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Year-End Checklist for Canadians (Individuals & Businesses)

  • Writer: Arshya Mittal
    Arshya Mittal
  • Aug 16
  • 3 min read
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As the year comes to a close, it’s the perfect time to review your finances and take advantage of tax-saving opportunities before December 31. A little planning now can make a big difference when you file your return in the spring.





At Mittal CPA Professional Corporation, we’ve prepared this year-end tax checklist for Canadians to help both individuals and business owners save money and avoid surprises.

Year-End Tax Tips for Individuals


1. Maximize RRSP Contributions

  • RRSP contributions reduce your taxable income.

  • The deadline is 60 days after year-end (usually March 1), but making contributions now helps reduce 2024 taxes and gets your money invested sooner.


2. Use Your TFSA Contribution Room

  • Withdrawals are tax-free, but contribution room resets each January.

  • Consider maxing out your TFSA before year-end if you haven’t already.


3. Contribute to Your FHSA (First Home Savings Account)

  • New in 2023, the FHSA lets first-time homebuyers contribute up to $8,000 per year, with contributions tax-deductible like RRSPs.

  • Unused contribution room carries forward, but contributing now may lower this year’s tax bill.


4. Charitable Donations

  • Donations made before December 31 can generate a non-refundable tax credit of up to 75% of your net income.

  • Don’t forget to keep your donation receipts.


5. Review Capital Gains & Losses

  • If you’ve sold investments at a gain, consider selling losing investments before year-end to offset gains.

  • Capital losses can be carried back 3 years or forward indefinitely.


6. Income Splitting Strategies

  • If you have a spouse in a lower tax bracket, consider shifting income using prescribed-rate loans, spousal RRSPs, or pension splitting.


7. Medical & Child Care Expenses

  • Gather receipts now — eligible expenses may reduce your taxable income.

Year-End Tax Tips for Business Owners


1. Defer or Accelerate Income

  • If cash flow allows, delay invoicing until January to push income into the next tax year.

  • Alternatively, accelerate expenses (like equipment purchases) before year-end to reduce taxable income.


2. Pay Employee Bonuses Early

  • Bonuses paid before December 31 are deductible this year, even if employees report them next year.


3. Maximize CCA (Capital Cost Allowance)

  • Buy equipment, vehicles, or technology before year-end to claim depreciation sooner.


4. Owner Compensation: Salary vs. Dividends

  • Review whether to pay yourself via salary, dividends, or a mix.

  • Salaries create RRSP room, while dividends may lower payroll taxes.


5. Contribute to Employee Pension/Benefit Plans

  • Contributions made by December 31 are deductible in the current year.


6. Review GST/HST & Payroll Remittances

  • Ensure you’re up to date with CRA — late remittances trigger penalties and interest.


7. Plan for Losses

  • If your business had a loss this year, consider carrying it back to recover taxes paid in prior years.

Example: Individual vs. Business Savings


  • Individual Taxpayer:

    • Earns $90,000 in 2024.

    • Contributes $10,000 to RRSP before deadline.

    • Tax savings: $3,000+, depending on province.


  • Business Owner:

    • Corporation earns $200,000 profit.

    • Buys $40,000 in new equipment before year-end.

    • Claims CCA deduction, reducing 2024 taxable income and saving $5,000–$8,000+ in corporate tax.

FAQ: Year-End Tax Planning in Canada


When is the deadline for charitable donations?

December 31. Donations made after that date count toward next year’s return.


Can I still lower my 2024 taxes in January?

Only RRSP contributions made in the first 60 days of 2025 can be applied to your 2024 tax year.


Should I take dividends or salary from my corporation?

It depends on your situation. Salaries build RRSP room and CPP credits; dividends may lower payroll taxes. A mix often works best.


Do I need receipts for medical and childcare expenses?

Yes. CRA requires proof of all expenses claimed. Collect and organize receipts before tax season.


What if I missed deductions this year?

You may be able to carry forward certain deductions or losses. An accountant can review your options.

How Mittal CPA Can Help


Tax planning isn’t just for April — the best savings happen before December 31. At Mittal CPA Professional Corporation, we:

  • Provide year-end tax planning for individuals and businesses.

  • Review RRSP, TFSA, FHSA, and other savings strategies.

  • Advise on salary vs. dividend decisions for business owners.

  • Help reduce taxes through income splitting, loss carry-forwards, and expense planning.

  • Ensure compliance with CRA deadlines.


With the right year-end planning, you can save money now and set yourself up for a smoother tax season.


Looking for last-minute tax tips before December 31? Contact Mittal CPA Professional Corporation today — we’ll help you finish the year strong and maximize your tax savings.



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