Hi Reader ♥,

We're four weeks from the end of 2025, and I know what you're thinking about: holiday shopping, family gatherings, surviving December.

Here's the thing: you're probably not thinking about taxes right now. But I am.

Because I know what happens in April when first-gen professionals realize they left thousands on the table—money that could've gone toward supporting your family, building your wealth, or actually taking a break.

The moves you make in the next four weeks aren't about being "good with money." They're about not letting the system take more from you than it has to.

There are specific moves you can make before December 31st that will save you thousands in April—and most of us miss them because we're too busy managing everyone else's needs to focus on our own financial optimization.

Here's what I wish someone had told me years ago: The money you're giving to family doesn't get you tax breaks. But there are other things that do—and December 31st is your deadline.

What Doesn't Count (Even Though It Should)

Let's get the disappointing part out of the way first.

All that money you're sending to your aging parents? Not tax deductible. The help you're giving your siblings? Doesn't count. Supporting extended family? The CRA doesn't care.

Unless your parent or family member lives with you and earns less than the basic personal amount (around $15,000), and you're claiming them as a dependent, family support doesn't reduce your taxes.

I know. It feels unfair. You're supporting multiple people, acting as a retirement plan for your parents, and the government treats it like it's invisible.

But that's exactly why you need to maximize the tax breaks you actually can get. Because you're not getting credit for half of what you're doing—you better claim everything that actually counts.

The Moves That Actually Matter Before Dec 31

Max Out Your TFSA Contribution Room

This one's straightforward but most people don't do it. Your TFSA contribution room for 2025 is $7,000, plus any unused room from previous years.

Check your CRA My Account right now to see your total available room. If you have $15,000 of room and only $8,000 in your TFSA, you're leaving $7,000 of tax-free growth on the table.

Even if you can't max it completely, put what you can before December 31st. That money grows tax-free forever. No tax on the gains, no tax on withdrawals. It's one of the best wealth-building tools we have.

This is your Growth Bridge in action. Automate TFSA contributions before family support gets allocated. Future you will thank present you.

Top Up Your RRSP Strategically

I know, the RRSP deadline is technically March 1, 2026 for 2025 taxes. But here's why December matters:

If you're getting a year-end bonus or have extra cash right now, contributing to your RRSP before December 31st means that money starts growing tax-deferred immediately—giving you an extra two months of growth you wouldn't get if you wait until February.

Plus, if you know you'll owe taxes in April, contributing now prevents the "oh crap, I need to find $3,000 for an RRSP contribution" panic in March.

Check your RRSP contribution room (it's 18% of last year's earned income, up to $31,560 for 2025, plus any unused room from previous years). Even if you can't max it, contribute what you can.

One thing first-gen professionals often miss: If you're in a higher tax bracket this year than usual (bonus, raise, extra income), RRSP contributions are even more valuable. You get the deduction at your current higher rate.

Make Your Charitable Donations Count

If you're going to donate to charity, do it before December 31st and keep your receipts.

You get a tax credit for charitable donations: 15% federal credit on the first $200, then 29% on anything above that (33% if you're in the top tax bracket).

Here's what most people don't know: Charitable tax credits can be carried forward for up to five years and combined with your spouse's donations. So if you donate $150 this year and your spouse donates $150, you can combine them on one return to get past that $200 threshold where the better credit kicks in.

Important for first-gen professionals: Sending money to family back home, even for genuinely charitable causes, doesn't count unless you're donating to a registered Canadian charity. Check the CRA's list of qualified donees before you donate.

Bunch Your Medical Expenses If You Can

Medical expenses are only deductible if they exceed 3% of your net income or $2,759 (whichever is less).

If you've been putting off dental work, new glasses, or other eligible medical expenses, bunching them into one year can help you clear that threshold.

This matters for sandwich generation caregivers: You can claim medical expenses for your spouse, your dependent children, AND your dependent parents or grandparents.

If your mom lives with you or depends on you for support and earns less than the basic personal amount, her medical expenses can be claimed on your return. Prescriptions, dental work, mobility aids, even travel to medical appointments—it all counts.

Keep every receipt. Track everything. December purchases count for 2025, so if you're close to that threshold, consider prepaying for expenses you know are coming.

Income Splitting Opportunities

If you have a spouse or common-law partner in a lower tax bracket, there are legitimate ways to split income and reduce your family's overall tax bill.

Spousal RRSP: You contribute to an RRSP in your spouse's name, you get the deduction now, but when they withdraw in retirement (at a lower tax rate), they pay the tax. This works if you're the higher earner.

