Fri. Feb 23rd, 2024

2024: good news and irritants for your portfolio | Results for the year 2023 and outlook for 2024

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The beginning of a New year is generally a good time to take stock of your personal finances.

  • Stéphane Bordeleau (View profile)Stéphane Bordeleau< /li>

Founding father of the United States and signatory of the American Constitution, Benjamin Franklin said that there were no certainties in life except death and taxes. However, here is an overview of the measures likely to influence the state of your personal finances in 2024.

Let's start with the good news that will , we hope, a little butter on the spinach of Quebec and Canadian households during the coming year.

As of January 1, 2024, the federal government will index its tax brackets by 4.7%, while in Quebec, the indexation of the Personal income tax will be 5.08%.

In addition to increasing the amount of several government benefits – you will learn more about these changes later in this article – the increase in the levels means that you can earn more before starting to pay tax or to arrive at a higher tax rate.

Reports for the year 2023 and outlook for 2024

Consult the complete file

Reviews for the year 2023 and outlook for 2024

Consult the complete file

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For example, at the federal level, the income from which you start paying tax will increase from $14,156 to $15,705. In Quebec, the basic personal exemption will increase from $17,183 to $18,056.

Family allowances < strong>: Thanks to the indexation of tax assistance in Quebec, the maximum annual amount of family allowance per child will increase in January from $2,782 to $2,923 (+$141).

Solidarity tax credit : The solidarity tax credit in Quebec for a person living alone will increase from $1,162 to $1,221 ( + $59).

Social assistance : Basic social assistance benefits for a single person in Quebec will increase from $8700 to $9144 (+$444).

Mental Health : In November, federal Finance Minister Chrystia Freeland announced the exemption of GST for psychological consulting services and psychotherapies. The measure is included in the 2024 Budget Implementation Act.

National Dental Insurance Scheme :Since December 18, people aged 87 and over are eligible for the federal government's new dental plan. Here are the other age groups that should follow in the coming year.

* To qualify, you must not have dental insurance, and you must have an annual household income of less than 90 000$, be a Canadian resident and have filed a tax return the previous year.

TFSA : Starting January 1, 2024, if you have any savings left, be aware that the limit investment in tax-free savings accounts (TFSA) will increase from $6,500 to $7,000 while the maximum cumulative amount will be increased to $95,000.

FTQ Solidarity Fund and Fondaction CSN :In Quebec, when you invest in a labour-sponsored fund, you obtain tax credits of 30% (15% federal and 15% provincial), in addition to the credits already allocated to RRSP investments.

< p class="StyledBodyHtmlParagraph-sc-48221190-4 hnvfyV">However, starting in 2024, if your income declared in 2022 exceeds $112,655, you will no longer be entitled to deduct these 30% tax credits on your return. According to the FTQ Solidarity Fund, the maximum income to receive the tax credit for workers' funds will be increased to $119,910 for the 2023 tax year.

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Several changes will affect retirees in 2024.

Old age security pension : According to the Government of Canada, OAS benefits will increase by 0.8% for the January to March 2024 quarter, representing an increase of 3.7% over the past year, from January 2023 to January 2024.

Canada Pension Plan (CPP) : The maximum annual earnings qualifying for Canada Pension Plan benefits will be increased to $68,500 in 2024. It was $66,600 in 2023. The amount of the basic exemption will remain for him at $3500.

New, people who earn between $68,500 and $73,200 may be entitled to a pension under the CPP2, which will come into force in 2024. To receive this pension, they will have to make an additional contribution of 4%, the maximum of which is of $188.

Federal public service retirees : Pensions will be indexed by 4 .8% in 2024.

Québec Pension Plan (RRQ) : Benefits of the QPP will increase by 4.4% as of January 1.

As with the CPP, the QPP will offer from January 1 a supplementary plan in which people whose maximum insurable earnings (MGA) reaches up to 73 $200 will be able to contribute up to the equivalent of 107% of the MGA in order to be entitled to an enhanced pension.

Also starting in January, workers aged 65 and over who are already receiving their retirement pension will be able to stop contributing to the QPP.

On January 1 of each year, workers who have reached age 72 at the end of the previous year will automatically stop contributing to the plan. Currently the age limit is 70.

Low work income obtained from age 65 will no longer reduce the amount used to calculate the retirement pension. A measure that will benefit people who wish to work part-time after age 65.

The Société de l'assurance automobile du Québec (SAAQ) announced that it will extend in 2024 the decrease in the annual cost of a driving licensedue to surpluses in the Insurance Fund and investment income which was beyond forecast.

If you expanded your home to accommodate a disabled loved one or an elder, you will benefit from a 15% refundable tax credit on your federal return for up to $50,000 of eligible expenses.< /p>Open in full screen mode

A family of four will have to pay $700 more on average for food in 2024, according to the Annual Report on Food Prices in Canada.

The grocery store :The first thing that will cost you more in 2024 is undoubtedly your groceries. But after two strong years of food inflation, your food bills are expected to grow at a slower rate in 2024. According to the Annual Report on Food Prices in Canada, food price increases are expected to vary by 2.5%. to 4.5% in 2024.

This means that a family of four will have to pay about $700 more for food per year next year, for a total of approximately $16,300.

The registration tax for the Montreal agglomeration :As of January 1, the registration tax, which has been imposed on Montreal vehicle owners since 2011 to finance public transportation, will be extended to all passenger vehicle owners in the 82 cities of the Montreal Metropolitan Community ( CMM), including Saint-Jérôme.

The tax, which is currently $45, will be increased to $59 per vehicle. Including the $30 public transportation contribution that Montreal CMM drivers have paid since 1992, the public transportation costs included in the annual renewal of your plates will increase to $89. This represents almost a third of the registration bill for a passenger vehicle.

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A Quebec license plate.

14% jump in 911 charges on your cell phone: The municipal tax collected on cell phone subscriptions will be increased by 14% as of January 1 in all municipalities in Quebec. In 2024, the $0.46 charge collected each month on your cell phone bill will therefore increase to $0.52. It is certainly not a large sum, but let us never forget that it is with pennies that we make piastres, as our grandparents took pleasure in reminding us.

Happy New Year 2024!

  • Stéphane Bordeleau (View profile)Stéphane BordeleauFollow

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