Urgent: Do This Before Dec 31 to Cut Your Taxes in Canada

[@gaapsite]

RRSP doesn't CUT your tax bills. It just defers your taxes. You'd still be paying taxes at the time of withdrawal from RRSP.

[@LivinginCanada]

It does cut your immediate (next) tax bill. True, you still need to pay taxes at the time of withdrawal, but in many cases it can still be beneficial to have access to the resulting tax refund (if any) earlier.

[@VLAXIN]

and most importantly, do not forget to have a good source of income first!!

[@LivinginCanada]

Definitely!

[@GauSreeku]

Thanks for the info 👍

[@LivinginCanada]

Cheers!

[@joellexaverie9703]

You need to have the money to contribute to your RRSP.

[@LivinginCanada]

That's right!

[@oanairani41]

TFSA is always a better investment than any RRSP. Most people make more money in the later working years, and that's the time to invest in your RRSP.

[@nickstark8479]

Wouldn't say always. Anyone that's in the 40-50% higher tax brackets should at least consider prioritizing the RRSP... Especially considering you forever lose the contribution space, whereas you are always building space in your TFSA whether you add to it or not.

[@sammutphil]

You do not lose the tax space with the rrsp. ​@@nickstark8479

[@LivinginCanada]

@oanairani41 That makes sense if a person actually makes more money later. But I would consider the opportunity cost of investing earlier.

[@oanairani41]

@nickstark8479 You don't lose the contribution room if you don't invest every year, it's cumulative from year to year. I don't know anybody that pays 50% tax in their 20s or 30s. If they do, I am sure they'll have a comprehensive tax plan and won't read our comment section. But you are right, you should prioritize RRSP over TFSA if you are in that tax bracket.

[@VideoAssociates]

canada is resource rich like Australia, but over taxed and over populated, our Govts have abandoned the notion of the wealth under our feet, the oil, gas, minerals, gold and gems, belonging to the people, not corporate interests

[@charron1]

RRSP does not save you any taxes. It just defers your taxes. If your RRSP portfolio grows, you will end up paying higher taxes anyway.

[@LivinginCanada]

Deferring is correct, but deferring can have an advantage, if the resulting refund is used properly!

[@okayyes2429]

Thanks. I didnt know the details about the Charity deduction (I was aware of it but never really got into it).

[@LivinginCanada]

Awesome!

[@andersonmancilla7074]

Amazing information. Thank you 😊

[@LivinginCanada]

Thanks, happy this was useful! :)

[@kamel7897]

Waiting for a paid collaboration with Wealthsimple. You deserve it !

[@LivinginCanada]

Haha, thanks! :)

[@bilalification]

$500 every year for RESP was new to me along with superficial loss.

[@LivinginCanada]

Thanks for letting me know!

[@GlobalPath]

The best advice is to move to Asia or Dubai and live and work remotely. And don’t pay 25-40% tax

[@sachininakandala1662]

Thank you for this video!! It’s very helpful! I have a quick question for you - would you be doing a video (in the the future) that shows how to do taxes by yourself? I have always gone to a tax clinic but now, I think I should just really start learning to do it by myself. Thanks in advance!

[@LivinginCanada]

Glad you found it useful! I will consider it for next year. I usually use turbotax and it's not too complicated actually. Cheers!

[@chiagozieoyeka6250]

Thanks for this insightful vid.i Really learn a lot from your channel. Can you do a vid showing how to file taxes using wealth simple?

[@LivinginCanada]

@chiagozieoyeka6250 I haven't used Wealthsimple for tax filing yet. But perhaps in the future!

[@Saaaa2324]

@@chiagozieoyeka6250it’s super simple, I encourage you to try it! Very user-friendly, I’ve been using their platform for about a decade.

[@overthechemtrailsky5930]

I use taxtron it’s free and easy

[@JayB-JayB]

😂❤ awesome channel!!

[@LivinginCanada]

Hey thanks! :)

[@carolkoussaya1543]

Well when you have a company pension you cannot contribute that much to an RRSp

[@julsh9776]

I'm so hesitant to contribute to a RRSP as I will have a provincial and federal pension as well as a rental income.

