Income taxes can easily represent one of the highest deductions from one’s gross income. In Canada, personal income tax rates can reach levels north of 50% with an income above $120k, crazy! While paying your fair share of taxes is a reality most will be subject to, there are some legal ways to reduce your total taxable income.
1. Registered Retirement Savings Plan (RRSP) contributions are registered investment account contributions that are tax-deductible. This is because the Federal Government allows you to contribute to your RRSP on a pre-tax basis.
2. Student Loan Interest is tax-deductible if received under the Canada Student Loan Act.
3. Charitable contributions will allow you to benefit from a non-refundable tax credit.
Once you have benefitted from the above tax deductions, hopefully, you will have a large tax return that you can use to your financial advantage. Here are some things you should consider:
1. Have some self-control
2. Pay off all high-interest debt
3. Build an emergency fund
4. Start investing in the stock market, real estate, or a business venture
5. Maintain momentum!
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🎥 Other Videos on the Channel!:
Investing Basics Part 1: https://youtu.be/LynZBPj6nfI
Home Equity Investing: https://youtu.be/asy8sAjmdMw
Wealthsimple Trade Review: https://youtu.be/umgLk5vw820
Wealthsimple Cash Review: https://youtu.be/oxZNV-L16LA
Top Index Funds ETF Picks: https://youtu.be/0GcCQOVJ1I4
Top Dividend Aristocrats: https://youtu.be/mQ2udCtpSFE
Top 5 REITs!: https://youtu.be/L00tu1KmHlc
📚Books I recommend (Canadian Listings):
Rich dad poor dad: https://amzn.to/34mFYpn
Millionaire Fastlane: https://amzn.to/2rm9v47
Real Estate Retirement plan: https://amzn.to/2Dsu0ip
Books I recommend (American Listings):
Rich dad poor dad: https://amzn.to/2pP0lwn
Millionaire Fastlane: https://amzn.to/33id3Bx
Real Estate Investing: https://amzn.to/2Ojgqnn
Disclaimer: This video contains affiliate links, meaning that if you click on a product link I may receive a commission at no additional cost to you. I do not promote products, services or companies I have not personally used or those which I do not recommend. All opinions are my own.
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