In this excerpt from Essential Tax Facts by Winnipeg author Evelyn Jacks, she offers these six essential tax facts.

Have a tax-efficient plan: People who become wealthy follow a consistent, purposeful process for thinking about their earning and savings.

Cut withholding taxes: Employees should complete the TD1 Personal Tax Credit Return and its sister, Form T1213 Request to reduce tax deductions at source, to reduce withholding taxes or instalments to pay just right amount of tax all year long.

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Earn tax-free benefits: These include:

Premiums paid by your employer to private health care plans. Premiums paid under provincial hospitalization and medical care insurance plans are taxable.

If you paid all of the premiums to a wage loss replacement plan, then periodic payments (or a lump sum paid in lieu of periodic payments) from the plan are tax-free and should not be reported on an information slip.

Employees who use their company car less than 50 per cent for business should discuss the reduction of standby charges with their payroll department.

Employees who are required by their employers to move, can negotiate a reimbursement of up to $15,000 on a tax free basis, to cover losses on the sale of their home, with half the amount over this eligible for the same tax free treatment as well.

Manage debt: Use the time value of money to your advantage, not that of your creditors. That means reducing non-deductible debt and increasing savings opportunities.

Reduce management fees: Doing so can make up for the cost of inflation and tax erosion. Consult on which fees are tax deductible.

Average down your tax bite: Time withdrawals to minimize taxes and split income with family members where possible. That’s a great way to “average down” your tax bite, especially on retirement income.