It’s amazing how much we do and never give it a thought… We just do it! must see/hear https://www.youtube.com/watch?v=5aSRpbLOfo0
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WELLNESS
Self-employed? Here?s how to manage your taxes
By Renée Sylvestre-Williams
A better understanding of how you’re taxed will make it easier to estimate how much tax you’ll pay, and reduce the chances of a surprise at tax time.
If you’re self-employed, tax time can be a source of real anxiety. Varying income from your business can mean varying tax rates, and it can quickly get confusing and unexpectedly expensive.
So what can you do to prepare for tax season?
The solution is to have a good sense of how much tax you’ll owe ahead of time. Here’s how you can build some predictability into your tax bill and be better prepared each spring.
What’s the difference between marginal and average tax rates?
Many people think the secret to knowing how much tax to pay is knowing your marginal tax rate. (See the furor in the United States over Alexandria Ocasio-Cortez’s proposed tax on those who earn over $10 million US.) As a result, they tend to use that as their tax rate and end up overpaying.
“Keep in mind, knowing your marginal tax rate doesn’t help you very much in figuring out how much you actually owe,” says Alexandra Macqueen, a Toronto-based certified financial planner. The marginal tax rate is really about the additional taxes you may owe if your income has changed.
“The classic explanation is that the marginal rate is what you’ll pay on the next dollar of income you earn,” says Macqueen. “For example, if you earned $100,000 and you wanted to know what you would pay if you earned $100,001, then your marginal rate would help.”
In reality, your average tax rate can be a better indicator. Here’s why: Rather than paying tax at the same rate for all your income, you pay different rates for different chunks of it. Here’s a greatly simplified example. At the federal level you might pay roughly 15% on the first $50,000 of income, 20% on the next $50,000, 26% on the $50,000 after that, and so on. To calculate your average tax rate, take the total amount you pay for all the chunks of your income and divide it by your total income. Continuing with our example, if your income was $125,000, you would pay $24,000 before deductions and credits. That’s 15% of $50K ($7,500) + 20% of $50K ($10,000) + 26% of $25K ($6,500) = $24,000. That means that while your marginal tax rate might be 26%, your average rate would only be 19.20% ($24,000 / $125,000 x 100).
Work with a financial professional to get a solid estimate
If you’ve never calculated your average tax rate before, consider seeking out a financial professional such as an accountant. With professional help, you can optimize your taxes for the current year and set yourself up for success in the future.
For the current year, accountants can figure out what you’ve earned, plus identify any tax credits and deductions you may claim. Once they are done with the current year, they can calculate your average earnings and your average tax rate. That will give you a baseline to work from for next year.
What to do if your income has changed drastically
If you made the same gross income as the previous year, you can use that as a guideline to figure out how much you’ll have to pay this year. This doesn’t take into account your business deductions, dividends, RRSP contributions and so on, but it will give you an estimate that you can use to put away money in your tax account.
If you made more money than last year, you can use your marginal tax rate to get a sense of how much more your taxes will be.
What if the math is too complicated or you made less than last year? Here are a couple of other options:
- Use free tax tools to get an estimate. Plug in your gross income, basic deductions and contributions to your registered plans and the tool will give an idea of what you’ll have to pay this year.
- Ask your accountant for a figure. Your accountant can look at your cash flow and gross earnings and give you an estimate. This may require you to book an appointment and pay for the service, but expertise is why your accountant is on your team.
Stay up to date on changes to the tax laws
Changes to the tax rules can affect your business, and business owners might not hear about every change, says Macqueen.
“The Canadian Pension Plan rates just changed,” Macqueen says. “Did the government send you a package to say, ‘By the way, you’re setting aside money for the income tax you owe and CPP’s integrated with that, so keep in mind that the rates went up’?”
A financial professional can help keep you up to date on those changes and review the impact they may have on your business and personal finances.
