Don’t Delay! What You Can Still Do Now to Save Money Come Tax Season
Before we know it, the tax deadlines for 2023 will be upon us. Whether you are a regular employee or a business owner, it is not too late to make a few moves now that could help save you money just a few months down the line.
You should consider whether you can pursue any of the following tax saving strategies now:
- Defer Income to 2024 (Personal and Business Tax Tip)
Think of this logically: if your 2023 taxable income is lower, then you will pay less tax for 2023. This can be done by either having your employer delay paying your bonus until 2024, or if you are a business owner, deferring paying yourself for a few extra months. In order to use this strategy successfully, you should consider your own personal circumstances and whether it’s likely that your 2024 income will be higher or lower than 2023.
- Contribute to your RRSP (Personal Tax Tip)
If you have any Registered Retirement Savings Plan room left for 2023, you have until February 29, 2024 to make contributions. Any contributions will help lower your taxable income come tax time.
- Maximize your Business Expense Deductions (Business Tax Tip)
If you are a business owner, you are able to deduct business-related costs from your taxable income. In order to minimize your tax bill, you should consider whether there are any major business-related purchases that can be made now before year-end, rather than waiting until the beginning of next year. Similarly, if you are paying employees bonuses, pay them now rather than in January.
As everyone’s circumstances are unique, contact us if you have any questions or particular scenarios you want to discuss that may save you money come tax season.