Tax law can be complex. There's much to know to be sure you're doing all you can to get what you deserve. Here are some personal and business tax tips to get you started. We update this information regularly, so check back soon for new tips.
The HBP is a program that allows you to withdraw funds from your registered retirement savings plan (RRSPs) to buy or build a qualifying home. You can withdraw up to $25,000 in a calendar year.
There are also a number of refundable tax credits that help reduce or eliminate the amount of tax you owe. Excess credits may be paid as a refund after your personal income tax return is assessed, even if you pay no income tax.
Be sure to take advantage of all income-splitting and pension sharing opportunities.
Those 65 and over can spit several kinds of pension income, such as life annuity payments from a company pension plan, RRIF payments and payments from an RRSP or deferred profit sharing plan. Income splitting can save thousands of dollars in tax if income is shifted from someone in a higher tax bracket to someone in a lower tax bracket.
Tax Benefits for Students
Several credits for students - such as the tuition, education and textbook credits - can be transferred to a spouse or parent once the credits are used to reduce the student's tax payable to zero. The credits can also be carried forward indefinitely so the student can use them later when he or she starts earning money.
Volunteer firefighters who perform at least 200 hours of service a year also get a break, courtesy of a volunteer firefighter tax credit. It's worth a maximum of $450.
This list is far from exhaustive. Call us today to set up a time to discuss your specific situation and needs.