Tag Archives: income-splitting

Nov 10: Best from the blogosphere

By Sheryl Smolkin

Just before Halloween, Prime Minister Stephen Harper announced a limited income- splitting proposal, based on a contentious election promise from the 2011 campaign. The new measure which will be effective for the 2014 tax year allows a parent with children under 18 to transfer $50,000 of taxable income to a spouse in a lower income tax bracket. The maximum benefit is capped at $2,000.

Whether you think this was “a trick” or “a treat” will depend on your tax bracket and whether or not only one of two parents in your family is earning income. Here are what some financial bloggers and columnists have to say about the new provisions.

In How Income Splitting Works, Dan Wesley at “Our Big Fat Wallet” explains existing permissible methods of income-splitting like paying your spouse to work in your business or spousal RRSP contributions. He then concludes by discussing the recently announced new income splitting measures for families.

In The truth about income splitting: We take what we can get, Globe and Mail columnist Rob Carrick writes, “It’s a niche benefit that discriminates against single parents, favours families with one big earner and applies to no more than 15% of households, according to estimates from various think tanks.

Law Professor Katherine Lahey blogs at “Canadians for Tax Fairness.” She writes that income splitting and other announcements to family benefits announced at the same time amount to Huge Tax Cuts for Rich Families

The Canadian Council for Policy Alternatives links to a blog David MacDonald wrote in 2011 when the Harper government first floated the idea of income splitting for families. He sheds light on the The Real Numbers Behind Income Splitting and like Lahey said the impact could be “Robin Hood in reverse,” i.e. taking from the poor to give to the rich.

Richard Welland suggests on his blog Your Estate Matters that The “Family Tax Cut” is not income splitting in spite of media reports. He’s reviewed the amendments and thinks that at most it is “simulated income splitting.” He goes on to explain how the program will work.

And finally, in several earlier blogs, on Retire Happy, the ever popular Jim Yih posted   Income Splitting Strategies in Retirement and Income Splitting Strategies for Families, while acknowledging that opportunities for income splitting in Canada are few and far between.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Mar 24: Best from the blogosphere

By Sheryl Smolkin

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Whether you simply can’t face the pile of paper on your desk or you are waiting for the last few T5s to come in the mail, the deadline for filing your income tax return is on the horizon.

In Income Splitting 101: Tips On Keeping It In The Family Boomer & Echo’s Robb Engen discusses the Conservative government’s proposal to permit income-splitting for families with children and some legitimate income-splitting strategies that are already available under the Income Tax Act.

Many young people are considering post-secondary education with a co-op component. On canadianbudgetbinder.com Mr. CBB tells us How his co-op program at a zoo shaped his work ethics.

He says one of the greatest parts of his co-op program was when he was feeding the animals and visitors to the zoo asked him questions he learned how to interact with people and share his knowledge freely.

Blogger Krystal Yee has a new job working close to the downtown Vancouver core. She says Having a car is expensive, particularly now that she has to rent a downtown parking spot. But her home is in the suburbs and she’s not ready to give her car up yet.

Brenda Spiering the editor of brighterlife.ca has some great ideas for spring cleaning your finances. Begin by digging out all of your essential financial documents. If you are unsure what they are, check out Twelve key documents you need to gather.

And as wedding season comes into full bloom, take a look at How I Made 100 Wedding Invitations for Under $60 on whenlifegivesyoulemonsaddvodka.com. All it took was card stock from a stationery store, an online template and a new printer cartridge.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.