Taking advantage of these deadlines can result in long-term savings of tens of thousands of dollars in the new year.
After a turbulent 2022, investors are looking ahead to 2023, which will bring four crucial opportunities that will allow Canadians to retain a larger portion of their tax money in their own pockets.
JANUARY 1: TFSA CONTRIBUTION LIMIT EXTENSION
The TFSA is an ideal investment tool as gains are tax-exempt and funds can be withdrawn at any time. To account for inflation, Ottawa has increased the annual TFSA extension limit for 2023 from $6,000 to $6,500. If you withdrew money from your TFSA in 2022, that contribution space can also be reclaimed in 2023. The TFSA does not have a contribution deadline, and allowable space can be applied to future years for those who don’t contribute the maximum amount.
MARCH 1: RRSP CONTRIBUTION DEADLINE
You must contribute to your RRSP by March 1 in order to deduct contributions from your 2022 taxable income. The more income you generated in 2022, the larger your tax savings will be, as they are calculated on your personal marginal tax rate. If your 2022 income was low, a TFSA contribution may be a better choice – and if you wish to add to both accounts, consider contributing to your RRSP by March 1 and putting the refund in your TFSA.
APRIL 1: THE LAUNCH OF THE FHSA
As of April 1, first-time potential homebuyers under 40 years old can invest up to $40,000 total (or $8,000 each year) tax-free toward the purchase of a property through the First Home Savings Account (FHSA). The federal government’s new assistance program combines the tax perks of an RRSP and TFSA, meaning contributions can lead to tax refunds, but contributions and gains are never taxed. FHSA funds can be withdrawn at any time and are converted to normal RRSP savings if not used toward a new home by age 40.
APRIL 30: INCOME TAX DEADLINE
The dreaded April 30 deadline does come with options for moving more tax dollars into your investment portfolio. To receive tax refunds from RRSP contributions made prior to March 1, deduct these from your taxable income when you file. Include any other deductions or credits amassed over the year, and all dividend, capital, or income gains from non-registered investment accounts. Capital losses can be applied against capital gains carrying back three years or forward indefinitely.
To read our full disclosure, please click on the button below:
 stock is held by institutions and Eric Sprott){kind=link}