With April being the month most of us are thinking of filing our tax returns the subject of Tax Credits should be of interest to many of you.
Tax Deductions and Tax Credits are two entirely different tools to reduce our income taxes. A tax deduction lowers a person’s tax liability by reducing their taxable income.
In 1917, during the First World War, the Canadian Government introduced The Income Tax War Act as a temporary measure to fund the war program.
This was the first time both individuals and corporations were taxed, and taxes finally became a permanent source of income for our Government when it was enacted under The Income Tax Act in 1948.
Did you catch this article in the Vancouver Sun this week? Jamie Golombek offers some great insight on how to maximise the tax benefit of your generosity. It’s a quick read, well worth your time.
COVID-19 has brought much change to how Canadians conduct their
business affairs and working from home may become permanent for many
people.
Employees who have moved to working from home, or who are self employed and maintain a home-based office, are eligible for tax deductions to cover some of the costs.
In times like these, many charities are facing difficulty raising funds for our communities. Perhaps you are an individual who would like to make a meaningful donation to your favourite charity or non-profit society, but your monthly cash flow does not allow it.
If you think your heirs are not quite old enough or prepared enough to discuss the wealth they will inherit on your death, you’re not alone. Unfortunately though, this way of thinking can leave your beneficiaries in a decision-making vacuum: an unnecessary predicament which can be avoided by facing your own mortality and making a plan.
If you have a will in place, great. A will, however, is only a fundamental first step, not a comprehensive plan, point out authors of the 2017 Wealth Transfer Report from RBC Wealth Management.
Phew! Tax season is over! You have hopefully just filed your 2017 personal income tax returns. Was it a satisfying experience for you? Do you feel a sense of accomplishment or dismay? For many, the April 30th deadline seems to arrive way too soon. If this is the case with you, starting the process much earlier would seem to be the answer.\r\n\r\nThe process should include proper record keeping, taking advantage of the tax saving methods available to you, and, perhaps, finally getting a professional to complete and file your return on your behalf. The problem with handing your taxes alone is that often people don’t know what they don’t know. This results in paying more in taxes than was necessary. The cost of a professional completing your taxes potentially could be offset by the savings that might be gained.\r\n\r\nEven if you earned little to no income, filing your return is a good idea and could prove to be advantageous. This is because there are a number of federal and provincial government programs that you might be eligible for if your declared income is below a certain threshold. You can refer to the Government of Canada website for the child and family benefits that might be available to you.