Tax - Other Personal Income and Deductions

What are the two amounts taxed on RPPs and DPSP

Periodic payments and lump sum settlement not transfered

What is taxed on an RRIF

The annual amount withdrawn

How is an RRSP Tax

Lump sump payments before maturity and required repayments not made under HBP or LLP.

Describe the tax treatement of RESP and RDSPs?

Contributions are taxed in the hands of the contributer and not deducted.

Only the accumualted gains are taxed when pulled out in.

Splitting CPP income can be done with

spouse or common law partner

How much of CPP income can be split

50% of the combined CPP benefits

How old does a non-contributing spouse need to be for income splitting?

60 years old

The OAS clawback is the lesser of

Benefits Received

(Net Income - 90,997)*0.15

Calculate the capital amount of an annuity

(Amount paid to acquire the annuity / total payments to be received) * annuity payment.

EI Clawback is calculated as

EI Benefits Included in Income * 0.30

(NIFTP-79000) *0.30

What is the amount of pension income that can be shared with a spouse?

50%

If a taxpayer is under 65, what counts as pension income

RPP only

If a taxpayer is over 65, what counts as pension income

RPP ,DPSP, RRSP, RRIF

What’s the max amount of the pension tax credit

$2000

What are the 5 denied expenses related to research?

Personal expenses

Reimbursed Expenses

Deductible in the year under other provisions of the ITA

Unreasonable Expenses

Expenses someone else pays.

What is the tax treatement of wellfare, workers comp, and the guarnateed income supplement?

Add to NI and deduct in div c.

What’s the max exemption for a death benefit payment from a dedceased empployee.

$10,000

payments or transfers of property that normally would have been taxed in the hands of the taxpayer if they had received the payment or property transferred.

Indirect payment

What are the two conditions of an indirect payment?

• Taxpayer must have benefited

• Payment or value would have been included had the transfer not been made

What are the five tests for spousal support deductability

• Periodic payments

• An allowance for maintenance

• Made as part of seperation

• No conditions on use

• Made as a result of a court or written agreement.

Third party support payments are generally allowed if:

• Made in CY or PY due to order or written agreement

• Incurred for the maintenance of former spouse

• Agreement specifically refers to the ITA.

What support payment is are not deductible to the person making the payment and are not taxable to the recipient

Child support

What are two situations in which moving expenses can be deducted?

1. Moving for business or employment in canada

2. moving to attend university on a full time basis

3 conditions for deduction of moving expense

• >40km moving distance

• Moving expenses must have been paid by the taxpayer

• can not exced income (carryforward aval)

the cost of meals and accomodation near the old residence of new residence can not exceed a period of

15 days

Travel time _______ count to the 15 day maximum related to meals and accomodation during the move

The cost of maintaining a former property is limited to a max of

$5000

The flat rate per meal amount under the simplified method is

$23

What are the four situation child care expenses can be deducted to allow the parent to:

• work

• run a business

• perform research with a grant

• attend school.

If a couple is divorced, what is the impact on the child care expense tax credit?

the higher-income earner / lower-income earner rules do not apply.

What are the annual amount limits for child care expenses?

• Under 7

• 7 to 16

• 16 to over

• Infirm

• 8000

• 5000

• 5000

• 11,000

What are the max per week amounts for boarding schools or camps:

• infirm child

• under 7

• other children

• 275

• 200

• 125

Max deduction for lower income earner for child supports

1. annual limits

2. amount paid adjusted for overnight limits

3. 2/3 earned income

max deduction for higher income earner if the person is in jail/martial breakdown/school/infirm for over two weeks

1. Actual amount paid adjusted for overnight school

2. Overnight limits * weeks lower earned was out of comissions

3. 2/3 earned income

Disability Supports Deduction Limit

TO ADD

Individual qualifies for disability credit and claims it and has a part time attendant.

Individuals qualifies, claims it and has a full time attendnant but does not claim

Individual does not qualfiy but is certified and has a full-time attendant

Can claim costs either as addition to the medical expense tax credit base or can deduct it.

Has a full time attendant and claims the disability credit

Deduction only