Accountants Mississauga - Free Tax & Accounting Tips

Accountants Mississauga offers free tax and accounting advice to individuals, businesses, investors, and the self-employed.

Make sure to ask your tax and accounting questions here and Accountants Mississauga will help you out.

Are you tired of paying too much tax? If yes, then this post is for you. Below, I will share the 5 best Tax Savings Tips for individuals:

1. Contribute to your RRSP - say Accountants Mississauga

While Registered Retirement Savings Plans (RRSP's) may seem like an 'old' concept, they're still an excellent tax savings tool. The major tax benefits of RRSP's are:

• Amounts contributed to a Regsitered Retirement Savings Plan (RRSP) are tax-deductible.
• In addition, the income and gains earned inside an RRSP are tax-free.

The maximum amount that you can contribute to your RRSP is the lesser of 18% of your prior year's earned income or $21,000, plus any unused RRSP contribution from from prior years.

2. Tax Free Savings Account (TFSA) - Approved by Accountants Mississauga

TFSA's are a relatively new tax product, that offer Canadians with an innovative way to earn investment income tax-free. That is, any income earned inside a TFSA is not subject to tax.

TFSA's can be invested in many types of financial products, not just savings accounts. For example, you can hold stocks, bonds, and GIC's inside a TFSA.

Unlike an RRSP, amounts contributed to a TFSA are not tax deductible.

The maximum annual contribution limit for a TFSA is $5,000.

3. Child care expenses

Child care expenses are amounts paid by a parent to a child care provider, such as a baby-sitter, day-care, or camp.

Child care expenses must be deducted by the lower income spouse.

You must complete Form T778, Child Care Expense Deduction for 2009, in order to receive the tax deduction.

4. Tax Return Preparation Fees

Fees paid to your Mississauga accountant to prepare your personal tax return are tax-deductible from:

• business income, if you are a sole proprietor and operate a business
• investment income, such as interest or dividends

5. Employment Expenses

Expenses related to your employment that you paid for may also be deducted on your tax return in certain situations. You must have your employer complete Form T2200, Declaration of Conditions of Employment to support your expense claim.

Deductible employment expenses include:

• Trade tools
• Vehicle expenses
• Meals & entertainment (commission employees only)
• Home office expenses
• Salary or wages to an assistant
• Supplies

About the Author, Accountant Mississauga

Allan Madan is a Chartered Accountant in Mississauga who helps individuals and businesses with their tax and accounting needs. To learn more about Allan Madan, please see http://madanca.com