Can you believe 2019 is nearly over and Tax Season is fast approaching? That’s why we have put together some year-end tax tips that can help you with your TFSA, RESP, RDSP and RSP.
Family tax incentive programs include Canada Child Benefit, Income splitting, RESP and RDSP contributions which are great savings tools for a child’s education. The newer incentive program is the Registered Disability Savings Plan (RDSP). It is a savings plan for parents and others designed to create financial security for a person who is eligible for the disability tax credit (DTC). The Canada disability savings grant will pay matching grants of 300%, 200% or 100% depending on the beneficiary’s adjusted family net income and amount contributed. The income-tested Canada disability savings bond is paid directly to the RDSP by the Canadian government to low- income Canadians with disabilities. Before December 31 of the year you turn 49 years old, you can carry forward up to 10 years of unused grant and bond entitlements to future years if you met the eligibility requirements during the carry forward years.
Managing investments include contributing to TFSA, donations to charities, and timing of the sale and purchase of investments. A Tax-Free Savings Account (TFSA) can help you put money away if you are able. The 2019 TFSA Limit is $6,000. You can also contribute more (up to $63,500) if you are 28 or older and haven’t made any previous TFSA contributions. In supporting your favourite charity by year-end, you will realize tax savings. If you donate eligible securities or mutual funds, capital gains tax does not apply. You will then receive a tax receipt for their full market value and the charity gets the full value of the securities.
Retirement planning includes making the most of your RRSP, checking when your RRSP is due for RRIF conversion, and if you’re entitled to a pension credit that can fully or partly offset the tax on the first $2,000 of eligible income annually. Consider setting up an RRIF before year-end to pay out $2,000 annually if you don’t have any other eligible pension income.
Tax deadlines for 2019 are December 31, however RRSP contributions are eligible up to March 2nd, 2020. Remember that it may be easier to contribute a small amount regularly than to come up with a larger lump sum.
We can help you feel more secure and confident about your finances so you are better prepared to deal with what life will throw your way.
For more information on how we can assist in planning for your future contact Doell Osmak Wealth Management 306-922-2020.
Presented by Doell Osmak Wealth Management Ltd.
Darcie Doell, Financial Advisor
Laurianne Osmak, CLU,CHS Financial Planner