Preparing for the 2024 Tax Season: Key Changes for Families
By Alterna Team
December 20, 2023

Tax season can be stressful, but with proper advance planning and awareness of the latest tax updates you can make the process smoother and potentially save money. In this blog post, we’ll explore several changes for the 2024 tax season including, changes to tax brackets, updates to registered accounts like RRSPs and TFSAs, and the multi-generational home renovation tax credit.

Changes to Tax Brackets & Indexation:
When the government reviews tax brackets each year inflation is considered.  The dramatic increases in inflation in 2023 have resulted in one of the largest indexation rates (6.3%) in recent memory.  What does this mean for you?  For 2023 the basic personal amount is $15,000, which is a non-refundable tax credit that all individuals can claim. The tax brackets afterward are:


2023 Income

Taxable income above which triggers the 15% tax rate


Taxable income above which triggers the 20.5% tax rate


Taxable income above which triggers the 26% tax rate


Taxable income above which triggers the 29% tax rate


Taxable income above which triggers the 33% tax rate


Both products are designed to encourage people to save money. For the 2023 tax year, the maximum amount an individual can contribute to their RRSP, not accounting for unused portions from previous years, is $30,780 while the TFSA contribution limit is $6,500. Depending on the stage in your life, your existing investment portfolio, and your personal goals, you will need to determine where to invest your resources to best align with your financial goals.

Multi-Generational Home Renovation Tax Credit: This tax credit incentivizes homeowners to make improvements that accommodate aging family members. A homeowner may receive up to $7,500 to assist with constructing a secondary unit in their home for a related person who is either 18+ and qualifies for the disability tax credit or a senior aged 65+. It is a refundable credit, paid regardless of whether you owe tax in the year.  Be aware of eligibility criteria and how to claim this credit if you’re planning renovations for this purpose.

As tax season approaches, knowing about new tax credits or changes to existing limits can help you to best prepare your tax strategy for the upcoming tax season. Plan ahead to make informed decisions and take advantage of any tax credits you may be eligible for.

You can always contact your Alterna Wealth advisor for help navigating the tax season so you can keep as much of your hard-earned money in your pocket as you can.