Tax tips for Canadians

The Canada Revenue Agency (CRA) is here to help you during tax season. Here is a list of tips you should know about your taxes, including many ways to help you save money at tax time.



For individuals

Plan ahead - Register for My Account and sign up for direct deposit so you'll be ready when you file your return. Also be sure to file on time to avoid late-filing penalties and fees and to make sure there are no interruptions to your benefit and credit payments.

Tax-free savings account (TFSA) - Using a TFSA is a great way to save money. Generally, interest, dividends, and capital gains earned on investments in a TFSA are not subject to tax - either while held in the account or when withdrawn.

Registered retirement savings plan (RRSP) - You can save on your taxes and save for your retirement at the same time. Contributions to your RRSP are tax-deductible, and any income that you earn in your RRSP accumulates tax-free as long as the funds stay in the plan.

Charitable donations - Donations of cash, goods, land, or listed securities made to a registered charity or other qualified donees may be eligible for a charitable tax credit.

Families - There are many ways families can save at tax time. The activities you signed your kids up for may save you money on your taxes - save those receipts! If you care for dependants with a physical or mental impairment, you may be able to claim up to an additional $2,000 in the calculation of certain non-refundable tax credits related to the new family caregiver amount.

Students - Were you a student during 2012? You may be able to claim tuition, textbook, and education amounts, as well as the interest you paid on your student loan.

Public transit amount - If you use public transit, you may be able to save by claiming the cost of your transit passes.

Seniors - If you receive a pension, you may be able to split up to 50% of eligible pension income with your spouse or common-law partner to reduce the taxes that you pay. You may also be eligible to claim the age amount, medical expenses, and the disability amount.

Homebuyers - You may be able to save up to $750 if you bought your first home in 2012.

For more information, visit our Web site at www.cra.gc.ca.