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Tax Free Money – Receive Funds Without Having To Pay Tax

Tax Free Money – Receive Funds Without Having to Pay Tax

Tax Free Money

Receive Funds Without Having to Pay Tax

By Nizam Shajani, CPA, CA, MBA

 

While generally you need to consider the tax implications when you received funds, here are some areas where funds can be considered tax free.  These are a few gems still available to the Canadian taxpayer.

Note this is not meant to be an idea for our governments – so if you are with the government, please do not read on.

  • Canada Child Benefit
  • GST/HST Credit
  • Lottery Winnings
  • Gifts
  • Inheritance
  • Post-Secondary Scholarships
  • Payouts from Life Insurance Policies
  • TFSA Withdrawals
  • Capita Dividends
  • Employees may receive up to $500 of non-cash gifts in a year if provided for a special occasion
  • Employees may receive a non-cash gift in recognition of long service valued at less than $500 once every five years

In addition to the above, every individual may earn taxable income of $12,298 in 2020 ($12,069 in 2019) and not pay tax by using the basic personal tax credit.  Additional tax credits may also lower your earnings to result in no tax owing.

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. © 2020 Shajani LLP