Income splitting is a tax-saving strategy that divides a stream of income between family members (usually two spouses). The goal is to apportion as much of the higher-earning family member’s income to other family members, in an effort to get that higher-earning spouse into a lower tax ...
Income Splitting in Canada: Inequality by DesignT. E.Canadian Tax Journal / Revue Fiscale Canadienne
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Income Splitting: If you earn more than your spouse or common-law partner, contributing to a spousal RRSP may help reduce the total amount of tax you pay. Financing your First Home or Education: You can withdraw money from your RRSP without being immediately taxed to pay for your first home...
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They allow you to earn tax-free income in some cases, and defer your tax obligations to the future in some other cases. Types of registered accounts in Canada include: Tax-free savings account (TFSA). A TFSA allows you to make contributions of up to $6,500 a year, and you won’t ...
The OAS Clawback: Income, Threshold, Dividends, and Pension Splitting The OAS clawback (which the government calls the OAS pension recovery tax) is an important aspect of financial planning for 65+-year-olds who are still working, or who are fortunate to have a substantial amount ofincome fr...
CanadaTax Income Splitting The government plans to introduce legislation to allow limited income splitting for couples with children under 18. The so called "family tax cut" will allow an eligible taxpayer to transfer up to $50,000 of income to his or her spouse for tax purposes in order to...
Based on actual income, and a number of other factors, the government will refund GST/HST to eligible tax payers in quarterly installments on the fifth of the month in July, October, January, and April. Public Health Care The Minister of International Trade Peter Van Loan with Urmas Paet,...
Pension splitting allows a retiree (age 65 or more) to designate up to 50% of his/her retirement income to their spouse so that the couple as a unit minimizes their collective tax. Some retirement income isn’t allowed to be split but RRSP withdrawals,RRIFs, and income from annuities are...