As the 2023 tax season approaches, Canadians are gearing up to file their taxes and reap the rewards of their year of hard work. In 2022, the Canada Revenue Agency (CRA) made several changes to the way taxes are filed in order to simplify the process and provide additional benefits for taxpayers.
Express Notice of Assessment
The most notable change is the introduction of the new “Express Notice of Assessment” feature.The Express Notice of Assessment feature in 2022 offers a number of new features, including a simplified process for entering information, improved accuracy in calculating taxes, and the ability to compare past and current assessments side-by-side. Additionally, this feature will now provide taxpayers with more detailed explanations of the assessment calculation process.
Credits and Deductions
The Canada Revenue Agency (CRA) has recently announced new credits and deductions for the 2023 tax year for both businesses and individuals. For businesses, the CRA has increased the Canada Employer Health Tax (CEHT) exemption threshold and introduced a new Digital Services Tax Credit. For individuals, the CRA has introduced a number of new credits and deductions, including the Home Buyers’ Plan, the Medical Expense Tax Credit, and the Green Home Renovation Tax Credit. All of these credits and deductions are designed to help Canadians save money and stay on top of their taxes. With these new credits and deductions, the CRA is making it easier than ever for Canadians to get the most out of their taxes.
- For businesses, the CRA has introduced a new Temporary Wage Subsidy, which allows employers to claim a subsidy of up to 25% of eligible remuneration paid to employees. This is in addition to the existing Canadian Emergency Wage Subsidy and the Canada Emergency Rent Subsidy.
- The CRA has also introduced a new Temporary Credit for Hiring Young Canadians, which is a refundable tax credit of up to $1,000 for businesses that hire a young Canadian between the ages of 15 and 24.
- For individuals, the CRA has introduced a new Disability Tax Credit, which provides a non-refundable tax credit of up to $2,500 for individuals with disabilities.
- The CRA has also introduced a new Home Buyer’s Plan for first-time home buyers, which allows them to withdraw up to $35,000 from their RRSPs to purchase a home.
- Finally, the CRA has introduced a new Home Accessibility Tax Credit, which provides a 15% non-refundable tax credit up to a maximum of $10,000 for expenses related to making a home more accessible for people with disabilities.
LedgersOnline Can Help
Take advantage of the Canada Revenue Agency’s changes to the 2023 tax season and make the most of your tax return. Let LedgersOnline’s team of expert accountants help you do just that – contact us and see what we can do for you!