Things to keep in mind for new Albertans this tax season

The deadline to file taxes is quickly approaching.

It’s a hectic time of the year for most, adding to an already busy and costly year for anyone who’s recently moved.

“The minimum requirement to claim the moving expenses deduction is the move has to move you at least 40 kilometres closer to your new place of employment,” explained Gerry Vittoratos, a national tax specialist with UFile.

He says there some things Alberta newcomers should consider before filing your taxes this year.

For those who recently purchased a new home, Vittoratos says you could be eligible for the First Time Home Buyers Tax Credit.

“As long as you have not owned a home that you lived in in the last four years and you purchase a home you’re entitled to this credit which I believe now goes to $10,000 at 15 per cent, which is a non-refundable tax credit which is used to reduce your federal tax to zero,” he said

Vittoratos adds that if you moved for work, you could qualify for the moving expenses deduction and get some money back on your flights, movers, home commission fees and hotel costs during the transition.

The tax expert previously told CityNews that every year, Canadians leave millions of dollars in tax deductions and credits on the table.

“The biggest mistake people make is the mistake of omission,” he said.

Vittoratos says the majority of people aren’t maximizing their returns, simply because they’re not claiming everything they’re eligible for.

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He added that two commonly overlooked areas are medical expenses and disability.

Vittoratos says another common mistake is scrambling to get things together at the 11th hour.

“Tax season is year-round, it is not just a three-month thing. It’s a year-round thing because you are always claiming, you are always spending or claiming in areas that could be deductible or claimable as a credit on your tax return — for example medical expenses, for example, donations,” he said. “So, create your folder, your physical folder, or your virtual folder and make sure you collect anything you suspect is eligible.”

Delays and deadlines

Canadians who opened a First Home Saving Account in 2023 could also face delays in receiving their tax returns.

Last week, multiple Canadians who opened an FHSA began reporting on social media that their returns were taking longer than normal. Those individuals were told by the CRA it was a “processing error” at the federal department.

The deadline for filing taxes is April 30.

But, Canadians who are self-employed, along with their spouses or common-law partners, have until June 15, noting that since this date falls on a weekend it will consider a return to be on time if it is received by or postmarked on or before June 17.

Self-employed Canadians must still pay money owed to the CRA by the April 30 deadline to avoid paying interest.

The CRA says it processed 18 million refunds during the 2023 tax filing season at an average of $2,262.