Koroll & Company Blog

Registered Retirement Savings Plan (RRSP) contributions - the one tax planning strategy you have left in your toolbox to ensure you make the most of your 2019 income tax return.

You see, when you contribute to your RRSP, you can reduce your taxable income by the amount of the contributions made, reducing your tax owing. Unlike other tax planning tools, however, contributions made until March of this year can be applied to last year’s tax return (except for those who turned 71, which is discussed below).

To help you make the most of your RRSP contributions, here are some important considerations for the 2019 and 2020 tax years.

It’s that time of year when you should be considering last minute steps to optimize your 2019 income tax return before the April 30, 2020, deadline (June 15 for self-employed individuals).

To help you on your way, Koroll & Company has listed some common tax credits and tips on how to maximize their effect on your tax owing.

Each year, the government adjusts existing tax credits and introduces new ones. These new introductions help taxpayers minimize their tax obligations and decrease the burden of necessary expenses, while also encouraging people (and businesses) to make a difference.

This year, there are four newly introduced tax credits and strategies for individuals and businesses to be aware of:

Unlike tax deductions that reduce your taxable income, tax credits reduce your tax owing (your taxable income multiplied by the applicable tax rate).

Non-refundable tax credits are tax credits that can only be used to reduce your tax owing to $0. If there are still credits remaining once your tax owing equals $0, you will not be refunded the remaining amount.

2020 is here, which means it is time to finalize your 2019 taxes and start planning for 2020. As with every new year, 2020 has its own set of payment and filing deadlines that every Canadian taxpayer needs to know about.

Below is a listing of significant dates and any important information that you will want to make note of.

Every year, the government announces the current rates for Employment Insurance (EI) and Canada Pension Plan (CPP) for both employees and employers. Understanding these rates is the best way to optimize your tax return.

Below are the 2020 rates and maximums:

As the new 2020 tax year begins and the tax filing deadline for 2019 approaches, it is important to know the deadlines and limits for your various saving tools, specifically Registered Retirement Savings Plans (RRSPs) and Tax Free Savings Accounts (TFSAs) - two of the most common tools for planning your financial future.

Below are the significant dates and contribution limits for these two accounts:

In Canada, there are four main sources of retirement income – Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), Old Age Security (OAS) and the Canadian Pension Plan (CPP).

Depending on when you begin withdrawing funds from these sources, and whether you are working full time, part-time or are fully retired, the after-tax income of $100 of income will vary greatly from one taxpayer to another.

As a result, determining when you should start withdrawing funds and how you should structure your income for retirement can seem daunting. To help you on your way to maximizing income and minimizing taxes, the Canadian Government has designed a calculator to assist taxpayers with just this.