Here is a checklist to make sure everything that needs to get done by the end of the year gets done! Everyone, retired or saving for retirement, should keep these tax tips in mind.
Things to do before the end of the year:
- If you turned 71 in 2017, convert RRSP into an Annuity or RRIF.
- RESP Contribution deadline is Dec 31st
- Make charitable contributions by Dec 31 and get a tax receipt.
- Defer non RRSP investments. If you invest in January, then the interest income can be deferred by a full year.
- If you are planning to withdraw from your TFSA, do it before end of year.
Gather statements, including:
- Employment income
- Pension, retirement, annuity, OAS, or other income
- Employment Insurance income
- Investment income
- Allowable expenses from employer
- Spousal support payments
Gather all receipts, including:
- RRSP contributions
- Tuition/education fees
- Professional/union dues
- Medical expenses
- Charitable donations
- Property tax payments
- Children’s fitness/arts activities
- Child care expenses
- Attendant care expenses for a disabled person
- Rent paid and name of landlord
- Interest paid on loans or investments
- Business expense receipts
- Details of the sale of any securities
- Spousal support payments paid
- Safety deposit box fees
- Professional consultant fees
Other documents to have on hand:
- Last tax return
- Last notice of assessment received after filing the tax return
ESSENTIAL TAX NUMBERS
If you are Working
- Maximum RRSP contribution: The maximum contribution for 2017 is $26,010.
- TFSA limit: The annual limit for 2017 is $5,500, for a total of $52,000 in room available in 2017 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009. The annual TFSA limit will be indexed to inflation in future years.
- Lifetime capital gains exemption: The lifetime capital gains exemption is $835,716 for 2017.
- Home buyers’ amount: Did you buy a home? You may be able to claim up to $5,000 of the purchase cost, and get a non-refundable tax credit of up to $750.
- Medical expenses threshold: The maximum is 3% of net income or $2,268, whichever is less
For those who are older
- Age amount: You can claim this amount if you are 65 years of age or older on December 31 of the taxation year and have income less than $84,597 in 2017. The maximum amount you can claim in 2017 is $7,225.
- Pension income amount: You will be able to claim up to $2,000 if you report eligible pension, superannuation or annuity payments.
- OAS recovery threshold: If your net world income exceeds $73,756 for 2016 and $74,788 for 2017, you may have to repay part of or the entire OAS pension.
- Family caregiver amount: If you have a dependant who’s physically or mentally impaired, you may be able to claim up to an additional $2,121 in calculating certain non-refundable tax credits.
- Disability amount: The amount for 2017 is $8,113 (non-refundable credit), with a supplement up to $4,733 for those under 18 (the amount is reduced if child care expenses are claimed).
If you have children
- Child disability benefit: The child disability benefit is a tax-free benefit of up to $2,730 (for the period of July 2016 to June 2018) for families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions.
- Canada Child Benefit: This non-taxable benefit is effective as of July 1, 2016. The maximum CCB benefit is $6,400 per child under age six and up to $5,400 per child aged six through 17.
- Child care expense deduction limits: The maximum amounts that can be claimed are $8,000 for children under age seven, $5,000 for children aged seven through 16, and $11,000 for children who are eligible for the disability tax credit.