While this year’s holiday celebration will probably be different than those in the past, one thing remains the same - the tax treatment of employee gifts. If managed incorrectly there can be unexpected tax consequences for both you and your employees.
Unlike Registered Retirement Savings Plans (RRSPs), there’s no time constraints for TFSA contributions.
This is because the money you deposit into your TFSA is taxed on the current year's return, when you withdraw the funds, you don’t have to pay taxes … even if the withdrawal includes interest earned (investment income).
When you put money into your RRSP (Registered Retirement Savings Plan) you can deduct the amount you contribute from your taxes in the same year. If you withdraw funds from your RRSP you would then have to pay the applicable taxes on that amount.
Most employed Canadians have their income taxes deducted at the source when they receive a pay cheques. The employer then remits this amount to the government.
But some Canadians must pay their taxes by installment. This includes retirees and the self-employed, primarily.
2020 may be full of changes but the good news is that post-secondary students still have credits and other opportunities available to them that will help offset the cost of going to school.
To help students and their families prepare, here are the credits, benefits and deductions you should be aware of.
2020 has been an anomaly in terms of filing due dates and paying your tax bill.
