Are you making choices between investing in a TFSA or an RRSP? Which should come first? The correct answer is of course, it depends. We decided to do some numbers to come closer to the precise answer and what we found was interesting. The TFSA seems to be the winner over time, even in cases where income splitting is available in retirement. But there is a wild card: what tax bracket will you be in — at the time of […]

According to the February 11, 2014 federal budget, approximately 7,600 Canadian Armed Forces personnel leave the Canadian Armed Forces every year. This includes approximately 1,000 personnel released for medical reasons beyond their control. Finding meaningful employment is a key factor in making a successful transition to civilian life. But it is also clear that some tax-efficient investment planning could help leverage some of the tax-free supports available to veterans. RDSP and TFSA investments, for example, could be helpful. Astute tax […]

It’s February, and that means that the Groundhog and Cupid vie for our attention. They seem to personify the challenge Canadians have with their fiscal balancing act: the ongoing lure to demonstrate love through wallets, with the fiscal obligations to spend and plan for our futures responsibility. The spirits of the two, Groundhog and Cupid, make a great case for tax-efficient financial planning this month. February 2:  What did the Groundhog Bring? Groundhog Day, was apparently inspired by a Scottish […]

When it comes to tax time, it always pays to do a good review of the tax changes from one year to the next and find those “dark horses”; the little-known tax facts that can make a big difference on tax filing outcomes. One such change exists for pilots flying in and out of Canada, another for overseas workers and yet a third for those whose employers pay premiums for wage loss replacement plans. Pilots. Non-resident pilots flying in and […]

Do you spend money in the course of your work that’s not reimbursed by your employer? Certain employees may, in fact, claim out-of-pocket expenses on their tax returns. However, the Income Tax Act is very specific about the expenses that may be claimed. The deduction for these costs will ultimately show up on Line 229 of the T1. It’s a good idea to use Form T777 Statement of Employment Expenses as a guide to the receipts you need to look […]

I was so glad to hear from Russ, in response to last week’s blog. He shared that he had read my book; realized he missed claiming moving expenses and then adjusted his prior filed returns. To his delight, he received a $6600 refund – found money!  Good for you Russ! This is just one real-life example of the thousands of dollars average taxpayers can miss because they just don’t know about all their tax deductions. Moving expenses are particularly lucrative, […]

Happy New Year!  If you want to get a “jump start” on your financial fitness this year, get busy and use the current cold snap to sort tax receipts and speed up your tax refund. Electronic filing will help a lot, so changing your game by researching the right tax software for your family can be a smart move, especially because the wait time for any help you might seek from CRA can hold up your game. According to the […]

It has been a pleasure to serve the close to 22,000 subscribers to Knowledge Bureau Report this year and to feature up-to-the minute commentary on tax and economic affairs from our stable of contributors including our researchers, course writers, in-class instructors, guest writers, editors and technical distributors of the information. They have each done a phenomenal job. We hope that you have benefited from this extensive effort to bring interpretation to what’s going on in financial news each week. If […]

It was a pleasure to participate in a live tax chat with Canadians from coast to coast before the holidays in an event hosted by MoneySense magazine. One of the interesting questions asked concerned the length of time contributors have to recover overpaid Canada Pension Plan premiums. The taxpayer discovered he had overpaid premiums when a retroactive CPP disability pension was granted over a 7 year period. To his dismay, he discovered that the maximum recovery time for such premium […]