Income tax is levied by the Canadian government in both the federal and provincial levels. April 30 of the current year is the deadline for filing of taxes the previous year. Income tax rates are different for every income and location in Canada; 19% is the lowest combined rate and 46.4% is the highest rate. Once a year income taxes must be paid by any person with a taxable income in Canada. Tax deductions are instances that allow a portion of a portion of a person’s income to avoid paying taxes. A person must pay income tax on all of his income of the year if they do not qualify for any tax deductions. Non-Canadians who are employed in Canada, conducting business in Canada or selling a taxable Canadian property must pay Canadian income tax. A circumstance or a type of expenditure can be a deductible for the taxpayer. Those
The stock market can feel a lot like legalized gambling for new investors. If the price of your stock goes up, you win and if it drops, you lose. The stock market is the reason why so many people got rich during the dot-com boom and also why so many people lost their saving and retirement in the recent recession. Many new investors think of the stock market as a short-term investment that brings either huge monetary gains or devastating losses. The stock market is as reliable a form of investment as a game of roulette if you think that way. The more you understand how the stock market investment works, the smarter you will be able to manage your money. It can be intimidating to be involved in the stock market, but being more informed can help ease your fears. Starting with some basic definitions is a good idea.
Used in taxation systems, a tax bracket is a cut-off point that progress or regress depending upon income. For example in the US, the brackets are divided into increments of $10,000 US Dollar (USD). These brackets do not include other taxes such as disability insurance or social security payments. You often pay percentages that are different depending on the income you make and the dollar amounts of your income are taxed by bracket. To understand this better, imagine that a person who is making $1-10,000 USD is taxed 10% of their income. If your income is even a dollar more that the first $10,000 USD, you would be taxed at a higher rate. Each person also has allowable deductions. The single person making $10,000 USD wouldn’t pay $1000 USD in taxes because he would have a standard deduction of $5,350 USD and a personal exemption of $3,400 USD. The money