How Dividends Are Taxed in Canada | How to Live off Dividends Tax Free
5.4 هزار بار بازدید -
7 ماه پیش
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Did you know that Canadian
Did you know that Canadian dividends can lower your taxes? Yes, you heard that right. You can get paid to own dividend stocks and reduce your tax bill on other sources of income. This is like getting free ice cream and enjoying it too. Questions for me? Ask me here: https://asqme.com/@DanishGhaziCPA
Start Investing in Dividends and lower your taxes today with Wealthsimple: https://wealthsimple.sjv.io/0JXbBJ
Canadian dividend-paying stocks give you a hefty tax break when you hold them outside of your tax-sheltered accounts like the TFSA, RRSP, FHSA, RRIF to name a few.
► Basic Portfolio & Dividend Tracker Spreadsheet: https://bit.ly/3pqImqz
► Advanced Portfolio & Dividend Tracker Spreadsheet: https://bit.ly/3KfqF7m
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WATCH NEXT:
▶ Top 5 HUGE Tax Deductions for Tax Return in Canada | Maximize Tax Refund
How to Pay ZERO TAXES in CANADA? Is I...
▶ CPA EXPLAINS Important TAX CHANGES in CANADA for 2024 | TFSA, RRSP, FHSA, CPP & Tax Brackets
Accountant Explains (CPA) Tax Changes...
******
0:00 Why do you receive Dividend Tax Credit?
3:36 Calculating Dividend Income With Gross-Up
4:30 Dividend Tax Credit Examples
8:20 How to save on Taxes with Dividend Tax Credit
Imagine earning $1,000 in dividends and paying less taxes on everything else. Sounds too good to be true, right? Well, that’s exactly what happens if you earn $25,000 a year in Canada. You pay zero tax on your dividend income, and you even get a tax break on your other income. This is called a negative marginal tax rate, and it’s a dream come true for any accountant. Compared to interest income, you save $240 in taxes by earning dividends.
The government recognizes that it’s unfair to tax the same income twice. So they give you a break on dividend taxes to offset the taxes the corporation already paid. As a result, you should pay roughly the same tax as if the income had come straight to you in the first place, without passing through corporate hands.
Do you know the difference between eligible and other than eligible dividends in Canada? If you own shares of Canadian corporations, you may receive dividends from them. But not all dividends are created equal. Depending on the type of dividend, you may pay taxes on your personal tax return. In this video, I will explain how each dividend type affects your taxes, and how you can take advantage of the dividend tax credit to reduce your tax bill. Whether you are a beginner or an expert investor, this video will help you understand the tax implications of dividend income in Canada.
Eligible Dividends: The corporation must designate the dividends as “eligible” which means that they paid higher tax rates. In return, you will pay more taxes and receive a higher tax credit.
Other Than Eligible Dividends: The corporation must designate the dividends as ‘other than eligible” which means that they paid lower tax rates. In return, you will pay less taxes and receive a smaller tax credit.
Disclaimer: This channel is for education purposes only and opinions expressed in this video are based on personal research and should be treated as such. These are not instructions, suggestions, nor directions as to how to handle your money. The facts and figures presented in this video are up-to-date based on the recording. These may have changed based on when you watch the video, please, always do your own due diligence!
#taxesincanada #canadafinance #taxplanningstrategies
Start Investing in Dividends and lower your taxes today with Wealthsimple: https://wealthsimple.sjv.io/0JXbBJ
Canadian dividend-paying stocks give you a hefty tax break when you hold them outside of your tax-sheltered accounts like the TFSA, RRSP, FHSA, RRIF to name a few.
