Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Pay Less Tax on Your Income In a Day For Canadians For Dummies
    Pay Less Tax on Your Income In a Day For Canadians For Dummies
    Pay Less Tax on Your Income In a Day For Canadians For Dummies
    Ebook97 pages45 minutes

    Pay Less Tax on Your Income In a Day For Canadians For Dummies

    By Christie Henderson, Brian Quinlan and Suzanne Schultz

    ()

    Read preview
    LanguageEnglish
    PublisherWiley
    Release dateNov 27, 2012
    ISBN9781118605622
    Pay Less Tax on Your Income In a Day For Canadians For Dummies

    Read more from Christie Henderson

    Related to Pay Less Tax on Your Income In a Day For Canadians For Dummies

    Titles in the series (16)

    View More
    View More

    Related ebooks

    Personal Finance For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      Want to Pay 0% in Taxes? Here’s How

      Aug 23, 2021

      One of the greatest expenses business owners and retirees alike face is income taxes. That’s why a forward-thinking tax planner is so valuable. They can leverage the Internal Revenue Code (IRC) to lower your taxes and help you build wealth. However,

      6 min read

    • Article

      Don't Settle for Anything Less Than True Diversification

      Dec 11, 2018

      Diversification is a big word, but it can be simply defined: Don't put all your eggs in one basket. That sounds easy enough to understand and accomplish, but it can be trickier than you might think. That's because there's a big gap between how Wall

      3 min read

    • Article

      Nontraditional Options Let IRA Investors Crank Up the Risk

      Sep 30, 2021

      Most retirement savers are determined to keep their investments simple. They stash most of their savings in low-cost index funds or in target-date funds, which are portfolios of diversified funds that become more conservative as you approach retireme

      7 min read

    • Article

      16 High-Yielding Monthly Dividend Payers

      Sep 7, 2018

      What income investor doesn't love the frequent payout and reliable cash flow that can come from owning monthly dividend stocks, trusts and other entities? The ability to offset predictable expenses such as mortgage payments and utility bills every mo

      13 min read

    • Article

      Entrepreneurs Pay Too Much in Taxes Because They Don't Do This

      Mar 29, 2019

      As we head deeper into tax season, we're starting to hear from more and more Americans experiencing sticker shock as they file their returns. Gone is the comforting and often sizable refund check they've come to expect every year. Instead, they're fi

      2 min read

    • Article

      How Much Should Go into Your Special Needs Trust?

      Jun 10, 2019

      One of the most difficult challenges in planning for a child with special needs is figuring out how much money it is going to cost to provide for the child, both while the parents are alive, and after the parents pass someday. All too often, it seem

      4 min read

    • Article

      The Ins and Outs of Buying Long-Term Care Insurance

      Mar 9, 2018

      I often suggest long-term care insurance to my clients, and I almost always hear this objection: "It's too expensive." Yes, long-term care insurance is not cheap, but medical insurance and Medicare typically do not cover that particular type of care

      2 min read

    • Article

      Mutual Funds vs. ETFs: Why Choose One When You Can Use Both?

      Sep 2, 2019

      Both mutual funds and exchange-traded funds (ETFs) are designed to give investors great diversification. For example, instead of just investing in a few technology stocks, buying a technology stock mutual fund or ETF would allow you to own dozens or

      5 min read

    • Article

      A Tax Guide for Investors

      Mar 7, 2019

      For most people, tax time is about as much fun as taking a bath with an electric eel, and taxes on your investments can be particularly confusing and irksome. Nevertheless, if you make wise use of capital losses and gains, you may find that you owe l

      7 min read

    • Article

      Should You Do Your Own Taxes or Hire a Professional?

