Bookkeeping by Tom

If you celebrate Easter, I hope it was wonderful!

NOW, back to Taxes. I am still accepting referrals & new clients. Questions please PM, phone or WhatsApp (204) 541-0055

WARNING!!!!
A clients just received a phishing email saying they are from CRA. Note the email address, clearly not CRA & CRA mail will always show up in MyAccount. Questions, call me (204) 541-0055

TAX SEASON IS IN FULL SWING - Need Help, Individual, Family, Sole Proprietor? Message or Call (204) 541-0055

Key Scenarios When NOT to Use an RRSP:

-You Are in a Low Income Bracket: RRSPs are best when your tax rate is high now and will be lower in retirement. If you are in a low bracket today, your tax refund will be minimal, and you may pay higher taxes upon withdrawal later.

-You Need the Money Soon: RRSPs are for long-term retirement. Early withdrawals are taxed, and the contribution room is lost forever.

-You Have High-Interest Debt: Paying off credit cards or high-interest loans provides a higher guaranteed return than the tax savings from an RRSP.

-You Have Room in a TFSA: A Tax-Free Savings Account (TFSA) offers more flexibility with tax-free withdrawals, making it better for short-to-medium-term goals.

-You Are Facing OAS Clawbacks: In retirement, excessive RRSP/RRIF income can reduce Old Age Security (OAS) benefits, so careful planning is required.

If you have questions PM or Phone (204) 541-0055



-You Expect a Significantly Higher Income Later: If you are early in your career or taking a break from work, wait until your income is higher to maximize the tax deduction

When to Invest in an RRSP (Buy)

- High Marginal Tax Rate: When your income puts you in a high tax bracket, RRSP deductions provide significant tax savings.
- Lower Income in Retirement: If you expect to be in a lower tax bracket during retirement than you are now, an RRSP allows you to defer taxes to a lower-tax year.
- As Early as Possible: Starting early maximizes the impact of compound interest.

Questions about Marginal Tax Rates? PM or call me (204) 541-0055

Is it worth claiming the Medical Expense Tax Credit? More questions please PM or call me (204) 541-0055

That time of year again, TAX SEASON. I will be posting links, tips, etc. over the next few months. STAY WARM

To my existing clients, your Pre-Season emails will be coming out shortly.

Questions, feel free to PM or (204) 541-0055

Important changes to the 2025 income tax package: What you need to know - Canada.ca In 2025, approximately 93% of income tax and benefit returns were filed online. If you typically file on paper, why not enjoy the benefits of online filing?