At Ferrera Income Tax in Windsor we're just like you when it comes to paying taxes: we want to pay the minimum that is legally possible. That's why we've assembled some tips that can help reduce the amount of taxes you or your spouse is required to pay. Please check this page often as we are constantly adding new tips.
Contribute to Your RRSP Throughout the Year
In addition to being easy to manage, automatic RRSP contributions automatically deducted from your bank account or pay cheque can have considerable financial benefits. Contact us for more information about setting up a pre-authorized contribution plan for your RRSP.
Set up a Spousal RRSP
If you are in a higher tax bracket than your spouse, it can make sense to set up a spousal RRSP account. Your contributions will still be eligible for tax deductions. Redemptions, however, can be taxed at the rate of your spouse who is in a lower tax bracket.
Consider a Tax-free Savings Account (TFSA)
Canadian residents age 18 and older can contribute up to $10,000 per year to their TFSA. Unlike RRSPs, contributions to TFSAs are not tax deductible. However, money redeemed from a TFSA is not subject to tax and can be withdrawn at any time.