Did you buy your first home during 2022? There is a tax credit for that.

If you bought your first home during 2022, be sure to check out line 31270 "Home Buyers Amount" when you prepare your 2022 tax return this coming spring.  You can claim a federal non-refundable tax credit in the amount of $10,000 (increased from $5,000 for prior tax years) on line 31270 of your tax return if both of the following apply:

1) You or your spouse/partner acquired a qualifying home during 2022.

2) You did not live in another home owned by you or your spouse/partner in the year of acquisition or in any of the four preceding years.

If in doubt, you can visit Canada Revenue Agency’s website and search line 31270 for more information.  If you are eligible, this credit can be claimed by you, your spouse/partner or split between both of you. If eligible, claiming this credit could increase your potential refund by up to $1,500.00 ($10,000 x 15%).  Prior to 2019, line 31270 was line 369.  If you bought your first home prior to 2022 and did not claim this credit, you may be able to make an adjustment request with CRA depending on how long ago you bought your first home.  For 2021 and prior tax years, this non-refundable tax credit was $5,000 compared to $10,000 which is new for the 2022 and subsequent tax years.

If you are planning to buy your first home this year, then you can claim this non-refundable tax credit when you file your 2023 tax return in the spring of 2024.  This additional refund for purchasing your first home is a great source of money to build an emergency fund to cover any unexpected expenses or repairs that could come up so your other financial goals remain intact. 

If bad debt and/or low credit score is keeping you out of the housing market or if you are a new or existing homeowner who is struggling with debt and worried about keeping your home, there are options. 

If you are looking for advice, or a second opinion about your debt, it does not cost anything to talk about your options.  Every financial situation is unique and viable options can differ from person to person.  A conversation free of judgment and cost, is the first step to determine options for debt that make sense for you.  For a free consultation, please call or text (506) 645-1814 or email jaime@tackledebt.ca; or visit www.tackledebt.ca.