[@LivinginCanada]

Have you considered contributing to a TFSA? (If that's not maxed out yet :) )

[@julsh9776]

@@LivinginCanada yes. I'm contributing 20% of my gross income toward my TFSA. It is not maximized yet but I'm working on it.

[@parampreetmib2011]

I have been thinking of putting money in RRSP, but the fact is the markets are so uncertain and overly inflated as of now... you're bound to lose a good amount of your invested money in the next year...once it deflates it might be agood option but is it now?

[@LivinginCanada]

Tax todos aside-what are you wonderful people planning to do this year end? I'm so looking forward to take a week+ off. During this time, apart from celebrating Christmas, I love getting ready for the new year. That means cleaning up my space, reviewing my year, counting my blessings, and plotting my actions for the New Year! 🤩🎉 Definitely going to also closely watch Bitcoin's movements and continue DCA throughout the end of the year into the next year!

[@ashihtaka]

Enjoy the weather!!

[@moniryousefian8782]

Could you please share which meme coin is your favorite and you'll be planning to buy soon ? Many Blessings and Merry Christmas ❤

[@LivinginCanada]

I only buy bitcoin, as an investment :) If I should buy any other coins, it would only be a very very small amount.

[@farn451]

I really wish I could understand this stuff, I really do. Having dyscalculia really sucks, it makes understanding things like this almost impossible for me.

[@LivinginCanada]

It must be tough! Hope you can find a way to understand a tiny bit each day, over the long term it will amount to a lot, cheers!

[@uncili]

Thank you for the video. What about maximizing the RRSP with a HELOC, getting tax refunds, investing in a TFSA and paying back the HELOC during 2025 ?

[@LivinginCanada]

Thanks for watching! Personally, I'm not a fan of this. Especially with rates, including HELOC rates being rather high.

[@thecensorguy1237]

I got paid for a freelance work , he paid me via a HR platform which is linked to my SIN number , how can i reduce the tax i need to pay on that amount when i file my taxes? it was around 6000. Thank you in advance !

[@LivinginCanada]

***Disclaimer: I'm not a tax advisor/consultant, but here's what I know: That income will be part your overall income (I assume you're not incorporated), so it will be added to your employment income (I assume you are employed too). You'll need to report everything in your tax filing (Deadline April each year). As part of that, you can report the expenses that are related to performing that freelance work (related to getting the $6,000), and part of it could be deducted from your income. Make sure you keep all related receipts as proof. I would recommend doing your taxes with the help of a tax consultant so you can get detailed advice on what you can deduct. You can also use platforms like turbotax and use they're advisory service (there's a direct link to speak to someone so you can ask questions to optimize your tax filing). All the best!

[@Night-Shade.]

Can you elaborate on the 15 years thing for FHSA? With the rising prices of homes and the state of the housing market, idk if 15 years is enough time to accumulate funds. What happens after 15 years if I don't have enough funds to make a down payment for the house that I want?

[@LivinginCanada]

I see your concern! I would aim to save up the $40,000 in an FHSA much earlier, because you're right, if you wait until 15 years from now (2040!) who knows how much homes will cost, and $40,000 might be a tiny fraction of what you need for a downpayment. If possible, aim to get the downpayment together much earlier, say in 5 years, so you can get into the housing market (if that's your goal!) before prices get more crazy.

[@xxgg]

So maximize the RRSP to get more tax refund? Than put that refund into TFSA?

[@LivinginCanada]

You can do that, if you've established that now is the right time to contribute to your RRSP (the income change considerations I mentioned in the video vs. opportunity costs). The tax refund you can put in any registered account you like as long as there's still contribution room. Cheers!

[@Freedomjustice-DC]

Actually. Until this govt is changed out and can prove to me they can spend my taxes properly. I quit paying them. Done

[@adilashfaq1]

Does wealthsimple do the RRSP company matching?

