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6 tips for Canadians to Save Money on Taxes - you should start thinking about Tax Planning for 2023

Updated: Dec 27, 2022

The best thing that can happen to any Canadian is to save money on their taxes. Knowing the correct techniques and strategies for your money can make a huge difference. CLaTAX helps individuals and families minimize tax payments while respecting local and federal tax requirements. Citizens, students, immigrants, newcomers, international students with work permits, seniors, etc. We help landlords, freelancers, and couriers.

Here are five of the best ways to protect your hard-earned money, keep more of it, and save money on taxes, which will help you pay less in taxes.

1. RRSPs can help you pay less tax on your income

RRSPs are an excellent method to save for retirement and minimize your tax burden. By investing in an RRSP, you shelter a portion of your income from taxes, as you're only taxed on the remainder.

2. Start a tax-free savings account (TFSA)

This is a smart buy for everyone over 18 years old. TFSA investments including cash, GICs,

mutual funds, equities, and bonds generate interest, dividends, and capital gains tax-free.

3. Split income with spouse

When you split your pension income with your spouse, your income falls down and theirs goes up. The idea is for one of you to minimize your tax bill without raising your spouse's. This will save you both money on taxes.

4. Invest in real estate property

Real estate is a proven strategy to build wealth. Selling your principal residence results in tax-free capital gains. Investing in a rental property can save you tax by deducting connected expenses. Capital Cost Allowance (CCA) deductions can reduce rental income.

5. Get the First-Time Home Buyers’ tax credit

You can claim a $5,000 tax credit if you and your spouse (or common law partner) buy your first home. The government budget recommends raising the HBTC to $10,000 in 2022 and subsequent years. This doubles the non-refundable tax credit from $750 to $1,500.

6. Start a RESP for your child

Parents can invest in their children's post-secondary education via a Registered Education Savings Plan (RESP) without paying taxes on the money. These assets grow tax-free until your child withdraws them for college.


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