Year-End Stuff - December 2022 Tax and Money Tips

Photo by Gareth Harper on Unsplash

REMINDERS:
- You will need to have your taxes up to date to take advantage of government benefits you are entitled to, such as Canada Dental Benefit and Canada Housing Benefit. 
- Applications for the Canada Dental Benefit will open on December 1, 2022.
- Applications for the Canada Housing Benefit will open on December 12, 2022.
- If you still need to catch up on your taxes, do so before January 20, 2023. After this date, CRA will shut down for a week in order to prepare itself for the 2023 Tax Season. CRA will announce a date when 2022 taxes can be filed.
(PS: It's usually around late February.)




December 2022 Tax and Money Tips - Year-End Stuff
Early Merry Christmas, Happy New Year & Seasons Greetings! We have arrived in the last month of 2022. Traditionally this is a super busy time for many, thus this month's newsletter will be brief. :) There are so many year-end tax and money tips. Below are just a few. 

1. If you plan to claim car expenses as your business expenses or employment expenses, record your odometer reading on New Year's Eve (December 31, 2022) or New Year's Day (January 1, 2023).

2. Max out your RESP (Registered Education Savings Plan) contribution by December 31, 2022. Remember that if you or your child are a US citizen, please consult a Cross Border Tax Specialist before you open an RESP so you will be aware of tax reporting requirements to IRS (Internal Revenue Service).

3. If your medical insurance company uses a calendar year for claims, ensure you have your medical services done by December 31st. Start booking appointments now.

4. All donations must be received by your charity(ies) by December 31st to be counted as 2022 gifts. Exceptions are mutual funds and securities donations. These have earlier deadlines. Check with your financial advisors and your charity(ies). Send them in early.

5. This one tip has nothing to do with year-end, but year-end may be a good time to do it. Check if you have named primary and alternate beneficiaries on all your registered accounts, pension accounts and life insurance. Examples of registered accounts are RRSP (Registered Retirement Savings Plan) and TFSA (Tax Free Savings Account). Even if you have named beneficiaries, if it was done some time ago, it may be time to re-visit and ensure you still want the same beneficiaries to get your assets after your passing.

December is a busy month, so prioritize what you need to finish.

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See you in 2023!