Tips for Major Life Changes:

Major life changes in Canada come
with significant tax implications. Proactively addressing these
changes can help you maximize benefits and avoid penalties. Key areas
of impact involve your income, eligibility for credits,
and reporting obligations to the Canada Revenue Agency
(CRA). 

Starting a New Job or Career Change

• Moving Expenses: If
  you move to a new location to work or go to school, you may be able
  to deduct moving expenses, provided your new home is at least 40
  kilometres closer to your new work or school location.

• Income Fluctuations: A
  change in income can affect your eligibility for benefits like the
  Canada Worker’s Benefit (CWB).

• Employer Match: Take
  full advantage of any employer-matching programs for your Registered
  Retirement Savings Plan (RRSP), which is essentially free money for
  your retirement. 

Buying/Selling a Home

• Home Buyers’ Amount
  (HBA): If you are a first-time home buyer, you can
  claim the HBA, a non-refundable tax credit of up to $10,000,
  resulting in a tax saving of up to $1,500.

• First Home Savings
  Account (FHSA): The FHSA is a powerful new tool that
  combines the tax-deductibility of an RRSP with the tax-free
  withdrawals of a TFSA for a qualifying home purchase.

• Principal Residence
  Exemption (PRE): When you sell your principal
  residence, you must report the sale on your tax return, even if the
  entire gain is exempt from tax due to the PRE.

• Anti-Flipping Rule: Be
  aware of the new rule that treats any gain from selling a home you
  owned for less than 12 months as fully taxable business income, with
  few exceptions for specific life events. 

Marriage, Common-Law Status, or
Separation/Divorce 

• Update Marital
  Status: You must inform the CRA of a change in your
  marital status by the end of the month following the change, except
  for separations which require 90 days before updating.

• Income
  Splitting: Married or common-law partners can benefit
  from income splitting strategies, such as pooling medical expenses
  and donations or contributing to a spousal RRSP to balance
  retirement incomes.

• Spousal/Child
  Support: Spousal support payments are generally
  taxable for the recipient and tax-deductible for the payer, provided
  there is a written agreement. Child support payments are neither
  taxable nor deductible. 

Having a Baby or Expanding Your
Family 

• Canada Child Benefit
  (CCB): Apply for the tax-free CCB and the GST/HST
  credit when you register your child’s birth (using the Automated
  Benefits Application in participating provinces).

• Child Care Expenses: You
  can deduct eligible childcare expenses (e.g., daycare, babysitting)
  from your income. This deduction typically must be claimed by the
  lower-income spouse.

• Registered Education
  Savings Plan (RESP): Contributions to an RESP are not
  tax-deductible, but attract a 20% federal government grant (CESG) on
  the first $2,500 contributed annually, up to a lifetime maximum. 

Managing Health Changes or Disability

• Medical Expense Tax
  Credit: You can claim a non-refundable tax credit for
  eligible medical expenses that exceed 3% of your net income or a set
  threshold.

• Disability Tax Credit
  (DTC): If you or a dependant have a severe and
  prolonged impairment, qualifying for the DTC opens access to other
  benefits and credits, such as the Child Disability Benefit.

• Canada Caregiver
  Credit: If you are caring for a dependent relative,
  you might be eligible for this credit. 

Death of a Family Member

• Filing the Final
  Return: The legal representative (executor) must file
  a final tax return for the deceased person, reporting all income up
  to the date of death.

• Deemed Disposition: The
  deceased is considered to have sold all their capital property
  immediately before death at fair market value (unless transferred to
  a surviving spouse), which may trigger capital gains tax.

• Notify CRA: Inform
  the CRA of the date of death to stop benefit payments and avoid
  overpayments.

• CPP Death Benefit: The
  one-time Canada Pension Plan (CPP) death benefit is taxable to the
  recipient (estate or beneficiary). 

Disclaimer: Tax laws
are complex and subject to change. It is highly recommended to
consult with a qualified tax professional or financial advisor for
advice tailored to your specific circumstances. You can also find
detailed and up-to-date information on the official Canada
Revenue Agency (CRA) website.