Personal Investor: Tax planning through your CRA account
No one knows more about your tax situation than the Canada Revenue Agency. Yet, we tend to avoid the CRA for that very reason.
As taxpayers, we tend to forget the CRA – and all that information they have on us – belongs to us.
Anyone who pays federal tax can go directly to the source through a secured, personal online account.
Individuals can access past returns, statements, updated assessments, T-slips or have ongoing dialogue.
They can also find how much they have contributed to their registered retirement savings plans (RRSP) and tax free savings accounts (TFSA), and avoid nasty penalties by finding out how much contribution space they have left.
Starting this year, personal online accounts include information on Canada Pension Plan (CPP) contributions and benefits – great tools for retirement planning. You can find out how much you have contributed throughout your working life and what you can expect to collect at age 60, 65 or 70.
The CRA also provides details on disability and death benefits, and you can even apply for CPP through the website.