3 CRA Benefits Every Canadian Should Claim

Every Canadian should know about these benefits to reduce their taxes.

| More on:
Happy diverse people together in the park

Image source: Getty Images

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends B2Gold. The Motley Fool has a disclosure policy.

More on Dividend Stocks

hand using ATM
Dividend Stocks

Should Bank of Nova Scotia or Enbridge Stock Be on Your Buy List Today?

These TSX dividend stocks trade way below their 2022 highs. Is one now undervalued?

Read more »

A meter measures energy use.
Dividend Stocks

Here’s Why Canadian Utilities Is a No-Brainer Dividend Stock

Canadian Utilities stock is down 23% in the last year. Even if it wasn’t down, it is a dividend stock…

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

Got $5,000? Buy and Hold These 3 Value Stocks for Years

These essential and valuable value stocks are the perfect addition to any portfolio, especially if you have $5,000 you want…

Read more »

Growing plant shoots on coins
Dividend Stocks

3 Magnificent Ultra-High-Yield Dividend Stocks That Are Screaming Buys in April

High yield stocks like BCE (TSX:BCE) can add a lot of income to your portfolio.

Read more »

grow money, wealth build
Dividend Stocks

1 Growth Stock Down 24% to Buy Right Now

With this impressive growth stock trading more than 20% off its high, it's the perfect stock to buy right now…

Read more »

Dividend Stocks

What Should Investors Watch in Aecon Stock’s Earnings Report?

Aecon (TSX:ARE) stock has earnings coming out this week, and after disappointing fourth-quarter results, this is what investors should watch.

Read more »

Freight Train
Dividend Stocks

CNR Stock: Can the Top Stock Keep it Up?

CNR (TSX:CNR) stock has had a pretty crazy last few years, but after a strong fourth quarter, can the top…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Stocks Ready for Dividend Hikes in 2024

These top TSX dividend stocks should boost their distributions this year.

Read more »