Entries by KHGrandForks

DID YOU KNOW…

Starting in 2020, eligible seniors will automatically be enrolled in the Canada Pension Plan (CPP) when they turn 70. This will also include people who are over 70 but not registered to receive CPP. It is estimated that currently 40,000 seniors over 70 are eligible for CPP but have not registered. The average payout for these […]

New Type of Retirement Investment Introduced

Another significant item in the federal budget was the introduction of the Advanced Life Deferred Annuity (ALDA). An ALDA will allow a taxpayer to allocate up to 25% of the qualified retirement investment plan to an annuity. The payments from the annuity do not have to begin until the person has reached the age of […]

Changes to Guaranteed Income Supplement

Starting in July 2020, there will be changes to the income that can be earned by seniors without affecting the amount of the Guaranteed Income Supplement (GIS) that they receive. Previously, the first $3,500 of employment income earned by seniors was excluded from the calculation of the taxpayer’s income for the purposes of GIS. This […]

DID YOU KNOW…

      Taxpayers can now withdraw up to $35,000 from their RRSP for a home purchase. This is an increase from the previous maximum of $25,000. The Taxpayer must begin repaying minimum annual amounts to their RRSP in the second year after the withdrawal, and they must have it fully repaid within the next […]

New Refundable Education Credit

The Canada Training Credit was introduced in the federal budget this year. Each year, taxpayers aged between 25-64, who have working type earnings between $10,000 and the top of the third tax bracket (in 2019 this is $147,667) will accumulate a $250 credit that they can use to pay for education costs. The amount of […]