Canadians pay a lot of income tax and any way that we can find to reduce our tax bill is a major plus. Yahoo! Finance has a really great article titled “Slash Your Taxes” that I would recommend you read before filing your taxes this year.
The majority of the tips discussed in the article focus on how spouses can effectively split their incomes in order to reduce the taxes owing for the highest wage earner. Examples include using a spousal RSP, having the lower wage earner opening sole-owned investments, and lending money to the lower wage earner spouse so they can invest.
Another great tip is to deliberately put money into an RSP in order to get the tax deduction and then to withdraw it after 90 days under the Home Buyer’s Plan in order to purchase a home.
The article also discusses some helpful tips on how to split family income with your children. Ideas include using an RESP, giving cash gifts to your children, and much more.
If you don’t have a lot of time to do research during this tax season, at least take a few minutes to check out this well written article. I am certain you will benefit and if your family decides to implement some of these ideas, you could possibly be paying the taxman a lot less than you have in the past.
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