However, just recently, I learned that my TFSA accounts are no longer “tax-free,” and income from them must be reported by U.S. residents on their tax returns. Based on the amount of time I’ve lived here, I pass the “substantial presence test” and also meet the definition of what makes a “resident alien” in the United States.
My question is, what I can do to avoid more taxes and penalties next year when I file my return for the income received this year in those two TFSAs? Should I close the accounts?
Q. The Tax-Free Savings Account (TFSA) is a uniquely Canadian savings vehicle that allows you to contribute up to a specified maximum amount annually and earn interest or capital gains tax-free…
The word “taxes” is enough to give most of us a headache. Paperwork, deductions, contributions, Canada Pension Plan (CPP), this type of tax, and that type of tax, federal and provincial — what a nightmare. The good news is the 2019 tax-filing deadline for most Canadians has been extended to June 1, 2020, which is still a few weeks away. Unless you forgot to file your taxes last year, you have until the end of this month to file your return.
Nevertheless, as the year chugs along, an entirely new set of tax changes will come into effect throughout 2020. Many Canadians will see lower taxes, albeit the changes are subtle.
To start, the basic amount Canadians can earn tax-free will increase by $1,160 to $13,229, which will result in lower federal income taxes. This amount is expected to rise to $15,000 by 2023. But this won’t mean much for those in the top tax brackets, who may not see a benefit at all.
The CPP tax rate is rising by 0.15%, that’s an increase of up to $97 in 2020…
What is Tangerine Bank?
Tangerine, a subsidiary of Scotiabank, is an online bank; meaning it doesn’t operate brick and mortar branches. Or at least they don’t call them branches. Tangerine has five “cafés” in some urban centres; two in Toronto, one in Montreal, another in Vancouver, as well as Calgary. Otherwise, all banking is done online at tangerine.ca, with the Tangerine Mobile Banking App (available on the App Store and Google Play).
The fees, or the lack of, continue to be a big selling point for this bank, which are clearly outlined in an annual schedule. Some of the banking services are free, and the biggest selling point for many is that there are no monthly or annual fees…
The COVID-19 pandemic has been stressful for people all over Canada, especially concerning finances. The Canadian government has taken action within the COVID-19 Economic Response Plan and continues to respond with further initiatives.
Groups like students, for example, were initially thought to have fallen through the cracks financially, as they are in a unique position. During this economic downturn, many students aren’t eligible for the Canada Emergency Response Benefit (CERB) if they haven’t been working, but many still have expenses. Recent amendments to the government’s response plan have addressed some of those concerns.
Take a closer look at what financial and social assistance is available for students across Canada.
Government Support for Students
Canada’s COVID-19 Economic Response Plan outlines these areas of assistance for students:
Canada Summer Jobs Program
Emergency Benefit for Students
Canada Student Service Grant
Canada Student Grants
Students may qualify for the CERB if they meet the following criteria:
Live in Canada
Are at least 15 years of age
Are without work for 14 consecutive days, or expect to be
Have stopped working as a result of COVID-19 or are eligible for regular EI or sickness benefits
Have not voluntarily quit working
Have had a minimum income of $5,000 in 2019 or the past 12 months before the date of application
Are currently earning no more than $1,000 from other employment
Have exhausted regular EI benefits and are unable to find a job because of COVID-19
The CERB provides individuals with a temporary income of $500 a week for up to 16 weeks…