Saving for retirement or a rainy day? Choosing whether to invest the savings in either an RRSP or TFSA is a common question. Age, income and wealth all factor in to the choice that is right for you. The most important thing is to start saving! The following chart lists the differences between the two plans. RRSP TFSA Tax deductible contributions Non-deductible contributions Taxable withdrawals Tax exempt withdrawals No minimum age, contribution room is determined by earned income Must be 18 to contribute Must be withdrawn or converted to a RRIF by age 71 No upper age limit Contribution limit ...

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This has been a busy year at the tax department as several long standing tax benefits and reporting has changed. It is always beneficial to acquaint yourself with the tax changes, this year in particular it is crucial as you will read below. As always, we are here to discuss how the changes affect you. Some Changes for 2016 Source: This information is directly from the CRA website. Children’s arts amount – The maximum eligible fees per child (excluding the supplement for children with disabilities) has been reduced to $250. Both will be eliminated for 2017 and later years. For ...

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Thank you to everyone who voted us one of the favorite accounting firms in the Tri-Cities.  We are honoured so many clients took the time to vote for us.  There is no better place to work and play than the Tri-Cities! If you voted for us, let us know.  Tell us your story. ...

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Looking for ways to reduce the accounting fees associated with tax preparation?  Accounting firms generally charge fees based on time.  The more time spent on your file the greater the accounting fees will be.  The following are a few tips to help reduce the time spent on your file: 1. Organize your paperwork.  Although each tax situation is unique, there are several similarities to each person’s tax return.  Organize your slips by: income, deductions, tax credits, etc. For example, if you are entitled to claim Employment expenses on your tax return, specifically your car, then put all your gas receipts together.  Organizing by date ...

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Obtaining a post secondary education is costly. Use that cost to your advantage and claim the Education and Tuition tax credit. Not all the fees paid are deductible for tax purposes so be sure to access your T2202A. In most cases, these forms are no longer mailed out – they are generally sent to the student’s in-box. If you are paying for your child’s eduction, you may be able to claim up to $5,000 of the costs by way of an education transfer. Your child must complete the back of the form assigning their unused credit to you. Continuing education is often a life ...

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When gathering your tax receipts to bring in, be sure to include your RRSP contributions for the first 60 days of 2012.  These slips MUST be recorded on your 2011 tax return – whether you claim them as a deduction or not. If they get missed, your return will have to be amended. You want to make sure you get the deduction for contributions as you will have to pay tax on these funds when withdrawn. RRSP contributions are usually claimed as a deduction when your income is in a higher bracket than it would be at retirement.  RRSPs are a ...

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