I'm not familiar with that concept, how does that work?
Instead and having one cheque for both parties you have the cheque divided in half so that you both get the tax deduction of the person in the lower tax bracket. Apparently it saves quite a bit in taxes but there are some restrictions like age requirements. We’d have to wait a couple of years since my guy isn’t 60 yet.
I’m not familiar with it either which is why I’m asking.
Thanks. And this is why I asked.
I'd never heard of this. Thanks @PeppermintPatty . However as husband has died, there's not even any guarantee that I'll receive his pension as I've to wait until 66 (or 70 if it changes again) and remain single, which is very strange.
That IS very strange.
Maybe this ^^^^ is what I read about. I shall keep researching this to be sure I get it right.
I know that SS will stop paying a deceased spouse's benefit if the widow(er) remarries, so it's not hard for me to imagine that pension plans operate the same way. But of course, it's best to check it out with his employer.
Thanks Jim. That IS helpful.
You are most welcome. I try to find online sources that have information that relates to questions that people ask here. Jim.Thanks Jim. That IS helpful.
You do well at that. I’ve learned a lot from your posts. They are very informative.
That is not correct. If the widow or widower is over 60, SS will keep on paying. My wife was 64 when we married, and keeps getting her husband's SS.
Aww Shucks...Now you are making me blush....Jimb.
Yes it is done at tax time and makes a huge difference. We got thousands of dollars more doing income splitting. Yayyyyy! Our tax return was WAY better than we were expecting.
Have you considered making your maple syrup enterprise a legal "small business operation " so you can claim some of the costs associated with producing it ? JimB.
Yes, we did think about it but we actually have a business that is doing well. We’ve had it for about 6 years. That’s one of the reasons we got so much back. Another reason is that we split our income tax returns.
Good for you, for taking advantage of the legal deductions allowed by CRA regulations for your small business enterprise. My small business buying and selling gold can be run out of my briefcase and my desk top computer. Low overhead means I can offer better prices per gram of gold to my customers. JImB.
It really pays to take your taxes to an accountant. We never consider doing our taxes ourselves but do save all our receipts so we can claim them. We made too much to get a lot back from our business but the tax write offs really helped . The biggest difference was putting our claims in separately. It made a big significant difference.
Now we are going to see if we can go back and get the other 3 years we did last year. It’s worth a try.
A long time ago in the mid 1980's, I was racing at local oval tracks here in Ontario. My racing team was set up as a sole proprietor business called "39 racing enterprises ". I was fully employed at the time by Metro Toronto Ambulance services. The losses that I had with the racing team, were deductible from the income taxes I paid as an employee at Metro Ambulance. As a result, I got a hefty refund of the taxes that had been deducted by my employer, the City of Toronto. I still use a book keeping service, and on the start of each month I drop off a big envelope of bills and paperwork. They maintain a spread sheet, and file my returns to CRA for an annual fee. JimB.It really pays to take your taxes to an accountant. We never consider doing our taxes ourselves but do save all our receipts so we can claim them. We made too much to get a lot back from our business but the tax write offs really helped . The biggest difference was putting our claims in separately. It made a big significant difference.
I read about this somewhere and told my husband but he didn’t believe me. Today our tax accountant told him it’s true and showed him the difference. Now he believes me.
We do our own spread sheet and have a big folder for each year that we take to our accountant. We let them do the rest. It costs about $200 to get each year done by H & R Block. Doing turbo tax cost $140 per year but then you have to do it yourself. For an extra $60 I’d rather pay a qualified accountant to do it. They gave us a lot of info we didn’t know about to help increase our tax claim, which to us was well worth it.
