Income tax planning
Doing one’s taxes can feel like a chore, however, the job can be much simpler if you keep all your documents in one location. In addition, tax software can significantly simplify the process. (Note: we offer members a 20% discount off the regular price of Turbo Tax online tax preparation software.)
You can even file some returns by phone. See the Canada Revenue Agency website for more information.
And if you get stuck, there is a wealth of tax tips and information available through Canada Revenue Agency, which even has volunteers to help low-income individuals complete their tax returns. Find information on financial slips and summaries on the Canada Revenue Agency's Financial slips and summaries webpage.
Your tax situation can, however, become complex. So, it pays to consult an expert to ensure that you get full benefit of the savings available to you.
Tax efficient investing
For most people, an RRSP, RRIF or Tax Free Savings Account (TFSA) is the most tax efficient way to invest. We can help your choose a strategy and a mix of investments that matches your personal situation and your goals.
Tax planning and retirement
Pension income splitting is one way for your family to share retirement savings. By keeping both incomes nearly equal, or in the same tax bracket, you and your spouse will minimize your total tax bill.
Spousal RRSPs are another option. With a spousal plan, you make contributions to a special plan for your spouse, and deduct your contributions. Your total contributions to your own plan and the spousal RRSP can’t exceed your allowable maximum contributions.
We can help you choose income strategies that save tax and match your personal situation.
Tax planning for families
The Canada Child Tax Benefit (CCTB) is a tax-free monthly payment made to eligible families to help with the cost of raising kids under age 18. The Universal Child Care Benefit (UCCB) is a taxable monthly payment to eligible families with children under age 6. You can use both to shift income into your child's hands.
If you want to invest other money for your kids, consider using a Registered Education Savings Plan (RESP). Your investment can grow tax-deferred.
If you're caring for a dependent child or another relative who is dependent on you, you may be able to take advantage of some tax breaks. These include tax credits for an infirm dependent, for an eligible dependent, for a child or for being a caregiver. And, tax deductions for childcare and/or medical expenses.
Remember, the deadline for filing your taxes is April 30, so for advice on how to minimize your taxes and maximize your investments, contact a Vancity investment professional at your local branch.