Tax Tips - When is my RRSP Taxable?

When you make an RRSP contribution you get to deduct that amount from your taxable income. The investments inside your RRSP grow free of tax while they stay in the plan. Down the road, however, when money is withdrawn directly from the RRSP or from the registered retirement income fund (RRIF) or annuity to which the RRSP has been converted, it will be taxable.

Read More

Tax Tips - What is a TFSA?

TFSA is the mirror image of an RRSP. You contribute after-tax dollars. In other words, you don’t get a deduction for your contribution in the current year. But once the money is in the plan, it not only grows free of tax, but also comes out free of tax.

Read More

Tax Tips - What If I Have No Income?

If you do not have any income you still need to file your taxes.  This lets CRA know your income situation and that you are up to date. Failure to file a tax return will result in termination of various benefits such as Child Tax Benefit, HST benefit, Universal Child Care Benefits and the Working Income Tax benefit.

Read More

Tax Tips - How long should I keep tax records?

Keep copies of your tax returns for at least 6 years or longer.  Most people don't need to worry about tax fraud investigations and unreported income but you should keep a copy of your return, particularly if you enlist the help of a tax professional. Your previous tax returns will help you to see trends in your income taxes to better prepare for your future tax returns. If you switch tax preparers it is beneficial for them to review previous years to determine whether any credits or deductions that where missed or need to be carried forward from previous years.

Read More