Important TAX CHANGES in CANADA for 2023 | TFSA, RRSP, FHSA, CPP
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- Опубликовано: 10 июн 2024
- I will be breaking down the important tax changes for 2023 that you need to know as Canadians. I will be covering the new contribution limits for TFSA, RRSP, the new highly anticipated FHSA (Tax Free First Home Savings Account), CPP, as well as changes in the tax brackets.
To give you a refresher, I will also be giving a brief background on the purpose, eligibility, contribution limits, as well as withdrawal rules so you can really take advantage of the various tax savings and retirement accounts.
00:00 Intro
00:57 TFSA
02:47 RRSP
06:23 FHSA (brand new in 2023)
08:20 CPP
10:37 Tax Brackets & Rates
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WHO AM I:
Gabrielle is a CPA and Tax Expert, as well as the founder of Balance + Wealth CPA, a licensed CPA firm that specializes in Tax. Prior to starting her business, worked as a Tax Manager at one of the Big 4 Accounting Firms for 7+ years, working with Fortune 500 companies. Gabrielle posts weekly videos on personal finance, business finance, and tax tips.
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Disclaimer: Note this video is not financial nor accounting/tax advice and should be used for entertainment purposes only. Consult with your own financial advisor, accountant and/or tax advisor for specific advice related to your business situation and needs.
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I would suggest removing one of the 'R' s in RRSP .... people should think of it as a REGISTERED savings plan .... and hope it is is till there and growing through to retirement. ... 'save for a rainy day' .... etc. etc. People are far less likely to take it back out from an RSP than TFSA
Thank you Gabrielle for making this video. Just finished watching your 2024 Tax updates and came here to watch the 2023 video. This is valuable knowledge for Canadians! Keep posting and continued success!
Thank you Gabrielle for those explanations, I won't have to read tons of pages anymore.
Thank you! Very well spoken delivery too.
Thanks for sharing this 👍🏻
Your channel is so underrated thank u for this information!!!
Excellent video! Thanks! Best Wishes
I appreciate you talking taxes
Informative video. Thanks.
Happy new year Gabrielle
They shouldn’t tax CPP , OAS & MPP
Great info. Just going a tough fast.
good information on the financial matters, Thanks for this video
Great explanation thanks
Thank you!
Great info thanks
Thanks!
Thanks for sharing your informative video with us
Very good information. Thank you
Good stuff Gabrielle! Valuable info here.
Good advice
Sweet presenter and presentation 🎉😊
Just maxed out my TFSA with TESLA STOCK ❤ GENIUS!
It's the end of September. This is the first time I've seen this video on RUclips.
Enjoying the channel
Thanks Gabrielle for another informative video.
Thank you for the excellent and very informative video. Well done !
just a couple things, the fhsa? is it just contributions or is this also an account you can invest in, or earn any interest at all, and i thought i heard you can use rrsp as a down payment tax free so would that make the fhsa redundant if they both have the same features, rsp still seems superior
Is it true that If I switch my job mid year, my CPP and EI taxes , start all over again as opposed to me having already paid it off for the year at my previous work place?
What would be fantastic to cover is decumulation strategies and calculations for recently or soon to be returees. E.g., how to maintain overall tax efficiency o er time having accululated RRSPs, TFSAs, non-reg assets, etc. , while planning for CPP, OAS and pension income. Seems that to buy this info from so called planners will cost you Thousands! How about a video on this Gabrielle? Love your content!
I am totally with you. It seems very hard to find a retirement planning software in Canada like New Retirement in US even we are willing to pay. Tax planning is big part of retirement planning.
hi! regarding CPP, is the employer share contribution remitted to CRA? I asked because I don’t see the employer share reflected in my service canada account. I hope you see this comment and respond. thank you.
Might you create a video or comment on if you cap out paying into CPP and if there is an option (assume for example being self employed) to opt out while not reducing what you'd be entitled to based on contribution already made. Can you for example cap out where additional years of payment won't give you added benefit?
