How to fill out a personal tax return for 2023 + MORE Dec 18th

Ask MoneySense
Is it possible to handle investments without having an accountant or tax professional? I do my own income taxes and have used the tax receipts without any issues from my bank for mutual funds. Is it possible to invest in ETFs without hiring a professional at tax time? If they are in a TFSA, do I need to worry about calculating ACB?—Barbara

Tax implications of holding ETFs in a TFSA

When filing your taxes, Barbara, there are similarities between mutual funds and exchange-traded funds (ETFs). But there are also some distinct differences.

Both types of investments are subject to tax in your taxable accounts, like non-registered or corporate accounts. Tax-free savings accounts (TFSAs) are tax-free, so you don’t receive tax slips for TFSA investments, nor do you report the income or capital gains on your tax return.

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MoneySense editors’ take
Consider opening an FHSA before Dec. 31, 2023, even if you don’t intend to contribute right away. Unused contribution room can be carried forward one year, up to a maximum of $8,000. You can give yourself a maximum contribution limit of $16,000 in 2024 by opening the account before the end of 2023.

Canadians can now boost their savings for a down payment on a home with a new type of registered account—the first home savings account (FHSA). The account, also referred to as the tax-free first home savings account, creates up to $40,000 in tax-free savings room for first-time home buyers. FHSAs were announced in the federal government’s 2022 budget plan as an initiative to help Canadians reach their goals of homeownership in competitive and challenging real estate markets. To date, more than 300,000 Canadians have opened an FHSA. In this article, we’ll answer common questions about the account and help you find the best one for your needs.

Frequently asked questions about FHSAs

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Whether it’s your first time or if you’re a newcomer to Canada, you’ve come to the right place. This step-by-step guide will help you navigate through filling out your tax return.

The most popular method to file your tax return is by using online tax software. According to the Canada Revenue Agency (CRA), in the 2022 tax year, 92% of Canadians chose to file their taxes online. Alternatively, you can fill out a paper copy and mail it to the CRA, but it will take longer to process your documents. Here are the steps you need to follow to ensure that you properly fill out your tax return.

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Earn a guaranteed interest rate of 3.00% tax free.

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Every year, “save for retirement” appears on my list of New Year’s resolutions. I’ve participated in employer-sponsored pension plans before, and I’ve contributed to my registered retirement savings plan (RRSP) as much as I can, but I’ve found it difficult to figure out the best way to save for my retirement while juggling other priorities like paying down debt and covering my monthly expenses. It seems I’m not the only one in their 20s who struggles with this. 

While saving for retirement is a top priority for half of employed Canadians, many of us (44%) did not actually set aside money for it in the past year, according to the Canadian Retirement Survey from the Healthcare of Ontario Pension Plan (HOOPP). And, nearly half of Canadians (47%) haven’t made or are not planning to make any contributions to their retirement investments, either, a TD retirement survey says. 

Younger Canadians especially struggle with this dilemma. Despite nearly 70% of Canadians under 35 worrying about the cost of living, whether their income will keep up with inflation (67%) and housing affordability (65%), we still place a high value on saving for retirement…