• More debt … and more interest

    The fact that debt levels of Canadian households have been increasing over the past decade and a half can’t really be called news anymore. In particular, the ratio of debt-to-household-income, which stood at 93% in 2005, has risen steadily since then and, as of the third quarter of 2018, reached (another) new record of 177.5%. […]
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  • Responding to a tax instalment reminder from the CRA

    Sometime during the month of February, millions of Canadians will receive mail from the Canada Revenue Agency (CRA). That mail, a “Tax Instalment Reminder”, will set out the amount of instalment payments of income tax to be paid by the recipient taxpayer by March 15 and June 17 of this year. Receiving an “Instalment Reminder” […]
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  • RRSPs and TFSAs — making the annual contribution

    For most taxpayers, the annual deadline for making an RRSP contribution comes at a very inconvenient time. At the end of February, many Canadians are still trying to pay off the bills from holiday spending, the first income tax instalment payment is due two weeks later on March 15 and the need to pay any […]
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  • Taking advantage of pension income splitting

    Income tax is a big-ticket item for most retired Canadians. Especially for those who are no longer paying a mortgage, the annual tax bill may be the single biggest expenditure they are required to make each year. Fortunately, the Canadian tax system provides a number of tax deductions and credits available only to those over […]
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  • Employment Insurance Premiums for 2019

    The Employment Insurance premium rate for 2019 is decreased to 1.62%. Yearly maximum insurable earnings are set at $53,100, making the maximum employee premium $860.22. As in previous years, employer premiums are 1.4 times the employee contribution. The maximum employer premium for 2019 is therefore $1204.31. The information presented is only of a general nature, […]
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  • Quebec Pension Plan Premiums for 2019

    The Quebec Pension Plan contribution rate for employees and employers for 2019 is 5.55%, and maximum pensionable earnings are $57,400. The basic exemption is $3,500. The maximum employee premium for the year is $2,991.45, and the maximum employer contribution is the same. The information presented is only of a general nature, may omit many details […]
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  • Canada Pension Plan Contributions for 2019

    The Canada Pension Plan contribution rate for 2019 is increased to 5.1% of pensionable earnings for the year. The maximum pensionable earnings for the year will be $57,400, and the basic exemption is unchanged at $3,500. The maximum employer and employee contributions to the plan for 2019 will be $2,748.90 each, and the maximum self-employed […]
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  • Federal individual tax credits for 2019

    Dollar amounts on which individual non-refundable federal tax credits for 2019 are based, and the actual tax credit claimable, will be as follows. Basic personal amount Credit Amount $12,069 Tax Credit $1,810.35 Spouse or common law partner amount Credit Amount $12,069 Tax Credit $1,810.35 Eligible dependant amount Credit Amount $12,069 Tax Credit $1,810.35 Age amount […]
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  • Federal individual tax rates and brackets for 2019

    The indexing factor for federal tax credits and brackets for 2018 is 2.2%. The following federal tax rates and brackets will be in effect for individuals for the 2019 tax year. Income level / Federal tax rate $12,069 – $47,630 / 15% $47,631 – $95,259 / 20.5% $95,260 – $147,667 / 26% $147,668 – $210,371 […]
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  • Tax deadlines and limits for the 2019 tax year

    Each new tax year brings with it a listing of tax payment and filing deadlines, as well as some changes with respect to tax planning strategies. Some of the more significant dates and changes for individual taxpayers for 2019 are listed below. RRSP deduction limit increased The RRSP contribution limit for the 2018 tax year […]
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