► Basic Portfolio & Dividend Tracker Spreadsheet: https://bit.ly/3pqImqz
► Advanced Portfolio & Dividend Tracker Spreadsheet: https://bit.ly/3KfqF7m
Enjoyed the video and want to see more? Buy me a coffee ☕👇 https://www.buymeacoffee.com/danishghazi
Join this channel to get access to perks: @danishghazicpa
💰 FREE MONEY - STOCKS & CRYPTO:
► $50 SIGNUP BONUS - WEALTHSIMPLE: https://wealthsimple.sjv.io/0JXbBJ
► $50 SIGNUP BONUS - Questrade: https://questrade.sjv.io/DKmxej
► FREE $30 To Buy Crypto in Canada: https://bit.ly/3hNnRTh
😎 INVESTOR SUPPORT:
► Side Hustle Income / Expense Tracking: https://bit.ly/3KLTjge
► Best Canadian Banks ETF Analyzer: https://t.ly/6O0XQ
✅ SPECIAL OFFERS:
► Free 1st Month High Speed Internet by Oxio: https://bit.ly/42piQUJ
► Free Credit Score in under 3 minutes: https://imp.i203032.net/Ry32Kv
► Switch to Freedom Mobile and get $25 Service Credit: https://referme.to/danishg-20
► PolicyMe Free Insurance Quote (No Obligation): https://policyme.pxf.io/P0GMrq
► $20 to try KOHO – a new way to Save and Spend without fees: https://kohofinancial.pxf.io/x96zRk
► Zero Fees on International Money Transfer (Up to $800): https://wise.com/invite/u/danishg13
📚 BEST PERSONAL FINANCE BOOKS:
► Building Wealth and Being Happy: https://amzn.to/3hJKgkh
► Unshakeable: Your Financial Freedom Playbook https://amzn.to/3oVwc89
► The Richest Man in Babylon https://amzn.to/3qxNWa0
🛒 MY GEAR:
► Google Pixel Buds Pro: https://amzn.to/3rjHVno
► Logitech Wireless Mouse: https://amzn.to/38xV9Qz
► Samsung Galaxy Watch4: https://amzn.to/37zeUK2
► Anker Wireless Charger for iPhone 15: https://amzn.to/3g0LEhG
******
WATCH NEXT:
▶ Top 5 HUGE Tax Deductions for Tax Return in Canada | Maximize Tax Refund
How to Pay ZERO TAXES in CANADA? Is I...
▶ CPA EXPLAINS Important TAX CHANGES in CANADA for 2024 | TFSA, RRSP, FHSA, CPP & Tax Brackets
Accountant Explains (CPA) Tax Changes...
******
0:00 Why do you receive Dividend Tax Credit?
3:36 Calculating Dividend Income With Gross-Up
4:30 Dividend Tax Credit Examples
8:20 How to save on Taxes with Dividend Tax Credit
Imagine earning $1,000 in dividends and paying less taxes on everything else. Sounds too good to be true, right? Well, that’s exactly what happens if you earn $25,000 a year in Canada. You pay zero tax on your dividend income, and you even get a tax break on your other income. This is called a negative marginal tax rate, and it’s a dream come true for any accountant. Compared to interest income, you save $240 in taxes by earning dividends.
The government recognizes that it’s unfair to tax the same income twice. So they give you a break on dividend taxes to offset the taxes the corporation already paid. As a result, you should pay roughly the same tax as if the income had come straight to you in the first place, without passing through corporate hands.
Do you know the difference between eligible and other than eligible dividends in Canada? If you own shares of Canadian corporations, you may receive dividends from them. But not all dividends are created equal. Depending on the type of dividend, you may pay taxes on your personal tax return. In this video, I will explain how each dividend type affects your taxes, and how you can take advantage of the dividend tax credit to reduce your tax bill. Whether you are a beginner or an expert investor, this video will help you understand the tax implications of dividend income in Canada.
Eligible Dividends: The corporation must designate the dividends as “eligible” which means that they paid higher tax rates. In return, you will pay more taxes and receive a higher tax credit.
Other Than Eligible Dividends: The corporation must designate the dividends as ‘other than eligible” which means that they paid lower tax rates. In return, you will pay less taxes and receive a smaller tax credit.
Disclaimer: This channel is for education purposes only and opinions expressed in this video are based on personal research and should be treated as such. These are not instructions, suggestions, nor directions as to how to handle your money. The facts and figures presented in this video are up-to-date based on the recording. These may have changed based on when you watch the video, please, always do your own due diligence!
#taxesincanada #canadafinance #taxplanningstrategies
7 ماه پیش
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