Pension income splitting: If you're 65+ and receiving pension income, you can split up to 50% with your spouse. Not relevant yet? It will be.

TFSA spousal strategy: While you can't contribute directly to your spouse's TFSA, you can give them money to contribute to theirs (since it's their contribution room). The growth is theirs, not yours, so it doesn't get attributed back. This works if one spouse has maxed their TFSA and the other hasn't.

Top Up Your Kids' RESPs (If You Have Them)

If you have kids and an RESP, contributing before December 31st means you get the Canada Education Savings Grant (CESG) for 2025—that's 20% on the first $2,500 you contribute, so $500 free money.

If you haven't contributed the full $2,500 this year, do it now if you can. The grant room carries forward, but the annual contribution that gets the grant is $2,500.

First-gen angle: I know you're thinking about your parents' needs before your kids' education savings. But the RESP is one of the few places the government actually gives you free money. Twenty percent return instantly. You can't get that anywhere else.

Even if you can only do $1,000, that's $200 free from the government. That's worth prioritizing.

Review Your Withholding Tax If You're Self-Employed

If you're self-employed or have significant side income, you should be making quarterly tax installments. If you haven't been, you might owe interest and penalties.

December is your last chance to catch up on 2025 installments and reduce what you'll owe in April. The CRA charges interest on late installments, and it's not cheap.

If you consistently owe more than $3,000 when you file your taxes, you're supposed to be making quarterly installments. Check with an accountant if you're not sure.

The Things You Think Count But Don't

Let me save you some frustration:

Home office expenses: Unless you're self-employed or your employer makes you work from home and signs a T2200 form, you can't claim home office expenses anymore. The temporary COVID-era flat-rate deduction is gone.

Kids' sports and activities: The federal children's fitness and arts tax credits were eliminated in 2017. You can't claim hockey, dance, or music lessons. However, Quebec, Manitoba, and Yukon still offer provincial versions of these credits.

Moving expenses for a new job: You can claim moving expenses if you moved at least 40 km closer to your new work location. You can only deduct them from employment or self-employment income earned at that new location. Get professional advice if this applies.

Professional development for work: Unless you're self-employed, you generally can't deduct courses, conferences, or professional dues. Some employers reimburse these, but they're not personal tax deductions.

What Actually Happens If You Do Nothing

If you don't make any of these moves before December 31st, here's what you're leaving on the table:

• Thousands in unused TFSA contribution room that could be growing tax-free
• RRSP deductions that could reduce your 2025 tax bill by hundreds or thousands
• The 20% RESP grant on up to $2,500 ($500 free money)
• Charitable tax credits on donations you're making anyway
• Medical expense claims that could save you hundreds
• Income splitting opportunities that could save your household thousands

None of these are complicated. They're not loopholes. They're legitimate tax planning that the government built into the system.

But most first-gen professionals miss them because we're so busy managing everyone else's needs that we don't optimize our own situations.

What Changes This Week

Log into your CRA My Account and check:

• Your TFSA contribution room
• Your RRSP contribution room
• Your RESP contribution room (if applicable)
• Any notices of assessment or arrears

Gather your receipts:

• Charitable donations (you need official receipts)
• Medical expenses (prescriptions, dental, vision, mobility aids, therapy)
• Childcare expenses if you have young kids

Make your contributions before December 31:

• TFSA top-up (whatever you can afford)
• RRSP contribution if you have the room and cash
• RESP contribution to get the 2025 grant
• Charitable donations with proper receipts

Talk to an accountant if:

• You're self-employed and haven't been making installments
• You have significant investment income or rental income
• You're supporting parents who might qualify as dependents
• You have complex situations (multiple income sources, side business, etc.)

The Real Deadline

December 31st isn't actually tax deadline day—that's April 30th. But December 31st is the deadline for moves that count for 2025.

You can't contribute to a TFSA in January and have it count for last year. You can't make charitable donations on January 2nd and claim them for 2025. You can't claim medical expenses you paid in 2026.

The clock is ticking. Not to stress you out, but to remind you that you have four weeks to optimize before the window closes.

You're already managing everyone else's financial needs. The least you can do is make sure you're not overpaying the CRA while you're at it.

Here's to keeping more of what you earn,

P.S. The Bridge Spending Plan includes a year-end tax checklist specifically for first-gen professionals, plus worksheets for calculating how much you can realistically contribute to TFSAs, RRSPs, and RESPs while maintaining your other Bridge allocations. Get the Bridge Spending Plan​

What Caught My Attention This Week