How Can I Save on My Taxes?: Difference between revisions
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This section describes ways in which people put away money for their future. Get some advice from a financial advisor to see what choices would be best for you. | This section describes ways in which people put away money for their future. Get some advice from a financial advisor to see what choices would be best for you. | ||
===Registered Retirement Savings Plan (RRSP)=== | |||
A ''Registered Retirement Savings Plan'' or RRSP allows you to delay some of your taxes. You can open a RRSP at a bank, credit union or investment company. You can contribute to your RRSP at any time during the year. You <span class="noglossary">claim</span> the amount of your RRSP contribution as deduction on your income tax return. | A ''Registered Retirement Savings Plan'' or RRSP allows you to delay some of your taxes. You can open a RRSP at a bank, credit union or investment company. You can contribute to your RRSP at any time during the year. You <span class="noglossary">claim</span> the amount of your RRSP contribution as deduction on your income tax return. | ||
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| text = If you are working part-time now, you may put less than your limit into your RRSP this year. Next year, if you work full time and have a higher income, you could put in more money. | | text = If you are working part-time now, you may put less than your limit into your RRSP this year. Next year, if you work full time and have a higher income, you could put in more money. | ||
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===Registered Education Savings Plan (RESP)=== | |||
Registered Education Savings Plan (RESP) is a special savings <span class="noglossary">account</span> that helps you save for post-secondary education. You can open a RESP at a bank, credit union or investment company. The government does not tax this money while it is in your RESP. It can grow tax free. When the money pays for education, the money is taxed in the student’s name. Since many students have little or no other income, they can usually withdraw the money tax-free. | Registered Education Savings Plan (RESP) is a special savings <span class="noglossary">account</span> that helps you save for post-secondary education. You can open a RESP at a bank, credit union or investment company. The government does not tax this money while it is in your RESP. It can grow tax free. When the money pays for education, the money is taxed in the student’s name. Since many students have little or no other income, they can usually withdraw the money tax-free. | ||
===Tax Free Savings Account (TFSA) === | |||
The Tax Free Savings Account (TFSA) helps you save for your future. You can open a TFSA at a bank or credit union or investment company. You can contribute up to $5,000 annually to a Tax Free Savings Account. | The Tax Free Savings Account (TFSA) helps you save for your future. You can open a TFSA at a bank or credit union or investment company. You can contribute up to $5,000 annually to a Tax Free Savings Account. | ||
* Any money you make in this <span class="noglossary">account</span> is tax-free. | * Any money you make in this <span class="noglossary">account</span> is tax-free. | ||
* Any money you withdraw from this <span class="noglossary">account</span> is tax-free. | * Any money you withdraw from this <span class="noglossary">account</span> is tax-free. | ||