What is the best way to withdraw rrsp to pay less taxes
Hello please can I report my youtube income without the 1042-s form from google? i deleted my google payments profile so i can't get the 1042-s form but i have kept track of how much i was paid throughout the year
What happens to the with holding tax you pay when you withdraw from a RRIF? Other than the with holding tax are there any other penalties for withdrawing cash from aRRIP?
I still have one tfsa which i opened up when it first came out with my bank. Rest is is in other i am over 71 so should i be changing this??
Hello Gabrielle, I got a question (unrelated to this video but I couldn't find a specific video on the subject) regarding the Quick Method of accounting for GST / HST. I understand sales tax should not be considered on the income statement since it "doesn't generate" equity (with asset = liability), however, when producing a respective perfectly balanced Balance Sheet, the percentage of sales tax not remitted to the government will always remain "extra" to the net profit from the income statement. How should that amount be properly handled? Should it always be considered retained earnings? And as for the GIFI, would it fall within the Other Current Assets (1480) category? Thank you very much for you time
In income statement, Sch. 125, Add GST/HST in Sales and in expenses subtract GST/HST, the GIFI codes are 8000 and 8760. I confirmed this from accountant and do this for many years.
Is CPP payment based on gross income or net income? Thanks
Can you day trade on your FHSA to build it faster tax free?
Great video thanks. Do you know if there are any details on the FHSA o how long the funds need to be in the account before buying a home? Can they be deposited and withdrawn in the same year?
maximum of 15yrs. yes, you can withdraw funds same yr
What about the new Underused Home Tax ?
WOW, beautifully explained Gabrielle, thank you so much! New sub xo
Thanks for the video, I spent this whole time thinking that I'll never get my TFSA contribution room back once I withdraw from it. I haven't maxed-out the contribution limit, will my withdrawals still carry over to the next year's contribution limit?
Hi Gabrielle,
I recently started working from home (August 2023). As an employee that is. My position is permanently at home. Am I eligible for tax deductions for using a “home office”?
Hi, great video. If the FHSA does come in April 2023. If I put money into it, will it reduce my income taxes for the 2022 year or 2023?
For the 2023 year
ya ok
We're still taxed to death. Nearly every purchase has some sort of jerky tax to it. And then when you find out what they've been doing with the money they stole... Ugh Canada.
You should do a video on HOW they managed to make the income tax permanent once their theft was complete. Interesting story!
to avoid tax buy items from a grocery. for ex. you buy christie cookies from shoppers drugmart the charge tax, if you buy same from nofrills no tax.
Taxes are theft. Its crazy anyone earning over 250k gets taxed 53%. Its extortion! What does that individual get for having over 50% of their money stolen from them.
@@D33Lux do you make more than 250K, if so you should have known the math. 53% is the max tax bracket, on slabs it is less than 53%, tax payers use other deductions like RRSP and many more depending on their situation. Typically we see at the most 40% overall or even less.
Tools went up from 500 to 1000 correct?
Hi I have a question. Does TFSA contribution limit depends on the year when you became a resident of Canada? Or the whole TFSA limit gets (if ones born before 1991) regardless of the year of residency canada? Please give me the government website link which shows that. Thanks
I already know that.
For employees there's also T2200 to help reduce taxes and GST 370 but might not make sense for all employees and GST370 specifically your employer might not be willing to sign off on (usually the bigger the company the harder this gets IMO), also accountants will probably charge more to do this extra bit of work so would need to understand the benefit vs the cost ... to each is their own lol ... Great summary Gabrielle... P.S. I know you focus on BC but please include another key market Ontario... you got fans out here too :)
Can a permanent resident have a TFSA account? Is there a limit?
Thanks madam it is good video, I have huge medical bill in Canada this year ( 2023 ) but no insurance to claim, 31 K, my income also high this year, for next year I am not guaranteed same income being a contractor. Can I claim my medical expenses ( eligible ) on my next year ( 2024 ) tax return so that I get more refund/tax credit.
Thanks for the info, Gabrielle.
