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.
As a self-employed individual, you should have spent the past year making purchases, selling goods/services and collecting paperwork to support any and all transactions.
Unfortunately, many business owners are so caught up in the day-to-day operations of their business that the importance of maintaining their books can get lost along the way. If you are one of these individuals, it is time for you to start pulling together all the paperwork you will need to file your return and maximize your after-tax outcome.
Registered Retirement Savings Plans (RRSPs) are a unique tax planning tool. The contributions made to an RRSP can be deducted from your taxable income and, unlike other tax planning tools, you have until March 1 of the following year to make contributions.
If, however, you will have turned 71 by December 31, 2019, you must make your contributions before the end of the year. This is due to the fact that all Canadians are required to collapse their RRSP by the end of the year in which they turn 71.
As a Canadian, you benefit from publicly funded health care. There are, however, a number of medical expenses not covered by this system.
For some of you, these costs may be completely covered by an employment benefits plan but, for many taxpayers, expenses such as dental care, prescription drugs, psychologists, registered massage therapists and physiotherapy are paid partially, if not fully, out of pocket.
The holiday season is here. This season of giving will see many of us making last-minute donations to charities and organizations which help make the holidays special for every individual and family in our community.
It also represents the perfect time to donate to other charities that are important to you, whether they support medical research, affordable housing, community centers or any of the other causes that are close to our hearts.
As we start making plans for how we are going to ring in the New Year, it is a good time to take a moment and consider whether or not you need to fill in a new TD1 Form.
Every employee’s tax circumstances are different, which means the amount of tax that employers deduct from each individual’s pay differs.
One of the most commonly overlooked claims during the income tax filing season is for annual union, professional or similar dues.
Like many deductions claimed by taxpayers, expenses related to dues can be deducted dollar for dollar from your annual income, without limit, so long as the fee meets the eligibility requirements. This means that you do not have to pay any income tax on the amount equal to your dues.
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