The Tax-Free Savings Account
Saving just got a whole lot easier!
The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older and who have a valid social insurance number to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not deductible.
The annual TFSA dollar limit for 2015 is $5,500.
Under proposed legislation, the annual TFSA dollar limit for 2015 is $10,000.
Forms and publications
- Guide RC4466, Tax-Free Savings Account (TFSA), Guide for Individuals
- Form RC240, Designation of an Exempt Contribution Tax-Free Savings Account (TFSA)
- Form RC243, Tax-Free Savings Account (TFSA) Return
- Form RC243-SCH-A, Schedule A - Excess TFSA Amounts
- Form RC243-SCH-B, Schedule B - Non-Resident Contributions to a Tax-Free Savings Account (TFSA)
- Form RC343, Worksheet - TFSA contribution room
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