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Will I Get a Tax Slip for the New First Home Savings Account?

Written by The Inspired Investor team  | Published on February 16, 2024

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Tax season is fast approaching and anyone who contributed to the newly launched First Home Savings Account (FHSA) in 2023 can soon expect a tax slip.

That’s because the FHSA combines certain tax advantages of a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA). First, like an RRSP, contributions to an FHSA are tax-deductible. Second, if you are making a qualifying withdrawal, you won't pay tax on that withdrawal – this includes both principal and potential growth, like a TFSA. 

For this first year, RBC Direct Investing clients can expect FHSA tax slips in the mail. In subsequent years, FHSA tax slips will also be available electronically, just like many other tax slips.

At a time when many Canadians are struggling to enter the housing market, the FHSA offers an opportunity for aspiring homeowners to save and invest for their first home. Qualifying individuals can contribute up to $8,000 per year to an FHSA, up to a lifetime maximum of $40,000. After you contribute to the account, you can choose to invest in the same list of as a TFSA: publicly traded stocks, exchange-traded funds (ETFs), bonds, etc.

Wondering if a First Home Savings Account is right for you? Read 9 Questions Answered About the New First Home Savings Account. RBC Direct Investing clients can also log in and choose "Open a New Account" under your Profile icon. 

Check out the Investing & Tax Season Centre for more tax dates and key information.

 

RBC Direct Investing Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. RBC Direct Investing Inc. is a wholly owned subsidiary of Royal Bank of Canada and is a Member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc. RBC Direct Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. RBC Direct Investing is a business name used by RBC Direct Investing Inc. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Used under licence. © Royal Bank of Canada 2024.

Any information, opinions or views provided in this document, including hyperlinks to the RBC Direct Investing Inc. website or the websites of its affiliates or third parties, are for your general information only, and are not intended to provide legal, investment, financial, accounting, tax or other professional advice. While information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Direct Investing Inc. or its affiliates. You should consult with your advisor before taking any action based upon the information contained in this document.

Furthermore, the products, services and securities referred to in this publication are only available in Canada and other jurisdictions where they may be legally offered for sale. If you are not currently a resident of Canada, you should not access the information available on the RBC Direct Investing Inc. website.

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