Canada Taxes: Here's What You Need To Know About Filing Your 2023 Tax Return This Year

How do you file taxes?

If you're wondering how to file taxes in Canada, there are a few ways.

You can file your taxes online or by paper, or have someone else complete your return for you.

Filing options include:

• online with NETFILE-certified tax software from TurboTax, H&R Block, Wealthsimple, UFile and more
• online through a tax preparer using EFILE-certified tax software
• in-person at a community volunteer tax clinic
• a paper tax return
• by phone through SimpleFile (by invitation only)

If you filed on paper last year, the CRA should mail you the 2023 income tax package by February 19, 2024.

If you want to file on paper but haven't received a package by that date, you can print what you need online, order the package online, or order a package by calling 1-855-330-3305.

When can you file your taxes in 2024?

You can file your taxes months before the deadline.

Monday, February 19, 2024, is when you can start filing your 2023 tax return online and when you should receive your income tax package if you filed on paper last year.

What are Canada's tax brackets?

Canada's tax brackets determine the amount that your income is taxed at.

When you do your tax return this year, you're doing it for the previous year so you need to be aware of 2023 tax brackets.

The 2023 federal tax brackets and rates for your income are:

• 15% on the portion of taxable income that's $53,359 or less
• 20.5% on the portion of taxable income over $53,359 and up to $106,717
• 26% on the portion of taxable income over $106,717 and up to $165,430
• 29% on the portion of taxable income over $165,430 and up to $235,675
• 33% on the portion of taxable income over $235,675

If you earned $50,000 in 2023, all of that income is taxed at 15% which works out to about $7,500 in federal taxes.

If you earned $60,000 in 2023, the initial $53,359 portion of your income is taxed at 15%. Then, the remaining $6,641 of your income is taxed at 20.5%.

That's around $9,332 in federal taxes.

If you earned $100,000 in 2023, the initial $53,359 portion of your income is taxed at 15% while the remaining $46,641 is taxed at 20.5%.

That works out to about $17,332 in federal taxes.

What tax credits can you claim?

You're able to claim tax credits when filing your 2023 tax return which could reduce your tax owing or even get you a tax refund.

There are refundable and non-refundable federal tax credits along with provincial tax credits, including ones for residents of Ontario, B.C., and Alberta.

If you're wondering what you could claim, these are some of the credits available for the 2023 tax year:

• Canada training credit
• donations and gifts tax credit
• caregiver credit
• digital news subscription tax credit
• disability tax credit
• low-income workers tax credit
• Ontario child care tax credit
• political contribution tax credit
• B.C. renter's tax credit
• sales tax credit

When are taxes due in 2024?

If you're wondering when taxes are due in 2024, there are a few dates you need to be aware of.

For most Canadians, the last day to file taxes is Tuesday, April 30, 2024.

Income taxes are due Saturday, June 15, 2024, if you or your spouse or common-law partner are self-employed.

However, since that deadline is on the weekend, you actually have until Monday, June 17, 2024.

The CRA recommends filing your return early or before the due date to avoid interest and penalties.

Also, submitting your return before the last day to file taxes prevents a disruption to benefit and credit payments that determine your eligibility based on your tax return.

That includes the GST/HST credit, Canada Child Benefit, and more.

What is the deadline to pay taxes?

If you owe money to the government after filing your 2023 income tax return, the deadline to pay your taxes is also Tuesday, April 30, 2024.

Even though the deadline to file a return if you're self-employed is in June, you still need to pay any amount owing you have by April 30.

How do you pay taxes?

When you file your tax return, you might have a tax payable amount which means you own money to the government.

You can make a payment online, in person or by mail.

The date your payment is made is the day it's processed by a Canadian bank or credit union, or received by the CRA.

You can pay online through your Canadian bank or credit union, a pre-authorized debit payment, the CRA's My Payment service, or a credit card, PayPal or Interac e-Transfer payment.

Payments can be made in person at a Canadian bank or credit union (by cheque or debit) or a Canada Post outlet (by debit or cash).

You can send a payment to the CRA through the mail with a cheque or money order.

If you can't afford the amount of taxes you owe, you can arrange to pay your debt over time in the CRA's My Account portal using a pre-authorized debit agreement.

How do you get a tax refund?

You will get a refund if you paid more taxes than you needed to in 2023.

If you're filing by paper or not using auto-fill when filing online with tax software, you can figure it out by subtracting the amount on line 48200 of your return from the amount on line 43500 of your return.

You get a refund if the result is negative.

Then, you have to enter that amount on line 48400 of your return.

However, the CRA generally doesn't refund a difference of $2 or less.

You can get the tax refund money as a cheque that's mailed to you or through direct deposit.