Tax-Free Canadian Income

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Almost all income you earn in Canada is considered taxable income.  However, the Canadian government has deemed some income as exceptions to the taxable rule.

You do not have to report certain amounts in your income, including the following:

  • any GST/HST credit and Canada Child Benefit payments, including those from related provincial or territorial programs;
  • child assistance payments and the supplement for handicapped children paid by the province of Quebec;
  • compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident;
  • most lottery winnings;
  • most gifts and inheritances;
  • amounts paid by Canada or an ally (if the amount is not taxable in that country) for disability or death due to war service;
  • most amounts received from a life insurance policy following someone’s death;
  • most payments of the type commonly referred to as strike pay you received from your union, even if you perform picketing duties as a requirement of membership;
  •  elementary and secondary school scholarships and bursaries;
  • post-secondary school scholarships, fellowships, and bursaries are not taxable if you received them in 2017 for your enrolment in a program that entitled you to claim the full-time education amount in 2016 or if you are considered a full-time qualifying student for 2017 or 2018; andNote
    Income earned on any of the above amounts (such as interest you earn when you invest lottery winnings) is taxable.
  • most amounts received from a tax free savings account (TFSA).

Tax time is just around the corner.  If you would like more information on various programs, deductions and credits that can help save you money, contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.

 

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2018-01-17T15:33:48+00:00