Cathleen Rulli, CPA

If you're self-employed, have significant investment/rental income, or a business owner who doesn't pay yourself only through payroll — installments might apply to you.

The trigger: your net tax owing was over $3,000 ($1,800 in Quebec) in the current year AND in one of the two previous years. If both are true, CRA expects quarterly installments instead of one lump sum at filing time.

Why it matters if you skip them:
⚠️ CRA charges instalment interest on late/missed payments
⚠️ That interest is calculated at CRA's prescribed rate and compounds — it adds up faster than people expect
⚠️ There's also a possible instalment penalty if the interest itself gets large enough

A few ways to handle it:
🔸 Pay what CRA calculates on your instalment reminder (the "no-calculation" option) — simplest, but can overpay if this year's income is lower
🔸 Base it on this year's estimated income if you expect it to be lower — saves cash flow, but you're on the hook if you underestimate
🔸 Base it on prior-year actual amounts — a middle ground

The right method depends on how predictable your income is year to year. If you're a business owner with fluctuating income, this is exactly the kind of thing worth reviewing with your accountant before the next due date — not after.

Business meals and entertainment expenses generally have specific rules and limitations.

You should keep records showing:
🍽️ Who attended
📅 When it occurred
📍 Where it occurred
💼 The business purpose
🧾 The receipt

📌 Tax tip: “I talked about business over dinner” does not automatically make the entire meal deductible.

Your RRSP contribution room for 2026 is 18% of your 2025 earned income, up to a max of $33,810 — whichever is lower, plus any unused room carried forward.

Why it matters:
✅ Contributions reduce your taxable income now
✅ Growth inside the account is tax-deferred
✅ You choose when to trigger the tax hit (ideally in a lower-income year — think retirement, a parental leave, or a year you're not working)

A few things people get wrong:
🔸 Contribution room ≠ deduction room if you didn't claim a past contribution — check your Notice of Assessment
🔸 Over-contributing past your limit by more than $2,000 triggers a monthly penalty
🔸 RRSPs aren't the only tool — sometimes a TFSA or FHSA makes more sense depending on your income bracket and goals

The right answer depends on your income this year vs. expected income later. That's the actual planning conversation — not just "max it out."

📌 Save this for tax season. Questions? Drop them below or DM me.

Tax planning can be especially important when disability-related expenses and government benefits are involved.

Depending on your circumstances, you may want to explore:
✔️ Disability Tax Credit
✔️ Medical expense claims
✔️ Disability supports
✔️ RDSP
✔️ Child Disability Benefit
✔️Canada Disability Benefit
✔️ Other related benefits and credits

📌 Tax tip: A disability-related tax credit is not always just about the tax credit itself. It may also affect eligibility for other programs.

Paper receipts stuffed into a shoebox?
Digital records everywhere?

Neither system works well if you cannot find what you need.

The best record-keeping system is one that is:
✔️ Organized
✔️ Consistent
✔️ Backed up
✔️ Easy to access
✔️ Retained for the required period

📌 Tax tip: Whether you use paper, digital records, or a combination of both, your records should support the income and expenses reported on your tax return. Remember a statement is not a receipt.

The TFSA is one of Canada's most flexible savings and investment tools.
Despite the name, it is not just a “savings account.”

Depending on the account, you may be able to hold:
✔️ Cash
✔️ GICs
✔️ Mutual funds
✔️ Stocks
✔️ ETFs

Investment growth and qualifying withdrawals are generally tax-free.

📌 Tax tip: Keep track of your contributions and withdrawals to avoid accidentally overcontributing.

A few things to know:
📄 Keep your T4
💰 Understand deductions from your pay cheque
🧾 Keep receipts for potentially eligible expenses
🏦 Consider whether an RRSP or TFSA makes sense for you

📅 Remember—you may still need to file a tax return even if you had little income.

📌 Tax tip: Filing your first tax return can help you access benefits and credits you may qualify for. Even without any income those with DTC approval should start filing at age 16 and at age 18 for everyone else.