Watch your limit when contributing to your Tax-Free Savings Account (TFSA)!

Are you saving for a car or a dream vacation? A TFSA is a great way to save tax-free. The TFSA is a way for individuals who are 18 and older and have a valid social insurance number (SIN) to save money and withdraw it tax-free throughout their lifetime.

Whether you already have a TFSA or are thinking about opening one soon, it is important to remember that overcontributing to your TFSA can result in a tax of 1% for every month that the excess contributions stay in your account(s).

Understanding your contribution room

There is a limit on how much you can put in your TFSA and that limit is made up of three things:

  1. the annual TFSA dollar limit (the TFSA dollar limit for 2024 is $7,000)
  2. any unused contribution room from previous years
  3. any withdrawals you made during the previous year (excluding direct transfers from another TFSA)

Here’s how to stay within your limit:

  • Step 1: Check My Account for the TFSA limit for the year and your unused contribution room from the previous year.
  • Step 2: Check your TFSA transactions with your financial institution to see how much you have already contributed this year. Remember that if you have more than one TFSA, your total contributions to all TFSAs will need to stay within your limit.

For more information, check out TFSA contributions.

Information source from Canada Revenue Agency (CRA)

Section Title

Direct deposit changes impacting EFILERS and taxpayers

The confidence and trust that individuals and businesses have in the CRA is a cornerstone of Canada’s tax system. The CRA regularly adjusts and improves its systems and processes to safeguard...

Go digital and file your taxes online!

It’s never been easier to do your taxes online. In fact, online filing gets you access to the benefits, credits, and refunds you may be eligible for even faster! Last year, approximately 93% of...

Don’t miss out on free tax help – you may be eligible!

Doing your taxes each year can feel like a big job, but you don’t have to do it alone! If you have a modest income and a simple tax situation, you might be able to get help from a volunteer at a free...

Reminder: Trust reporting for the 2024 tax year

For the 2024 tax year, the Canada Revenue Agency (CRA) will continue to administer the enhanced trust reporting rules as enacted for tax years ending on or after December 31, 2023. Affected trusts are...

Watch your limit when contributing to your Tax-Free Savings Account (TFSA)!

Are you saving for a car or a dream vacation? A TFSA is a great way to save tax-free. The TFSA is a way for individuals who are 18 and older and have a valid social insurance number (SIN) to save...

Tax season starts on February 24! Here’s what you need to start filing

Tax season starts next week! When the calendar flips to February 24, 2025, you will be able to file your income tax and benefit return online. With the right preparation, filing your tax return can be...

What you need to know for the 2025 tax-filing season

Tax season is almost here! Whether you’re a seasoned filer or it’s your first time, having the essential information can save you time and stress. It could even put more money in your pocket. We want...

SimpleFile: Let us help you with your taxes

You may be one of 2 million Canadians invited to use SimpleFile to automatically file your income tax and benefit return with the Canada Revenue Agency (CRA) for free this tax season! The CRA is...

Update on the Canada Revenue Agency’s administration of the proposed capital gains taxation changes

The Department of Finance announced today that it will introduce legislation in Parliament in due course, related to the capital gains inclusion rate change with a new effective date of January 1...
Scroll to Top