FYI, you're mispronouncing the word "contribute". It is pronounced con-TRIB-ute (emphasis on the middle syllable), not CON-trib-ute (emphasis on the first syllable).
Wish the FHSA was available for me back in the day.
i know!
0:17 Problems the last few months? Try....the last 3 & a half years at least!😮
12:32 $53,359*
If YOU have money in TFSA can YOU still apply for GIS suplement when retiring?
i believe they are income supplements, not based on equity (or assets)
Yes. GIS is income dependent, not asset dependent.
In the tax % tables you mention, is that inclusive of the basic exemption everyone gets ($14,398 for 2022)?
If you take out 5k from TFSA with accumulated 20000 max. This results in 15000 remaining . Until next year 2024 you will get 20000 + 6500= 26500 - But because your with drew last year 2023 of 5k . Is the max room 15000+6500= 21500 or is it 26500? Do you lose the TFSA space forever or does do you get it back next year? thank you
if you repay the $5000 in 2024, you also get to put in $6500 for that year's contribution for a total of $11,500, now giving you $26,500 in your account.
Be aware that if you are trading stocks in your TFSA and making a profit CRA may tax you on your earnings !!
I’m not sure what criteria CRA use to determine if you are going to pay taxes on earnings ?
Active stock trading within a TFSA is considered business income. A few trades a month is not a problem. If you do it on a daily basis then it’s a misuse of the TFSA.
Gabrielle! I am so happy to find your channel. Could please give more insights about RRSP? I have been living in Canada for 6yrs but never open a RRSP account. It was the tax deduction that make me decided not to open account. It was imagining myself as an retiree who has no job but pension and rrsp but when I need money, it will deducted. I want to know as your opinion why should I open. I appreciate it if you see my comment.
Words from an immigrant child who grew up in Toronto. Don't worry about RRSP if your income is below 60k. It is not worth it. I learned it from my parents. On the other hand, I do use it because my income was almost 200k.
Can I withdraw CPP before I turn to 60 when I want to leave Canada forever?
Yup, you just have to pay tax on the whole RRSP amount.
they are asking about CPP, not RRSPs.
I would suggest removing one of the 'R' s in RRSP .... people should think of it as a REGISTERED savings plan .... and hope it is is till there and growing through to retirement. ... 'save for a rainy day' .... etc. etc. People are far less likely to take it back out from an RSP than TFSA
and if you don't borrow it first for a first home .... you never know when health (or family member needs) issue(s) come along.
Youŕ guides and templates are not downloading
Thanks for the info Gabrielle. Your math is off though. $53359 x 15% = $8003.85
I’m a retired CAF soldier and in receipt or a pension. With bridge as well as a tax free pain and suffering compensation. My question is would that be considered income for RRSP contributions that I do monthly? Thank you in advance and very awesome informative channel!
OF a pension****
I do all that process in MS Excel but don't get the same results. 😮💨
love u
I've been fortunate to incorporate the Canada Pension Plan (CPP) into my retirement strategy, and it has been a game-changer for securing my financial future. Diversifying your investments, including CPP, is key to building wealth over time. Big ups to everyone working hard trying to earn a living while building wealth. I’m 63 and my husband 65 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income.
Alright, speaking in general terms, investing requires a good amount of knowledge. That's why it's essential to have a solid support system like a financial counselor, especially when picking out assets. I've been working with Regina Louise Collaro, who is an investment advisor at a registered wealth management company. I can't recommend her enough; my financial journey has been fantastic thanks to her. She's quite well-known for her services, and she helped me achieve financial stability through investments. Now, I benefit from her passive income strategies every month. So, I'd strongly suggest finding a reliable investment advisor for yourself
Regina Louise Collaro is based in the United States and can work with anybody wherever they stay. If you would like more information on reaching her, you can conduct a search online.
I have had the intentions of starting investing. But I always thought it was late and I think I need to stop procrastinating. I will definitely 🔍 Regina Louise Collaro and see what she can advise .Thanks a lot Vic .
