Year-Round Tax Planning Calendar
Treat this calendar as your strategy layer, then use how to pay less tax in Canada and the tax deductions checklist to build your action list for your own return.
Before filing, pressure-test your numbers with the income tax calculator and use the year-end tax planning checklist to sequence actions.
| Month |
Action |
| January |
Review prior year strategy, make final RRSP contribution (deadline March 1) |
| February |
Gather tax documents (T4, T5, T3, RRSP receipts) |
| March 1 |
RRSP contribution deadline for prior tax year |
| April 30 |
Personal tax filing deadline |
| June 15 |
Self-employed filing deadline (tax still due April 30) |
| September |
Mid-year tax review, adjust installments if needed |
| November-December |
Tax-loss harvesting, make charitable donations |
| December 31 |
TFSA/FHSA contributions, last day for other deductions |
Strategy 1: Maximize Registered Accounts
| Account |
Annual Limit |
Tax Benefit |
Best For |
| RRSP |
18% of income (max ~$32,490) |
Tax deduction now, taxed on withdrawal |
High earners expecting lower retirement income |
| TFSA |
$7,000 (2024-25) |
Tax-free growth and withdrawals |
Everyone — flexible tax-free investing |
| FHSA |
$8,000 |
Tax deduction + tax-free withdrawal for home |
First-time home buyers |
| RESP |
$2,500/year (for 20% grant) |
CESG grant + tax-deferred growth |
Parents with children |
Optimal RRSP vs TFSA Decision
| Situation |
Better Choice |
| Marginal rate over 30% now |
RRSP (deduction worth more now) |
| Marginal rate under 25% |
TFSA (save deduction for higher-income years) |
| Variable income year to year |
RRSP in high years, TFSA in low years |
| Expect higher income in retirement |
TFSA (avoid higher tax on RRIF withdrawal) |
Strategy 2: Income Splitting
Methods Available
| Method |
Who Can Use |
How It Works |
| Spousal RRSP |
Any couple |
Contribute to spouse’s RRSP, claim deduction |
| Pension income splitting |
65+ (or any age with DB pension) |
Allocate up to 50% to spouse |
| CPP sharing |
Couples 60+ |
Share CPP based on years together |
| Prescribed rate loan |
High earner → lower-income spouse |
Lend at CRA prescribed rate (currently 4%) |
| RESP contributions |
Parents/grandparents |
CESG returns to child’s account |
| TFSA contributions |
Give spouse money to contribute |
Growth is tax-free regardless |
| Hiring family in business |
Self-employed/incorporated |
Pay reasonable salary to family members |
Prescribed Rate Loan Example
| Detail |
Amount |
| Loan to spouse |
$200,000 |
| CRA prescribed rate |
4% (must pay annually) |
| Interest payment to lending spouse |
$8,000/year (taxable to lender) |
| Investment return (7%) |
$14,000/year (taxable to borrowing spouse) |
| Net income shifted |
$6,000/year |
| Tax savings (~20% bracket difference) |
~$1,200/year |
Strategy 3: Tax-Loss Harvesting
| Step |
Action |
| 1 |
Identify non-registered investments with unrealized losses |
| 2 |
Sell to crystalize the loss |
| 3 |
Use loss to offset capital gains this year |
| 4 |
Carry back unused losses 3 years or forward indefinitely |
| 5 |
Wait 31+ days before repurchasing (superficial loss rule) |
Superficial Loss Rule
| Action |
Allowed? |
| Sell ETF, wait 31 days, buy same ETF |
✅ Yes |
| Sell XIC, immediately buy XIU |
⚠️ Grey area (similar but not “identical”) |
| Sell ETF, buy back next day |
❌ No (loss denied) |
| Sell in non-reg, buy in TFSA within 30 days |
❌ No (loss denied permanently) |
| Spouse buys same investment within 30 days |
❌ No (affiliated person rule) |
Strategy 4: Capital Gains Timing
| Strategy |
Details |
| Defer gains to next year |
Sell after December 31 to push gains to next tax year |
| Realize gains in low-income year |
Sabbatical, parental leave, or between jobs |
| Donate appreciated securities |
Zero capital gains tax + donation credit |
| Use capital gains reserve |
Spread gain over up to 5 years on qualifying sales |
| Trigger gains at death (planning) |
Consider pre-death gifting or insurance |
Strategy 5: Medical Expense Optimization
| Tip |
How It Saves |
| Choose best 12-month period |
Any 12-month period ending in the tax year |
| Lower-income spouse claims |
Threshold (3% of income) is lower |
| Combine family expenses |
One claim for you + spouse + dependents |
| Prepay December expenses |
Bunch into optimal 12-month window |
| Private health insurance premiums |
Fully eligible as medical expenses |
Strategy 6: Charitable Donation Optimization
| Strategy |
Benefit |
| Bunch donations in one year |
Get past $200 low-credit threshold |
| Donate appreciated securities |
No capital gains tax + full credit |
| One spouse claims all |
Maximizes credit rate |
| Donate in highest income year |
33% rate if income over $240K |
| Name charity as RRIF beneficiary |
Offsets final return income inclusion |
Strategy 7: Business / Self-Employment
| Strategy |
Benefit |
| Incorporate (income $100K+) |
Small business rate (12.2% federal on first $500K) |
| Individual pension plan (IPP) |
Larger tax-deductible contributions than RRSP |
| Year-end expense timing |
Accelerate expenses, defer income |
| Automobile deduction |
Business-use portion of vehicle costs |
| Home office deduction |
Proportional home costs |
Incorporation Tax Deferral
| Scenario |
Without Corp |
With Corp |
| Business income |
$200,000 |
$200,000 |
| Personal tax rate |
~43% |
— |
| Corporate tax rate |
— |
~12.2% |
| Tax on $200K |
$86,000 |
$24,400 |
| Tax deferred |
|
$61,600 |
Note: Tax is deferred, not eliminated. Tax applies when dividends are paid out (integration principle).
Strategy 8: Education and Training
| Credit |
Details |
| Tuition tax credit |
15% federal on tuition paid |
| Canada training credit |
Up to $250/year (ages 26-65) |
| Student loan interest |
15% federal credit on interest paid |
| Employer-funded training |
May be non-taxable benefit |
| Moving for school |
Moving expenses deductible if 40+ km |