When people think about December, they think about gifts, gatherings, and a well-earned break.
But here’s the secret every financially organized person knows:

December is the single most important month for your taxes.

Not February.
Not tax-filing season.
December.

Because a lot of the smartest tax moves you can make, the ones that actually save you money, have to be done before December 31st.
Here’s a simple breakdown of what matters, why it matters, and how to use this month to start the new year ahead instead of behind.

1. Charitable donations only count this year if made by December 31

If you want to claim a charitable donation on your 2024 tax return, the donation must be made before the calendar flips to January.

That’s because the CRA only counts donations made within the tax year.

Why this matters:
Charitable donation credits can reduce your tax bill, and if you donate publicly traded securities, the capital gains tax is eliminated. That’s a double benefit.

Simple tip:
If you already plan to give, give before December 31. You get the same generosity… with more tax efficiency.

2. Tax-loss selling must happen before the deadline

If you have investments in a non-registered account, December is the time to look at:

• investments that have dropped in value
• whether selling them can offset gains from earlier in the year

This is called tax-loss selling, and it can lower your taxable income.

Important detail:
The last day to sell for the current tax year is usually a few days before December 31 because trades need time to “settle.” 

Simple tip:
If you’re going to do this, do not wait until the 29th or 30th. Trades need time to process

3. RESP contributions and CESG maximization

If you’re planning to contribute to a Registered Education Savings Plan (RESP), December matters for one big reason:

To receive the Canada Education Savings Grant (CESG) for the year, your contribution must be made by December 31
(Source: Government of Canada, Education Savings).

That grant is 20% of your contribution, up to $500 per year.
If you skip a year, you can catch up, but only one year at a time.

Simple tip:
If education saving is part of your plan, December is the deadline to secure free government money.

3. RESP contributions and CESG maximization

If you’re planning to contribute to a Registered Education Savings Plan (RESP), December matters for one big reason:

To receive the Canada Education Savings Grant (CESG) for the year, your contribution must be made by December 31
(Source: Government of Canada, Education Savings).

That grant is 20% of your contribution, up to $500 per year.
If you skip a year, you can catch up, but only one year at a time.

Simple tip:
If education saving is part of your plan, December is the deadline to secure free government money.

4. Review of income and deductions before the year closes

A lot of tax choices depend on income for the current year.
Once the year ends, your options shrink.
December is your last chance to:

• push income to next year
• accelerate deductions into this year
• make strategic business purchases (for self-employed or incorporated individuals)
• use medical expense credits for a 12-month period ending in the year (Source: CRA, Medical Expenses Tax Credit)

Simple tip:
If your income fluctuates, this is the month to make intentional choices.

5. RRSPs: The exception that fools people

Most RRSP contributions don’t follow the December 31 deadline, you have until 60 days into the new year to contribute 

But here’s where people mess up:
They forget to calculate whether this year’s tax bracket or next year’s income will give them more value for the deduction.

Simple tip:
Review your bracket now. Don’t wait until February when it’s too late to fix a mistake.

 Final Thought: December Is Your Tax Planning Superpower

January through April is for filing your taxes.
December is for reducing them.

A few smart moves this month can:

• lower your tax bill
• unlock government grants
• clean up your investments
• set you up for a smoother financial year

Think of it as giving your future self a holiday gift.