I first provided these numbers in 2019, recently someone requested an update, here you go.
Working Canadians:
RRSP Contribution Limit: The maximum contribution limit for 2022 was $29,210, this year it’s $30,780.
TFSA Limit: The annual contribution limit for 2023 remains at $6500. If you have never contributed to a TFSA the maximum cumulative amount is $88,000.
Basic Personal Amount: The maximum amount we could have earned without paying income tax in 2022 was $14,398, for 2023 it is $15,000.
Charitable Donations tax credit: Amounts donated to your favorite charity may give you as much as 33% of the amount you donated at the federal level.
Medical Expense threshold: For 2022 the maximum threshold is 3% of net income or $2,479 whichever the lessor. For 2023, the maximum is 3% or $2,635 whichever the lessor.
Low-interest loans: If you lent your family money to re-invest, the current rate you must charge them on the loan is 4% to avoid the secondary income being attributed back to you.
Home buyers’ credit: You may be able to claim up to $10,000 of the purchase cost and receive a non-refundable tax credit of up to $1500 for eligible home buyers.
For Seniors:
Pension Income amount: If you received eligible pension payments, superannuation, or annuity income you may be able to claim a credit for up to $2,000.
Age amount: If you will be 65 yrs or older on December 31st you may be able to claim this non-refundable tax credit of up to $8,396.
OAS ClawBack threshold: If your total income in 2023 exceeded $86,912 you may have to repay some or all your OAS pension, calculated as 15% of the overage.
If you have children:
Canada Child Benefit: The maximum CCB for 2023 is $7,437 per child under age 6 and up to $6,275 for children ages 6 – 17 yrs. The CCB starts at the maximum amount and will be reduced based on the net family income.
Child Care expense deduction limits: As of 2022, the maximum amounts allowed to be claimed per child is $5000, $8000 or $11,000 depending on the circumstances.
Child Disability Benefit: The CDB is a tax-free monthly payment made to families that care for a child under age 18 with a severe and prolonged impairment in physical or mental functions. To be eligible you must be eligible for the Canada child benefit and your child be eligible for the disability tax credit.
Family Caregiver amount: If you have a dependent child who is physically or mentally impaired, you may be able to claim up to $2,350 when calculating certain non-refundable tax credits.
As always, I recommend you use a qualified professional to help with financial matters, including the preparation of your tax return. I read a great quote on Linked-In “If you think it is expensive to hire a professional, wait until you see what an amateur costs you”. I don’t prepare tax returns myself, but if you need a name of a good accountant don’t hesitate to give me a call.
Have a great weekend (and thanks for the request!)
Tracey
Products or services related to investments, investment recommendations, financial planning, retirement planning, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp. 4665 Yonge Street, Suite 309, Toronto, ON M2N 0B4 t 416.964.0440
Source: Original article posted on Advisor.ca 01-16-17 by Staff, Updated and posted again by Staff 11-19-18, MT01-03-17 https://www.advisor.ca/tax/tax-news/cras-2018-maximum-pensionable-earnings-and-other-numbers/
Information updated using Canada.ca website. https://www.canada.ca/en.html
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