Michael Callahan, CFP®, CIM®
It’s that time of year again, and the deadline for filing your 2023 taxes is just around the corner. With that in mind, let's recap some key dates and information.
For most individuals, the deadline for filing your 2023 taxes is Tuesday, April 30th, 2024. If you or your spouse or common-law partner is self-employed, the tax-filing deadline is extended to June 17th, 2024 (since the normal deadline of June 15th falls on a Saturday this year). Note, however, that although the tax-filing deadline is June 17th for those with self-employment income, any balance owing must still be paid by April 30th, 2024.
Tax deductions and tax credits
A tax deduction is not the same as a tax credit. A tax deduction reduces your total income and happens before the calculation of your taxes owing. A tax credit can then be applied to this amount to reduce your tax bill accordingly. It may help to think of this like the movies – the credits come at the end.
Common income tax credits for the 2023 tax year
- Basic personal amount: All Canadian residents can claim this amount, which allows you to earn a certain amount of income tax-free.
- Medical expenses: You can claim a range of medical expenses, including prescription drugs and dental services, which must exceed a certain threshold before becoming eligible for deduction.
- Charitable donations: To encourage philanthropy and community support, donations made to registered charities may be claimed toward a tax credit.
- Education and tuition: Students can claim tax credits for eligible expenses such as tuition fees and textbooks for post-secondary education.
Common income tax deductions for the 2023 tax year
- RRSP contributions: Contributing to a Registered Retirement Savings Plan (RRSP) allows you to defer taxes on your income. The RRSP contribution deadline for the 2023 tax year is February 29, 2024.
- Home office expenses: With the rise of remote work, individuals who work from home may be eligible to claim certain home office expenses - documentation is essential.
- Employee expenses: Some employment-related expenses, such as tools required for your job or certain professional fees, may be deductible - keep detailed records to support your claims.
Be sure to stay informed about any changes to tax rules and consult with your Edward Jones advisor or tax professional to ensure you're receiving accurate and up-to-date information tailored to your specific situation.
Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation. This content should not be depended upon for other than broadly informational purposes.