What’s New for TurboTax Canada in 2024

Canada tax changes for 2024

The Canada Revenue Agency (CRA) has made several updates to federal tax brackets, savings limits, and contribution thresholds for 2024. These adjustments reflect inflationary changes and other adjustments and can impact your tax filing.

Here's a breakdown of the key changes:

Federal income tax brackets

The federal income tax brackets have been adjusted for inflation. The updated thresholds for 2024 are:

• 15% on income up to $55,867
• 20.5% on income over $55,867 up to $111,733
• 26% on income over $111,733 up to $173,205
• 29% on income over $173,205 up to $246,752
• 33% on income over $246, 752

Along with federal tax brackets, provincial brackets also may have changed. Be sure to check the CRA for the latest numbers.

Tax bracket updates help ensure that the tax system remains fair and equitable as the cost of living changes.

Basic personal amount

The basic personal amount—the non-refundable tax credit that all taxpayers can claim—has increased to $15,705 for 2024. This increase reduces the amount of income subject to federal tax, providing additional relief to taxpayers.

Canada Pension Plan (CPP) contributions

For 2024, the maximum pensionable earnings under the CPP have been set at $68,500, up from $66,600 in 2023. The basic exemption amount remains at $3,500. The contribution rates are as follows:

• Employee contribution rate. 5.95%, with a maximum contribution of $3,867.50
• Company contribution rate. 5.95%, matching the employee's contribution
• Self-employed contribution rate: 11.9%, with a maximum contribution of $7,735.00

These contributions are crucial for securing retirement, disability, and survivor benefits through the CPP.

Registered Retirement Savings Plan (RRSP) contribution limit

The RRSP contribution limit for 2024 has increased to $31,560, up from $30,780 in 2023. This limit allows individuals to contribute up to 18% of their previous year's earned income, subject to the annual maximum, providing an opportunity to save for retirement on a tax-deferred basis.

Tax-Free Savings Account (TFSA) contribution limit

The annual TFSA contribution limit has been increased to $7,000 for 2024, up from $6,500 in 2023. This change allows individuals to save more money in a tax-free environment, enhancing their ability to meet short- and long-term financial goals.

Staying informed about these updates is essential for effective financial planning. TurboTax has kept pace with these changes and can help ensure compliance with tax obligations.

What's new or improved with TurboTax for 2024?

For tax year 2024, TurboTax introduces several new features and enhancements designed to streamline your tax filing process, reduce errors, and offer tailored support. Here's a look at what's new:

New TurboTax experience

Enjoy a faster, more personalized process with the new TurboTax tax filing experience, including:

• fewer questions to answer
• less manual data entry by using Auto-fill my return (AFR)
• a centralized hub to easily add, change, or remove tax forms and slips from your return
• a clear view of your progress and what steps remain—all in one place
• recommended next steps to streamline and personalize your filing

These changes aim to save time, reduce errors, and make the tax filing process more intuitive.

Audit Coach and Extended Expert Coverage

This year brings the benefit of expert insights along with year-round support for customers who want tax help anytime, including:

• Audit Coach. This feature provides expert guidance on responding to audit or reassessment letters from the CRA. Unlike Audit Defence, where a TurboTax tax expert handles the process by preparing documents and speaking to the CRA on your behalf, Audit Coach offers a "do-it-with-me" approach for navigating these situations.
• Extended Expert Coverage. Need to adjust your filed return or have questions about tax implications from life changes? This service ensures expert assistance is available even after you've submitted your return.

These features provide ongoing expert guidance, empowering you to navigate tax challenges with confidence and ensuring you're prepared for anything that comes your way, at anytime.

Spousal Toggle

Filing jointly is easier this year, due to the new Spousal Toggle feature. Here's what it does:

• Seamlessly switch between your return and your spouse's to ensure accuracy and help understand the benefits you could be eligible for.
• Transfer income tax deductions and non-refundable tax credits between returns to maximize your collective benefits.

Spousal Toggle streamlines the process for couples to file and maximize their eligible benefits.

How TurboTax continues to make your experience better

Life changes like marriage, divorce, having a child, or buying a home can affect your taxes. TurboTax helps you navigate these events, ensuring your taxes are filed correctly and no detail is missed.

TurboTax continues to deliver tools and upgrades that improve your experience, including:

• Automatic data inputting for accuracy and ease. Automated processes can reduce manual data entry and minimize errors on your return.
• Recommended next steps. This helpful feature acts like a checklist, jogging your memory and helping ensure every relevant deduction or credit is considered—perfect for new filers or anyone seeking extra peace of mind.

These enhancements reflect TurboTax's commitment to making tax filing as straightforward and stress free as possible—no matter your situation.

Full service and specialized options

For those who prefer to leave their taxes in the hands of professionals, the TurboTax Full Service option let's tax experts do the work for you.

Another tool, Audit Defence, is also available, providing expert representation in case of a CRA audit. In this instance, a TurboTax expert handles the process by preparing documents and speaking to the CRA on your behalf.

These options ensure that every filer—no matter their situation—has the resources to file confidently.

Maximize your refund with ease

TurboTax updates for 2024 are designed to make tax filing easier, whether you're navigating a major life change, managing business income, or simply ensuring every credit and deduction is accounted for. With features like the Audit Coach, Spousal Toggle, and Extended Expert Coverage, you can access support year-round and get the refund you deserve.

If you prefer expert assistance, explore our Assist and Review option for professional tax filing, or check out the Self-Employed version for tailored support to meet your unique business needs. TurboTax makes it easy to file your taxes your way while staying on top of the latest updates and maximizing your benefits.

Frequently asked questions (FAQs)

Can I change my tax return after filing?

Yes, you can change your tax return after filing if you discover an error or need to add missing information. You'll need to request a reassessment from the CRA and provide the corrected details.

How far back can I amend a tax return?

You can request an amendment for tax returns filed within the past 10 calendar years. For example, in 2024, you can amend returns from 2014 onward.

How do I amend a tax return using TurboTax?

TurboTax makes it easy to amend your return. Log in to your account, access the relevant year's return, make the necessary changes, and follow the steps to resubmit. Detailed guidance is available within the software or through TurboTax support.

How long after filing taxes can I be audited?

The CRA can typically audit a tax return up to 4 years after it has been filed. However, this period may be extended if there are concerns about fraud or misrepresentation.

No matter your tax situation, we've got you covered.

We match you with the best TurboTax option based on your life, needs, and preference and how much help you want while filing your taxes.

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