As the year comes to an end, it’s a perfect time to review your financial decisions and make strategic moves to enhance your financial wellness. For Gen Z and women—groups with unique financial landscapes—this guide provides actionable tax planning strategies to help maximize savings and build a solid financial future.

Why Year-End Tax Planning Matters

Year-end tax planning can help reduce your tax bill and increase your ability to save. Whether you're managing investments, preparing for life changes, or saving for a big goal, careful planning now can set you up for success in 2025 and beyond.

Key Tax Deadlines to Remember

1. **December 31, 2024**
- Payments for charitable donations, medical expenses, and RRSP contributions (if you turned 71) are due by this date.
- Consider making any planned TFSA withdrawals by December 31, as this allows you to re-contribute the same amount next year without affecting your limit.

2. **January 30, 2025**
- Family income splitting loans: Ensure interest payments are made to manage tax benefits effectively.

3. **March 1, 2025**
- Last day for RRSP contributions for 2024, whether personal or spousal. This is especially important if you’re saving for retirement or aiming to lower your taxable income.

Investments: Maximizing Your Growth

**TFSA Contributions**
TFSAs are a flexible, tax-free way to save. For 2024, the contribution limit is $7,000. If you’re 32 or older and haven’t yet contributed, you may have up to $95,000 in unused space. Use this opportunity to grow investments tax-free.

**Handling Capital Gains and Losses**
If you have stocks or funds that have lost value, consider selling them to offset other capital gains. Remember the “superficial loss rule,” which requires you to wait 31 days before repurchasing any sold assets.

**The New Capital Gains Inclusion Rate**
If you’re planning to sell profitable investments, consider that gains over $250,000 are now taxed at a higher rate. Consult a tax advisor to understand how this could affect you and if you should make any moves before year-end.

Family Planning and Financial Moves

**Moving to a New Province**
Your tax rate depends on where you live on December 31. If moving to a province with a lower tax rate, consider doing so before year-end.

**Saving for Your First Home**
Open a First Home Savings Account (FHSA) to save up to $40,000 tax-free if you’re a first-time homebuyer. It’s a great way to get closer to homeownership while enjoying tax benefits.

Retirement Planning Tips

**Max Out Your RRSP**
Contributions to an RRSP can reduce your taxable income, giving you an immediate tax benefit. The 2024 limit is $31,560, and it’s a particularly useful tool if you’re looking to grow retirement funds while saving on taxes.

**Consider a Spousal RRSP**
If you expect your spouse to be in a lower tax bracket upon retirement, contribute to a spousal RRSP. This can reduce the overall taxes you pay on retirement income.

Additional Year-End Opportunities

**Charitable Donations
Contributions to charities not only support important causes but can also provide valuable tax credits. Make sure you get your donations in before December 31 to claim them on this year’s return.

**RESP for Children**
Contributing to a Registered Education Savings Plan (RESP) for a child provides a 20% government match on your contributions. If you’re planning to save for a child’s education, maximize this grant annually to grow their future educational funds.

Wrapping 2024 Up

Year-end tax planning doesn’t have to be overwhelming. This guide aims to make tax tips accessible and actionable. Take advantage of tax benefits and optimize your financial position to make 2025 your best financial year yet. For personalized advice, consult with a tax advisor who understands your unique financial situation.

Your Financial Future Starts Now!