Stick with the process and avoid tax-season stress
Don’t let the tax process intimidate you. Instead, do a bit of homework and seek professional guidance when necessary. Then you can begin to see how much you’ll owe at the end of the tax year. That kind of knowledge will help you maximize your advantages and minimize your stress.
What Federal and Provincial Benefits do seniors get in Ontario?
- Federal benefits.
- Canadians living and working in Ontario are likely eligible for Canada Pension Plan (CPP) benefits at retirement. At age 60 you may apply for a permanently reduced amount, or defer to after age 65 for an increased pension.
- Find retirement homes in Ontario.
Privately owned and funded entirely by resident fees, these 55+ communities are designed for seniors who do not have significant mobility or medical issues. Retirement Communities provide a variety of social, culinary, fitness and support services to all residents, who enjoy a relaxing and maintenance-free lifestyle. Shared accommodation, private condos, or cottage-style residences are all available to select from. -
Ontario is a premium retirement destination for many Canadians – thanks to a thriving economy, modern medical and financial infrastructures, and moderate weather. Over 12 million residents reside in the province, with seniors constituting 14.2% of this population. The province’s largest city is Toronto, which is situated on the shores of Lake Ontario. Home to over four million, 12.4% of the city’s population are senior citizens – a number that’s slated to grow to 20%+ by 2036. - Canadian residents may apply for Old Age Security (OAS) at age sixty-five. To be eligible you must have resided in Canada for a minimum of ten years as an adult (18 years of age and up). Your employment history is not a factor in determining eligibility. .
- International benefits, made possible due to social security agreements, are available to Canadians living outside Canada, but who have previously been a resident of Canada for twenty years. If you are a survivor of an individual that has worked in Canada and internationally, you may also be eligible
- Guaranteed income supplement (GIS)
Low-income Canadian residents receiving OAS, may be eligible to receive a Guaranteed Income Supplement. Your household income must be within preset parameters. Note: Beginning in April 2023, the eligible age for OAS and the GIS will increase from age 65 to age 67 over a six-year period with full implementation by Jan 2029. Those affected were born on or after April 1, 1958. - Allowance program.
If you are age 60 – 64, a legal resident and citizen of Canada, having lived in Canada for 10 years since age 18, and your spouse or common-law partner is receiving OAS and GIS, you may be eligible for an allowance benefit – your household income will be considered for eligibility. If you have not lived in Canada for 10 years but your country of residence has a social security agreement with Canada, you may be eligible for a partial benefit. - Allowance for the survivor
If you earn a low income and have lived in Canada and your spouse or common-law partner is deceased, you may be eligible for the Allowance for Survivor benefit. To be eligible you must be age 60 – 64, be a Canadian citizen or legal resident, and lived in Canada for at least 10 years after age 18. This allowance will stop at age 65 when you may be eligible for OAS and a GIS.
Set realistic savings goals for your retirement
Want to start saving for the future, but not sure where to start? Use these tips to make – and stick to – smart savings goals.
Excerpts From Sun Life Assurance Company of Canada
Saving for retirement is the biggest and most important financial investment of your life. But if we’re honest, it’s also all too easy to put off. A five- or six-figure savings goal can feel intimidating, and saving for 10, 20 or 30 or more years in the future may not feel as pressing as, say, paying off your mortgage.
So if you’re confused about saving for your retirement – or you’re putting it off in favour of other financial goals – you’re not alone.
The good news, though, is that retirement planning doesn’t have to be intimidating or scary, and it doesn’t need to clash with your other financial goals. By deciding not to delay planning for your retirement, you’re off to a great start. Now, here’s how to set smart retirement goals now to give yourself more options tomorrow without sacrificing comfort today.
Take small steps towards retirement to stay motivated
You & Your Family Matter!
Feel paralyzed looking at a giant, lump-sum retirement goal? Break it down into manageable milestones. How much will you need to save for each year (or per month) of retirement?
