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Filing Taxes Insights

March 22, 2022

Don’t fall for the Employment Insurance Tax Trap in 2022

Benefits from Employment Insurance (EI) are fantastic. When you are between jobs, are laid off, or are on parental leave to connect with your child, EI will pay you. While this safety net is extremely beneficial to your cash flow, EI may come back to bite you at tax time. Most of the time, some income tax is taken from EI funds with each payment. Many people believe that sum would “cover” their taxable income and that they will owe nothing extra. However, the amount generally deducted is a significantly lesser proportion than what you will frequently be required to […]
March 22, 2022

TFSA Beneficiary Vs. Successor Holder: Which One Is More Important?

People often say that we need to make sure that our money is protected should we die or become incapacitated. In addition, we are told to ensure that the people who will benefit from our work are aligned with our long-term goals. As for the TFSA, there’s a more important designation called the successor holder, and in some cases, we don’t want to list a beneficiary, but we’d rather list a successor holder, so we’ll write that down, as well. There are a lot of benefits to having a beneficiary (or successor holder) in your bank account. It speeds things […]
March 22, 2022

Is Auto Insurance Taxed In Ontario?

Auto insurance is the most obligatory and is a vital investment to protect your vehicle. And if you live in Ontario, you may be wondering if there is a tax on automobile insurance. Here we’ve got answers to all your questions. Will insurance save money? Yes! After the accident, insurance will cover your car, your car’s driver and passengers, and any pedestrians or property involved in the accident. But it all depends upon how much insurance you need. If an individual has sufficient liability coverage for damage or harm, then they may have reduced costs. However, people who want comprehensive […]
March 22, 2022

Tax Review In Canada: What You Should Know

Text review can be both simple and serious, as long as you know what to provide and what you need to know. If the Canada Revenue Agency (CRA) chooses your tax for a review, you may be required to submit additional documentation and answer a few questions. What exactly is the Canadian Tax Review? Tax returns are frequently chosen for review by the Canada Revenue Agency. Following tax filing season, some Canadians receive a pressing letter from the CRA informing them that their taxes are being reviewed. Often, the review will be difficult, especially if you are required to submit […]
March 22, 2022

What Happens to Your CPP and OAS if You Retire Outside Canada?

What happens to your retirement benefits if you relocate or retire outside of Canada? More and more Canadians are choosing retirement destinations with a lower cost of living and warmer climates. Many retirees move abroad during the winter (snowbirds), while others leave Canada permanently, so what happens to the pension and security payments of such personnel? Please continue reading to learn what happens to your CPP, OAS, and other government benefits if you decide to move outside of Canada. How to collect OAS while living abroad Among the three main sources of retirement income for Canadians, Old Age Security (OAS) […]
March 22, 2022

Application for a Taxpayer Registration Number (TRN)

A Tax Identification Number, commonly referred to as a Business Number by the CRA, is a 15-character code assigned to your business by the CRA. This number can be divided into three parts: Your company’s nine-digit business identification number (BIN) An identifier for the program typically consists of two letters. The four-digit number assigned to the program account is 123456789 RT0001 would be an example of an account number. Consider your business number to be your business tax identification number since that is the purpose for which it was created. Upon registering for one of the major program accounts you […]
March 22, 2022

What Is The Guaranteed Income Supplement (GIS) & How to claim it?

Those receiving Old Age Security (OAS) and residing in Canada who have a low income may be eligible for a monthly non-taxable benefit from the Guaranteed Income Supplement (GIS). To be eligible for the GIS benefit, you must be a legal Canadian resident and receive an old-age security pension. It is an income-tested benefit, which means that your previous year’s yearly income (or combined income for couples) is used to determine eligibility. The maximum annual income amount is available on the Service Canada website. What Is Considered to Constitute Income? Because GIS is a senior poverty reduction program, its impact […]
March 22, 2022

T4RIF – Income from a Registered Retirement Income Fund (RRIF)

You’ll receive a T4RIF slip if you receive payments from your Registered Retirement Income Fund (RRIF). You have to fill out boxes 16 to 37 as they apply. The amount you enter in each of the boxes from 16 to 37 is the gross amount of the payment before any other deductions or tax is deducted. The redemption, which is the cost associated with units of a mutual fund, is an RRIF expense. What is a Registered Retirement Income Fund (RRIF)? Primarily, a retirement fund similar to an annuity contract, which pays out income to one or more beneficiaries, is […]
March 18, 2022

Guide to CERB Taxes

The federal government used the Canadian Emergency Response Benefit (CERB) to help the households that lost wages as a result of the COVID-19 pandemic. The program initially enabled those who stopped working because of COVID-19 to receive a sum of $2,000 over a four-week period. As the pandemic got worse and more people were affected for longer periods of time, the government extended the program and now allows households to receive money over a period of 24 weeks, supplementing their income by up to $12,000. But are CERB payments tax-free? Should you set aside some money to ensure that you can pay […]