Your correct about the TFSA there’s no limit to how much it can grow but there are rules on how you achieve this A financial advisor was day trading and doing other things that aren’t allowed in a TFSA and the CRA has sent him a tax bill for running a business in his TFSA His account was I believe about a million dollars which raised a red flag My TFSA is about 130K with normal investments and maximum contributions
Slightly off topic but I'm struggling to find the answer online. Do you know what the income cap is for GST returns for the next year of payouts? I was able to be under it last year and I'm hoping to use my RRSP contributions to stay under this year again but I don't know exactly what it is. ~55k?
Hey first I would like to thank for your amazing information you give . Question for you. 1,Do I have to file a tax on TFSA if I don’t sale any stocks ? How about if I sold stocks? 2 . How about RSP? Thanks a lot
With the RRSP you only have to report how much you contributed (so you can get a tax refund) You will receive a Tax Slip showing you how much you contributed in the year
For those of us paying the extra “level 2” CPP can you explain where this money is going? Are we going to have additional money in retirement due to this? Or is this just helping to bolster the existing CPP system for current retirees?
No no it does not benefit current retirees at all. It will ONLY affect the people who pay into it today. So that money will only be used for OUR future retirement
Slightly higher pays but 8% percent hike in city taxes, double the groceries bill, higher electricity rates, and 5.8% rates . But hey ! 50$ a week pay raise ! 😂.
Yes costs are going, no question but that has nothing to do with your paycheque. And it has nothing to do with the federal or even provincial governments in most cases
Grocery prices are set by the corporations, city taxes are set by the municipality etc. It sucks seeing those costs go up, no question. But you gotta focus on the right target. You can't blame the federal government for municipal taxes. Doesn't matter which party is in charge
@CanadianTShirt I completely agree . I get it , stay focused , stay possitive and educate yourself while learning what works to your advantage and maybe escape the "slave wage " and perhaps financial freedom. I really enjoy your Chanel I was just commenting on the irony life brings sometimes. Thank you for educating me and others to help bring better financial success 👍
@@CanadianTShirt I'd have to go through it line by line. But I saw my deductions looked larger. It didn't change by much, but my last year was a few dollars larger. But, thinking about it more, I probably contribute more to my taxes free savings?
hello Adrian, I recently started watching your Video's and have come across something, you so far have not reported on. Bare Trust new rulings. Do you have any information on this subject
@@CanadianTShirt Based on what I have seen by other wealth management people and ambulance chasers of money , it would e a great asset to us mortals that a true Canadian Tell is the truth. I have seen where it will involve more Canadians than even they think. I might be interested in you as my consultant if that is something that is available. I live in south central Ontario. thank you for just acknowledging and replying.
@@CanadianTShirt seeing something on this subject would be great, I am finding so many of the people I talk to, Do not know about it at all? some think it's a scam?
@@CanadianTShirt I am still trying to educate myself on this bare trust issue. I am in a rather unique situation, being separated, not divorced and share whole /life/term/insurance policies as well as living at the second residence while the ex wife lives at the main residence which both places are in both names. and its been 10 years since the break. would love to contact you soon regarding your help.
Would love another video on credit cards for 2024, maybe some points cards (like MBNA WE) that are on par with the great cashback cards you have mentioned before. Keep it up!
@@CanadianTShirt btw The new updates for Rogers "Red" World Elite Mastercard now offers 2% base cashback (If you are an eligible Rogers customer) and equivalent of 3% if redeemed for Rogers bills. It makes the card even better for current Rogers customers!
Almost everything in this video is on a federal level. Federal Income tax, EI and CPP are all federal wide. If you live in Quebec, it will be QPP instead of CPP
But the income tax portion of your paycheque also contains provincial taxes (sometimes these are separated into two lines, in my case they are combined as one) Although federal taxes will always be the bigger chunk of the tax
As I said in the video, inflation is a whole other factor you have to consider on top of it. But inflation is incredibly subjective, it depends on your spending habits and it changes every single day
But if you are running a sole-proprietorship, then you won't be receiving a salary and thus no paycheque. You just keep all the money your business earns. Make sure you set aside money for taxes and CPP!
