We are back after a little break! In this episode on the Financial Classroom Canada, we talk about a few of the new changes that the Canadian Federal Government has introduced in 2023. We talk about:
First Home Savings Account (FHSA)
What is it?
Government Savings account in which you can put money away for you and/or a partner, to save for the purchase of your first home.
Who is it available to?
This is available to anyone in which hasn’t personally owned or has a common-law/spouse who’s owned a primary residence within the past 4 years
Why would someone use it?
This is beneficial to someone who is looking to save money for first home and not having the trouble of looking elsewhere of how and where to store the savings.
How much can one contribute?
An individual is allowed to contribute $8,000 per year, to a maximum of $40,000 for a lifetime. Lifetime means that you can only ever save up to $40k in this to buy your first time, you cannot go higher than this.
Tax Tip: Is good for those looking for a way to also deduct their taxable income but also have to pay $0 in taxes once you withdraw, saving you $$
Grocery Rebate
What is it?
A sum of money given to you by the federal government to help assist with the cost of groceries. It is solely based on income, which the threshold is $X or
Who is it available to?
Anyone within the GST credit area, meaning, if you receive the GST credit, you'll be eligible to receive this rebate.
How much will you receive?
An average family of four with two children would receive $467, while a single Canadian would be eligible for $234 in rebates
Federal Student Loan interest eliminated April 1
So, don’t worry about having to deduct this on your return anymore/ SK YOU STILL NEED TO
Rental and dental benefits weren’t used much
Federal income tax brackets indexed by 6.3%
Payday loans
Increase student loan interest limit
New Carbon Tax April 1
After grocery and other rebates
Why we should file tax returns
If you don’t you can’t take advantage of any of the credits/rebates mentioned