How to Save Taxes in Canada ?

Each sort of tax-advantaged savings plan has a distinct contribution maximum. The RRSP contribution limit for 2024 is 18% of your previous year's earned income, up to a maximum of $29,210. The annual contribution maximum to your TFSA is $6,000 per year. RESPs do not have an annual contribution restriction, however there is a lifetime contribution maximum of $50,000 per beneficiary.

Claim all applicable tax credits and deductions: The Canada Revenue Agency (CRA) provides a number of tax credits and deductions that might help you decrease your taxable income. When you submit your taxes, make sure to claim all of the credits and deductions that you are entitled for. Making philanthropic contributions Donations to charities can help you decrease your taxable income while also making a difference in your community. You can claim a tax credit of up to 75% of your first $200 in charitable contributions and up to 53% of any further contributions.

The ideal time to begin tax preparation is right now. You may uncover prospective tax savings possibilities and ensure that you claim all of the credits and deductions that you are qualified for by planning ahead of time.

If you have any tax-related inquiries, you can contact the CRA or a tax specialist. The CRA provides a number of services to assist you in accurately filing your taxes, including a free online tax preparation tool.

Failure to file your taxes on time: Failure to file your taxes on time may result in fines and interest. Claiming credits and deductions for which you are ineligible: If you claim credits and deductions for which you are not qualified, the CRA may audit you and force you to refund the taxes you saved. Failure to maintain accurate records: It is important to keep detailed records of your income and spending in order to complete your taxes correctly.