2024 January Tax News. Expert Fiscaliste provides income tax preparation and consulting services to individuals and businesses.
NETFILE service for 2023 tax returns available February 19
February 2, 2024
The Canada Revenue Agency has announced that its services for the online filing of individual income tax returns for the 2023 tax year will be available in mid-February. Both NETFILE and ReFILE services will re-open on Monday, February 19, 2024, at 6:00 a.m. (Eastern Time).
More information on NETFILE and ReFILE services, including eligibility requirements and a listing of certified software which can be used for filing of returns for 2023, can be found on the CRA website at File your taxes online: Understand NETFILE(CRA) – Canada.ca.
Online filing of prior year tax returns available until January 26
January 19, 2024
Canadian taxpayers can still file individual income tax returns for the 2017 to 2022 tax years using the Canada Revenue Agency’s online tax filing service NETFILE.
The NETFILE filing service provided for prior year returns will be available until Friday January 26, 2024. After that date, the NETFILE service will be offline and unavailable until it re-opens (around the middle of February) for the filing of individual income tax returns for the 2023 tax year.
More information on the NETFILE service for current and prior year returns can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-individuals/netfile-overview/eligibility.html.
January 18 deadline for repayment of CEBA loans
January 13, 2024
During the pandemic, the federal government provided loan financing to eligible Canadian businesses through the Canada Emergency Business Assistance (CEBA) program. Such loan amounts provided are partially forgivable where required repayments are made by a specified deadline. That deadline is January 18, 2024 for eligible CEBA loan holders in good standing.
The federal government has not announced any further extension of the repayment deadline: consequently, if a loan remains outstanding on January 19, 2024, it will convert to a term loan with full principal repayment due on December 31, 2026.
Details of the repayment process, including the federal government’s plans for collection of such loans, can be found on the federal government’s CEBA webpage at Canada Emergency Business Account (CEBA) (ceba-cuec.ca).
Tax deadlines and limits for the 2024 tax year
January 9, 2024
Each new tax year brings with it a schedule of tax payment and filing deadlines, as well as some changes with respect to tax saving and planning opportunities. Some of the more significant dates and changes for individual taxpayers for 2024 are listed below.
Registered Retirement Savings Plan (RRSP) deduction limit and contribution deadline
The RRSP current year contribution limit for the 2023 tax year is $30,780. In order to make the maximum current year contribution for 2023 (for which the contribution deadline will be Thursday February 29, 2024), it will be necessary to have earned income of $171,000 for the 2022 taxation year.
Tax-Free Savings Account (TFSA) contribution limit
The TFSA contribution limit for 2024 is increased to $7,000. The actual amount which can be contributed by a particular individual includes both the current year limit and any carryover of uncontributed or re-contribution amounts from previous taxation years.
Taxpayers can find out their personal 2024 TFSA contribution limit by calling the Canada Revenue Agency’s Individual Income Tax Enquiries line at 1-800-959-8281. Those who have registered for the CRA’s online tax service My Account can obtain that information by logging into My Account.
A TFSA contribution can be made at any time during the taxation year.
First Home Savings Account (FHSA) contribution limit for 2024
The FHSA current year contribution limit for 2024 is $8,000. The actual amount which can be contributed by a particular individual includes both the current year contribution limit and any carryover of uncontributed amounts from 2023.
There is a lifetime per individual limit of $40,000 in contributions to an FHSA, and an FHSA contribution can be made at any time during the taxation year.
Individual tax instalment deadlines for 2024
Millions of individual taxpayers pay income tax by quarterly instalments, which are due on the 15th day of March, June, September, and December 2024. Where the 15th of the month falls on a weekend or a statutory holiday, the instalment payment deadline is extended to the next business day.
The actual tax instalment due dates for 2024 are as follows:
- Friday March 15, 2024
- Monday June 17, 2024
- Monday September 16, 2024
- Monday December 16, 2024
Old Age Security income clawback threshold
For 2024, the income level above which Old Age Security (OAS) benefits are clawed back is $90,997.
