TFSA is an acronym for Tax-free Savings Account, which allows Canadians aged 18 and older with a valid social insurance number to make annual contributions, up to a specified limit. Starting from Janaury 1st, 2016, the annual contribution limit for TFSAs has decreased from $10,000 (in 2015) to $5,500. Previous contributions have not been affected therefore the accumulated contribution room through 2016 is $46,500. Be careful when making contributions as there is a 1% penalty

Changes to the CPP Withholding Tax Employers pay 4.95% of salaries into CPP, on a maximum of $54,900 of earnings per year, while the self-employed contribution rate is 9.9%. The government is implementing changes to the contribution rate and annual maximum. These changes will begin in 2019 and be fully implemented by 2025. The maximum amount of income subject to CPP will be increasing from $54,900 to $82,700. In addition, the contribution rate will increase to 5.95%, whi

Have you sold your house in 2016 or are you planning to? Effective for the 2016 personal tax year and subsequent tax years, the CRA is changing its requirements around reporting your principal residence. Under the old rules, if the property being sold was designated a principal residence for every year of ownership, the sale would not have to be reported on your tax return. The CRA will now require any sale of a principal residence to be reported under Schedule 3 of the selle