This was of so much help to me.
This is a shocker seeing Regina Louise Collaro is being mentioned here. I always had mixed feelings about hiring a lnvestment advisor. For the record, I started working with Regina in 2019, and she manages about 70% of my lnvestments, while I manage the other 30%. My philosophy is that I care more about my own money than anyone else, but she made me accept that they have wealth of information on current conditions and future trends
Where you invested money ? Can we know so we also youngster invested in same way.
Thank you so much for sharing your time and knowledge. I really appreciate it. I'm still a bit confused when it comes to Capital Gains and Canadian Dividends being taxed. For example, if your 2023 income from salary for a year was 92K, it falls in the range of 91,310 and 104,835, and the rate should be 31%, right? What if aside from your salary of 92K, you made a total capital gain of 20K and an eligible dividend of 50K (held under a non-reg account)? Is it a correct assumption then that for cap gain, 10K x 10.03% is the tax and for the div, it's 50K grossed up (69K). Is it correct to assume that my total taxes are from my 92K salary rate (31% +) + (10K x 10.03%) + 69K (Grossed up) @ 1.63%? TIA!
I’m also curious what the answer is here.
Hi Gabrielle! Thanks for the amazing video. I just want to double check if @7:25 is true? To my knowledge, any unused amount of the $8000 annual limit in the FHSA cannot be carried forward to the next year. (I am really hoping you are right here though!)
based on my current research, it appears to be true but may be subject to change as the bill passes in Apr 2023!
Does this apply to foreigners working in Canada?
only the CPP
RRSP is really geared towards high earners. It is not fair for average income earners. I know because my 2022 T4 was almost 200k. I used RRSP to hold my marginal tax rate to 43%. My only worry is running out of RRSP room before retiring.
do not understand your last statement, if are at 200k and invest in RRSP, why you run out of it, did you not invest in it for many years..
@@svenkat2006 My bad. I should state that "running out of RRSP contribution room". I didn't invest in RRSP when my pay was lower so have accunulated lots of contribution room. Now, I am making more contributions to hold my marginal tax at about 45%. I will run out of all my RRSP contribution room before retiring. A colleague took early separation package and was hit with a 53% tax as he ran out of RRSP contribution room.
@@richardli5530 Its meaningless to invest in RRSP to save taxes, they get taxed when you take out in retirement. But as usual assets get appreciate with time unless you want to take what you contribute and pay tax as you believe the tax in retirement is lower than what you have now.
@svenkat2006 I put it in RRSP to save 45% tax. My wife pulls it out for 10% through a spousal plan. A net tax savings of 35%. We are using the system to our advantage at this point.
Other than that, I don't want to kick the can with boatloads of money in RRSP. If you do, then say bye- bye to 53% of your money.
Hi
Great video. QQ: I just arrived for the first time in Canada on Work Permit. When can I start contributing to RRSP and how much?
I think work permits are not residents, i assume you are not eligible
@@svenkat2006 I'm a resident. I live in Canada. And I found the answer. I need to file my taxes for first year to become eligible to contribute to my RRSP. So I'll become eligible after first year of filing taxes.
@@zshn If you are work permit why do you want to do that. Are you sure you will become permanent resident in future. I see student visas and work permits do not save in RRSP which is considered Canadian governments fiscal scam as that is taxable when retired. Even many citizens and PRs are not using this account for retiremenet.
@@svenkat2006 I intend to apply for PR. Contributing to RRSP is tax deductible so I can lower my gross income by 18% and thus reduce my taxes. Additionally I can invest in US stocks which have outpaced all other asset classes.
@@zshn Be careful, US stocks were already growing for last many years and anytime they could crash. I also have significant and planning to move them elsewhere. It is tempting at this point to invest in them but if they stagnate or crash for years that will be a nightmare. They could correct in the near future. If you do not get PR and plan to move back that would be non-resident tax.
