The provincial government of Ontario has proposed a new refundable tax credit for seniors 65 or older in 2021. It would provide up to $2,500 for eligible home renovations. The intention behind this temporary tax credit is to help seniors stay in their homes longer, especially considering the impact of COVID-19.
The end of 2020 is fast approaching which means it’s time for you to start making year-end tax planning decisions.
To help you on your way, here are some important tax planning considerations for employees.
As the year comes to a close, it’s time to start making last minute tax planning decisions. This may include deciding whether to make a holiday donation. Depending on your situation it may be the perfect time … or it may be best to wait until the new year.
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.
