Even though there are still several months until tax season, it’s not too early to start thinking about your tax return.
• Also read: Big tax gap between Quebec and Ontario
On the contrary, some Quebecers could have unpleasant surprises next March if they forget to make withdrawals, deposits, claims or contributions before December 31, in particular.
“The idea is to be able to prepare for spring,” explains financial columnist François Gagnon, in an interview with LCN. There is a deadline for certain tax credits which is December 31.
“It is certain that at the moment, we are much more in the mood to prepare for the holiday season [mais] you have to start planning,” he adds.
To avoid unpleasant surprises, here are five tips given by Mr. Gagnon.
Contribute to CELIAPP
“For young people, there is a product that exists, the CELIAPP, which is a kind of hybrid between the RRSP and the TFSA. This allows you to save tax. We can put up to $8,000, but the deadline is December 31.”
“If you deposit your $8,000 on January 2, you will not be able to deduct it on your 2024 tax return. It is extremely important to do so before December 31.”
Prepare your medical receipts
“Very often, I saw customers who arrived in March and who had lost a lot of receipts. This is where you have to plan.”
“When you go to pick up your last prescription at the pharmacy, you can ask for the overall receipt for the year 2024. You can also get the full report from your insurer. That way, you won’t be able to forget any medical expenses.”
Prepare the tax credit for caregivers
“We often complain that there is not much help from the different levels of government, but that is completely false. There is a lot of help that exists, but there are certain credits that require a little more effort to claim them.
“Among other things, if you take care of a parent who is suffering from any degeneration or any illness, you could be entitled to the tax credit for natural caregivers, if that person requests the tax credit for disabled people. At that point, it becomes almost automatic.”
“Those who have diabetes, you will automatically have the disability tax credit, particularly type 1 diabetes. Ask your doctor to fill out the famous form and you can save thousands of dollars like that. .”
Contribute or withdraw to your TFSA
“The RRSP and TFSA, this year, you are entitled to them until March 31, unlike the CELIAPP which is December 31.”
“In the TFSA, this year, it’s $7,000 maximum. It is indexed every year. If you want to make a withdrawal, don’t wait until January 2. Do it before December 31 because next year, if we increase the ceiling by $7,000, if you have withdrawn $2,000, next year, you will be entitled to deposit $9,000.”
Claim your capital gains and losses
“You have until December 31 to claim capital losses or gains for the year 2024, but you must calculate three business days before.”
See the full explanation in the video above
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