Some tips and deductions to help you stay updated and allow you to maximize your refund
- You do not have to deduct your Registered Retirement Savings Plan (RRSP) contributions in the year your make them. If you know your taxable income will be increasing, you may want to carry it forward and use the contribution as a deduction when you will in a higher tax bracket. Reminder: RRSP contributions made in the first 60 days of the current tax year should be reported on your prior year income tax return. For example: if you contributed $500 between January 01, 2023 and March 01, 2023, you must report the contribution on your 2022 income tax return, even if you choose not to deduct the amount and carry it forward.
- If you or your spouse/common-law partner has not owned a home in the past 4 years, you may qualify for the Home Buyer’s Plan which allows you to withdraw a tax-free amount up to $35,000 from your RRSP. You can use this money as a down-payment towards your house.
- You may include premiums paid for private health insurance with your other medical expenses.
- Upon separation or divorce, the portion of legal fees incurred to establish, enforce, or defend amounts for spousal or child support are deductible. This only applies to the spouse receiving payments.
- Home office expenses that were incurred in a taxation year but not deducted, can be carried forward and deducted in the following taxation year.
- Moving expenses not claimed can be carried forward and deducted against income earned in the year after the move.
- You may be able to deduct fees paid for investment advice.
- If you did not use your TFSA contribution room in a previous year, the unused room is rolled over to subsequent tax years indefinitely.