Smart Tax-Saving Tips for Canadian Individuals
Start With Your Bracket, Credits, and Timing
Your marginal rate is what you pay on the next dollar of income. Knowing it helps you decide whether RRSP contributions, charitable gifts, or realizing capital gains make sense this year. Use CRA tools or reputable calculators, then share your bracket in the comments to compare strategies with other readers.
RRSP, TFSA, and FHSA: The Big Three
RRSP contributions reduce taxable income today, which can be powerful if you are in a higher bracket now than in retirement. Consider contributing during peak-earning years and withdrawing strategically later. Share your target retirement bracket below and ask us for a tailored contribution timeline.
Family, Children, and Education Advantages
Eligible child care costs can be deductible, often by the lower-income spouse, reducing net income and potentially unlocking other benefits. Keep detailed receipts and agreements. Share your organizational system and we’ll feature the most helpful approach in our next roundup.
Family, Children, and Education Advantages
Registered Education Savings Plans can receive the Canada Education Savings Grant, often 20% on the first portion of annual contributions up to set limits. Even modest monthly deposits add up. Tell us your child’s education timeline and we’ll suggest a realistic, tax-smart funding schedule.
Work and Career: Deductions You Might Miss
If you meet eligibility rules, certain home-office expenses may be deductible when supported by the required employer certification and detailed records. Track utilities, supplies, and workspace details carefully. Ask in the comments for a downloadable worksheet to keep everything audit-ready.
Capital Gains and Loss Harvesting
Only a portion of capital gains is taxable, and realized losses can offset gains. Harvest losses thoughtfully while avoiding superficial loss rules. Share your year-end routine and we’ll send a reminder checklist before the next deadline.
Dividends and the Dividend Tax Credit
Eligible Canadian dividends receive preferential tax treatment, but interactions with benefits and provincial rules matter. Balance dividend income with your overall bracket and goals. Tell us your province and we’ll outline typical dividend trade-offs in an upcoming guide.
Asset Location Across Accounts
Consider placing interest-heavy investments in RRSPs, growth-oriented assets in TFSAs, and keep tax-inefficient holdings out of non-registered accounts when possible. Comment with your mix and we’ll share a sample allocation map to refine.
Health, Disability, and Caregiving Relief
Aggregate eligible medical costs for yourself and dependants within a twelve-month period ending in the tax year to maximize the claim. Consider whose return benefits most. Ask for our curated list of commonly missed medical expenses to ensure nothing gets left behind.
Retirement and Decumulation Moves
RRSP to RRIF at the Right Time
You generally convert an RRSP to a RRIF by the end of the year you turn 71, but earlier conversions can sometimes lower overall taxes. Model different scenarios and share your anticipated retirement income sources for feedback from our community.
Pension Income Splitting
Eligible pension income can often be split between spouses to reduce combined taxes. This can also help manage benefit clawbacks. If you and your partner have uneven incomes, comment below and we’ll outline a sample split strategy to consider.
Managing the OAS Clawback
Old Age Security can be reduced if your income crosses certain thresholds. TFSAs, strategic RRSP withdrawals before benefits begin, and smoothing capital gains can help. Share your age and province, and we’ll suggest a conversation starter to bring to your advisor.
Quebec and Revenu Québec Specifics
Quebec requires separate provincial filings and has its own forms and credits. Keep Relevé slips organized alongside T-slips. If you’ve filed in Quebec and another province, share your best preparation tips to help newcomers avoid confusion.
Property, Rent, and Energy-Related Credits
Some provinces offer property or rent-related relief, while federal payments like the Climate Action Incentive may apply depending on your province. Check current eligibility rules. Comment with your province and we’ll highlight the most relevant credits in a follow-up post.
Interprovincial Moves and Residency
For tax purposes, your province of residence is generally determined as of December 31. A late-year move can change your rates and credits unexpectedly. Tell us your move date and destination, and we’ll flag items to double-check before filing.
Filing Smarter: Tools, Records, and Do-Overs
Set up CRA My Account to view notices, instalments, RRSP room, TFSA room, and more. Auto-fill can import slips from issuers, reducing errors. If you’ve tried it, share your experience and any gotchas other readers should watch for.