Tax Tips - For Individuals

The Certified General Accountants of Ontario publish “Personal Tax Planning Guide” annually.  It highlights regulations that affect employed and self-employed individuals.  You can pick up a copy at our office or by ordering one on their website and www.cga-ontario.org.

Some tips that are highlighted in this year’s publication include:

• You may be able to deduct fees paid for investment advice.

• If you earn more than your spouse, you could pay for all the household expenses from your salary, thus freeing up their money for investments.  This way income and gains from investments would be taxed at the lower income spouse’s tax rate.

• You may over contribute up to $2,000 in your RRSP before penalties occur.

• Contributions to an RRSP’s can be made up until the end of the calendar year in which you turn 71.

• You don’t have to deduct your RRSP contribution in the year you make them.  If you know your taxable income will be increasing you may want to carry it forward and use the contribution as a deduction when you will be in a higher tax bracket.

• You may include premiums paid for private health insurance with other medical expenses.

• Cosmetic procedures performed by a qualifying doctor are eligible medical expenses.

• The maximum Old-Age Security (OAS) benefit for 2009 is $6,203.52; however, it get reduced when income exceeds $66,335.

• You must apply for the Canada Pension Plan (CPP).  You may be able to apply as early as age 60.

• Carrying charges for purchasing Canada Savings Bonds (CSBs) through payroll are deductible.

• The cost of summer camps for your child may provide a tax deduction.

• The Universal Childcare Benefit is available to all families with children aged six and under.  Families already receiving Child Tax Benefits are automatically receive the benefit.  Those who do not will have to apply to Canada Revenue Agency.

• If you invest the Canada Child Tax Benefit in your child’s name the income earned will not be attributed back to you.

• When you contribute $2,500 per year to an RESP for your child the government will add $500 towards their education.

• Qualifying tuition expenses not used by the student may be transferred to a parent.

• Interest paid on student loans may be deductible.

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TAX TIPS – For Business and Enterprise

CGA Ontario has produced a number of informative guides of interest to any business or enterprise. Two of which are; "Selecting a Professional Accountant", and "What Every Small Business Needs to Know". We would be pleased to mail you a copy of either or both guides. 

E-mail:inquiries@totaltaxconcepts.com.  Or you can order from their website at www.cga-ontario.org.