Sure, you should have been tax-planning all year (and every year, for that matter) but even if you were otherwise occupied in 2012, you still have time to follow the 3D tax-saving strategy.

1. Deduct

To reduce your tax bill, make full use of your tax deductions and tax credits.

Tax deductions

Check out all the deductions that apply to you including:

Child care expenses; Spousal Support; Tradesperson tool expense.

Take full advantage of your RRSP deduction by making your maximum contributions to your RRSP eligible investments.

Business owners: Purchase capital assets and provide tax-free gifts for employees before year-end.

Self-employed: If you’re claiming the capital cost allowance (CCA) on depreciable assets, buy them before year end to speed-up tax write-offs.

Tax credits

Pool medical expenses on the return of the lower earning spouse. Travel medical insurance also counts as a medical expense.

Pool charitable donations or carry them forward up to five years to rise above the annual $200 threshold that increases your credit.

Use the spousal credit for the higher-earning spouse.

Review all the credits that might apply to you including these:

Moving expense; Children’s fitness; Tuition, education and textbook; Pension income; Public transit pass; First time homebuyer; Political contributions.

2. Defer

Contribute to a Tax-Free Savings Account (TFSA) eligible investments. The contribution isn’t tax deductible but money and growth earned on investments held within your TFSA are tax-free and so are withdrawals made at any time for any purpose.

Considering selling investments with capital gains? Delay the sale until 2013 to defer taxation. Taxes on the gain would only be payable by April 2013 instead of April 2012.

If you have money-losing investments, sell them by the Dec. 31 to create capital losses that can offset capital gains.

3. Divide

If you’re turning 71 this year, you must wind up your RRSP and take the cash (poor choice) or transfer the funds to investments held within a Registered Retirement Income Fund (RRIF) or annuity (much better choice).

If you have earned income, you can continue making contributions to a spousal plan until your spouse reaches 71.

Here’s another way to save on taxes and fine-tune your financial plan: talk to your professional advisor before the tax-filing deadline to be certain you make the most of every tax-reduction strategy.

This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), and Investors Group Securities Inc. (in Québec, a firm in Financial Planning) presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant.