As tax season (for most individuals) has now wrapped up for the year, you would have likely already received your Notice of Assessment (NOA).
Your NOA serves as a confirmation that your tax return has been processed, but it can also provide some insight into your overall financial situation, and may highlight additional planning opportunities and areas worth discussing with your advisor.
Here are a few key items to pay attention to:
1. RRSP and TFSA Contribution Room
Your NOA shows your available RRSP deduction limit and TFSA contribution room.
Large unused contribution room may indicate opportunities to improve tax efficiency, increase retirement savings, or revisit how your investments are being structured.
2. Significant Changes in Income
If your income was unusually high this year due to bonuses, investment gains, stock options, rental income, or the sale of a business or property, it may be worth revisiting your financial and tax planning strategy.
Changes in income can sometimes create new planning opportunities or impact future tax considerations.
3. Taxes Owing or CRA Instalments
If your NOA shows a tax balance owing or requires CRA instalment payments, it may be a sign that adjustments to tax planning, cash flow management, or investment structure should be reviewed.
4. Unused Capital Losses or Carry Forward Amounts
Your NOA may include amounts carried forward from previous years, such as unused capital losses or charitable donation credits.
These can sometimes be used strategically in future years to help improve overall tax efficiency and support charitable giving plans.
5. Major Life or Financial Changes
Your NOA may also reflect broader changes in your financial situation, including shifts in income, investments, or taxable assets.
Major changes are often a good opportunity to revisit your financial plan and ensure it still aligns with your long-term goals.
Your Notice of Assessment can provide useful insight into areas that may warrant a broader financial planning conversation. Reviewing it and sharing any key changes or insights with your advisor may help uncover planning opportunities that can align with your long-term financial goals.
The information provided is for general informational purposes only. All information is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information provided in this content. Please consult a lawyer and/or an accountant for any legal and/or tax advice.