January is the best time to get started! Reducing your taxes is one of the ways to help you save money. Below, is a 2009 checklist on ways to lower your tax bill and give your financial planning a booster shot.
This is the first one in the series of “seven” tax tips for 2011. We will let you know all about them. Each week day, I will publish another segment in the series of the Tax -Group of SEVEN!
RRSP Contribution Cap
tax saving tips
TIP #1 for 2009, the contribution cap is $21,000. You still have until March 2, 2009 to max out your 2008 contribution, with a ceiling of $20,000. The first tip is that the sooner you contribute, the sooner the money starts to grow tax-free until you start to withdraw. Look at your contribution as a monthly household payment when you start saving. In return for your contributions you get a tax credit.
Take note, that if you have not made maximum contributions every year, you can exceed the limits by using that unused room. Ask your accountant John McCormack, CGA, CFP to fully explain this aspect of tax saving in more detail on your first visit.www johnmccormack.cato be continued 9
