Canadians pay a lot of tax! In fact, tax is the single greatest lifetime expense: an average two-income earning family could pay in excess of $1 million over their lifetime. While meeting with clients to file their 2018 taxes, it’s a great strategy to discuss the tax exempt income sources. Planning to earn more of them will help with cash flow and paying less tax next season.
The most common types of exempt income include the following.
It’s also essential to ensure that income isn’t over-reported, and that you find the above tax-exempt opportunities by conducting thorough interviews with your clients. Not just once – but annually – to ensure you capture new opportunities as they arise.
Additional educational resources: This list of tax exempt income sources was excerpted from the 2018 edition of Essential Tax Facts by Evelyn Jacks. The 2019 version will be available this May! It’s a great resource to share with your clients, to make them more tax-savvy. Pre-order your copies by calling 1.866.953.4769.
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