As the new year unfolds, Canadians are reminded of the upcoming tax season, with the Canada Revenue Agency (CRA) setting the deadline for 2023 tax returns and payments on Tuesday, April 30, 2024. To ensure a seamless tax filing experience, taxpayers should not only mark this date on their calendars but also take advantage of essential CRA benefits available to them. Additionally, investors may want to explore potential benefits from TSX mid-cap stocks in their financial strategies for the year ahead. Here are key benefits to consider claiming in 2024.


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1. Canada Child Benefit (CCB)

Families with children under 18 years old can benefit from the Canada Child Benefit (CCB). The first payment for 2024 kicks off on January 19, providing eligible parents with $619.75 per child monthly. This financial support is designed to alleviate the financial burden of raising children. The application process is online through Canada.ca, requiring the submission of your child's birth certificate.

2. Work-from-Home Tax Relief

For individuals engaged in work-from-home arrangements, the working-from-home tax credit can be claimed. However, starting in 2023, the flat rate method no longer applies, and taxpayers must opt for the detailed method. Deductions are based on the size of the home workspace. Proper documentation, including Form T777S or T777 and a completed Form T2200S or T2200 from the employer, is crucial.

3. Canada Workers Benefits (CWB)

Targeted at lower-income taxpayers, the Canada Workers Benefits (CWB) provides additional income as financial support after filing tax returns. This benefit aims to assist individuals in the lower income bracket, offering a valuable boost to their financial well-being.

4. Offset Tax Payable with TFSA Assets

Effectively manage tax payables by strategically holding income-producing assets, such as dividend stocks, in Tax-Free Savings Accounts (TFSAs). Income, gains, or losses within TFSAs do not contribute to taxable income. This approach can help offset tax payables while preserving eligibility for income-tested benefits like CCB and OAS.

5. Generate Tax-Free Income with TFSA Holdings

Consider investment options within TFSAs that generate tax-free income. Freehold Royalties Ltd. (TSX:FRU) in the energy sector is an appealing choice, offering a generous dividend of 7.84% at $13.77 per share. With a robust portfolio of mineral titles and royalties, Freehold Royalties provides consistent returns and a simple, low-risk investment opportunity.

6. Explore Dividend Opportunities with Rogers Sugar (TSX:RSI)

In the consumer staples sector, Rogers Sugar (TSX:RSI) presents an opportunity for stable dividends at a 6.67% yield. With a resilient sugar business, Rogers Sugar has a history of consistent quarterly dividends. The company's positive financial performance in 2023 sets the stage for continued stability and growth in 2024.

Conclusion

Maximizing tax savings involves a strategic approach to claiming essential CRA benefits. Beyond the highlighted benefits, understanding all potential deductions and credits is key to optimizing tax returns. As the tax filing deadline approaches, informed financial planning and leveraging available benefits will contribute to a more favorable outcome for Canadian taxpayers.