Business Administration - Financial Planning RFC122 Chapter Notes - Chapter 2: Cape Breton University, Tax Bracket, Dividend Tax
25 Oct 2016
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Document Summary
Tax planning chapter 2 tips for claming tax. Total income: adding up various kinds of income: employment, business, interest, grossed-up dividends, taxable capital gains. Taxable income: net income subtract additional deductions and primarily losses carried forward from previous years. Net federal tax: subtract non-refundable tax credits and dividend tax credit. Provincial tax: taxable income, provincial tax brackets, rates, credit to find taxable income. Self-employed may be required to add your canada pension plan (cpp) contribution on your self-employment income. Deductions of tax: withheld amount by employer and installments paid, credited to your account. Dedu(cid:272)tio(cid:374) (cid:894)or (cid:862)(cid:449)rite off(cid:863)(cid:895): reduces your taxable income (federal tax is calculated: pay tax on deductions basically, deductions is worth on tax bracket. Credit: direct reduction on tax: example: credit is worth . 2015 basic personal credit: federal: ,699, ontario federal and provincial combined: ,197. Non-refundable credits that are transferable to spouse if not usable: charitable donations, ontario 2015 provincial surtax.
