Sentences with phrase «spouse is in a lower tax bracket»

Not exact matches

Depending on the situation (like if your spouse is out of work, or if they are in a lower tax bracket than you), contributing to an RRSP might be a great idea even if you have enough retirement savings.

On so - called «income sprinkling,» it's hard to justify letting, say, a doctor split income with a spouse or kid who doesn't have much to do with the practice, just so a chunk of income can be taxed in a lower bracket.

The general idea is to shift assets to the lower - earning spouse, who can withdraw more in retirement at a lower tax bracket.

If your spouse or common - law partner is in a lower tax bracket than you, shifting this income to his or her hands helps lower the total family tax bill.

This is because the IRS views each spouse as earning half the total income which essentially keeps more income in lower tax brackets.

Setting up a spousal RRSP is a good idea if you expect your spouse or common - law partner to be in a lower tax bracket than you on retirement.

If you have a spouse, partner or kids in a lower tax bracket than you, consider a prescribed rate loan strategy whereby the higher - income spouse or partner loans funds to the lower - income spouse or partner to invest at the record low prescribed rate, which is at one per cent until at least March 31.

For couples in different tax brackets, pension income splitting allows some of their RRIF income to be taxed in the hands of the lower - earning spouse.

Under the old tax law, because the spouse receiving alimony or spousal maintenance is usually in a lower tax bracket after a divorce, more money stays with the divorcing couple rather than going to the Federal Government.