Blogs & Comment

Increase your cash flow with T1213

Many Canadians look forward to getting tax refunds in the spring for RRSP contributions and other claims. There is nothing like getting a cheque for several thousand dollars from the government. Right?
Well, its kind of strange, actually. That money was theirs to begin with; in effect, they made an interest-free loan to the government and are just getting the principal back. Since when were interest-free loans grounds for celebration? That money could have been invested in stocks and earned an average of 5% or so last year. Or it could have been used to help make ends meet over the course of the year.
And there is no excuse for it! By filling out Form T1213 off Canada Revenue Agencys website, people can lower the amount of tax deducted off their pay cheques instead of waiting to get a refund in the spring .
In addition to RRSP contributions, the deductions (and non-refundable tax credits) they can claim on Form T1213 include: child care expenses, support payments, interest costs on investment loans, job expenses, charitable donations and rental losses from real estate (so I’m told).
So the deductions that can be claimedare not only large but several in number. One cangenerate a nice boost incash flow during the year by reducing tax deducted at source.