Is this why I have been getting a different pay for the same default eighty hours? I looked at my pay stubs and noticed slight differences. I’m ok with my pay check going up haha. Awesome video 😊
My pay check will decrease because I’ve worked in healthcare for the last almost 20 years and no raise in the last almost six years and little hoe for a raise in my future because I work in Alberta and our wages are frozen and no raise in the near future because of the conservative government which is promoting foreign workers to keep wages lower !
Try to do the best you can and keep hanging in there. If at all possible, try to save and invest whatever you can. It will make a huge impact on your future in the long run
Excellent explanation and break down of how our paychecks will change. How can one opt out of EI payments. I am retired with a comfortable pension, when I do some casual work they always deduct EI which of course I will never be eligible to collect again. Can I opt out of paying the EI?
There aren't as many options when it comes to business bank account but it really does depend on the nature of your business and what kind of transactions you use!
For me, I am a purely online business with ZERO cash transactions so I like the BMO eBusiness plan. Very low fees and all of my transactions are online or etransfers so it's great for me =)
@CanadianTShirt Thanks for the info currently I m into food industry ebusiness plan might not be right choice. Do u think what others options I have. Thanks
Hi Adrian…can you suggest a few High Yield Savings Accounts to keep 3-6months living expenses pls ? I know the normal banks only give you like a 1.% , but does some online banks give close to 5% ? Thank you!
Eq bank right now is it's 4% for 12 months if you have automatic deposits of minimum 500$ month in the account, then after 12 months it goes back to 2.5% a year, wealthsimple cash I believe is fixed at 4% but I don't have it so I'm not sure
@@gianfrancopuli5448Excellent suggestions! Love them all! EQ Bank is my all time favourite savings account. WealthSimple Cash which is new, also offers a very generous 4% interest rate. You can find even higher promotional rates for 3-5 months with Tangerine and Simplii Financial. I am currently getting 5.5% at Tangerine until April so take advantage of those! =)
But inflation is not a static thing, it changes every single day and it affects everyone differently based on their spending habits. That's why policy is made based on dollar amounts and that's what I'm talking about in this video. The cold hard numbers
That way you won't be surprised with a big tax bill at the end of the year! But if you just start a contracting gig, you technically only have the pay taxes once, at regular tax time which is April 30 this year =)
Go through your paystub and compare each line (CPP, EI, taxes and the other employer deductions like taxable benefits and union fees) And make sure you compare Jan to Jan =)
@@CanadianTShirt this happen to me but it’s because I started contributing to my pension plan in August of 2023 so my net pay is less in Jan 2024 than it was in Jan 2023 after a ~$5000 increase in salary :/
@@CanadianTShirt i dod watch the whole video. Unfortunately, i am one of the fe who will be paying more as my income has gone up! And i have followed the increases according.
5:16 If I am earning more than 73200, for example 75000, then I will have to pay extra 300 for CPP as you mentioned. What if I am contributing that excessive salary into RRSP or FHSA, for example 5000 into RRSP which makes my income below 73200, will I still be charged that extra 300? How will it be determined then? Same case if I contribute to FHSA and RRSP with total of 15000 from my income, that means my salary will be 60000, that is less than 66600. Does that mean no changes in my CPP?
Hi Adrian, question unrelated to the video: If you max out your TFSA (Ex.: $88,000) and your book value is higher, what happens/what does it mean when years down the road you go to take that money out? Are there any penalties or something along those lines? Also, would be cool to have a video about an investment ''rhythm'' for new investors (Ex.: When I receive a paycheque, should immediately take a % and put it towards my Questrade TFSA account? Should I do it weekly, monthly, every quarter, etc.?) I'm new to investing and your videos have been extremely helpful so far!