Individual tax filing and payment deadlines in 2024
For all individual taxpayers, including those who are self-employed, the deadline for payment of any balance of 2023 taxes owed is Tuesday April 30, 2024.
Taxpayers (other than the self-employed and their spouses) must file an income tax return for 2023 on or before Tuesday April 30, 2024.
Self-employed taxpayers and their spouses must file an income tax return for 2023 on or before Monday June 17, 2024.
Federal individual tax rates and brackets for 2024
January 9, 2024
The indexing factor for federal tax credits and brackets for 2024 is 4.7%. The following federal tax rates and brackets will be in effect for individuals for the 2024 tax year.
Income level Federal tax rate
$15,705 – $55,867 15.0%
$55,868 – $111,733 20.5%
$111,734 – $173,205 26.0%
$173,206 – $246,752 29.0%
Over $246,752 33.0%
Federal individual tax credits for 2024
January 9, 2024
Dollar amounts on which individual non-refundable federal tax credits for 2024 are based, and the actual tax credit claimable, will be as follows:
Credit amount Tax credit
Basic personal amount* $15,705 $2,356
Spouse or common law partner amount* $15,705 $2,356
Eligible dependant amount* $15,705 $2,356
Age amount $8,790 $1,319
Net income threshold for erosion of age credit $44,325
Canada employment amount $1,433 $215
Disability amount $9,872 $1,481
Adoption expenses credit $19,066 $2,860
Medical expense tax credit income threshold amount $2,759
*For taxpayers having net income for the year of more than $173,205, amounts claimable for the basic personal amount, the spousal amount and the eligible dependant amount for 2024 may differ.
Canada Pension Plan Contributions for 2024
January 9, 2024
Changes made to the Canada Pension Plan (CPP) beginning in the 2024 calendar year will create a two-tier contribution structure.
First-tier contributions for 2024 are set at 5.95% of pensionable earnings between $3,500 and $68,500.
Second-tier contributions for 2024 are set at 4.0% of pensionable earnings between $68,500 and $73,200.
The maximum CPP contribution in 2024 for individuals making only first-tier contributions (those with pensionable earnings of $68,500 or less) will be $3,867.50. Individuals making second tier contributions will be required to contribute up to an additional $188.00 in contributions for the year.
Québec Pension Plan contributions for 2024
January 9, 2024
Changes made to the Québec Pension Plan (QPP) beginning in the 2024 calendar year will create a two-tier contribution structure.
First-tier contributions for 2024 are set at 6.4% of pensionable earnings between $3,500 and $68,500.
Second-tier contributions for 2024 are set at 4.0% of pensionable earnings between $68,500 and $73,200.
The maximum QPP contribution in 2024 for individuals making only first-tier contributions (those with pensionable earnings of $68,500 or less) will be $4,160. Individuals making second tier contributions will be required to contribute up to an additional $188.00 in contributions for the year.
Employment Insurance Premiums for 2024
January 9, 2024
The Employment Insurance (EI) premium rate for 2024 is set at 1.66%.
Yearly maximum insurable earnings are set at $63,200, making the maximum employee premium $1,049.12.
As in previous years, employer premiums are 1.4 times the employee premium. The maximum employer premium for 2024 is therefore $1,468.77.
Canada Pension Plan benefits to increase by 4.4% in 2024
January 5, 2024
Benefits paid under the Canada Pension Plan are indexed annually, based on changes to the Consumer Price Index.
The federal government has announced that CPP benefits paid during the 2024 calendar year will increase by 4.4%. The maximum retirement benefit payable during 2024 for individuals who begin receiving that retirement benefit at age 65 will therefore be $1364.60.
Details of how CPP benefits are indexed, and the indexing calculation for 2024, can be found on the federal government website at https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit/after-apply/consumer-price-index.html.
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