To find out, go over your current annual expenses and estimate how much you’ll need in retirement, advises Janet Gray, an Ottawa-based Certified Financial Planner with Money Coaches Canada. Work out how much of those needs will be covered by income sources like Old Age Security, Canada Pension Plan or private pensions, and how much personal savings (possibly including tapping the equity in your home) you’ll need to fill the gap, if any.
- Want to know how much you’ll need to save? Try this retirement savings calculator.
From there, create a series of mini-milestones: savings goals that, once you take into account the interest they’ll earn, would cover six months of retirement, a year, and so on. You’ll reach those initial milestones faster, and that will help keep you motivated to save.
Start saving now, even if you don’t have a solid plan
You may not need us to tell you that knowing you need a plan is not the same as having one. But, good news: You don’t really need a detailed plan to start saving, especially if you’re decades away from retiring. “It’s the initial step into the habit that’s the hardest, so just start,” assures Gray. “Once you have, it’s easy to make changes.”
Start with what you can consistently afford, she advises. If you can comfortably set aside $100 a month, even in leaner months, start with $100 – then up that figure gradually as you get into the habit of saving and as your income increases.
Reap the rewards of investing for your retirement
Part of the challenge of saving is that you may have to wait a decade (or several) to reap the rewards. But there are more immediate perks, too.
Both registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs) have upfront advantages. You can deduct your receipted RRSP contributions from your income, so you can reduce the current taxes you’d otherwise pay. And you won’t need to pay any tax on the money you earn inside your TFSA – which means you’ll see some immediate financial benefits each year. Make a plan for the tax money you’ll save. For longer-term rewards, you can invest your tax savings in your RRSP or TFSA, if you have room. If you’re saving for your children’s education, you could put it in a registered education savings plan (RESP). You could beef up your emergency fund. Or you could reward yourself for smart planning by putting some of it towards something enjoyable, like a family vacation.
How to save for tomorrow when you’re not sure about today
by Kim Armstrong (January 2017)
Job insecurity doesn’t have to mean financial insecurity. These 5 tips will help you improve your financial health and plan for a brighter future.
Sophia Erikson is a 26-year-old who, for the past 2 years, has had to live away from her family and friends, moving from one contract job to another. She’s determined to find a full-time job working in public affairs, but the fear of not knowing what will come next has caused her stress about money and her future.
She’s not alone. The 2016 Sun Life Canadian Health Index found that one-third of Canadians are feeling insecure about their financial health, and precarious employment was one of the top 3 reasons they feel this way. Contract and temporary positions have become a big part of the evolving career landscape in Canada. It’s common to hear about people moving from contract to contract, often without a benefits package or a pension plan.
In Erikson’s case, anxiety about her contract’s undefined end date is negatively affecting her overall financial health. The unpredictable nature of her employment situation is keeping her from planning for the future and she can only focus on whether she can make ends meet if her contract ends tomorrow.
But job uncertainty doesn’t need to mean financial uncertainty. According to Sara Zollo,1 a Sun Life Financial advisor based in Richmond Hill, Ontario , here’s what you can do if you find yourself in similar circumstances:
1. Cover yourself
Typically, contract positions don’t come with a benefits package. You want to be covered if the unexpected happens. It’s as simple as finding a good individual benefits package for a monthly fee until you have a full-time position with coverage from your employer.
2. Give yourself a buffer
Having an emergency fund with enough savings to cover 3 to 6 months’ worth of your critical expenses can help ease any stress you have about paying your bills.
3. Think twice before you splurge
If you’re on a contract or in an unpredictable employment situation, it forces you to be a little more conservative with your money. Use any bonuses, tax refunds or salary increases to bump up your emergency fund and pay down debt instead of that online shopping spree.
4. Start your own retirement savings account
Right now, while you’re trying to make ends meet, saving for retirement could be the last thing on your mind. But it’s important to set a small amount aside every month, in an RRSP or TFSA, to start saving for retirement so that you don’t find yourself struggling when that time comes.
5. There’s help when you need it
You don’t have to deal with financial stress alone. An advisor can help review your finances and develop a plan that works with your current situation.
