how to reduce candian personal income taxes?
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- Make sure you are taking advantage of deductions available, such as medical expenses, moving expenses, transit, etc. Maximize your RRSP. I think it depends on your situation, but if you talk to a good accountant, they will let you know what works best for you.
- Unless you have tonnes of money socked away the best method of reducing income taxes is to maximize your RRSP contributions. RRSP contributions reduce your income for tax purposes and therefore are more beneficial than a tax credit. For medical expenses remember you can claim 12 consecutive months of medical expenses on your taxes. All 12 months do not have to fall into the tax year. For example my wife and I make a point up updating our contact lens and glasses at the same time so we can have a larger tax writoff for one tax year. Next from a planning perspective if you can your finances. If you're investing in Canadian corporations and you receive dividends from them, those dividends receive a favourable tax treatment. Also some employers give you the option of receiving your Christmas bonus in one year or the other.
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