The federal and provincial governments provide tax benefits in a number of ways. Here are examples of ways in which individuals can take advantage of government tax benefits:
- Registered Retirement Savings Plans (RRSPs) – these savings plans can help you save money tax-free until you retire. Here are 5 reasons to open an RRSP. Learn more about RRSPs.
- Tax-Free Savings Accounts (TFSAs) – let you save tax-free – Learn more about TFSA basics.
- Parents and tax – if you have children, there are various tax credits and deductions you can claim on your tax return.
- Seniors and tax – here is a brief outline of tax credits available for seniors.
- Students and tax – learn more about tax credits available for students.
- Registered Retirement Income Fund (RRIF) – transfer money from your RRSP and your savings remain sheltered from tax until the money is withdrawn.
The list above is not exhaustive. Speak to tax professional about the various government tax benefits or contact the Canada Revenue Agency for more information.