Banks offer a variety of products to give you access to cash. But is every borrowing option the same? If you’re weighing the alternatives, you may struggle with the choice between a loan and line of credit. Only you can decide what’s best for you, but there are some factors to consider. Those include your personal spending habits and your plans for the extra source of funding.
What’s the Difference?
Once you’re approved for a line of credit, you don’t have to use it right away. The credit line is available for you to draw from as you need, but you’ll have to make regular payments on any balance. It’s considered a revolving form of credit, where you get the available credit back after you’ve made the agreed upon payments. Some lines of credit only require that you pay the interest on any outstanding balance.
A loan typically comes as cash in one lump sum. You pay it off in fixed installments. Once it’s paid off, it’s paid off…
A. You’re asking about how your pension buyback will impact your yearly income tax return. Great questions!
First, some background: As a participant in the federal government’s defined-benefit pension plan, public sector employees accumulate years of “pensionable service,” which build credits toward an eventual retirement pension.
Then, at retirement, your total pensionable service is used to calculate your pension benefits. This total can include current service (all of the full and partial years you’ve worked while enrolled in the pension plan you’re retiring from), service that you’ve transferred from one plan to another (if you switched jobs and were able to take your pension with you to your new job), and service you have “bought back” to cover a period when you were not contributing to the pension (such as during maternity or parental leave, for example)…
The federal government’s Carbon Tax officially came into effect on April 1, increasing the costs of gasoline and fossil fuel consumption.
The tax was introduced in an attempt to encourage Canadians to use more environmentally-friendly and energy-efficient processes, though subsequently, a tax credit was also implemented as a way to offset these increased fuel costs.
The Climate Action Incentive (CAI) only applies to residents of Manitoba, New Brunswick, Ontario and Saskatchewan, since other provinces have already developed a carbon pricing program.
The amount received from the rebate is based on the province in which the claimant lives, as well as the size of his or her family.
The rebate can also only be claimed by one person per household on 2018 income tax returns, meaning you can receive savings even though the Carbon Tax was only introduced this year.
In Ontario, for example, a single person will reportedly receive $154, and a family of four could be eligible for $307. In other provinces,
A single person can receive:
New Brunswick: $128
A family of four can receive:
New Brunswick: $256
Even if your income falls below the taxable amount, those who file a nil tax return will still receive some CAI…