Tax Planning Guide

Personal Tax Planning Calendar

In addition to providing important tax dates, the following calendar lists a number of tax-friendly strategies to help maximize your tax savings.

Please note: if any deadline falls on a weekend, the deadline is moved to the following Monday.

January

• 15th—Deadline for an employee to inform their employer of any deferred stock options benefits related to a stock option exercise from previous year.
• 30th—Deadline to pay interest for previous year on a family loan at prescribed interest rates.

Tax Strategies for January:

• Consider making a maximum lump-sum Retirement Savings Plan (RSP) contribution for current year.
• Consider making a lifetime over-contribution to your RSP.
• Review your personal financial plan, including your estate plan to ensure it is still appropriate.

February

• 28th—Deadline for employers (even for those employing a nanny or babysitter) to send in a T-4 Summary to the Canada Revenue Agency (CRA). In addition, a copy of the T-4 slip must be delivered or mailed to the employee by February 28th.

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March

• 1st—RSP contribution deadline. If it’s a leap year, the deadline is February 29. This deadline applies for regular RSP contributions, retiring allowance RSP contributions, or Home Buyers’ Plan or Lifelong Learning Plan RSP repayments.
• 1st—Labour-Sponsored Fund contribution deadline. If it’s a leap year, the deadline is February 29.
• 15th—1st quarterly Canadian tax installment is due.
• 31st—Inter-vivos/Living Trust tax return deadline. If it is a leap year, the deadline is March 30th.

Tax Strategies for March:

• If you are expecting a tax refund, consider filing your personal tax return early—but only after you have received all your necessary tax information.

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April

• 15th—U.S. resident tax return or 6-month extension request deadline. Deadline for extension request for non-resident aliens who are subject to withholding tax. Deadline for the balance owing to avoid interest charges.
• 30th—Deadline to file your Canadian personal tax return and pay any balance owing, to avoid paying interest and a late filing penalty.

Tax Strategies for April:

• Consider the impact of the new Federal and Provincial Budgets on your personal finances.

June

• 15th—2nd quarterly Canadian tax installment is due.
• 15th—Deadline for filing Canadian tax return if you or your spouse has self-employment income. However, if there is a balance owing, the tax must be paid by April 30th to avoid underpayment interest charges.
• 15th—Deadline for filing U.S. tax return for U.S. citizens living in Canada and non-resident aliens, not subject to withholding tax. However, to avoid interest charges, any balance owing of unpaid taxes must be paid by April 15th.

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September

• 15th—3rd quarterly Canadian tax installment due.

November

Tax Strategies for November:

• Consider using an investment tax shelter to reduce your current year taxable income.
• If you expect significant tax deductions next year, consider applying now for a tax waiver to the CCRA on Form T1213 to reduce withholding taxes at source on employment income.

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December

• 15th—4th quarterly Canadian tax installment is due.
• 31st—Registered Education Savings Plan (RESP) contribution deadline.

Tax Strategies for December:

• Consider selling securities with accrued losses that no longer meet investment objectives to offset realized capital gains. Ensure that the trade settles in the current calendar year and superficial losses are avoided.
• To obtain a tax deduction in the current year, pay your deductible expenses and make charitable donations before year-end.
• If you turn 71 during the year, make your final RSP contribution before the end of the year. Contributions to your RSP cannot be made after the end of the year in which you turn 71. If you are over age 71 and still have unused RSP contribution room, you can make your RSP contribution to a spousal RSP if your spouse is age 71 or under.
• Consider delaying purchasing new mutual funds in non-registered accounts to avoid prepayment of tax on year-end distributions.

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Next: Tax Strategies and Considerations