RADIATION ALERT!
It is incredulous when you hear about radiation all around you, especially when it occurs in your own home. I have two videos I would like to share with you, comparing two of my own microwaves (one of which is roughly 30 years old).
As a baby boomer, owning a microwave, raising a family, keeping them safe and trying to be healthy, I would have never imagined, the potential danger lurking in my own home.
If you own a microwave this can be you!
Did you know, Microwave doors are to be inspected every two years for tight seals?
I am not impressed with the company, DACOR, or its recommended service technicians (Home Appliance aka HarGTA).
HarGTA aka Home Appliance, misdiagnosed my problem, billed and took payment upfront. Then they also charged me for my parts and delivery. They said they repaired my microwave only to return my microwave back to me a week later and say it was a door adjustment that was required. It still was troublesome and then returned to add it was a switch which costs about $1-$2 or so. This all started November 2018. Now I have radiation leakage for a misaligned door that doesn`t seal properly. I did some research and purchased a Microwave Leakage Detector.
You are not going to believe what I found…
Check out the video’s below!
I advise everyone to purchase Microwave Leakage Detector and inspect your microwave once it has been in for repairs or on an annual basis. It is fairly inexpensive considering the necessity and safety of your family. It can be an eye opener. They range from $20 and up. Mine was about $35.
Dacor Microwave (Newer model) ~$1365-$1600 + tax
Moffat Microwave (older model – approx. 30 years old):
I never have had any issues with my Moffat microwave and it never needed any repairs.
I have moved and reinstalled my Moffat microwave under different cabinets many times only to see that it is still safe for me and my family.
It continues to work well unlike my DACOR microwave.
Claiming Medical Deductions from your pay cheque (Ontarians)
Did you know you know if you are working for a company and have healthcare deductions taking from your pay cheque, you are able to claim the deductions on your income tax reducing your income and lowering your tax bracket. This is in addition to when you go to the pharmacy, or eye specialist or dentist and you pay the difference out of pocket. This is also a write off and can be claimed. Check out the CRA site or ask your accountant.
Note: if you haven’t done so, did you know you can go back 10 years?
For those who are asking, in the United States, people that are self employed (even if it is one of the spouses/partner in the relationship) you are able to claim Disability Insurance on your personal taxes if you pay out of pocket (Schedule A Form 1040) Canadians do not have this option, from what I am reading. I will keep you informed as I continue to dig in and find out if we do have this as well. In the CRA site it does state that we may be able to claim Disability Insurance that we pay into personally but not Health Insurance. More to follow.
Missed TAX deductions
Did you know if you forgot to claim any TAX deductions or other taxable benefit, you can go back 10 years and claim it! Amazing. Lowering your income for a larger tax year return.
- Definitions
Testamentary trust, trust, settler, trustee, and beneficiary. - Circumstances that may warrant acceptance of your request
Missed tax deductions or credits, salary tax deduction overpayments, no affect to the tax return of another individual. - Instances when your request will or may be denied
Provincial benefit or credit time limitations, permissive deductions, and more… - Limitation period on exercising discretion and the deadline for requesting relief
Limitation period, the 10-year deadline.
10 Myths And Facts You Need to Know About…Diabetes
Diabetes is a disease that affects 30.3 million people, with numbers steadily rising. Yet, although awareness of this dangerous condition is increasing, as many as 7.2 million Americans with diabetes remain undiagnosed. These figures are worrying and bring into question what do we really know about this life altering disease?
Knowing how to correctly manage being a diabetic can have a huge impact of your health and well being. Yet with so much information out there, it can be hard to separate Myth from Fact.
Unreliable and conflicting information can be very dangerous to your health, which why I have set out to give you the Facts and vanquish the Myths.
Myth #1-People With Diabetes Should Restrict Their Diet
Fact- As with anything, what you put into your body will ultimately have an impact on your health. However, just because you are diabetic doesn’t necessarily mean you should have a restrictive diet. A healthy and nutritious diet, yes. But it does not have to be so painfully restrictive that you start drooling about forbidden foods!
