The Tax-Free Savings Account (TFSA) program began in 2009 and it provides a way for individuals who are 18 and above with valid social insurance number to set money aside tax-free throughout their lifetime. TFSA contributions are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not deductible.
Any contribution amount not made to the TFSA during a year can be carried forward to the next year.
Any withdrawal is added back to your contribution room at the beginning of the following year. An individual can only replace the amount of the withdrawal in the same year only if s/he has available TFSA contribution room.