What’s New This Tax Season? – A Complete Guide by a Montreal CPA Firm Near You

Introduction

Each new tax season brings important updates from CRA—new credits, updated forms, revised deadlines, benefit adjustments, changes to tax brackets, and new documentation requirements. Failing to understand these changes can lead to missed refunds, denied claims, filing errors, or unexpected balances owing. Whether you are an employee, self-employed, investor, senior, student, or small business owner, staying informed is essential. This guide summarizes all major changes for the current tax filing year and explains how they affect your return.

Legal and Regulatory Framework

Annual tax updates come from the Income Tax Act, the federal budget, CRA policy announcements, Quebec Taxation Act changes, and updated CRA administrative guidance. CRA also adjusts many credits and thresholds for inflation, changes reporting rules for digital platforms, updates T-slips, and modifies eligibility for benefits like CCB, GST/HST credit, and CWB. Taxpayers must follow the latest rules when filing, and CRA may reassess outdated claims.

Key Court Decisions

In Canderel Ltd. v. Canada, the Supreme Court emphasized accurate income reflection—guiding CRA’s updates to reporting requirements. In Leblanc v. Canada, medical credits were denied due to insufficient documentation, influencing stricter claim rules. In Thompson v. Canada, CRA’s expanded digital compliance authority was upheld. These decisions reinforce CRA’s increasing emphasis on accuracy, documentation, and electronic reporting.

Major Changes This Tax Season

1. Updated Federal Tax Brackets

CRA adjusts tax brackets annually for inflation. This affects: basic personal amount, marginal tax thresholds, CPP/OAS planning, RRSP contribution optimization. These changes directly impact your payable tax or refund.

2. Increased CPP and EI Premiums

CPP contributions continue to rise under CPP enhancement rules. EI maximum insurable earnings have also increased. Employees and employers must budget for higher payroll deductions.

3. Multigenerational Home Renovation Tax Credit (MHRTC)

A new refundable credit for eligible renovations that create secondary suites for seniors or adults with disabilities. The credit covers 15% of up to $50,000 in qualifying expenses.

4. First Home Savings Account (FHSA) Expansion

The FHSA is now fully implemented. Contributions are tax-deductible (like RRSPs), and withdrawals to purchase a first home are tax-free (like a TFSA). Many taxpayers now qualify for additional homeownership tax advantages.

5. Anti-Flipping Tax Rules

Homes owned for less than 12 months may be taxed as business income—not capital gains—unless qualifying exceptions apply. This affects real estate investors, renovators, and pre-construction assignments.

6. Home Office Expense Changes

Temporary pandemic flat-rate method is discontinued. Only the detailed method is allowed, requiring Form T2200 or T2200S. CRA is auditing home office claims more frequently.

7. Digital Services and Platform Reporting

CRA now requires digital platforms (Uber, DoorDash, Etsy, Airbnb, etc.) to report seller income to CRA directly under new international reporting standards. Gig workers and online sellers must ensure all income is reported.

8. New Climate Action Incentive (CAI) Payment Schedule

CAI is now paid quarterly, not annually. Eligibility depends on tax return filing—late returns result in missed payments.

9. AMT (Alternative Minimum Tax) Enhancements

High-income earners face new AMT rules with higher inclusion rates for capital gains, stock options, and donations of appreciated securities. Estate, investment, and donation planning now require revised strategies.

10. GST/HST Housing Rebate Updates

New rental housing incentives and GST/HST exemptions for certain new purpose-built rental developments. Real estate investors must review eligibility carefully.

Quebec-Specific Updates

1. Updated Quebec Tax Brackets and Credits

Quebec indexation has increased several credits, including the basic personal amount, solidarity credit, and disability credit. RL-slip reporting rules have been updated.

2. CNESST and QPIP Rate Changes

Updates to QPIP premiums and CNESST employer rates affect payroll calculations for Quebec businesses.

3. Housing and Renovation Credits

Additional Quebec renovation and housing affordability credits may apply depending on income and household structure.

Who Is Most Affected This Year?

• Gig workers and online sellers due to new CRA platform reporting

• First-time homebuyers using FHSA and HBP together

• High-income earners facing stronger AMT rules

• Remote workers due to end of flat-rate home office method

• Real estate investors affected by anti-flipping legislation

• Seniors navigating OAS clawback and increasing CPP contributions

Common Errors CRA Expects This Year

CRA warns taxpayers about: unreported digital income, incorrect home office claims, misapplied FHSA rules, real estate sale misreporting, donation credit errors, missing T-slips (especially T4A for gig work), incorrect tuition and medical claims, OAS/CPP reporting mismatches, and misreported crypto or stock transactions.

Mackisen Strategy

At Mackisen CPA Montreal, we update every client file to reflect new tax rules. We analyze how each change affects your return, optimize credits, plan withdrawals, structure real estate transactions, prepare gig-worker bookkeeping, maximize FHSA/RRSP benefits, and prevent AMT exposure. Our proactive approach ensures every return reflects the latest tax season updates.

Real Client Experience

A Montreal gig worker avoided reassessment after we reconciled digital platform T-slips. A first-time homebuyer optimized FHSA, HBP, and credits for a large refund. A high-income professional avoided AMT with revised investment timing. A senior recovered OAS clawback after restructuring income.

Common Questions

Do these changes apply this year or next? Depends—CRA releases transition dates. Do I need to change my tax strategy annually? Yes—rules change every year. Are gig-worker earnings now automatically reported to CRA? Yes. Does FHSA replace RRSP or TFSA? No—it complements them.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal ensures your tax return reflects all current updates and maximizes every credit. We help you stay compliant, minimize tax, and benefit from every new government program.