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2020 Tax Season Tips

    We appreciate your business and thank you for banking with us. Helping you achieve your financial goals is important to us, so we are reaching out with some helpful information we hope you find useful as we begin the new year.

    Registered Retirement Savings Plan (RRSP)

    The deadline for making contributions to your RRSP is Ma‍r‍ch 1, 20‍21. The 20‍20 RRSP dollar limit is $27,230*, while the limit for 2021 is $27,830. It is always a good practice to verify your exact contribution limit. You can do this by reviewing your 2019 Notice of Assessment.

    Tax-Free Savings Account (TFSA)

    The TFSA dollar limit for 2021 remains unchanged at $6,000. If you have yet to contribute to a TFSA, you will have $75,500 in contribution room assuming you have been a resident in Canada and over age 18 since 2009 (the year TFSAs came into effect).

    Tax season key dates for this coming year:

    ➡️ February 22nd, 2021 - NETFILE (an electronic tax-filing service) opens for electronic filing of your 2020 tax and benefit submissions.
    ➡️ March 1st, 2021 - The last day to contribute to your RRSP for the 2020 tax year.
    ➡️ April 30th, 2021 - The last day to submit all tax forms for Canadians that are not self-employed.
    ➡️ June 15th, 2021 - The last day to submit all tax forms for self-employed Canadians.

    As always, we are here to answer your questions or to discuss your savings and investing needs. Please feel free to contact us.

    Wishing you a happy, healthy and prosperous 2021.

    *The RRSP deduction limit is 18% of "earned income” in the previous year, up to a maximum of $27,230 (in 2020), minus any pension adjustment or past service pension adjustment, plus any pension adjustment reversal and unused contribution room from previous years.


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