Question 1

How do RRSP contributions reduce my taxes?

Accepted Answer

They reduce your taxable income dollar-for-dollar, lowering the amount of income tax you pay.

Question 2

What’s the difference between an RRSP and a TFSA?

Accepted Answer

- RRSP: Tax-deductible contributions; withdrawals are taxed.- TFSA: No tax deduction; withdrawals are tax-free.

Question 3

How much can I contribute to RRSP/TFSA each year?

Accepted Answer

- RRSP: 18% of prior year’s earned income, up to $32,490 for 2025.- TFSA: $7,000 limit for 2025 (lifetime room accumulates if unused).

Question 4

Do I need to file a tax return if I made no income?

Accepted Answer

Not required, but filing can allow you to access benefits/credits (e.g., GST/QST credits, CCB).

Question 5

How are capital gains taxed?

Accepted Answer

Only 50% is taxable. Gains in RRSP/TFSA are sheltered. Your principal residence is exempt if it meets the criteria.

Question 6

Are lottery winnings taxable in Canada?

Accepted Answer

No, but income earned from investing those winnings is taxable.

Question 7

What tax credits am I eligible for in Quebec vs. other provinces?

Accepted Answer

Quebec has unique credits such as Solidarity Tax Credit, credits for caregivers, and certain work-related credits.

Question 8

How do I claim medical expenses?

Accepted Answer

You can claim out-of-pocket eligible medical costs exceeding the lesser of 3% of your net income or the annual fixed amount set by CRA and Revenu Québec.

Question 9

What is the Disability Tax Credit and how do I apply?

Accepted Answer

A non-refundable tax credit for those with prolonged impairments. Application requires Form T2201 (CRA) and medical certification.

Question 10

Do I have to report cryptocurrency gains or trades?

Accepted Answer

Yes, the CRA and Revenu Québec treat crypto like any other investment for tax purposes. Report gains/losses each year.

Question 11

Can I deduct child care expenses if my spouse is unemployed?

Accepted Answer

Generally no — the lower-income spouse must claim the deduction unless they are in school, incapacitated, or in specific exceptions.

Question 12

How long do I have to keep my tax records?

Accepted Answer

At least six years from the end of the tax year they apply to.

Frequently asked questions