The Canadian income tax system, as it applies to individuals, operates on a calendar year basis. While there are a few exceptions (RRSP contributions and pension income splitting being the important ones), the general rule is that, in order to be effective for a particular taxation year, tax planning strategies must be implemented before the end of that year.
Although most taxpayers don’t give a lot of thought to their tax situation until it’s time to file the annual return, by then it’s usually too late to put any desired strategies in place. So, while individual tax returns for 2015 don’t have to be filed, at the earliest, until April 30, 2016, it’s worth taking the time now to evaluate one’s tax situation, consider possible strategies to reduce the tax bill for 2015, and execute those strategies before December 31, 2015. No one wants to be in the position of completing a tax return and discovering that money is owed to the government, while at the same time realizing that steps that could have been taken to reduce or eliminate that tax bill are no longer possible.
What follows is a list of some of the more common tax deductions and credits which are claimed by Canadian taxpayers, and the year-end considerations that apply to each.
