Helping First Nations, Inuit and Metis with Tax Filing

The Canada Revenue Agency is trying to reach out to Canada’s First Nations, Inuit and Metis to encourage them to file their tax forms on time and could use your help to make sure these communities get all the tax benefits they are entitled to. But filing tax returns are not always easy, especially when there is income on and off the reserve.

Knowledge Bureau will publish a late edition of KBR on March 22 to cover the Budget. Be sure to join us for all the news and please share knowledge: a subscription to the Special Budget Report is free. Your friends and colleagues can sign in to reserve their copy now.

The full OAS  Benefits to be reported as income by recipients on the 2016 tax return is $6,878.82.  The amount will be less if you started receiving the benefits this year or could be more if you delayed starting beyond your 65th birthday.  But, if you had unanticipated higher income on the 2016 tax return perhaps due to your investments, your annual Old Age Security (OAS) could be reduced or disappear entirely come this July.  Worse, you could find yourself paying more in quarterly tax instalment remittances.  Are you having that discussion with your tax specialist?  It’s important to plan your summer cash flows.  Here’s what you need to know:

Lost your job?  That can be a very traumatic experience for some; a relief for others.  In both cases, Employment Insurance (EI) benefits are a good first line of defence to pay for food and shelter.  However, these benefits will be taxable. Worse,  if you are a high-income earner in the year you leave your job, these benefits may also be subject to repayment.  Therefore, some tax planning is in order.

CRA has been busy announcing new convictions at the start of 2017, a great deterrent for potential tax evaders at the start of tax season.  It’s always best to come forward to declare shortfalls in income reporting or overstatements of tax deductions or credits to avoid expensive interest, penalties and potential jail time. Here’s what happened to those who didn’t. . .

What’s the best way to pay the least amount of tax on your RRSP or RRIF accumulations?  “Average down” the taxes payable on your accumulated capital  by using the progressivity of the tax system (the more you make the more you pay) and the current tax brackets and rates to your advantage.

In Canada’s 150th year, Knowledge Bureau is pleased to put the spotlight on Canadian Financial Authors and celebrate Financial Advice at the Crossroads of Change at DAC Nov 5-8 in Kelowna.  This week:  Rick Atkinson discusses:  Guiding Clients to Better Health & Well Being in Retirement.