You could literally grow your TFSA to a million dollars and that's totally fine! You get to keep all of that money tax-free, worry free. The contribution limit only restricts how much you can put INTO the account
For your second question, I have discussed this in a previous video! Comparing Dollar Cost Averaging vs lump sum investing or "buying the dip" Check it out! =) th-cam.com/video/h9G1CV-oujI/w-d-xo.html
That video is certainly coming! EQ Bank has been my all time favorite for many years. But I also take advantage of promotional savings rates from Tangerine and Simplii every few months 😊
This just sounds like everything is staying the same when it comes to our pay. It is NOT decreasing, but it is NOT increasing. Hmmm, I have to watch this again. 🤔
It's not a big increase by any means but it is increasing slightly. It certainly isn't decreasing.... like all those misleading posts would have you believe
There can always be exceptions such as people working multiple jobs. Those pay stubs can get complicated and you can often end up over paying throughout the year but it will always be resolved when you file your tax return
Absolutely! I have a WHOLE playlist of videos on running a Business in Canada! Check it out! =) th-cam.com/play/PLj8bU3AuW2qG-H_x1XPx9kCzRh4FIUzRz.html
Exactly! The more you pay into your pension, the more you will receive. I talk about this in detail in my CPP Changes video here =) th-cam.com/video/rICT8RpVKS8/w-d-xo.html
@@CanadianTShirt I can bank overtime at my job. So I paid a bunch out on my first pay cheque to take care of EI and CPP. Was almost $42k just in deductions on that pay day.
Smartcenters pays out their distribution every month. Most REITs do. However when it comes to investing (finance in general) all percentages will be an annual calculation
I received a salary increase around October 2023, and also maxed out CPP around the same time. My net pay in 2024 is lower than before both of those changes took effect, makes absolutely no sense. The lady running payroll at my company is insisting this is correct. Makes 0 sense, the CPP increase should not reduce my pay by this much.
But if your salary increased, your take home pay should increase. Unless you have new deductions like employer medical insurance or RRSP / RPP deductions etc
There are no new deductions, RRSP contributions and everything remains the same. I also maxed out on EI contributions one pay period before my salary increase. Maybe this is why? I'm having trouble figuring it all out.@@CanadianTShirt
I think the only reason your fed/prov tax deduction shows it as less as cause you keep paying yourself the same every year. For people who get salary increases every year this may not look like they are taking less cause as the saying goes, the more you make the more they take.
But to be clear if, I increased my salary to $100k this year. Then the taxes I would pay on the first $90k would be LOWER than my $90k salary last year. The taxes on the new $10k is extra
Of course we all wish that these tax savings were greater than they are. But I just had to make this video because there is SO much flat-out dishonest "information" out there....
TY. I can agree and this peership is amazing. This basic cost is a lot to know about and can result in more sucess. The basics are realising the cost of 300$ and realising the cost is helpful. I have so many basics to acheive. I am a writer, so I take what time I can to study the neccessry accounting. @@CanadianTShirt
@@CanadianTShirtI also watched your similar video for 2023 in which you indicated we would get more on every paycheck due to tax bracket increase. However, there is nothing change for me, still paying the same amount for taxes. I am not sure if I will get something back in this tax season 🙃 Let see
Which province do you live in? You're saying that your salary is the same but the tax deductions are unchanged? That shouldn't be correct... I would speak to HR and confirm those numbers
@@CanadianTShirtI’m in Ontario. My tax deduction is still the same compared to 2022, that’s the thing. If I pay more tax than what I suppose to, will CRA pay it back when I claim my income tax?
Awesome content as always! Thank you for being so detail-oriented! In the previous video you did about FHSA you mentioned you bought an investment property and are planning to rent your primary residence for now. It'd be great if you can make a video about the rational behind that while providing the numbers. Many ppl use rent to own cost ration to decide if it's better to buy or rent and they consider 20 to be the threshold for that ratio yet there's a lot of factors that must be considered when making such calculations and those ppl those those factors very lightly or use very inaccurate approximate amounts. You'd be a great person to do this type of analysis in a detailed and true to facts manner.
My CPP went up significantly. I compared my December pay which was in line with my regular take home pay in 2023 with January. And my take home has decreased. And I just got paid and it was the same again and the increase in CPP was $200 for each pay.
