Tax Reminders & Registered Account Information
The following are some helpful reminders regarding registered accounts and upcoming tax deadlines:
Registered Retirement Savings Plans (RRSPs)
The RRSP contribution limit for 2022 was $29,210. For 2023, the limit is $30,780. Yearly limits for RRSP contributions are equal to 18% of an individual’s earned income from the prior calendar year, subject to these maximum amounts. The deadline for 2022 contributions is Wednesday, March 1, 2023. Unused RRSP contribution room accrues and carries forward to future years — it is important to review your most recent Notice of Assessment or your CRA My Account to determine exactly how much you may contribute.
Tax Free Savings Accounts (TFSAs)
As of January 1, 2023, Canadian residents who were 18 years of age or older in 2022 gain $6,500 worth of TFSA contribution room. Unused TFSA contribution room accrues and carries forward to future years. Again, it is best to review your CRA My Account to determine exactly how much you may contribute, although keep in mind CRA is often as much as one year behind in reporting TFA contributions on their website.
The cumulative historical contribution room available to any Canadian resident who was 18 or older in 2009 (the year TFSAs were introduced) is now $88,000.
In most cases, we recommend maximizing TFSA contributions to take advantage of tax-free investment growth, especially since TFSA withdrawals can be made any time without restriction or penalty. Remember though, if funds are withdrawn from a TFSA, such funds may only be re-contributed in subsequent calendar years.
Registered Education Savings Plans (RESPs)
RESPs do not have a maximum annual contribution limit, however the lifetime contribution limit for any one RESP beneficiary is $50,000.
To maximize the Canadian Education Savings Grant (CESG), RESP account holders should contribute $2,500 annually to the RESP for each plan beneficiary. This will earn the maximum available $500 Canada Education Savings Grant (CESG) — 20% of the contribution.
If “catch-up” contributions are needed, RESP account holders may contribute an extra $2,500 per year, per beneficiary, to capture one year’s worth of missed CESG ($500).
2022 Tax Filing Deadline
The deadline for filing individual tax returns is Monday, May 1, 2023. This is also the deadline to pay any taxes owed. If you are self-employed, the deadline to file is Thursday, June 15, 2022. See other related filing and payment deadlines here.
Canada Revenue Agency (CRA) My Account
If you haven’t already done so, we recommend registering for your CRA My Account. The account allows you to manage virtually all your tax affairs online. Benefits include tracking tax refunds, viewing or amending prior years’ returns, checking benefit and credit payments, viewing available RRSP & TFSA contribution limits, setting up direct deposit, receiving online mail, and more. Start the process or access your account here.