Income and Deductions (Individual/Senior) Flashcards
Other Income and Other Deductions for Individuals + Seniors
RRSP Contribution & Withdrawal?
RRSP is a tax free savings plan.
Seniors - Withdrawal It is included in income and is taxable
Seniors - Contribution Is deducted from income and is not taxable
Employee- Withdrawal It is included in income and is taxable
Seniors - Contribution Is deducted from income and is not taxable
Other Income and Other Deductions for Individuals + Seniors
Pension income ?
Seniors- Pension income goes under other income and it is taxable.
Other Income and Other Deductions for Individuals + Seniors
Old Age Security Benefit
Old age security is monthly government payment starting at age 65.
Seniors- Old Age Security is included in other income
Other Income and Other Deductions for Individuals + Seniors
EI Benefits
Employee- EI benefits are included in Other income
Other Income and Other Deductions for Individuals + Seniors
EI Clawback?
Essentially when an employee makes too much > 75,375. 30% of this amount is deducted from other income.
Other Income and Other Deductions for Individuals + Seniors
OAS Clawback?
Seniors- Essentially when an employee makes too much > 81,761. 15% of this amount is deducted from other income.
Other Income and Other Deductions for Individuals + Seniors
CPP?
Employee- Included in income
Senior- Included in income
Other Income and Other Deductions for Individuals + Seniors
Pension income splitting
Receiver - Includes the pension income
Sender - Deducts it from income
Other Income and Other Deductions for Individuals + Seniors
Spousal support?
Added for both Employees and Seniors if Conditions have to be met first for payment to be considered spousal support!
- Periodic payments
- Solely for the maintenance of the spouse
- Spouse has discretionary use of the amounts
- Spouses are living apart
- Made as part of a written agreement or competent tribunal
In other words follow P.A.L.M.D
P= periodic payments
A= Written agreement
L= Living seperately
M= Maintenace of the spouse
D= Discretionary use
Sender - Deducts it from income
Receiver - Includes In income
**Child support **is excluded, it is neither included or deducted.
Other Income and Other Deductions for Individuals + Seniors
Death Benefits
Individual - Death benefits over 10,000 are taxable
Senior - Death benefits over 10,000 are taxable
Other Income and Other Deductions for Individuals + Seniors
Retiring allowance
Also known as severance pay, amount paid when an employee retires. Includes sick time etc.
Senior - Retiring allowance is included in taxable income
Other Income and Other Deductions for Individuals + Seniors
Research grants
Included in income net of expenses
Other Income and Other Deductions for Individuals + Seniors
Social Assistance and Workers compensation
Seniors/Employees - Social Assistance Is added to income for seniors
Employees Workers compensation is added to income.
Other Income and Other Deductions for Individuals + Seniors
EI Benefits
Employees- EI benefits are added to taxable income
Other Income and Other Deductions for Individuals + Seniors
Moving Expenses
Employees - Are Deducted from taxable income
Seniors - Are not included
