9 Tips to Pay Less Income Tax in Toronto

 You need to pay your income tax in Toronto before the deadline; otherwise, you will be penalized for this default from the CRA (Canada Revenue Agency). No one likes paying taxes, but as a responsible resident of Canada, you should pay taxes. Nonetheless, you can pay less income tax if you keep the following 9 tips in your mind as a taxpayer:



  1. You can miss out on credit for charitable deductions that you should not. Always have receipts with you that you can utilize by checking your email for those.


  1. Donate stock with accrued capital goals instead of cash. It will help you get a contribution credit for the fair market value of your bestowed stock.


  1. Keep contributing to your RRSP (Registered Retirement Savings Plan) to lower your taxable income and taxes payable simultaneously.


  1. Create a spousal RRSP if you are married to pay lower taxes at the time of retirement with a split income strategy.


  1. Always keep track of your medical expenses so that you might be able to claim tax credits for some of those expenses.


  1. As a home-based business owner, deduct the percentage of your mortgage interest or rent, besides utilities, from taxes. Determine how much costs you can write off.


  1. If you become disabled with ageing, you can have health issues; thus, apply for a disability certificate from the CRA to qualify for additional tax credits and claim retirement residence costs.


  1. Deduct your travel and moving expenses on your personal tax return if you are located more than 40 km away from your last workplace.


  1. Withdraw assets while retiring, attracting the least amount of tax, or withdraw your spouse’s assets if those assets are in a significantly lower tax bracket.


Conclusion:-


You can pay income tax in Toronto and pay the least money if you know how you can reduce the burdens you have for it. Keeping the receipts of charitable donations, RRSP contributions, and knowing how much costs you can write-off help you save your money with income tax payments in Canada. 

Author Bio:-

Sohail Afzal is a CMA (Certified Management Accountant) and the Founding Partner of a professional accounting firm, GTA Accounting. He understands the needs of small-scale businesses & corporations and offers them tax advice to overcome their tax burdens. He is a professional author who often writes articles related to accounting.


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