Changes to know about this tax season

A new year means a new tax season, and there’s some changes you might need to know about.

UFile‘s Gerry Vittoratos says one of the biggest changes is the Tax Free First Home Savings Account that was offered for the first time last year.

“It’s a new tax shelter account in the same vein as an RSP [Retirement Savings Plan] or a TFSA [Tax Free Saving Account], the difference being that you’re saving money in a tax-sheltered account in order to allow you to have a down-payment for what the government considers as your first home,” he explained.

Vittoratos says the contributions are tax deductible, and the limits have been set by the government to $8,000 annually, and $40,000 over a lifetime.

There’s also the Canada Workers Benefit, which is now being paid in advance, and the Multi-Generations Home Renovation Tax Credit.

He also says his best advice is to get those taxes filed early and remember: doing your taxes is a year-round job.

“It’s all about planning and preparation. People always think ‘Oh, it’s tax season, let me hunt for my documents,’ but it’s really the wrong thing to do,” Vittoratos explained. “A tax return is year-round, the amounts that you can claim can be incurred year-round, so you have to be organized.

“The majority of mistakes people make are essentially, not archiving their documentation properly.”