Contribute to a Registered Retirement Savings Plan (RRSP) or spousal RRSP
Contributions made to your RRSP or a spousal RRSP during the year, or within the first 60 days of the next calender year can be deducted from income (up to your contribution limit). For the 2013 tax year the deadline is March 3rd 2014.
Contribute to a Tax-Free Savings Account (TFSA)
While money you contribute to a TFSA is not tax-deductible, as it is with an RRSP, these plans off tax-free investment growth and tax-free withdrawals. With a TFSA you can save for short-term needs, as well as long term goals, such as education or retirement. The contribution limit for a TFSA is regulated by the government of Canada, and can changed from year to year, so make sure to check with Dale on this years limit.
Contribute to a Registered Education Savings Plan (RESP)
Contributions to an RESP are not tax-deductible, but the money inside the plan can grow tax-deffered until withdrawn and used to pay for a post secondary education program.
Deduct interest and carrying charges
You can deduct the interest you paid on borrowed money that was used to earn income from non-registered investments or from a business. Also the fees you paid to manage or administer your non-registered investments can be tax-deductible. However, the charges for safety deposit boxes are no longer deductible.
Claim the medical expenses tax credit
You can claim a tax credit for any eligible medical expenses that were not paid for by a provincial or private plan. If you have private coverage, the premiums you pay also qualify as eligible medical expenses. Either spouse can claim the tax credit for themselves and/or dependent children under the age of 19 years.
Claim the charitable donations tax credit
The tax credit for donations is two-tiered, with greater credit for donations above two hundred dollars. To maximize the tax credit, spouses can pool their donation receipts or carry them forward for up to five years.
Claim tax credits for students
A student may claim a tax credit for tuition costs of $100 or more paid in the taxation year to attend a post secondary institution. The student is also entitled to the education and textbook tax credits for each month he or she is enrolled in full-time or part-time studies in a qualifying post-secondary education program.
For more information on helpful tax planning tips as we come to the end of the 2013 tax year, book an appointment to come in and speak with Dale.