The federal government is offering a new tax credit to help make it easier for Canadians to care for adult relatives in their own homes. The multi-generational home renovation tax credit took effect Jan. 1 for expenses related to building a secondary suite for a family member who is a senior or an adult with a disability. The credit will provide a 15 per cent tax refund on expenses of up to $50,000 to a maximum of $7,500.
The secondary suite must be for a related adult over the age of 65 or living with a disability, including a grandparent, parent, child, grandchild, sibling, aunt, uncle, niece or nephew. The secondary suite must be a self-contained housing unit that includes a separate entrance, bathroom, kitchen and sleeping area. 
Additionally, the home being renovated must be inhabited or reasonably expected to be inhabited within 12 months after the end of the renovations. 
Certain things cannot be claimed, such as:

• furniture;
• household appliances and devices;
• costs associated with landscaping, housekeeping, or security—in other words, anything not integral to the unit itself;
• costs of financing a renovation, such as mortgage interest costs; and
• construction equipment, tools, mortgage interest costs, and any costs associated with routine repair or maintenance.

In addition, claims are subject to reduction pending other forms of government assistance. 
To find out more on the Government of Canada website  CLICK HERE

Here are 6 of the Canadian tax changes coming in 2023.  They include everything from doubling the First-Time Home Buyer's Tax Credit to changes to Old Age Security and the Canada Pension Plan


New Tax Brackets
These are the adjusted tax brackets for the 2022 tax year. These changes may mean paying a lower rate on more of your income.

• Up to $50,197 of income is taxed at 15%.
• Income between $50,197 and $100,392 is taxed at 20.5%.
• Income between $100,392 and $155,625 is taxed at 26%.
• Income between $155,625 and $221,708 is taxed at 29%.
• Above $221,708, income is taxed at 33%.
  
  

Basic Personal Amount increase
The Basic Personal Amount, or BPA, is a non-refundable tax credit that can be claimed by anyone who files income taxes in Canada. The goal of the BPA is to give individuals making less than a certain amount a full deduction from income tax. Taxpayers who make more than this basic amount receive a partial reduction. The BPA is increasing to $14,398 for the 2022 tax year. 

First-Time Home Buyers’ Tax Credit doubled
The First-Time Home Buyers Tax Credit, also known as the HBTC, is a federal government initiative to make homeownership more affordable for some Canadians. Eligible first-time home buyers can now claim a $10,000 non-refundable income tax credit — double what they could before — which could result in tax savings of up to $1,500.There’s no need to apply or be approved for the HBTC; just enter the Home Buyer’s Amount of $10,000 on Line 31270 of your income tax return. The credit will result in a rebate on taxes you owe.

Old Age Security income limits changed
Old Age Security, or OAS, is a government program that has been created to provide retired Canadians with a source of income to help throughout their retirement. However, seniors who make too much income are sometimes asked to pay back some of their OAS. 
The new thresholds for the 2022 tax year are as follows:

• Minimum income recovery threshold: $80,761.
• Maximum recovery thresholds for ages 65-74: $134,626.
• Maximum recovery threshold for ages 75 and above: $137,331.

If you made more than the minimum amount, you will have to pay back some or all of your OAS. If your income is above the maximum amount for your age group, your OAS might be canceled. 

Canada Pension Plan earning and contribution increase
Rules governing the Canada Pension Plan are changing in 2023. The new calculations are based on a CPP legislated formula that is based on the average growth rate of salaries and weekly wages earned throughout Canada.
The maximum pensionable earnings under the CPP will be $66,600 in 2023, up from $64,900 in 2022. The basic exemption amount stays the same at $3,500 in 2023. 
CPP contribution rates have also been adjusted accordingly. Employee and employer contribution rates are now 5.95% (up from 5.70% in 2022) for a maximum contribution of $3,754.45. For self-employed individuals, the contribution rate will be 11.90% in 2023 (up from 11.40% in 2022) for a maximum contribution of $7,508.90.

RRSP dollar limit increase
The annual dollar limit for Registerd Retirement Savings Plans, or RRSPs, is $29,210 for the 2022 tax year, up from $27,830 in 2021. However, keep in mind that your individual contribution limit is still capped at 18% of your entire earned income.