      Jan 30, 2020

      For some people, tax season poses little worry, and the process occurs painlessly. Simply populate the requisite fields on your 1040 with info from your W-2, claim the standard deduction, sign on the dotted line and e-file. After that, the check is

      4 min read

    • Article

      Spend Without Worry in Retirement

      Aug 30, 2021

      The Irish poet and playwright Oscar Wilde once said that it’s better to have a permanent income than to be fascinating—a sentiment many retirees undoubtedly share. Unfortunately, the decline of traditional pensions in favor of 401(k) plans (and other

      12 min read

    • Article

      How to Avoid Financial Panic When a Recession Threatens

      Aug 30, 2022

      It’s OK to worry about a potential recession. The unknown is scary. But, don’t let those emotions lead you into financial panic. You are not the only one feeling anxious – more Americans are worried about a looming recession than in years. Two-thirds

      4 min read

    • Article

      Income Is King

      Sep 4, 2019

      Income Is King
      18 min read

    • Article

      How to Calculate Your Retirement Wealth Gap

      Mar 6, 2022

      Whether they admit it or not, many business owners wrestle with anxiety surrounding their financial futures. Maybe you’ve dealt with this yourself. But you don’t have to be fearful about your retirement savings if you plan properly. I’d like to share

      5 min read

    • Article

      HOW TO START A SIDE HUSTLE AND make extra money!

      Mar 21, 2021

      Whether it’s renting a spare room on Airbnb or doing odd jobs through Airtasker, working in the sharing economy can be a major income earner or cash booster for some, discusses financial planning expert Helen Baker. If planned and structured well, i

      2 min read

    • Article

      Find Out in 5 Minutes If You Have Enough to Retire

      Aug 24, 2022

      My 4-year-old daughter loves working around the house to earn money. Perhaps we’re a bit early with these lessons. Nevertheless, when she earns money, it goes into an envelope with the words “baby doll” on it. One thing that kids understand that adul

      2 min read

    • Article

      Just OK Is Not Good Enough for a Financial Plan

      Sep 16, 2019

      Don't get me wrong. I'm 100% in favor of the idea of financial planning. And I have nothing but respect for the fee-only fiduciary advisers who do it right. It's just that some people view going through a traditional financial planning session with

      5 min read

    • Article

      Money Matters

      Mar 21, 2024

      Money Matters
      5 min read

    • Article

      HOW TO Manage Your Money As A Freelancer

      Sep 13, 2020

      The world is changing and the traditional commute to and from an office for a 9am to 5pm day is slowly falling away. More people are exploring their talents and skills that are unrelated to traditional employment, and they must find time to acquaint

      4 min read

    • Article

      The 11 Most Valuable Personal-Finance Lessons of 2018

      Dec 28, 2018

      Editor's Note: Kim Lankford answers readers' real-life financial queries in her popular Ask Kim column on Kiplinger.com and in Kiplinger's Personal Finance magazine. She receives hundreds of questions every month. Thank you for your questions this pa

      6 min read

    • Article

      Biz Start-Up Guide: Step 3 Make Plans Think Through Important Aspects of Your Future Home Business

      Sep 29, 2022

      Order at https://homebusinessmag.com/home-based-business-guide/ You know what type of business you want to go into, and that's a great start. You probably can't wait to begin. But before you do, it's essential to make plans. You need to think through

      11 min read

    • Article

      4 Potential Problems with Equity Compensation, and How to Solve Them

      May 1, 2021

      Non-cash compensation might not sound like a very good deal for you as an employee — but depending on the type, it can actually provide quite a boost to your net worth over time. Equity compensation is a type of “non-cash” comp that your company may

      4 min read

    • Article

      Your Questions Answered

      Jun 3, 2020

      Money has received hundreds of questions from readers about how to manage their personal finances, in all kinds of scenarios. While it’s not possible to respond to every question, we’ve asked four experts to help us answer six questions that broadly

      4 min read

    • Article

      Considering Early Retirement? 5 Things to Know

      May 14, 2020

      Recently I received an email titled “early retirement” from a client who has been working for the same Fortune 500 company for over 40 years. He was planning to retire soon but had not put in his notice. Their offer: 14 months of pay plus health bene

      5 min read

    Related categories

    Reviews for Pay Less Tax on Your Income In a Day For Canadians For Dummies

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Pay Less Tax on Your Income In a Day For Canadians For Dummies - Christie Henderson

      Introduction

      If you’re like many Canadians, much of your time is spent at work. Among us are farmers and bankers and teachers and bus drivers and tax accountants, plus occupations that many of us have yet to imagine. But the one thing that we all have in common is that we work to get paid so that we have income to enjoy the rest of our lives. In this book, we offer strategies to help you hold on to as much of that income as possible, whether you’re an employee or a business owner.

