Important Tax Season Information – File Early and Save!

Dear Valued Client,

As the tax season for 2023 is upon us, we want to remind you of some crucial dates and changes that may affect your filing process. At RubyTax, we are ready and open for business to assist you with your tax needs.

Key Dates:
– The first date to file your tax return for 2023 is Monday, February 19th, 2024.
– If you owe taxes, the deadline for filing and payment is on or before April 30, 2024.

Changes for 2023:
Beginning this year, there is a new penalty structure for late filings. The penalty is now 10% of the unpaid tax when the return was due, plus an additional 2% of the unpaid tax for each complete month the return is late, up to a maximum of 20 months. It’s essential to file on time and make payments promptly to avoid these penalties, as the amount owed compounds daily, and interest is applied on top of other late-payment penalties.

RRSP Deadline:
Don’t forget that the deadline for contributing to your RRSP for the 2023 tax year is February 29, 2024. Take advantage of this opportunity to reduce your taxable income.

Work from Home Employees:
For those who worked from home in 2023, it is crucial to file using the detailed method format. You must include an approved letter from your HR team. The temporary flat rate method does not apply to the 2023 tax year.

Digital Disability Tax Credit Application:

Applying for the Disability Tax Credit has become more convenient. In 2023, the CRA introduced a digital process. Through My CRA Account, you can complete Part A of the application. Once issued a reference number, provide it to your qualified medical practitioner, who can then complete Part B digitally.

New Federal Tax Brackets for 2023:
– $0 to $53,359 of income: 15%
– More than $53,359 to $106,717: 20.5%
– More than $106,717 to $165,430: 26%
– More than $165,430 to $235,675: 29%
– $235,675 and higher: 33%

Our team is here to assist you in navigating these changes and ensuring a smooth tax filing process. Feel free to reach out to schedule an appointment or ask any questions you may have.

Thank you for choosing RubyTax for your tax needs. We look forward to serving you this tax season.

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