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By Derek Craddock

TAXES, TAXES, TAXES

What to know as you get ready for tax season

Feb 25, 2023 | 8:00 AM

Tax season is now upon us in Canada and there are some deadlines and things you should already know before you file.

This year, the deadline to file your taxes is on May 1, as the usual date of April 30 falls on a Sunday.

Aside from that date, March 1 is another one you should be aware of, as that is the last day you can contribute to an RSP to count toward your 2022 return.

Jeremy Lewchuk is the branch manager of Conexus Credit Union in Prince Albert. He explains that contributing to an RSP does more than just save money for retirement.

“When you contribute to an RSP it will reduce your income which will save you on your 2022 income taxes,” he said. “You want to make sure you’re in a high enough marginal tax bracket so that contribution makes a difference on your taxes.”

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Lewchuk added that if you’re not in a high enough marginal tax bracket, you can always contribute to a Tax-Free Savings Account (TFSA) as an alternative.

Each year you’re able to contribute up to 18 percent of your annual income and you can roll over any unused contribution limit to previous years.

This year, the government has introduced or expanded some of the tax credits that Canadians can claim, including the First-time home buyers’ tax credit, the Home accessibility tax credit, the Climate action incentive payment, and the Simplified northern residents’ travel deduction.

Another big piece of advice offered to Canadians is to simply file your taxes, as last fall the CRA said about $1.4 billion in uncashed checks was sitting in its coffers.

“You might be leaving some money on the table,” said Gillian Pranke, CRA assistant commissioner.

Pranke is also asking Canadians to be vigilant as tax scams are very prevalent at this time of the year.

“When we contact you, we’ll make it clear who we are. And we go to great lengths to protect client information,” she said, adding that the federal agency never sends texts with links to click.

–With files from The Canadian Press

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derek.craddock@pattisonmedia.com

Twitter: @PA_Craddock