DFK Tax Digest – 2023 Issue One
- Claiming Working from Home Expenses – For your 2022 personal tax filing, the Canada Revenue Agency has two options that will allow employees to report expenses they incurred while working from home. All eligible members of a household who worked from home can each claim working from home deductions using either method.
- Health Spending Accounts – We have recently seen an increase in the number of clients inquiring about Health Spending Accounts (or “HSA”, also referred to as “Health Care Spending Accounts” or “HCSA”). Because of this, we thought it would be helpful to provide a brief summary of what HSAs are and how they are taxed.
- Tax-Free First Home Savings Account (“FHSA”) – The FHSA was introduced by the Federal government in Budget 2022. The FHSA is a new registered plan that will give first-time home buyers the ability to save up to $40,000 (lifetime contribution limit) on a tax-free basis to purchase a qualifying home. The annual contribution limit will be $8,000. Contributions to the FHSA will be tax deductible. Income and capital gains earned within the FHSA will generally not be taxable. A qualifying home is a housing unit located in Canada or a share of the capital stock of a cooperative housing corporation, the holder of which is entitled to possession of a housing unit located in Canada.