[@LivinginCanada]

RRSP matching is offered by some companies. It's a benefit of a company. Usually, of they have the matching program, you would pay in part of your salary, e.g. 2% or whatever they're offering into a Group RRSP (they will give you the details, and oftentimes it will be deducted directly from your paycheck), and then match the amount.

[@adilashfaq1]

@LivinginCanada thank you. Do you also think is it easy to take money out of FHSA account in Wealthsimple whenever we want or do we have to wait till $40 k limit?

[@LivinginCanada]

You don't have to reach the 40k limit to take out money, but for it to be tax-free, it has to be used for a 'qualified home'.

[@markjmiranda]

🙌🏼🙌🏼🙌🏼

[@LivinginCanada]

Thanks!

[@ArjunJayakrishna]

Great video! Weirdly though, it shows that there are more likes than views on this video! (6.2 K vs 7.7 K)

[@LivinginCanada]

Thanks so much! Yes, I noticed that! I hope it's just a glitch or the view counter lagging behind the likes. Btw, it's 7.8 views on my dashboard but yes, the likes were there early on. I'm just hoping I didn't get hit by another wave of bots like last year :)

[@Xmenak1]

Any good experienced accountants you can recommend that does both crypto, stocks and your general employment income.

[@LivinginCanada]

I don't know, sorry! So far we've been doing taxes ourselves + through the help of a turbotax advisor available through their app.

[@oanairani41]

@Xmenak1 Why do you need an experienced and good accountant for? You just have employment income and capital gains to declare...there is no need for tax planning. You just have to report your income. Any bookkeeper or tax service can help you. Nobody can save you dollars in this situation, you will just have to pay double for the same service.

[@VintageGarden-e9d]

😂 tax tax tax ... I am leaving this tax land 😂

[@robsremz]

As a work permit holder who has applied for Permanent Residency (PR), am I eligible to open a First Home Savings Account (FHSA)? If yes, what are the implications if I return to my home country without obtaining PR and decide to use or transfer the FHSA funds?

[@LivinginCanada]

You don't have to have PR to open an FHSA. The only requirements are being a Canadian resident with a SIN and being above 18. If you withdraw funds from your FHSA and not use them for a qualified home purchase in Canada, then the money would become taxable income (in which case it would likely negate the previous tax benefits you got) In that case I would consult a tax advisor to get precise details for your situation. Cheers!

[@BotMan006]

How’s the PR going I heard it’s it’s hard now?

[@amaanyahya8625]

1300 views 7.6k likes. I think people really like your content.

[@LivinginCanada]

Something's not adding up here😂. I hope my channel is not targeted by bots, as in the past my channel got hit by by the invalid content bug. But could also be a massive lag between views and likes. As it shows 1,300 views on your end, I have 3,000 views logged in my analytics!

[@amaanyahya8625]

@@LivinginCanada I guess it's just a KZbin glitch. Btw I wanted to ask typically how long it takes to make a video from scratch?

[@LivinginCanada]

Pretty sure it is :) Great question. Depends on how complicated the content is, anything from a total of 8-15 hours I would say! But there are many KZbinrs who take less time, e.g. 5 hours, especially those who just go for it and record without script and not do much editing. I like to take my time with each video, and that means developing the idea and concept for the video, scripting, recording, and then editing it to make it enjoyable to watch!

[@overthechemtrailsky5930]

No no no to RRSP it’s a trap don’t do it! TFSA nice! RRSP bad!!!!

[@LivinginCanada]

Both are good depending on how it's used. Especially if the TFSA is maxed out, I would definitely fill up the RRSP next.

[@darkscope2]

thats it?

[@LivinginCanada]

The basic ones, yes! Feel free to add more points!

[@da3592]

what about if I contribute to tfsa account,can I get tax deduction when I am filing tax return?

[@LivinginCanada]

Contributing to a TFSA doesn't reduce your taxes. What it basically does is give you tax-free investment growth within the account, hope that helps!

[@geraldramos5770]

Thank you for the info ❤

[@LivinginCanada]

You're welcome! :)