Sentences with phrase «higher income spouses»

It is particularly relevant for higher income spouses trying to split income with lower income spouses.

For non-registered investment that you mentioned... Are there some tax implication if the higher income spouse earns the money and then the lower income spouse uses it to invest?

Over the long term if someone had a higher income than their spouse and contributed to their TFSA the tax savings could be huge because the income generated in the account would not be attributed back to the higher income spouse.

But if it's in the lower income earner's hands, it would be taxed at a lower rate than the higher income spouse.

To give you an idea of how much money can be saved, consider a couple where the lower earning spouse earns $ 15,000 and the higher income spouse earns $ 85,000 (with eligible registered pension income, CPP and OAS).

If you meet both these requirements, the higher income spouse can elect to attribute up to 50 % of his or her CPP income to a spouse.

Going into the TFSA there is no attribution to the higher income spouse; that I am sure of.

The higher income spouse can gift funds to contribute to the lower income spouse's TFSA.

Have the higher income spouse or common - law partner assume most or all of the personal household expenses, leaving the person with the lower income with as much disposable income as possible to invest.

Basically higher income spouse is funding lower income spouses trading account legally via the pass through of the TFSA without the income attribution rules applying.

Have the higher income spouse pay the household bills: The easiest way to even out income between two spouses is to have the higher - income spouse pay the mortgage, grocery bills, medical costs, insurance and other non-deductible costs of family life.

It is very important for you to understand what both your rights are in terms of the financial assets, and also, what your obligations may be as the higher income spouse.

Not exact matches

«There's an incentive to move income from the higher tax - paying spouse to the lower tax - paying spouse.»

They can also push retirees into higher tax brackets — especially when a spouse dies and their income transfers to the surviving spouse, or the surviving spouse dies and all of the estate becomes taxable in the year of death.

A pension sharing application may be beneficial if your income will be higher than your spouse's income in retirement and if your CPP is also likely to be higher.

Some experts argue that marriage itself is contributing to rising inequality, because people who are highly educated — and therefore have higher income potential — are more likely to choose each other as spouses.

The Liberal government says the income - sprinkling measure is designed to prevent higher earners from distributing income to their children or their spouses within the business when those family members aren't actively engaged in the business.

That's because a partner with a high - income spouse may wind up exceeding the taxable income threshold.

* By age 50 chances are high both spouses can retire provided they have sufficient passive income streams to cover all expenses.

If they were single, the high - earning spouse would lose 32 percent of her personal exemption, which would increase her taxable income by nearly $ 1,300.

Some of Canada's highest - earning professionals have been reaping large tax gains for decades by splitting income with their spouses using private corporations, but the practice has fallen into a «dark corner» of tax rules and has received little government scrutiny, according to a new academic study.

This can cause discretionary income, and thus payments, to be higher under REPAYE than they might be under ICR or IBR if spouses file separately.

The challenge is determining how to gain maximum after - work income while retaining your retirement savings as long as possible — and provide the highest surviving spouse benefits.

The small business tax rate, which is really the taxation rate for a Canadian - controlled private corporation (known as CCPC), is also used by high - income households as a form of income splitting with dividend distributions shared between spouses, Mintz said.

The federal government plans to spend about $ 2 - billion per year on family income splitting that will mainly benefit high - income, traditional families with a stay at home spouse, to a maximum amount of $ 2,000 per year.

Often their revolving balance is much higher than what is listed, and / or they have loans other than credit card debt, or income doesn't include their spouse's income, etc..

Unfortunately, any unused amount can not be transferred to the higher - income earner unless there was a period of separation of 90 days or more or the other spouse was in school, prison or the hospital.

The (four and a half pages of) legislation which introduced the Marriage Allowance (and more in the current Finance (No. 2) Bill) allows it to be claimed provided neither spouse nor civil partner is liable to income tax at the higher or additional rate.

Caregivers» experienced better health outcomes when they were older, caring for a spouse, had higher income, better social support, sense of control, and caregiving had less of a negative impact on their everyday lives.

The discrepancy between community property and common law became even more pronounced at higher income levels, in particular when there was a large difference in income between spouses.

Before 1 July 2017, Carmel's income would be too high and therefore Adam would not be eligible for a spouse tax offset for an eligible contribution.

This makes sense when the income earned in the business is taxed at a higher rate than the spouse / child would pay personally, reducing the overall tax bill.

In this case if one spouse has a higher income than the other (and therefore higher marginal tax rate), it would make sense to keep all investments in the name of the lower income spouse so that the investment income is taxed at a lower rate.

Say your spouse's income is high enough to cover normal living expenses, but not the 20 - year $ 500,000 mortgage on your house.

This works well when a higher - income spouse contributes for a lower - income spouse, maximizing tax savings on the contribution and minimizing taxes payable when withdrawn in retirement.

This would let couples shift income from the person in a higher tax bracket to a lower - earning or stay - at - home spouse, freeing up cash and reducing a family's overall tax bill.

For most Canadians (excluding those with low incomes and those with high incomes, whose OAS benefits are clawed back), «there is no OAS survivor pension because 50 % of the couple's OAS pension is already paid to the surviving spouse and will continue for as long as he or she lives.»

«There's an incentive to move income from the higher tax - paying spouse to the lower tax - paying spouse.»

A spousal RRSP allows one spouse, typically the higher income earner, to make RRSP contributions on behalf of the other spouse.

The more unequal two spouses» incomes, the more likely that combining them on a joint return will pull some of the higher - earner's income into a lower bracket.

For applicants with spouses or partners who are not applicants, LRAP will consider the applicant's qualifying employment income or half of the joint income, whichever is higher.

Many social benefits are income tested so splitting income may help the higher - income spouse reduce her taxes and get more benefits.

Even though your wife could withdraw around $ 10,000 from her RSP annually without incurring tax, you would lose the «spouse amount» deduction and your taxes would be higher (approximately $ 1,700 higher at an income of $ 70,000).

You can set up a spousal RRSP in the name of the spouse with the lower income, and the spouse with the higher income can contribute to it.

The higher - earning spouse doesn't have to pay any taxes on the money he or she contributes, and when the money is withdrawn, it will be taxed in the lower - income spouse's hands at a lower rate.

120,800 in student loans Married with 1 baby I am a teacher in SC — high needs area of business education My income is 39,00 Spouse income 79,00 with no loan debt / but is an Assistant Principal.

This is a variation on the above strategy, but in this case, rather than the lower - income spouse buying the investments with his or her own money, the higher - income spouse lends money to the lower - income spouse, who then uses it to buy the investments.

The spouse with the higher income contributes to them and when the spouse with the lower income withdraws the money, it's taxed at a lower marginal rate.

When the higher earning spouse makes an RRSP contribution, he or she is effectively reducing his or her taxable income (because the amount you contributed doesn't count).

If you plan to use this strategy, be aware that the Canada Revenue Agency (CRA) insists that you leave the money in the spousal RRSP for up to three years after the higher - income spouse has made a deposit, otherwise, it's taxed in the higher earner's hands.