It is recommended for diabetics to eat starchy foods such as whole grain bread, wholewheat pasta and brown or wild rice. These types of starchy foods contain more fibre, which helps to slow down the absorption of sugar in the colon. Protein is also an important aspect in helping to balance blood sugar levels and can help to reduce cravings. Good sources of protein consist of beans, nuts and seeds. In relation yo weight loss, smaller portion sizes will be required, as losing excess body fat is critical for controlling blood sugar levels.
Myth #2-Diabetes Is Caused By Overloading On Sugar
Fact- In reality it’s not as clear cut as that, so don’t start panicking about your chocolate cravings just yet!
There are two types of diabetes:
Type 1: is a serious condition whereby your body is unable to make insulin because your blood glucose levels are too high. It is an autoimmune condition, meaning that your immune system thinks that the cells in your pancreas are harmful and so attacks them. This damages them and as a result stops them from producing insulin. It is thought that Type 1 diabetes is caused by genetics. If you have a close relative – such as a parent, brother or sister – with type 1 diabetes, you have about a 6% chance of also developing the condition.
Type 2: occurs when our cells in our body become resistant to the action of insulin and the pancreas cannot product enough insulin to bring blood sugar levels back to normal. As a result, the glucose in the body is not used up for energy but stays in the blood. This type of diabetes is associated with lifestyle and factors such as obesity levels.
Myth #3-Chocolates And Sweets Are A Big No Go
Fact- Many people diagnosed with diabetes may be thinking their days in indulging in a sweet treat are over. Well this might not be true. If consumed as part of a healthy diet and combined with physical activity, a treat now and then isn’t off limits. The key to this, especially when you are diabetic is to indulge in small portions and save them for special occasions. Chocolate will cause your blood levels to rise, which is why it should be eaten in moderation. Dark chocolate is usually a better option as it is higher in cocoa solids and has less sugar.
Myth #4-Artificial Sugar Is A Healthier Option
Fact- The fact that artificial sweeteners and sugars are portrayed as a healthy alternative to sugar makes them even more dangerous. The health conscious may think they are making a good decision swapping their spoonful of sugar for splenda, but in reality this could be far from the truth. Here’s one example; Sucralose (sold as Splenda) is 600 times sweeter than sugar. Shocking right? So for those who are diabetic, be aware of artificial sugar and do not use it as a substitute. Natural sweeteners such as stevia and monk fruit are a healthier alternative.
Myth #5-People With Diabetes Shouldn’t Play Sport
Fact- As with any person, exercising contributes to your overall health and boats a range of benefits. This is especially relevant for people with diabetes. Exercise is a great way of controlling blood sugar, weight and blood pressure. It can also reduce the risk of developing common diabetes complications such as heart disease. That being said, it should be noted that exercise can sometimes lower blood sugar, which can cause hypoglycemia. To prevent this occurring, stay hydrated, don’t exercise on an empty stomach and have a snack ready in case you start to feel weak and shaky. Talk to your doctor about checking your blood sugar before and after exercise as a precaution, but other than that, enjoy and partake in exercise.
Myth #6-People With Diabetes Are Dangerous Drivers
Fact- Yes one of the conditions that people with diabetes can suffer is blurred vision. This is as a result of Hypoglycemia, also known as low blood sugar. Low blood sugar can result in a number of symptoms such as hunger, fatigue and shakiness. However, this does not mean people with diabetes are dangerous drivers. Low blood sugar is preventable and the majority of people with diabetes at risk of hypoglycemia exercise extreme care to avoid this condition when driving. Statistics show that diabetics are no less safe on the road than anyone else, with significant accidents being attributed to hypoglycemia affecting less 0.2% of drivers treated with insulin.
