There are certainly a lot of new expenses that have to be faced when starting out as a married couple. You most likely still have some bills left over from the wedding and used a good amount of your savings for your honeymoon. Now you have to think about your tax obligations as a couple.
Hopefully you received many nice gifts as wedding presents that are wonderful for saving you from the home set up costs, no matter whether you are living in an apartment or planning to buy your first home. The one thing that you want to do is learn right from the start of your new relationship as a married couple is how to work together as a team to keep your taxes down.
Ideally getting an RRSP up and running is the first step if you haven’t already done so. This is a quick way of reducing your immediate tax obligation for your current tax return. You may also want to consider a spousal RRSP contribution if your partner is in a low income bracket. Chances are if you are not aware of this tax saving opportunity that you have missed the deadline. However, it is never too later to become involved in this type of investment and it is something that you can keep in mind for next year.
Many newlyweds start out with apartment living and big dreams of owning their own home one day. It can be a little different when making the transition of now living as a couple to set up a savings plan. You may want to look into the homebuyers plan. It is very similar to the RRSP in that your contributions into are tax deductible. Jointly as a couple you could contribute until you reach the maximum, and then withdraw this tax free to use as your down payment on your new home.
Planning ahead doesn’t always mean it is for major purchases like a home. You may be thinking of starting a family in the near future. You can never start too early with planning for the education of your youngster. Along with a child come a lot of extra expenses but if possible you will want to contribute to the RESP plan. Now the difference here is that these contributions are not tax deductible, but there are future tax benefits. Meaning, that as this amount grows, and when the time comes to withdraw it, then that amount is tax free. This amount grows by the compounding interest plus the government will match a portion of the amount up to a yearly limit.
Do your taxes as a married couple, especially for the first year can be a little daunting and frustrating. Think about using a quality Toronto tax accountant to help you complete your tax returns so they are done correctly and also to introduce you to the many changes that will now occur with your tax obligation. Give us a call here at 416-398-1700 and let us get your first tax year as a married couple off to a good start.
