Canadian taxpayers can file their 2023 tax returns online on February 19, 2024. Those not yet ready have sufficient time to prepare until the tax filing deadline on Tuesday, April 30, 2024.
There are a host of Canada Revenue Agency (CRA) benefits that can reduce tax liabilities. Every Canadian should know and claim them, especially those who continue to work from home, have incurred renovation costs for a relative, and/or are raising children.
You can also offset your tax liabilities with dividend income from Sun Life Financial (TSX: SLF) and B2Gold (TSX: BTO).
Home office expenses for employees
Employees who worked from home in 2023 can claim home office expenses but are required to use the detailed method ONLY. The eligible employees must complete Form T2200, Declaration of Conditions of Employment, duly signed by the employer.
Multigenerational home renovation tax credit
The multigenerational home renovation tax credit (MHRTC) is a new refundable tax credit. An eligible individual can claim certain renovation costs to create a secondary unit within an eligible dwelling, provided a senior or an adult who is eligible for the disability tax credit can reside with their qualifying relation.
An eligible taxpayer can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed. The maximum credit for each claim is $7,500.
Canada Child Benefit
Parents will receive a significant amount per child from the Canada Child Benefit (CCB) program. The benefit for an eligible child under six is $7,437 and $6,275 for children between 6 and 17 years old.
Dividend grower
Sun Life is an attractive income stock for its strong capital position, profitability, and growing dividends. The $42.1 billion financial services company is a dividend aristocrat owing to eight consecutive annual dividend increases. If you invest today, the share price is $72.03 (+4.82% year to date), and the dividend offer is 4.33%.
In 2023, sales declined 12.5% year over year to $173.8 billion, while reported net income rose 7.5% to $3.1 billion. Sun Life acquired Dialogue Health Technologies and invested in the virtual pharmacy Pillway last year. Both moves will provide clients access to quality care through digital innovation and partnerships.
Sun Life is capitalizing on the fast-growing markets in Asia. In Q4 2023, regional sales jumped 49.3% to $536 million versus Q4 2022. For 2024, Sun Life will continue to advance the One Sun Client strategy, accelerate its wealth strategy, and strengthen and expand the health business while transforming retail distribution with its face-to-face and omnichannel advice models.
Breakout is coming
B2Gold trades at a deep discount (-18.38% year to date) and is an attractive option for both growth and dividend investors. At only $3.42 per share, you can partake in the 6.26% dividend yield. The $4.4 billion international senior gold producer operates mines in Mali, Namibia, and the Philippines.
Market analysts recommend a strong buy rating and see an 86.8% upside in 12 months (to $6.39) due to the strong revenues and gold production. Revenue in 2023 reached US$1.9 billion, while production in Q4 2023 hit 288,665 ounces. B2Gold expects consolidated gold production to increase to record levels in 2025.
Prepare early
Taxpayers shouldn’t allow the pressure to build. The CRA advises preparing early and knowing the tax breaks, credits, and benefits. Lastly, don’t miss out on those you are eligible to claim.
