Our office will start accepting tax returns on Wednesday, March 1st, 2023. Feel free to visit us Monday thru Thursday from 10am-3pm to drop off your taxes, no appointment necessary 300 Terry Fox Drive, Suite 1000, Kanata or email us at: taxes@bowiecanhelp.com
Tax time is a good time to take a closer look at your finances and think about ways to improve your tax position. Below we outline important issues, deadlines and tax tips that you should consider. While these suggestions can be helpful when considering your annual tax return, don’t forget that scheduling regular reviews with your Tax Advisor and Financial Advisor can help ensure you are tax efficient all year round.
Existing tax clients can bring in their taxes before receiving these slips since our Tax Specialists can see your information from the CRA anyways.
What are we charging to do your 2021 Tax Return?
$110 for individuals and $200 for couples. Seniors 65+ get a 10% discount. We suggest using the Tax Checklists we provide to prevent any additional costs. You may download our Tax Checklist pdfs here:
You can contribute an additional $6,500 into your TFSA in 2023. In most cases, if you have not made any TFSA contributions in previous years you can contribute a total of $88,000 all at once. We can help get your contribution room from the CRA so we can maximize these tax savings.
Make your RRSP contribution
You have until March 1, 2023 to make your RRSP contribution for the year. Let us know if you need any help. Keep in mind these three factors that limit the amount you can contribute:
• A dollar limit ($27,830 for 2021 and $29,210 for 2022)
• A percentage of your previous years’ “earned income” (18%)
• Your pension adjustment
Deducting your RRSP contribution when computing your taxable income reduces your after-tax cost of making that RRSP contribution.
Is it time to wind-up your RRSP? Do you turn 71 this year and have RRSPs?
If you will turn 71 in 2023, you need to wind-up (aka. RRIF) your RRSP by December 31, 2023, although you should complete the paperwork to convert your RRSPs by November if you can. Remember that, in this situation you only have until December 31, 2023 (not March 1, 2024) to make a final contribution to your RRSP for 2023. It’s best to discuss the pros and cons with your Tax Advisor and Financial Advisor beforehand. Our Financial Advisors are here to help with any questions. Check out this blog about RRIFs
Did you move in 2022?
If you moved to another province/territory, remember that your province/territory of residence on December 31, 2022, may be the one that you pay your taxes to in respect of all income earned in 2022.
Did you sell your Home?
If you sold your principal residence this year you must disclose and report certain information about the sale in your 2022 personal income tax return. Keep any documents related to the sale on hand for when you prepare your personal income tax return. If you fail to report the sale as required, the sale may become taxable because you won’t qualify for a “principal residence exemption” on any capital gain that arises from the sale.
The Ontario Seniors Home Safety Tax Credit
This Tax Credit is a refundable personal income tax credit worth 25 percent of up to $10,000 per household in eligible expenses, a maximum credit of $2,500. This credit can be shared by people who live together, including spouses and common-law partners.
The Ontario Seniors Care at Home Tax Credit
This is a refundable personal income tax credit to help seniors with eligible medical expenses, including expenses that support aging at home. The credit is equal to 25% of your eligible medical expenses up to $6,000, for a maximum credit of $1,500.
The Federal Home Accessibility Tax Credit
If you’re 65 or older, are eligible for the disability tax credit, and have remodeled your home for safer access, you can claim up to $20,000 of your related expenses.
Pension Income Splitting can help you save money
It’s potentially a good way to save on your taxes if you are over 65. On paper, you can transfer a portion of your pension to your spouse if they have a lower income to reduce your taxes owing/taxes payable. Every year you can decide based on income if this is something you should do to lower your taxes owing. You can split CPP at the source. Ask us if you need our help.
If you had a vacation within Ontario in 2022, there is a refundable tax credit. Bring us your receipts for accommodations for your vacation within Ontario. This is a one time tax credit for Ontarians who’ll be able to claim 20% of their stay in an Ontario hotel, cottage or campground, during 2022 up to $1,000 individually or $2,000 as a family.
Bowie Can Help
Even though you only have to file your tax return once a year, taking tax planning steps throughout the year will help you save money at tax time. Our Tax Advisors and Financial Advisors can help you review your personal tax situation along with your investments for maximum efficiency. Contact us with questions or book an appointment today.
