Happy New Year! We wanted to share a few tips for 2020.
The Canadian government announced that 2020's tax free savings contribution room will remain at $6,000. For someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 the plan to date contribution room would be $69,500 as of January 1, 2020.
TFSA annual dollar limits by year (Contribution room accumulates beginning the year in which a person turns 18):
If you haven't maximized your contribution room in a previous year, the unused room is carried forward indefinitely. Also, if you withdrew an amount from your TFSA (that’s not a withdrawal of excess TFSA contributions) in 2019, you can re-contribute this amount to your TFSA as of January 1, 2020. Any prior-year withdrawal (that’s not a withdrawal of excess TFSA contributions) is added back to your TFSA contribution room the following year. Be extra careful when calculating your TFSA contribution room, as CRA can charge penalties for over-contributions. For more information and a link to find your TFSA contribution room please click here.
The TFSA has become a powerful investment account for your investment's to grow tax free, helping you achieve your financial goals.
RRSP Deadline
The deadline to make a contribution to a Registered Retirement Savings Plan (RRSP) that can be claimed as a 2019 tax deduction is March 2, 2020. You can find your 2019 RRSP deduction limit on your 2018 notice of assessment (NOA). The RRSP maximum annual deduction limit is 18% of the prior year's earned income to a maximum of $26,500 for 2019.
Important personal tax deadlines
Personal income tax installments:
- March 16, 2020
- June 15, 2020
- September 15, 2020
- December 15, 2020
Personal income tax return filing: April 30, 2020
Self-employed income tax return filing: June 15, 2020
Balance owing for taxes payable: April 30, 2020
If you have any questions regarding the above information or need assistance with adding funds to these tax-sheltered plans, please contact our office at 905-312-2901.
Wishing you and your family a Happy, Healthy & Prosperous 2020!