Personal Income Tax Measures in Federal Budget of 2011
Highlights of Personal Income Tax Measures in Federal Budget of 2011. This is very important information for families, self employed, sole proprietors and partnership businesses.
These tax incentives will cost the federal government about $35 million in 2010-11 and rising to $168 million in 2012.
Non-refundable Tax Credits ( Important to know, that you do not get any tax refund for these credits. These tax credits only can reduce your existing tax bill and give you a bigger share of tax refund).
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What is Old Age Security Benefits and How to Apply?
The Old Age Security (OAS) program provides income security to Canadian seniors who are 65 years or older.
Many Canadians from the Baby Boomer age will be reaching the retirement age starting 2011 and if you are or you know someone who is retiring, let them know about these government benefits available to them.
Old Age Security benefits include:
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Canada Revenue Agency Income Tax: CRA Income Tax payroll tax Tax Tax Rate US Tax
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How Much Tax Do You Pay on $50 Million Jackpot Winning?
After a $50 million Jackpot was won in Vancouver, people are curious as to how much tax do you pay for that Lotto winning?
The winners should thank their luck that they have won the Jackpot in Canada.
If they had won the Lotto in USA, they would have to pay 38% or more of their winning to IRS.
Since they have won it in Vancouver and are not U.S. citizens, their Tax liability to the Canada Revenue Agency is, “0”.
Lotto or any other lottery winning is not taxable in Canada.
As per Canadian Income Tax Act “Income from a source” of employment, business or investment is taxable income. Since lottery winning is not a regular source of income, not a single penny of the winning is Taxable under Canadian Income Tax Act.
Unfortunately it is a different situation for U.S. citizens or lottery winning in USA.
If you are a U.S. citizen, it does not matter where in the world you win a lottery; you must report and pay income tax on your lottery winning.
If you are not a U.S. citizen and you win lottery/gambling in U.S.A. 30% to 38% of your winning will be taken out and sent to IRS, before you are given the winning proceeds. You must file a Non-Resident Income Tax Return, to get the tax deducted at source back. How much you will get back, depends your foreign residential status and any tax treaty agreement between the USA and your country of residence.
Canada Revenue Agency Income Tax: CRA payroll tax Tax Rate
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Annual Contribution to CPP is Raised to $185 a Month
The CRA has increased the maximum pensionable earnings to $48,300. There is a CPP exemption on earnings up to $3,500. You do not pay any CPP if your annual earning is $3,500. The current CPP rate is 4.95% for both the employer and employee.
Since the CPP premium rate is unchanged, and the pensionable earnings went up, net CPP is up for both employees and employer. Maximum CPP premium will be $2,217.60 for employees and $4,435.20 for the self employed annually.
From Jan 1, 2011 EI premium is going up also.
So, expect to see a smaller pay cheque if your earnings remains the same in 2011.
Canada Revenue Agency Income Tax: EI Income Tax payroll tax
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Payroll Tax Increase is cheered by Canadian Businesses
How do you get thumbs up from both business and labour leaders after announcing an increase in payroll tax?
Consult the stunt by Finance Minister Jim Flaherty.
For months it has been reported that the EI (Employment Insurance) premium for employer and employee will increase by 21 cents and 15 cents for every $100 starting January 1, 2011.
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