- +1 905-519-6246
- contact@kingsmanassociates.ca
- Mon - Sat: 10:00 - 15:00
A quick guide for 2024 taxes, this blog outline our services including the Registered Education Savings Plan (RESP), Registered Retirement Savings Plan (RRSP), First Home Savings Account (FHSA), and Taxes. Each section provides an overview, benefits, key considerations, and important dates to remember.
1. Registered Education Savings Plan (RESP)
An RESP is a tax-sheltered account designed to help Canadians save for their children’s post-secondary education. Contributions grow tax-free, and the government offers additional savings through the Canada Education Savings Grant (CESG), which matches contributions up to $500 per year (lifetime max of $7,200 per child). Eligible families may also receive the Canada Learning Bond (CLB) without making contributions.
Important Date: December 31 – Last day to contribute and qualify for the annual CESG grant.
2. Registered Retirement Savings Plan (RRSP)
An RRSP helps Canadians save for retirement with tax-deductible contributions that grow tax-free until withdrawn, typically at retirement when individuals are in a lower tax bracket. RRSP funds can also be withdrawn for a down payment on a first home (Home Buyers’ Plan) or for education (Lifelong Learning Plan) without penalty, if specific criteria are met.
Important Dates:
March 1 – Deadline to contribute for the previous tax year.
December 31 of the year you turn 71 – Final day to contribute before converting the RRSP to an income fund.
3. First Home Savings Account (FHSA)
The FHSA is a new savings account aimed at helping Canadians save for their first home. Contributions are tax-deductible, and withdrawals used for a qualifying home purchase are tax-free. With a lifetime contribution limit of $40,000, the FHSA combines the benefits of both an RRSP and TFSA.
Important Dates:
December 31 – Last day to contribute for tax deduction.
Within 15 years of opening – Use the FHSA for a home purchase or transfer to an RRSP/RRIF to avoid penalties.
Canada’s tax system includes various forms of tax, like income tax, capital gains tax, and sales tax. Tax planning is crucial to optimize credits and deductions, such as the Basic Personal Amount and tuition credits, which help reduce taxable income.
Important Dates:
February 28 – Deadline for employers to issue T4 slips.
April 30 – Filing deadline for personal tax returns (June 15 for self-employed, but any tax owed is due April 30).
Stay on top of these dates and take advantage of each account’s benefits to maximize your savings and minimize tax liabilities. Smart planning across education, retirement, and homeownership can significantly boost your financial well-being.
This paper/article is not an advise, reach to a professional for the advise.
If you have any questions regarding tax, accounting, Insurance, and investments contact us.
To book an click: appointment.
