Remember when you were completing your tax return back in the spring and you promised yourself that you would be better organized next time? This is your reminder to take the time now, in the last few weeks of 2023, to set yourself up to maximize your tax savings and minimize your stress the next time you file a tax return. Follow these tips to make tax season as prosperous and simple as possible.
- The most well-known tip is to make your RRSP contribution for the year. This year, you have until February 29, 2024 to make your contribution. This investment often results in a tidy little tax return in the spring! If you’re short on cash, speak to your advisor about whether an RRSP loan might be right for you, in order to maximize your contribution.
- Maximize your TFSA. This is one of the best tax-sheltered investment vehicles in Canada. Your contributions must be made by December 31, 2023 and the maximum contribution for this calendar year is $6,500. If you have leftover contribution room, try your best to maximize it, so that your investments can grow tax-free. Consider transferring non-registered investments to your TFSA, but consult with your advisor since you may have to pay capital gains.
- If you are saving for your children’s education, the same holds true for their RESP. Do your best to save a total of $2,500 per child per year, so that you get the maximum $500 Canada Education Savings Grant from the Government of Canada. Your investments grow tax-free and you also get the grant.
- Ensure any expenses that qualify for tax deductions or credits are paid by the end of the year. Think in terms of medical expenses, childcare, moving expenses, digital news subscriptions and employment expenses. Make sure to track down and organize all receipts and invoices.
- If you have non-registered investments that have gone down in value, you may benefit from selling them at a loss before the end of the year. These capital losses allow you to offset capital gains you may have made in the year, resulting in a potential tax savings. Just remember that you can’t purchase the same security back within 30 days.
- If you or your child have attended post-secondary education, download tuition receipts through the student portal of the applicable educational institution.
- Organize receipts for any charitable donations. Take the time to go through your email or postal mail and ensure that you have all of your receipts in order. This will leave you enough time to ask for replacements for any that may have gone missing.
For more information on how you can maximize your savings and keep more of your money, meet with a member of Kindred's Wealth and Investment team today!
* Mutual funds are offered through Qtrade Asset Management (a tradename of Credential Asset Management Inc). Mutual funds and other securities are offered through Qtrade Advisor, a division of Credential Qtrade Securities Inc. The information contained in this report was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This report is provided as a general source of information and should not be considered personal investment advice or a solicitation to buy or sell any mutual funds and other securities. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured or guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Their values change frequently and past performance may not be repeated. Online brokerage services are offered through Qtrade Direct Investing, a division of Credential Qtrade Securities Inc. Qtrade and Qtrade Direct Investing are trade names and/or trademarks of Aviso Wealth. Qtrade Guided Portfolios is a trade name of Credential Qtrade Securities Inc.