Canadian Tax Preparation & Bookkeeping Tips

  Post-secondary education can be expensive, but the Canadian tax system provides some relief through the Tuition Tax Credit . If you paid eligible tuition fees during the year, you may be able to reduce the income tax you owe — or transfer part of the credit to a parent, spouse, or grandparent. This guide explains who can claim the credit, what fees qualify, and what options exist if you don’t need the credit right away. What Is the Tuition Tax Credit? The Tuition Tax Credit is a non-refundable tax credit . This means it reduces the amount of tax you owe but does not create a refund on its own if you have no tax payable. The credit is calculated by multiplying your eligible tuition amount by the lowest federal tax rate (15%) . A provincial credit may also apply depending on your province of residence. Students receive a tuition slip from their school that reports the eligible amount. Common tuition slips include: T2202 – Tuition and Enrolment Certificate (Canadian institutions...

Saving money is great — but saving the right way can make a big difference at tax time. In Canada, three popular accounts help you grow your money while reducing taxes: TFSA RRSP FHSA While they all allow tax-free growth , each one has a different purpose. Here’s how they work — in simple terms. Comparison of TFSA, RRSP & FHSA Bookmark this page or save this graphic  as a quick reference for TFSA, RRSP & FHSA TFSA — Tax-Free Savings Account What it’s for A TFSA is best for flexible savings . You can use it for emergencies, investing, travel, or future plans. Key features Money grows tax-free Withdrawals are tax-free Take money out anytime, for any reason Contribution rules Annual limit set by the government Unused room carries forward Withdrawals create new room in future years Tax impact Contributions are not deductible Withdrawals do not affect your taxes Best for Beginners Emergency savings Short- and medium-term goals RRSP — Registered Retirement Savings Plan What it’...