Hi Gabrielle. Can you please calculate the total tax applicable if I am having an annual income of CA$1Million through my dropshipping, dropservicing, youtube businesses and trading and stocks and living in British Columbia. Thank You so much.
I'm sure if you pay her she would do it mate. money talks and bull walks!
if you have so much income you hire accountant or this lady in video. you make more you pay more
hi sis, very very Happy 2023 to u and ur angel parents. Sent u an outstanding ecard on ur Insta. Truckloads of information.
Timing is a huge factor too. If you join a company where all the directors, VPs and C-Suites are in theory early 50s, you gotta realize they may be locked in for 10-20 years and therefore there won’t be opportunities to climb. Be aware of the ceiling above you. Just because you’ve been exceptional for a decade, if your team leader, supervisor, manager, director and VP are your age (or God forbid younger), what are you expecting? That the company will create a redundant position to artificially promote you AND now create an empty seat that’s likely hard to fill because you’ve been kicking ass? I’ve seen this way too often. Be aware and make career moves with opportunities
8,003.85, not 8008.85
So Cpp I would like to take all cash I have given to Cpp and use what I contributed for my retirement I will never get what I put in out of Cpp such a scam.
My understanding of the FHSA is that you can pull out your contribution and growth/income, so that the actual maximum withdraw can actually be higher than the $40k indicated at 7:57
Can you still receive CCP if you choose to live elsewhere?
yes because you paid into it but not OAS if you live outside Canada
@@lyndakelly564 Interesting. Thank you. Sorry,..is there a place a person could find out how much they already paid into CCP? I'm guessing a persons income tax filer.
You should mention that this is not a government funded program. Its our own money being being back with rules….and regulations..
what i want to know is how to cash in your rrssp i need my money!
just go to the bank where your RRSP is
How about everyone just stop filing your taxes until we get a new government
Yeah, income tax was only supposed to be to help fund the first world war. Its ridiculous how much people's income goes to taxes. Over 60%, no wonder people are broke and struggling to pay rent, cost of living and inflation. I think people need to with hold taxes, its theft. We don't even know 100% where the tax money goes to.
I’m glad I left Canada… was too fraudulent for me … what a government! 😊
The taxes are insane. Anyone earning over 250k gets a 53% of their income stolen from them. What do they get for the 53%, to pay the other dozens of other taxes. I'm strongly considering moving to Texas, they have no income tax. Canada is too crazy to live in.
dam... i bought a home too early
unless you live in Alberta where prices go up and down like a carousel ride, real estate is always a good investment
Why the government wants money from the money I earn on "MY" money!!!!!!???????
Rubbers!!!
If I could move out of this country I would. Government Tax's us to death. Sure can't save $$$ anymore and buying a house is a dream.
VIDEO SAYS IMPORTANT TAX CHANGES. MOST OF THE VIDEO IS EXPLAINING THE BASICS OF THESE ACCOUNTS NOT THE CHANGES
Good content, but you talk a bit fast
Hi Gabrielle . You are so beautiful . 🌹🌹🌹🌹🌹
Despite the change to the tax brackets I do not believe these new tax brackets fully reflect the inflation experienced over the past two-three years, so in effect taxes on real income have actually increased.
Tax brackets should be inflation adjusted each year so that the Federal (and provincial) governments' revenues are NOT a beneficiary of the inflation which they in fact create
What happened to loyalty? Are leeches moving to Canada and shoving off as soon as they can’t get more?
If you are unhappy, here, you are more than welcome to leave
@@captainbanana1831 No shit! Stay here and get financially butt screwed until you cannot pay for anything because taxes are going to continue to go up and so will the cost of living.
Thanks for the informations but sometimes I just want to live in a cave
So thats great if you are single. If you are married the income is combined so you end up paying more
All flew over the cuckoos 🪹
I don't believe it
😡 Stop paying taxes 😡 Bring 2A 🎯 GROW SOME B🤬LS ALREADY CANADA 🇨🇦 STRIKE FEAR IN THE GOV 🇨🇦
Agree. Time to move, its easier to leave then change the minds of sheep.