Personal Income Tax Brackets & Rates – 2018

The table shows the 2018 federal personal income tax brackets and rates that apply to taxable income. Jurisdiction Lower Limit Upper Limit Rates Federal 0 46,605 15.0% 46,606 93,208 20.5% 93,209 144,489 26.0% 144,490 205,842 29.0% 205,843 33.0% The following table shows the 2018 personal income tax brackets and rates that apply to taxable income on the provincial and territorial …

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Registered Education Savings Plan (RESP): the Basics

I will be talking about RESP in the next few posts. The first will touch upon RESP basics related to cash payments made into RESPs; it will be followed by discussion on the payments the beneficiaries receive when they start to pursue post-secondary studies. A third post will compare some of the most common registered savings plans, such as RRSP, TFSA …

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The New Child Assistance Payment – Family Allowance

This is a simple Family Allowance calculator for Quebec residents with kids under 18 years of age. The information used to program this calculator is based on the publication from Quebec Finance Department on December 3, 2018. Previous year’s family income is calculated as the total of the amount on Line 275 of your Quebec tax return (and that of …

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Personal Financial Statements – An Introduction

What are personal financial statements? Financial statements are documents prepared by an entity, such as a corporation, a government, a not for profit organization, a supranational organization (as the United Nations), presenting the financial position at a certain date and activities for a period of time. A set of financial statements is usually composed of a Balance Sheet, an Income …

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What Is A Jeopardy Order (or Collection Order)?

You might have read that Mr. Conrad Black (yes, you’re right. That’s him.) was fighting two liens that have been placed on his Toronto mansion as Canada Revenue Agency (CRA) claimed that he owed the federal agency more than $15 million in unpaid taxes. How come CRA has put two liens on the property of Mr. Black? That has to …

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RRSP & Labour-Sponsored Funds Tax Credit

Working-age Canadians are not unfamiliar with the concept of Registered Retirement Savings Plan, or better known as RRSP. It was designed as a tax-deductible savings account where workers can save for their future. People cannot rely on payments from Canada Pension Plan to keep their living standard in retirement. Old Age Security, Guaranteed Income Supplement and CPP are all meant …

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The Good, The Bad, and The Ugly of the Middle Class Tax Cut

Some background information During the 2015 elections, the now-governing federal Liberal Party announced in their campaign that they would implement what they called the Middle Class Tax Cut, which they promoted as being fairer to Canadians as opposed to the Family Tax Cut of the now-gone Conservative government. Family Tax Cut vs. Middle Class Tax Cut It seems rather clear …

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TFSA or RRSP

A Brief Recap of RRSP and TFSA Let’s start with a brief recap of the features of RRSP and TFSA: They are both very good vehicles for saving for one’s retirement. Within a certain limit, contributions made to an RRSP account are tax-deductible, thus reducing one’s current tax liabilities, and the investment in the RRSP account can grow and accumulate free of …

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