Happy New Year! Some nuggets and tidbits we want to share as we move into 2013

Personal Income Tax Returns

  • If you haven’t already got your personal income tax organized, start now to collect and review your personal income tax documentation and information for 2012.  Don’t wait until the April rush and risk missing the April 30th deadline.

RRSP

  • What is your strategy for RRSP contributions?  Be sure to plan your 2012 purchase before March 1, 2013.  A tip, contributing on a regular basis during the year is far better than doing it in a lump sum before the deadline.

Tax Free Savings Accounts – TFSA

  • Remember to take advantage of contributions to TFSA, the amount for 2013 increases to $5,500 up from $5,000.  If you have not contributed since its inception, you have a total amount of $25,500.00 to make use of.  For more information, click here for details.

CPP – Major changes effective 2012

  • If you are currently receiving CPP or QPP retirement pension and is 60 to 65 years of age, you have to continue to contribute to CPP or QPP.  You have the option to stop when you are 65.
  • If you are currently receiving CPP or QPP retirement pension and is 65 to 70 years of age, you have to give a form to your employer.  This form is called CPT30 and is to instruct your employer to stop withdrawing CPP or QPP from your pay cheque; you should mail a copy of same to CRA.  If you do not do that, your employer will have to continue to submit CPP or QPP on your behalf to the CRA.
  • However, if you are 65 to 70, you can elect to continue to contribute while you are collecting to enrich your pension.  On the other hand, if you have been collecting CPP or QPP and stopped contributing, you can resume contributing until you reach 70, based on the same idea so as to enrich your pension.

We would be happy to answer any questions you might have about these items. Please feel free to contact Barry Spring at 416 495-1098 or by email at barryspring@apbs.ca.

Visit us at www.apbs.ca

 

The blogs posted on our website provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

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