A number of new measures have been introduced by the federal government this year to help Canadians in light of rising costs.
Josée Cabral, a senior tax specialist and the national spokesperson with H & R Block says one of those measures is the new Canada Dental Benefit. Cabral says this benefit is for dental expenses for children under 12 years old. The payment provided will be up to $650 per child, and is based by income. "So, $650.00 would be for an income less than $70,000," added Cabral.
For low-income renters, the Canada Housing Benefit is also available. Cabral says the benefit is a one-time tax-free payment of $500. "For that, individuals have to make less than $20,000 and families is less than $35,000. Of course, there's a very important pre-requisite to be eligible for that one-time tax-free payment, which is of course that you've filed your 2021 taxes."
Meantime, a benefit that is specific to Manitoba, is a $525 credit for low-income renters, which is paid out in monthly installments.
Cabral also noted, in 2023, the TFSA contribution limit has been increased to $6,500 compared to last year when it was $6,000. "There's also the RRSP limit that's been increased. It is 18% of your income that gets added to your contribution room. But the limit for 2022 is $29,210 compared to last year of $27,830.
"Something that I like to remind people every year, and not a lot of people are actually aware of the fact that you can claim medical expenses on your income tax. You do need a 3% of your income for it to actually pay out, but anything that's paid out of pocket even if you have private insurance, you can apply it on your income taxes and it all adds up, so it may be worth it for you."
Cabral says some examples include prescription eyeglasses, your eye exam, dental receipts, as well as your chiropractor.
"My biggest tip is always to be organized throughout the year. Don't wait till the last minute to organize your documents," added Cabral. "It's always nice to have a filing cabinet or something where throughout the year you put in all your documents, whether it be your medical receipts or things that are pertinent to your taxes. So when it's time for you to come into H&R Block and see your tax specialist, all you have to do is grab that file and come into the office."