As we move through tax season, much of the focus is understandably on filings and deadlines. At the same time, this period marks a natural point for us to step back and confirm that tax planning remains aligned with your broader wealth strategy. 

 

While many clients leverage professional support in preparing and filing returns, an advisor’s role is to use your tax picture to guide financial decisions throughout the year. This includes income expectations, investment strategies and longer-term priorities.  

 

Here are some key tax areas we can look at together.

 

Reviewing tax outcomes against income expectations  

If your most recent tax return resulted in a sizable refund, it may indicate that more tax was withheld over the year than was ultimately required. While refunds can feel positive, they often reflect excess tax paid earlier than necessary, which can limit cash flow throughout the year. For clients with multiple income sources, business interests, or investment activity, tax paid during the year does not always align neatly with how income ultimately unfolds. Viewing expected income alongside tax outcomes helps confirm whether assumptions remain appropriate as circumstances evolve.  

 

Being intentional about charitable giving  

For individuals and families with philanthropic goals, charitable giving can play an important role in both tax and wealth planning when approached deliberately.  One effective strategy is donating appreciated publicly listed securities, particularly where unrealized gains are significant. In addition to generating a charitable tax credit, this approach eliminates the capital gains tax that would otherwise apply if the asset were sold, allowing more value to flow to the organizations you support. When charitable decisions are integrated into broader planning, they can be aligned with income levels, liquidity events, and multi-year tax considerations, ensuring philanthropy reflects both personal values and long-term tax efficiency rather than being shaped by year-end timing alone. 

 

Considering decumulation and longer-term tax efficiency

As financial priorities evolve, tax planning often shifts from building wealth to using it. How and when assets are drawn down can have a meaningful impact on after-tax income over time. Withdrawals often affect tax outcomes in ways that are not always immediately visible. In addition to being taxed as income, higher levels of taxable income can reduce or eliminate income-tested benefits, such as Old Age Security. When this occurs, the overall tax cost of withdrawals may be higher than expected. Looking at distribution decisions across multiple years allows these interactions to be managed more deliberately, helping preserve after-tax income and reduce the likelihood that future withdrawals are shaped by unintended tax consequences rather than long-term objectives.

 

Sequencing timing decisions across years

Many tax outcomes are influenced less by individual deadlines and more by when decisions are made across multiple years. The timing of income recognition, the use of deductions, and the decision to trigger gains can all affect marginal tax rates over time. For example, realizing a large capital gain in the same year as a significant bonus, business distribution, or liquidity event can push income into higher tax brackets and increase overall tax paid, compared with sequencing those decisions over multiple years. Viewing decisions in sequence helps ensure today’s choices support future flexibility, rather than limiting it.

 

Coordinating decisions across accounts and structures

As wealth grows, assets are often held across multiple accounts, entities, and structures, each with different tax considerations. Decisions made in one area, whether related to income, investments, charitable giving, or distributions, can affect outcomes elsewhere if they’re not viewed together. One of the benefits of an advisory relationship is having a coordinated view across this broader landscape. This helps keep tax planning aligned as your circumstances and priorities change over time.

For many clients, the most impactful tax decisions aren’t about deadlines — they’re about how today’s choices affect flexibility, liquidity and after-tax outcomes overtime.

 

2026 Reminders for Tax-Advantaged Accounts

 

• RRSP Deadline — The deadline for RRSP contributions for the 2025 tax year is Monday, March 2, 2026, limited to 18 per cent of the previous year’s earned income, to $32,490 (for 2025).*

• 2026 TFSA Dollar Limit — $7,000, making the eligible lifetime contribution room $109,000.

*Plus, any previous years’ unused contribution room carried forward, plus or minus certain adjustments for pensions.