Do I qualify for the pension tax credit? + MORE Jun 1st

Q: This is a question about the $2,000 pension income tax credit.
If I transfer RRSP funds into a RRIF before age 71, may I take advantage of the credit if I am a member of a DB pension plan although I am not drawing a pension as yet? In other words, is the PITC based on being a member of a DBPP or on the income you receive from it?
—Maria
A: The pension income amount is a non-refundable tax credit that can be claimed on your tax return, Maria. It doesn’t apply specifically to defined benefit pension plan members, so it’s not your pension membership that makes you eligible. Eligibility is based on your age, sources of income and tax payable.
Defined benefit pension income is definitely eligible income for the credit, beginning at age 55. Foreign pensions qualify as well, but only to the extent that they are taxable in Canada. Some foreign source pension income is specifically tax-free in Canada due to tax treaties that may entitle you to claim a deduction of that income.
In your case, Maria, since you haven’t begun your defined benefit pension yet, you may qualify for the credit by drawing from your Registered Retirement Savings Plan (RRSP) account…

Despite debt levels continuing to rise, Canadians are looking to a brighter financial future.
Following data released by credit rating agency TransUnion, a new Ipsos Reid/BDO poll shows that the average Canadian’s non-mortgage debt level rose to $21,348 in the first quarter of 2016. That is a 2.7 per cent increase from the average debt level this time last year. It also means that Canadians owe $1.60 for every dollar we earn per year, something that can add to the many financial stresses Canadians already have. But not everyone is worried about it.
Positive outlook:
The poll found that 73 per cent of Canadians are carrying debt, and almost a quarter say they believe they will never become debt free. Almost half of those polled find that the rising cost of living is preventing them from being able to pay off what they owe.
Despite those gloomy figures, four in 10 respondents believe their children will be better off financially than they are.
What makes up the debt:
According to TransUnion, auto and installment loans are the two largest, most common debts, pushing us further into the red…

Canada’s national housing agency says the damage to houses in Fort McMurray isn’t expected to materially impact the CMHC’s finances, in part because it has fewer loans on their books.

ATHENS, Greece – Greeks have woken up to a new wave of price hikes that have been demanded in return for more international bailout loans, with the highest increases targeting the main ingredients of the country’s cafe culture: Coffee and beer.
Starting Wednesday, Greece’s main sales tax rate went up from 23 to 24 per cent, while taxes were also raised on services used heavily by Greeks forced to cut back on leisure activities due to the financial crisis. Charges increased on internet, fixed telephone and pay-TV subscriptions.
The measures were approved by parliament before Greece’s partners in the 19-country eurozone agreed to unfreeze 10.3 billion euros ($11.5 billion) in bailout funds and begin discussions on easing Athens’ debt repayments.
Greece’s left-wing government also overhauled pensions and signed up to ambitious budget targets.
The post New Greek austerity measures tap cafe culture appeared first on Canadian Business – Your Source For Business News.

The banks are a good barometer of our economic health. They’re reporting strong profits even as bad energy loans rise.