Six Ways to Profit from Family Tax Cuts After Tax Season

June 15 is the date of the next quarterly instalment payment for 2015.

But there is good news for some taxpayers, who may no longer have to make those instalments: the #1 way to profit from the Family Tax Cut is to reduce the next quarterly tax remittance for 2015.

Look for families where the tax liability of the higher-income spouse was reduced by up to $2,000 for tax year 2014. For those who would normally be making instalments, this new credit may eliminate the need to make instalments – at least until they no longer qualify for the credit.

Here’s why: instalment payments for March and June 2015 are based on the balance due on the 2013 return. However, if the balance due for 2014 was less than $2,000 you’ll not be required to make instalments for 2015. This means you can safely skip the June 15 instalment payment with no negative repercussions.

Consider advising these clients that, instead of loaning that money at no interest to the government only to get it back next April, they could put it to good use to increase their own net worth. Here are 5 more ways to top up your post tax season windfalls:

• Pay down non-deductible debt if you have it

• Make an RRSP contribution if you are eligible

• Make an RESP or RDSP contribution if are eligible to do so

• Make a TFSA contribution

• Add the money to your non-registered investment account