Income Tax Planning
Preparing for Tax Time
Most people dread doing their taxes. They leave it until the last minute and then rush to get all of the proper papers in order by the deadline. It wouldn't be such a chore if they just planned ahead and took better care of their documents. There is a wealth of information and tax tips available through Revenue Canada and we at iNova Credit Union can guide you through the many different types of investments available to reduce your taxes and help you get the maximum return.
Tax Implications of Marriage
After you get married, or enter into a common-law relationship with someone, you may be eligible for income tax relief. If your spouse has no income, you can claim a spousal amount of $6,140 as a non-refundable tax credit. If he or she has a net income of less than $6,754, you will be able to claim a portion of that amount. If your spouse earns more than that, you cannot claim a spousal amount.
Spousal RRSPs
It's a good idea to invest in this type of RRSP if there is a large discrepancy in your incomes, so you and your spouse have equal assets upon retirement. You'll benefit from the short-term tax deductions, your spouse will benefit from the contribution and both of you will avoid paying unnecessary taxes during your retirement. iNova Credit Union can determine if this option is right for you.
