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  • Joshua Sung Min Kim

2023 Personal Income Tax Filing



As tax season approaches, we are here to guide you through the necessary documents and information needed for a smooth and efficient tax filing. The efiling services for 2023 year tax filing will open on February 19, 2024.

 

Important Tax Changes Applicable from 2023 Onwards:

 

1.      Change in Home Office Deduction Method:

The Simplified Method introduced in response to the COVID-19 pandemic will not apply from 2023 onwards. If you work from home and wish to deduct home office expenses, you will need to use the Detailed Method, which requires additional documentation (T2200).

 

2.      End of Ontario Staycation Tax Credit:

The Ontario Staycation tax credit applied only to the 2022 tax year and has not been extended to 2023.

 

3.      Increase in Basic Personal Amount (BPA):

The federal Basic Personal Amount for 2024 is set at $15,705 (up from $15,000 in 2023). This means that if your income is equal to or less than this amount, you are exempt from federal income tax.

 

4.      Increased interest for unpaid Personal Income Taxes:

From 2024 onwards, an interest of 10%/year will be levied on unpaid taxes due on the filing deadline.

 

2023 Tax Filing Document Requirements:

 

1.      Income-Related Documents:

•        Documents issued by financial institutions, government, or employers like T3, T4, T4A, T4E, T4 RSP, T5, etc.

•        Amounts paid from COVID-related subsidies.

•        Other income-related documents (capital gains, rental income, Korean pensions, Korean interest income, etc.).

 

2.      Deduction-Related Documents:

•        T2202 for education expenses (issued by colleges or universities – available on websites).

                                                              i.      Parents can claim a certain amount of their children's tuition.

                                                             ii.      Textbook receipts are not required.

•        Medical expenses exceeding 3% of income (prescription drugs, eyewear, dental, etc.).

•        RRSP: Can be purchased through financial institutions by February 29, 2024.

                                                              i.      Purchase limits can be confirmed through a Notice of Assessment or by calling 1-800-959-8281.

                                                             ii.      For any queries about the purchase or amount, please contact us.

•        If you withdrew from RRSP under the Home Buyer’s Plan, please let us know (Notice of Assessment required).

•        Child Care Expenses for working couples (Day Care, Summer Camp, etc.).

•        Donation receipts from religious and charitable organizations.

•        First Home Buyer’s amount: Benefits for homes purchased in 2023 that are the first home in the last 5 years. Credit $10,000 (Tax $1500 Non-refundable).

•        Canada Caregiver amount: Please inform us if you have a dependent with a physical or mental disability.

•        Home Office Use: If you worked from home in 2023 and received T2200 from your company, please provide details like period, home office sq ft, and expenses (rent, utilities, property tax, mortgage interest, etc.).

 

3.      Foreign Asset and Income Reporting:

•        For those holding foreign assets, please provide the location, type, and any changes in value or income since your last tax filing.

 

4.      2023 Principal Residence Sale:

•        If you sold a principal residence in 2023, please provide the year of purchase and the selling price.

 

For any additional information or queries, please feel free to reach out to us. We are committed to providing the best assistance.

 

Thank you.

 

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