When the end of the year approaches, many individuals place a greater focus on tax planning to minimize their income tax liability. Beyond the end of the year, however, there are some areas of tax planning that often get overlooked. For example, there are tax planning strategies that may only be available early in the new year. With that in mind, we've summarized some of the strategies that have deadlines in early 2020.
- 2019 RRSP contribution deadline
- The deadline to make a contribution to your RRSP that can be claimed as a 2019 tax deduction is March 2, 2020.
- 2020 RRSP contribution room
- Your 2020 RRSP deduction limit is 18% of your previous year's (2019) earned income, up to the max of $27,230 for 2020, and less any 2019 pension adjustment. Click here to find your RRSP deduction limit.
- Tax-Free Savings Account (TFSA)
- The 2020 TFSA contribution limit is $6,000. If you've been eligible to open a TFSA since 2009, your lifetime contribution limit would be $69,500 as of January 1, 2020. Consider making a contribution to your TFSA early in the year to maximize the tax-free growth.
Click here for the full article which covers some common tax planning strategies and reminders that you may want to consider this year.
Please contact us to discuss how any of the topics discussed here apply to your personal situation.