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The Mind boggling Tax system

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The Mind boggling Tax system

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Old Oct 8th 2004 | 2:46 am
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Default The Mind boggling Tax system

We found trying to work out your tax very complicated to say the least when we was in NS. Not like the good old PAYE.

Are there any good websites that help and what are the best things to do etc to maximise income, tax burden?

Also do you get family allowance?
 
Old Oct 8th 2004 | 2:57 am
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Default Re: The Mind boggling Tax system

Originally Posted by daisymoll
We found trying to work out your tax very complicated to say the least when we was in NS. Not like the good old PAYE.

Are there any good websites that help and what are the best things to do etc to maximise income, tax burden?

Also do you get family allowance?
Ive never had a problem with it, work takes deductions, at tax time you claim back a rebate based on making deductions to calculate your "taxable income" from your actual income. Without making RRSP contributions etc the amount deducted by my employer is correct.

If you really dont want to tackle the forms then HR Block and the like will do it for you for a reasonable fee, but if you dont keep the receipts for medical expenses etc that you can deduct for, then they are not going to get you any extra money back anyway. If you run a business from home or have additional income sources it may get a bit more complicated, but if you are runing a business you probably have an accountant anyway.

Best thing you can do to minimise tax burden is to open an RRSP (registered retirement savings plan) and contribute to it regularly. The interest earned is tax free, and contributions can be deducted from you taxable income to minimise tax paid. Once this is maxed out, if you have kids open a RESP (registered education savings plan). Contributions are not deductable, but interst earned is not taxable, and the government will also contribute a certain percentage to the fund, up to a maximum limit.

There is no family allowance, but there is a monthly means tested government payout for having kids that compensates for the fact you cant deduct more for having a family. (Child Tax Benefit or something?) http://www.cra-arc.gc.ca/benefits/childbenefit-e.html

Disclaimer, this is not financial advice yadda yadda yadda

Last edited by iaink; Oct 8th 2004 at 3:02 am.
 

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