Medical expenses are one of the most commonly overlooked tax credits in Canada. Many people assume they won’t qualify, but when expenses are properly tracked and timed, the credit can be surprisingly valuable.

You can combine and claim eligible medical expenses for yourself, your spouse or common-law partner, and dependent children under 18. These include items such as dental work, prescription medications, vision care, physiotherapy, psychological services, mobility aids, and many others.

The key is strategy and timing. Medical expenses can be claimed for any 12-month period ending in the tax year, as long as they haven’t been claimed before. This means it often makes sense to group large expenses into a single 12-month window rather than adhering to calendar years. By doing so, you increase the chance that total expenses exceed the threshold required to generate a credit.

In most cases, it’s best for the lower-income spouse to claim medical expenses, due to the way the credit is calculated. Proper planning and record-keeping can turn everyday health costs into real tax savings.

A common question is, “How much should I contribute to my RRSP?” The simple answer is: it depends. RRSPs are powerful because contributions are tax-deductible and growth is tax-deferred. However, contributing the maximum every year isn’t always the optimal strategy. The real goal is to “right-size” your RRSP contributions.

One important consideration is your current and future marginal tax rates. RRSPs work best when you contribute while in a higher tax bracket and withdraw when you’re in a lower bracket. Contributing too much when your income is modest can reduce flexibility later.

Another key reason to right-size RRSP contributions is the impact on income-tested government benefits. Programs such as the Canada Child Benefit (CCB), Old Age Security (OAS), and Guaranteed Income Supplement (GIS) are based on net income. Strategic RRSP contributions can lower taxable income enough to preserve or increase these benefits.

In some cases, contributing just enough to stay below a key income threshold can produce a better overall outcome than maximizing contributions indiscriminately. Thoughtful RRSP planning is about achieving balance, not just maximizing deductions.

Charitable giving is often driven by personal values, but when structured properly, it can also be one of the most tax-efficient strategies available. If you hold publicly traded securities that have increased in value, such as stocks, ETFs, or mutual funds, donating them directly to a registered charity can be far more effective than donating cash.

This is because when you donate appreciated securities in kind, you eliminate the capital gains tax entirely. At the same time, you still receive a charitable donation tax credit based on the full fair market value of the securities at the time of donation.

This creates a powerful double benefit: No capital gains tax on the increase in value, and a meaningful tax credit that can offset other income. This strategy is especially effective for individuals with non-registered investment accounts and a desire for charitable giving. Instead of writing a cheque, you can use assets you already own to support causes you care about while significantly improving the tax outcome.

Not all Registered Retirement Savings Plan (RRSP) contributions are created equal, and where you contribute can be just as important as how much you contribute. Three common options include:

• Individual RRSP – This is the most flexible and most common, and is typically used when you're single or when you and your spouse or partner expect to have similar levels of retirement income.
• Spousal RRSP – a spousal RRSP allows the higher-income spouse to contribute while building retirement assets in the lower-income spouse’s name. This can be a powerful income-splitting strategy in retirement.
• Workplace Group RRSP – Employer group RRSP plans often include matching contributions, which is essentially free money. These plans should usually be prioritized, even if flexibility and investment choices are more limited.

Choosing the right structure helps ensure that retirement income is taxed efficiently and aligns with long-term family goals.

Many Canadians frame the savings decision as RRSP versus Tax-Free Savings Accounts (TFSAs). In reality, the most effective approach for most people is using both. RRSPs and TFSAs serve different purposes:

• RRSPs provide an upfront tax deduction to lower your taxable income, and provide tax-deferred growth.
• TFSAs offer tax-free growth and tax-free withdrawals, with no impact on income-tested benefits.

Rather than choosing one exclusively, consider how they work together. RRSPs are often ideal during high-income earning years, while TFSAs provide flexibility and tax-free income in retirement.

TFSAs are particularly valuable for retirees because withdrawals don’t increase taxable income and won’t affect benefits such as OAS. For younger investors, they can also serve as a flexible savings tool for future goals like home purchases, career breaks, or business opportunities.

An “and” mindset allows you to maximize not just your investments, but your tax strategy as well.