Koroll & Company Blog

January is over and the deadline for your 2018 tax return is soon approaching. While you are probably eager to say goodbye to the past year and look ahead to all that the new year has to offer, you still need to take one final look back at 2018 before you put it out of sight and out of mind.

Before you settle into 2019, you will have to complete your 2018 tax return. In most cases, once December 31 hits, you have lost your opportunity to leverage the last minute tax planning strategies that will fully optimize your return.

There is, however, one tax planning strategy you have in your toolbox to ensure you make the most of your 2018 income tax return - Registered Retirement Savings Plan (RRSP) contributions.

When it comes to planning for your financial future, Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) are some of the most common and useful savings tools available to Canadians.

But before you decide where to put your money, it is important to understand the similarities and differences between the two. 

As with every new year, 2019 has its own set of tax payment and filing deadlines that every taxpayer needs to know about. Below is a listing of significant dates and information that you will want to make note of. 

In our last blog, titled “Spending Time in The United States – Are You Liable to the IRS?”, we spoke of the potential tax implications associated with being a deemed resident of the United States. As a snowbird, however, this is not the only thing you need to consider when it comes to your tax strategy. 

Are you a Canadian that heads south for the winter once the cold and snow hit? It can be a great way to escape our harsh winters, but did you know that there could be US tax implications if you stay too long over the border?

You see, many Canadians do not realize that by simply being present in the United States for a significant amount of time, they can be deemed a US resident and therefore exposed to US income tax and estate tax.

2018 is quickly coming to close, which means it is time to start thinking about those last-minute tax planning strategies to help minimize your 2018 tax owing.

Three of the most common last-minute tax planning strategies to consider are charitable donations, medical expenses and RRSP contributions.

Registered Retirement Savings Plans, or RRSPs, are a great way to save for the future but they are also powerful tax planning tool.

This is because contributions made to an RRSP are tax exempt until they are withdrawn. As a result, any amounts you contribute to your RRSP will reduce your taxable income in the applicable year, which in turn reduces your tax owing. 

There are a number of tax deductions and benefits that taxpayers can claim to help reduce their taxable income and overall tax owing. But with so many credits and deductions to consider, it is no surprise that some, more than others, are often overlooked come tax filing season.