      Employees are very limited in the expenses they can deduct when calculating the tax they owe to the CRA and therefore, much to the chagrin of many Canadians, employment income is where we pay the bulk of our taxes. But don’t despair — with some planning and a better understanding of how the CRA views employment income, you just might end up with a few more dollars in your pocket after all is said and done.

      As for you business owners, running a small business is no small feat. Issues arise continually that need your attention — customers, manufacturing, marketing, sales, labour relations, and so on. And then there are the taxes. In this book, we tackle many tax issues that a small business owner must face. Tonnes of these issues can lead to positive tax planning opportunities to help maximize after-tax income for you and your family.

      What You Can Do In A Day

      The goal of Pay Less Tax on Your Income In A Day For Canadians For Dummies is to help you understand the basic rules of Canadian taxes and how they can benefit you. Whether you’re your own boss or you work for someone else, you need to know what income and benefits are taxable and what types of deductions and credits you’re entitled to claim. This can make a huge difference in how much tax you pay each year.

      You can read the chapters straight through and get an overview of the essential tax information as we’ve outlined it, or you can have a look at the Table of Contents and pick and choose the information that applies to you. How you use this book is up to you. So dive in, and start saving money!

      Foolish Assumptions

      Here’s what we’re assuming about you. You work for a living, either for someone else or yourself, and you’re interested in Canadian taxes. You want to make sure you keep as much of your money in your pocket as possible.

      Icons Used in This Book

      To help you navigate your way through this book, we place icons in the margins. Here’s a list of the icons and what they mean:

      remember_4c.eps When you see this icon, you’ll find a friendly reminder of stuff we discuss elsewhere in the book or of points we really, really want you to remember.

      tip_4c.eps The bull’s-eye marks the spot for smart tax tips and timesavers to help you get your tax return done quickly and with a minimum amount of pain.

      technicalstuff_4c.eps This nerdy guy appears beside discussions that aren’t critical when you just want to know the basic concepts and get answers to your tax questions — that is, when you’re using the book as a quick reference days before your return is due (you wouldn’t do that, now, would you?).

      warning_4c.eps Don’t make these common but costly mistakes with your taxes! Aren’t we nice folks to point them out?

      5minuteexercise.eps Take a break from the text for a quick exercise designed to help you get a better grasp of Canadian taxes.

      exploresomemore.eps When you see this icon, head to this book’s companion website at www.dummies.com/inaday/paylesstaxonincome. Online, you’ll find more-detailed information about topics that we cover in the book.

      Chapter 1

      Workin’ for the Weekend (or for Retirement)

      In This Chapter

      arrow Determining your employment status

      arrow Investigating retirement saving options

      No matter what your working situation is, it’s your responsibility to understand what taxes you’re accountable for and to ensure you’re filing the proper returns. We’re here to help!

      That’s what this chapter is all about. We help you figure out your employment status and give you the lowdown on how this affects your tax bill. We also take a look at some of the different tax rules that apply to your retirement saving plans and how these can benefit your long-term financial plans — because it doesn’t matter what your employment status is, we all want to retire some day!

      Understanding Your Employment Status

      Are you your own boss? Of course we’d all like to think we’re our own bosses, but the CRA wants to know specifically whether you’re self-employed or an employee. For many people the answer is simple, but for others it’s not so obvious. The CRA makes the distinction between self-employed and employed based on several factors or tests — and the distinction can make a huge difference in your taxable income. If you’re an employee, the Income Tax Act restricts the expenses you can deduct from your employment income. Basically, if a deduction isn’t specifically mentioned in the Act, it’s not deductible. Self-employed individuals don’t have these same restrictions.

      The ups and downs of self-employment

      In most situations it’s advantageous to arrange your business relationships so that you’re an independent contractor (self-employed) rather than an employee. This is because independent contractors are entitled to claim deductions for many expenses not deductible by an employee.

      remember_4c.eps That all sounds nice, sure, but be aware that self-employment comes with its own drawbacks. As a self-employed person you’ll be responsible for paying the employer’s share of Canada Pension Plan (CPP) contributions, which doubles your overall contribution. As well, before leaping at the opportunity to become your own boss, remember this: If your business venture fails, there will be no Employment Insurance (EI) or severance waiting for

      Enjoying the preview?
      Page 1 of 1