RRSP's, controversial some may say, while there is some truth to this, having a professional walk you through and explain the why and how, can make all the difference. With multiple different deciding factors whether this product is right for you, the biggest one being TAXES. RRSP's have a unique feature of contributing your after tax dollars you get paid and receiving the tax you paid through out the year back. What many individuals don't think of is what will it look like when I pull this money out and this is where Canadians lose hundreds, possibly thousands of dollars.
You may be eligible for receiving an extra $1,400 on your taxes…
Manitoba Primary Caregiver Tax Credit.
What is this credit? This is a REFUNDable provincial tax credit that provides recognition and financial support to individuals providing care more than 90 days a year. Refundable means you get the full credit amount. It is a flat rate of $1,400 that is added to your provincial portion on your taxes and either increases refund or decreases balance owing by $1,400.
Eligibility? To qualify for this credit, you must take care of an individual who requires support who has been assessed by a certified medical professional and requires level 2, 3, or 4 care while living at home or with you. There must be at least 90 days of care. Other eligibility requirements can be found on the government webpage. https://www.gov.mb.ca/finance/tao/caregiver.html
Purpose? This Manitoba credit offered, is to allow support to be provided and to allow an individual to remain independent for as long as they can. Also, it is to help the caregiver reduce some out-of-pocket costs such as fuel, miscellaneous expenses and time.
How to Apply? A form must be completed by the care recipient’s medical practitioner stating that the recipient is in fact level 2, 3 or 4. This form can be found on the government of Manitoba’s webpage. Once filled out and signed by a certified professional, it can be mailed in or emailed for faster action and response.
The saying "nothing is certain except death and taxes" underscores the unavoidable nature of taxes. Governments levy taxes to fund essential services and infrastructure, making it a fundamental part of societal functioning. Regardless of your personal situation, taxes are an inescapable obligation. Every citizen and business must contribute to the system, whether through income tax, property tax, sales tax, or others, ensuring that the country can provide services like healthcare, education, and defense.
In short, while taxes are unavoidable, outsourcing them to a professional can help you save valuable time and avoid costly mistakes, often resulting in a more favorable tax outcome.
TFSA vs RRSP vs Both. What’s Best for Me?
Which is better—a TFSA or an RRSP? That’s kind of like asking, “Which is better—a t-shirt or a sweater?”
Fundamentally, they do the same thing—t-shirts and sweaters both keep you covered, Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP) both let you save money for the future. But the way they do it is different, and which one you choose depends on your needs.
That being said, sometimes it’s good to wear a t-shirt and throw on a sweater if it gets chilly. In the same way, TFSAs and RRSPs can work together depending on circumstances.
But choosing the right one can feel like a guessing game. Don’t worry—it isn’t. In this article, we’ll look at how TFSAs and RRSPs work, how they’re different and how to pick the best investing account for your goals.