Tag: Personal tax

What rate of tax does a “Testamentary Trust” pay?

Testamentary trusts pay tax according to the progressive Canadian income tax rates applicable to individuals. In other words, a testamentary trust pays tax at individual tax rates. Note: A testamentary trust is formed automatically upon the death of an individual in Canada. In some circumstances, it can be more tax-advantageous to allow income to be … Continue reading What rate of tax does a “Testamentary Trust” pay?

Do I have to make payments on sales tax?

If on your last year’s HST return, you had a balance owing of $3,000 or more, you would have to make equal quarterly installment payments starting next fiscal year. Find below a sample installment schedule if your HST reporting period has a calendar year end. Fiscal quarters Installment due dates January 1 – March 31, … Continue reading Do I have to make payments on sales tax?

What if my income increases and taxes payable rise?

Installment payments should be made based on the expected taxes owing. If the taxes owing are larger than what you expected them to be, and you were paying installments based on the expected amount, then you will be charged with installment interest (and if the interest is more than $1,000, penalties can be charged as … Continue reading What if my income increases and taxes payable rise?

How do I get a Social Insurance Number, which is required to be reported on tax returns?

To obtain a social insurance number, you have to apply in-person by visiting a Service Canada centre. You can find the address of the nearest centre to your location on the CRA website. To apply, you must take with you original proof-of-identity documents. These documents must prove your identity and status in Canada. For instance, … Continue reading How do I get a Social Insurance Number, which is required to be reported on tax returns?

End of the Year Tax Tips for 2013

The end of the year provides an optimal time to use a tax savings approach. This strategy involves deferring expected income, offsetting capital gains while maximizing tax benefits, donating shares and pay non-eligible dividends.

End of the Year Tax Tips for 2013 Watch Video

The end of the year provides an optimal time to use a tax savings approach.

Individual Tax Credits That You Can Claim in 2014 Watch Video

For Canadians in 2014, there will be some changes to three existing tax credits.

Individual Tax Credits That You Can Claim in 2014

For Canadians in 2014, there will be some changes to three existing tax credits. This includes the lifetime capital gains exemption, the adoption expense tax credit and the hiring credit for small businesses. This also includes the introduction of the first time donor’s super credit.

Tax Planning For Retired Canadians Watch Video

It is essential for seniors to adopt a plan regarding taxes when planning for retirement.

Tax Planning For Retired Canadians

It is essential for seniors to adopt a plan regarding taxes when planning for retirement. This plan should include using the pension income tax credit, claiming the age amount tax credit, splitting retirement pension income with a spouse, and using the registered retirement income fund.

What is the benefit of contributing to a spousal RRSP?

Contributing to a spousal RRSP is advantageous if you and your spouse/common-law partner have different income levels. This is because the spousal RRSP contributions allow spouses to split income more equally at retirement. The spouse who expects to have higher income at the time retirement should be the one to contribute to the spousal RRSP. … Continue reading What is the benefit of contributing to a spousal RRSP?

Can rent paid by a student for residence be claimed on the personal tax return?

No, the rental expense cannot be claimed as either a tax deduction or a tax credit. However, the student may be eligible for the Ontario Energy and Property Tax Credit if applicable criteria are met. This benefit is generally paid to low-to-moderate-income individuals of at least 18 years of age for paying rent or property … Continue reading Can rent paid by a student for residence be claimed on the personal tax return?

Are board and lodging considered a taxable benefit for employees?

Board and lodging provided to employees at unreasonably low rates are taxable benefits. In other words, if the employee paid less than fair market value (FMV) for board and lodging, the employer will need to include the T4, the FMV of the cost less the amount the employee actually paid.  

Have the CPP and EI max thresholds changed for 2014?

The maximum CPP contribution for 2014 is $2,425.50 for employee contribution and $4,851.00 for self-employed contribution. The maximum EI contribution to the plan for 2014 is $913.68.

Tax Tips for Retirement in Canada

Planning for retirement is crucial in order to ensure you can have the retirement lifestyle you envision. One important aspect to keep in mind during this planning is the associated tax benefits and implications. The following are some techniques of reaping tax benefits when saving for retirement in Canada.  1)  Contribute to RRSP The first … Continue reading Tax Tips for Retirement in Canada

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