Myth #7-Diabetes Is Easy To Diagnose
Fact- Even if you know the symptoms of diabetes, it does not necessarily mean that you will be able to diagnose it. Many people have diabetes and do not even realise it. As many as 7.2 million Americans with diabetes remain undiagnosed. Type 2 diabetes can be particularly hard to diagnose as the symptoms develop gradually and can be so mild that they go unnoticed. Some symptoms include urinating often , feeling hungry and thirsty, blurry vision, fatigue and cuts and bruises that heal slowly.
Myth #8-People With Diabetes Should Avoid Fruit
Fact: People with diabetes are often told that they should avoid fruit. However, this is not strictly true. Fruit and vegetables are excellent sources of vitamins, minerals and fibre. Yes they do contain natural sugar, which makes blood sugar levels rise. Yet, most fruits have low to medium glycaemic index, so they do not lead to a sharp rise in your blood glucose levels compared to other carbohydrate containing foods like white or wholemeal bread. That being said, it is best to avoid fruit juices and smoothies, which have fewer nutritional benefits and are higher in sugar.
Myth #9-People With Diabetes Are More Likely To Get Sick
Fact: It is commonly believed that people with diabetes are more prone to colds and flu’s. However, people with diabetes are no more likely to get ill than anyone else. The issue with contracting an illness is that it can make managing blood sugar levels more difficult than normal and increase the severity of the illness.
Myth #10-Type 2 Diabetes Is Irreversible
Fact: It is widely believed that Type 2 diabetes cannot be reversed. This is a Myth, The Big Pharma companies make a $245 billion a year profit from the disease. As such, they do not want the disease defeated. Studies are showing that Type 2 diabetes is in fact reversible, and I myself know this to be true. How do I know this you might ask? Well, the truth is that I had Type 2 diabetes and managed to overcome it. I had Doctors trying to get me to use dangerous drugs with harmful side effects, but I refused them. Instead I found a natural solution. Click on the button below to find out how to how you can beat diabetes naturally without harmful drugs or side effects within 90 days.
Canadian Seniors Homeowner Grants (2018): Over 100 Grants, Rebates & Tax Credits!
Need financial help with your home repairs or renovations?
If you or your spouse are a senior citizen in your province, then this guide has information for you! Keep reading for essential information on the Canadian government’s grants for seniors’ home repairs.
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ALBERTA SENIORS HOMEOWNER GRANTS
MANITOBA SENIORS HOMEOWNER GRANTS
NEW BRUNSWICK SENIORS HOMEOWNER GRANTS
Newfoundland & Labrador SENIORS HOMEOWNER GRANTS
NORTHWEST TERRITORIES SENIORS HOMEOWNER GRANTS
NOVA SCOTIA SENIORS HOMEOWNER GRANTS
NUNAVUT SENIORS HOMEOWNER GRANTS
ONTARIO SENIORS HOMEOWNER GRANTS
PRINCE EDWARD ISLAND SENIORS HOMEOWNER GRANTS
QUEBEC SENIORS HOMEOWNER GRANTS
SASKATCHEWAN SENIORS HOMEOWNER GRANTS
YUKON SENIORS HOMEOWNER GRANTS
Are You Considered a Senior?
In some provinces, the definition of senior is considered to be someone over 55. Other provinces define it as 65 or older. You must turn that age on the year of taxation and application to receive the grant for which you are applying.
Are You a Veteran?
There are some incentives for veterans when it comes to making your home more comfortable. For instance, in the Northwest Territories, there is a Senior and Disabled Persons Property Tax Relief program.
Under their conditions, someone is considered a senior if they are 65 or older on the year of application for the tax relief and have a valid medical certificate (approved by the Minister of Municipal and Community Affairs) that states that you have a disruptive and/or prolonged disability.
This also extends to veterans. If you are a veteran who receives a pension or allowance of at least 50% under the War Veterans Allowance Act, then you are eligible for these programs.
excerpts: https://showmethegreen.ca/financial-assistance/canadian-seniors-homeowner-grants-2018/