What's new for 2022 and 2023

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There have been a lot of tax changes for 2022, and there are some exciting developments for 2023. Read on for more.

Changes for your 2022 taxes

  • Canada Dental Benefit – This new benefit, which provides up to $650 per child under 12, launched in December 2022. Read more about it in our blog post.

  • First-Time Home Buyers’ Tax Credit – This credit, which provides a deduction to first-time home buyers, has been doubled to $10,000 for eligible homes purchased after January 1, 2022. This deduction is on top of other programs like the Home Buyers’ Plan and the Tax-Free First Home Savings Account. If you qualify for this credit, we’ll automatically apply it on your tax return.

Upcoming changes for 2023

  • Tax-Free First Home Savings Account (FHSA) – This new program lets you contribute up to $8,000 per year ($40,000 lifetime) to save tax-free for your first home. Read more about it in our blog post.

  • Student loan interest elimination – Interest on the federal portion of student loans has now been permanently eliminated. It was previously temporarily forgiven until March 31, 2023. This only applies to the federal portion of student loans, so there may still be interest on any provincial portion.

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

    • Example of how the current benefit works: Amanda is entitled to $1,200 for the Canada Workers Benefit for 2022. She receives this amount when she files her 2022 tax return in Spring 2023.

    • Example of how the new benefit works: Amanda is also entitled to $1,200 for 2023. Instead of waiting until Spring 2024, she’ll receive $200 in each of July 2023, October 2023, and January 2024. Then she’ll receive the remaining $600 when she files her 2023 return in Spring 2024.

  • Multigenerational Home Renovation Tax Credit – This new credit will launch on January 1, 2023 and you can apply for it starting on your 2023 tax return (filed in Spring 2024). 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.

  • TFSA – The 2023 contribution limit for TFSAs increases to $6,500, the first increase in four years.