limit is 18% of your previous year’s earned income, up to a maximum of $30,780 for 2024.

3. Consult a Tax Professional

If you’re unsure about your eligibility for certain credits or deductions, a tax professional can provide valuable guidance and ensure you maximize your return.