Are you looking for a way to decrease your current year tax bill and save for retirement? Contributing to a registered retirement savings plan (RRSP) will reduce your taxes and defer the taxation of future investment income until the RRSP’s are withdrawn from the plan upon retirement.
Do you have some cash or investments that you would like to invest in a tax-efficient manner but don’t want to lock into an RRSP? Opening up a tax-free savings account (TFSA) is a way to earn tax-free investment income while maintaining the ability to withdraw the money without any adverse tax consequences.
Are you retired and receive a pension? You can split up to 50% of eligible pension income with your spouse or common law partner.
Do you work in the trades? Tradespeople can deduct part of the cost of eligible tools purchased throughout the year.
Did your business employ an apprentice? A salary paid to an employee registered in a prescribed trade in the first four years of his or her apprenticeship contract qualifies for a tax credit.
Are you disabled or know someone who is? There are tax benefits and new savings opportunities available such as the Disability Tax Credit and a new federal government sponsored savings plan called the Registered Disability Savings Plan (RDSP).
Are you thinking of returning to school or do you have a student pursuing post-secondary studies in your family? There are a number of tax benefits available including the tuition credit which can be used by the student or transferred to a supporting spouse. Other tax-saving opportunities exist such as a tax credit or a deduction on student loans, child-care expenses, transit passes, rent/accommodations and moving expenses.
Have you recently moved to another part of Canada for work or school? You may be able to recoup some of your moving costs by claiming them on your tax return against any income you earn at your new location.
Feel free to contact us if you have questions about any of the above tips.