MONEY ADVISORS INC.

Tips for Tax

RRSP and TFSA limits

RRSP limit is $27,830 for 2020. Check you Notice of Assessment (NOA) to verify for any carry forward of additional contribution room.

TFSA limit is $6000 for 2021

TFSA cumulative limit is 75,500. Always check to make sure you do not over-contribute so you will not be penalized as penalties are quite heavy.

For those who are contributing to a pension plan

your pension adjustment amount, the pension adjustment reversal and the past service pension adjustment all have an impact on your deduction limit. It is a good idea to ask for professional tax advice if you have any questions regarding your limit.

Review your NOA before preparing your tax return

Don’t miss credits that are being carried forward from previous tax years. Some credits can only be carried back or forward for a limited number of years.

NEW DEDUCTION FOR 2020

Claiming home office expenses due to the pandemic: If you worked more than 50% of the time from home for a period of at least 4 consecutive weeks in 2020 due to COVID 19 you could qualify to deduct some of your household costs.

Dont forget these other deductions which could apply

Medical expenses, child care expenses, moving expenses, carrying charges,disability tax credit, charitable donations, political donations.

Don’t file your taxes late

You will pay interest on any balance owing and penalties which can become quite high.

How long should you keep you tax documents?

You must keep them 6 years after the end of each tax year to which they relate.

Tax planning and preparation provided through Money Advisors.

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Planning is bringing the future into the present so that you can do something about it now.

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Money Advisors Inc.

235 Montreal Rd. Suite 100
Ottawa, ON
K1L 6C7
(613) 695-7526

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