New: Personal Support Workers Tax Credit Coming Soon
Personal support workers will receive billions in increased wages from federal/provincial governments in B.C., Newfoundland and Labrador and the Northwest Territories. Those workers in other provinces will now get a raise too, but they will have to wait until filing their 2026 returns in the spring of 2027 to cash in, according to an October 27 pre-budget announcement. Here are the details:Claiming Child Care Expenses? Surprises Await
Childcare expenses are claimed as a deduction on Line 21400 of the tax return and that’s important because these costs reduce family net income, which is the number used to calculate the monthly Canada Child Benefit (CCB). But guess what? If you qualified for the new $10 a day childcare, or you spent less on child care in 2023, an unpleasant surprise may be coming your way.
January 30: Pay Interest on Spousal Loans
At rising prescribed interest rates, interspousal investment loans have not been as lucrative for income splitting purposes as in years past. Nonetheless if you have one, beware that the borrower must pay the lender the interest due on the loan by January 30 or the arrangement will be nullified. You may wish to refresh on the rules:
Tax Tip Toolkit: Need Fast Answers to Tax Questions?
Did you know that CRA has fielded over 8 million calls in past tax seasons, often with complaints as to wait times and quality of their answers? Perhaps that’s the reason their phone number has been removed from the tax return this year, preferring to sending people to the their website instead. But when 25% of Canada’s 32 million taxfilers must rely on current, accurate and prompt answers to their tax questions in a very short period of time, professionals will have to pick up the slack. Fortunately, you can cover your bases with The Tax Tip Toolkit, which includes access to Evergreen Explanatory Notes, your authoritative tax research library. Plus, the Knowledge Bureau Discovery Calculators. Subscribe now!
Celebrating Tax Specialists
Tax specialists are in high demand. Did you know that in Edmonton a tax preparer with 0 to 3 years of experience can make $56,888 - $81,231? In Vancouver the amount is somewhat higher - $57,720 - $82,420 and in Winnipeg from $54,390 - $77,665. It’s a great profession and now you can train at home, online, 24/7, to get into the marketplace with Knowledge Bureau’s DMA™-Personal Tax Services Specialist Program, and learn how to use professional tax software, too. Check out the program guides to the six certificate courses in the program, available online and our student testimonials, too!
The Advanced Tax Update Knowledge Journal
Get your desktop Advanced T1 Tax Update for 2023 Returns Knowledge Journal now – a crucial reference for the upcoming tax season! What’s in it and why it’s an invaluable tax season resource appears below; only $395. Order today!
Tax Tip 2024 – CRA to Process T1s Starting February 19
It’s official: February 19 is the date CRA will start accepting 2023 tax returns for processing. So now is the time to mark your tax filing day on the calendar, especially if you don’t have any income to report at all. In last year’s filing season, using stats up to January 15, 2024, CRA notes over 32 million tax returns were filed, with close to 20% of them being “nil returns” filed to claim tax credits. Here’s why all adults – especially low or no income earners - will want to file a 2023 T1 asap and the 9 key taxfiling profiles you’ll want to correspond with early if you are a tax or financial pro working with investors:
