Most Canadians don’t receive the maximum CPP payment: in fact, the average monthly CPP payment in 2021 was just under $620. In this article, we’ll answer some of the most frequently asked CPP questions, including: what are CPP deductions, exactly, and how do they work; what is CPP tax; is CPP taxable income: what are EI and CPP maximum contributions; and what are self-employed CPP contributions?
While RRSPs are undoubtedly a popular retirement savings vehicle for many Canadians (around two-thirds of us have one) many people are confused about how they work. As many as 30% of Canadians don’t understand RRSP tax rules, and 27% don’t know the difference between an RRSP and a tax-free savings account. So, what is an RRSP, how does an RRSP work, what happens when you withdraw from an RRSP, and what should you know about RRSP withholding tax (also known as RRSP withdrawal tax)?
CPP is a monthly, taxable benefit that all Canadians are entitled to regardless of how many years they have worked. To qualify for CPP payments, you must be at least 60 years old and have made one “valid contribution”. “Valid contributions” can be contributions to CPP from work that you were paid for in Canada, or they can be the result of receiving CPP contribution credits from a former spouse or a former common-law partner.
What is GIS in Canada for? It is designed to help Canadian retirees who have a low income. Retirees who qualify for GIS in Canada receive their first payment the first month after their 65th birthday. The OAS and Guaranteed Income Supplement in Canada are closely connected: you won’t receive any GIS in Canada if you don’t also receive OAS.
Inheritance tax in Canada does not exist as such, nor is there Canadian inheritance tax on property, however some taxes usually have to be paid when someone passes away. So, is inheritance taxable in Canada? It can be, but it is not the heirs who will pay it. Let’s take a closer look at Canadian inheritance tax law.
Inheritance tax in Canada does not exist as such, nor is there Canadian inheritance tax on property, however some taxes usually have to be paid when someone passes away. So, is inheritance taxable in Canada? It can be, but it is not the heirs who will pay it. Let’s take a closer look at Canadian inheritance tax law.
Old Age Security in Canada is a monthly payment that you can start to receive as soon as you turn 65. Like old age pension payments, the money you receive from Old Age Security is taxable. It is designed to provide most pensioners with an amount to cover basic necessities.
RRSPs are designed to help you to save for retirement, so you’re not meant to make an RRSP early withdrawal. If you do take an RRSP early withdrawal, RRSP withdrawal rules mean you could end up paying an RRSP withdrawal penalty, which we will explore in this article, as well as how to withdraw RRSP investments.
The Canada RRSP contribution deadline is fast approaching. It’s a time when many people ask, what is the deadline for RRSP contributions in Canada, as they rush to make their final contributions for the tax year. But why is the RRSP deadline such a big deal?
