RRSP and Tax Tips
Personal tax planning involves strategically managing your finances to reduce tax liability. It focuses on minimizing taxable income, maximizing deductions and credits, and making informed decisions to enhance financial well-being.
— The Noseworthy Chapman Team
Helpful Links & Guides
RRSP Deadline March 3rd, 2025
Registered Retirement Savings Plan (RRSP) is a tax-advantaged account that allows Canadians to save money for their retirement while reducing their taxable income in the current year.
Spousal RRSP
A spousal RRSP is a retirement saving plan where the higher-income earning spouse contributes in their spouse’s name. This helps to reduce their taxable income now while aiding in balancing retirement income.
Tax-Free Savings Account (TFSA)
The Tax-Free Savings Account (TFSA) is a Canadian savings and investment account where all earnings—interest, dividends, and capital gains—are tax-free. It allows you to grow your investments without paying taxes on returns. The contribution limit for 2025 is $7,000.
First Home Savings Account (FHSA)
The FHSA provides individuals with a tax deduction, up to $8,000 annually (lifetime maximum: $40,000). Like a TFSA, your investments can grow while remaining tax free. You can then use the accumulated funds to finance the purchase of a first home without having to pay taxes on withdrawals, and without having to repay the amounts withdrawn from the FHSA.
Home Office Expenses
Home office expenses are costs incurred when you use part of your home for work purposes. If you’re self-employed or an employee required to work from home, you may claim a portion of expenses like utilities, rent, internet, and maintenance.
The amount you can claim depends on the size of your workspace and how much it’s used for work. Keep detailed records to support your claim.
Find out if you’re eligible below:
Vehicle Expenses
A Vehicle expense deduction allows you to claim the cost of using your vehicle for business purposes. These can include:
- Fuel
- Repairs and maintenance
- Insurance
You can only claim the portion related to work, so tracking mileage is essential.
Commissioned Employee
Are you a commissioned employee? Did you know many of your home office, entertainment, travel, promotional, and vehicle expenses are tax deductible?
Leveraging deductible expenses is a strategic way to minimize your tax obligations.
Rental Income
Do you have a rental property? Did you know that you can offset your rental income by claiming eligible rental expenses? Leveraging deductible expenses is a strategic way to minimize your tax obligations.
Physical Activity Tax Credit
The Physical Activity Tax Credit provides a refundable tax credit with a maximum of $2,000 per family. Eligible expenses include gym memberships, uniforms, and equipment.
Tax Credits
Using available tax credits to reduce the taxes you may owe is a great way to minimize your annual tax bill. Become aware of what is available as a tax credit.
Don’t miss the benefits of available tax credits such as:
- charitable donations
- disability
- training
- digital news subscriptions
- medical expenses
- eligible tuition expenditures
Noseworthy Chapman has been a trusted partner to hundreds of businesses in the province for over 40 years. Contact us to see how we can make 2025 the most profitable yet.
