Category: Personal Tax

If my total income from all sources (including EI benefits for maternity) is high, am I required to repay some of the EI I received?

Generally, when your personal tax return is filed, if you received regular benefits and your net income is greater than $59,250, you may be required to pay 30% of either the total regular benefits received in the year or the excess amount of net income over $59,250, whichever is less. However, the EI repayments do … Continue reading If my total income from all sources (including EI benefits for maternity) is high, am I required to repay some of the EI I received?

Do I have to apply for the Child Tax Benefit and Universal Child Care Benefit?

Yes. You can apply by completing this form and mailing it to the appropriate CRA centre as noted on the instructions on the form.  

Does my company have to pay Employment Insurance Premiums (EI) for my spouse, if he/she works for my company?

The CRA’s general guideline is that if you hire a family member, EI premiums are not payable to the CRA. However, if the duties being performed by your family member and their working conditions are the same as if he/she was working for a third party employer (unrelated person), then the CRA will require you … Continue reading Does my company have to pay Employment Insurance Premiums (EI) for my spouse, if he/she works for my company?

My spouse joined me on a business trip and my employer paid for both of our travel costs. Is my spouse’s portion a taxable benefit to me?

The Canada Revenue Agency’s general position toward business trips for spouses of employees is that there is no taxable benefit to the employee if the spouse was, in fact, engaged primarily in business activities on behalf of the employer during the trip. On the other hand, if your spouse was engaged in primarily personal activities … Continue reading My spouse joined me on a business trip and my employer paid for both of our travel costs. Is my spouse’s portion a taxable benefit to me?

I have taken money out of my RRSP under Home Buyer’s Plan (HBP) and the Lifelong Learning Plan (LLP) and I will be leaving Canada. What are the tax consequences?

If you emigrate from Canada (i.e. become non-resident of Canada for tax purposes), then the outstanding balance on your HBP or your LLP will be included in your taxable income for the year in which you leave Canada. To avoid this income inclusion, you must pay back the outstanding balance within 60 days from the … Continue reading I have taken money out of my RRSP under Home Buyer’s Plan (HBP) and the Lifelong Learning Plan (LLP) and I will be leaving Canada. What are the tax consequences?

Why does the CRA review/pre-assess individual tax returns and what do they usually look for?

The CRA will request further documentation, as part of their review, of some credits/deductions claimed on your personal tax return. This usually only applies to those returns that have been filed electronically. Some of the credits/deductions that draw some scrutiny from the CRA are items like medical expenses, donations, moving expenses, eligible dependant credit, child … Continue reading Why does the CRA review/pre-assess individual tax returns and what do they usually look for?

Can I deduct the life insurance premiums I pay on my tax return?

Life insurance premiums are usually not deductible for tax purposes. However, some exceptions do exist such as if the beneficiary is a registered charity or if the insured is requested by the bank to buy life insurance as collateral for obtaining a loan. The good news from a tax perspective is that the death benefits … Continue reading Can I deduct the life insurance premiums I pay on my tax return?

What is pension income splitting?

Pension income splitting can be used to allocate up to 50% of eligible pension income to your spouse or common-law partner, effectively splitting income with the lower income spouse. Only eligible pension income qualifies for pension income splitting. Eligible pension income includes: Life annuity payments from a pension fund (i.e.: life income funds and locked-in … Continue reading What is pension income splitting?

Can I claim the transit pass costs incurred by my family members?

You can only claim the public transit amount for yourself, spouse or common-law partner, and your or your partner’s children who are below the age of nineteen. Ensure that you keep all passes as proof for your claim. According to the Canada Revenue Agency, the passes must contain all the following data: Name of the … Continue reading Can I claim the transit pass costs incurred by my family members?

Do I have to pay tax on the Universal Child Care Credit (UCCB) payments I receive?

Yes, you must report this income on your personal income tax return and pay income tax. Should you fail to do so, the Canada Revenue Agency will adjust your tax return based on on the Universal Child Care Credit (UCCB) payments that you received in the year. Failure to report will likely result in interest … Continue reading Do I have to pay tax on the Universal Child Care Credit (UCCB) payments I receive?

I have been assigned to a temporary assignment (few years) by my employer to work in a foreign country. Will this affect my Old Age Security eligibility?

Normally, your Old Age Security eligibility will depend on the number of years you physically lived in Canada after the age of 18. This means that your OAS eligibility will very much be affected by your temporary assignment. However, Canada has a Social Security Totalization Agreement with various countries around the world which states that … Continue reading I have been assigned to a temporary assignment (few years) by my employer to work in a foreign country. Will this affect my Old Age Security eligibility?

What types of tax credits are available to Canadian university students?

Canadian university students are able to claim several lucrative tax credits: The first tax credit that a student can claim is for tuition fees. In order to claim this credit the student must be taking courses costing $100 or more in a recognized educational institution. The second tax credit is the education amount. You are … Continue reading What types of tax credits are available to Canadian university students?

Can I receive a tax credit or deduction for fees paid to a private high school for my children?

Typically, parents are unable to claim a tuition credit or tax deduction for fees paid to a private high school. However, there are special circumstances where parents can claim tax credits for a portion of the fees paid to a private high school in respect of their children as indicated below: Parents can claim a … Continue reading Can I receive a tax credit or deduction for fees paid to a private high school for my children?

In addition to reporting my income, what other information would be useful to share with the CRA?

To avoid headaches in the future by way of reduced or withheld tax refunds, and extensive paperwork thereafter, you should inform the CRA if the following events happen (among others), with appropriate supporting documentation. Date of marital status change, either when you marry or, undergo a separation/divorce. Spousal and child support payments, as per court … Continue reading In addition to reporting my income, what other information would be useful to share with the CRA?

What are the tax implications for support payments received from a former spouse?

Child support payments made under a court order or written agreement after April 1997 are generally not taxable and hence do not have to be included in income by the recipient. It is also not deductible by the payer.In contrast, spousal support payments made under a court order or written agreement are usually taxable to … Continue reading What are the tax implications for support payments received from a former spouse?
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