Make sure you are comparing January to January.... If you're saying that your CPP in Dec 2023 was similar to Jan 2023, that means you didn't max out CPP, so your income is below $66K?
If that's the case, then you shouldn't be paying more than $150 in CPP in a paycheque.... so you certainly wouldn't see an INCREASE of $200.... these numbers don't seem to make sense...
Hey Adrian, Love the channel and the advise. We have been aligned on many things and the extra incite you provide fills in some of the blanks. I know your a big Questrade promoter and I have been with them long before discovering you. Recently i have had issue with their far less than steller customer support which has had my recently opened RESP account and funds tied up. Its been 33 days and still not resolved. They cant seem to fix the issue nor show where my funds i transferred a month ago are. They acknowledge they have it, but cant see to put my money in the account. This has been most distressing. Calling/ emailing gets a start over response as no one you can speak with seems to be able to do anything other than say " give us 3 days and I have escalated this to the right team". Instead of calling me they reply with emails which puts it on me to follow up. Honestly I think I am done with them. Its a great platform until you have the littlest of issue and then its a black hole. I am reaching out to you in a hail mary appeal as maybe you have stronger connections.
I'm so sorry to hear that.... I have never had anything close to that kind of experience with Questrade. All of my transfers and withdrawals have been super smooth with no hiccups. Unfortunately I don't work for them and I don't have any contacts with the support side. I only know a few people on the Questrade marketing side...
Don't give up, keep contacting support and try your best to resolve the issue. If you like, send me a detailed email with your name and contact info and Questrade username. I can try to send it to my Questrade marketing contacts but I have no idea if they would be able to help you....
Here is the full breakdown of the biggest TAX CHANGES for 2024 🇨🇦
th-cam.com/video/bC-8kZXceZU/w-d-xo.html
And a detailed video on the important CPP CHANGES this year! 👇
th-cam.com/video/rICT8RpVKS8/w-d-xo.html
Please how can I contact you?
shoot me a message on Instagram if you have a question you don't want to ask publicly =)
Your correct about the TFSA there’s no limit to how much it can grow but there are rules on how you achieve this
A financial advisor was day trading and doing other things that aren’t allowed in a TFSA and the CRA has sent him a tax bill for running a business in his TFSA
His account was I believe about a million dollars which raised a red flag
My TFSA is about 130K with normal investments and maximum contributions
Absolutely! You CANNOT day trade in a TFSA because that is considered business income which is NOT allowed in a TFSA!
I talk about this and other important points in my TFSA MISTAKES video here =)
th-cam.com/video/s4cBibLATOU/w-d-xo.html
Is it allowed to dollars cost average in TFSA, like selling a part of money in HISA to buy ETF like VEQT and VFV everyday of the week?
Absolutely! You can and SHOULD dollar cost average! =)
SO informative!! Thanks Adrian
Thank you Joyee!!! 🙏
Slightly off topic but I'm struggling to find the answer online. Do you know what the income cap is for GST returns for the next year of payouts? I was able to be under it last year and I'm hoping to use my RRSP contributions to stay under this year again but I don't know exactly what it is. ~55k?
Unfortunately it's not just one number... It depends if you are single, married or have children!
@@CanadianTShirt I know! But do you have a good source?
Nice clarification on what's happening to our paystub. With all this great content, you better ask your boss for a raise haha.
hahaha thanks man! I'll give it a shot but my boss is tough as nails 😅
😊 💰
Thanks for watching! I hope you find it valuable! 😊
Hey first I would like to thank for your amazing information you give . Question for you. 1,Do I have to file a tax on TFSA if I don’t sale any stocks ? How about if I sold stocks?
2 . How about RSP?
Thanks a lot
Nope! That's the beauty of the TFSA! It's tax free! No tax slips! No declaring or reporting anything in your tax return!
With the RRSP you only have to report how much you contributed (so you can get a tax refund) You will receive a Tax Slip showing you how much you contributed in the year
Also if you withdraw from your RRSP, you also receive a tax slip since you pay taxes on that withdrawal amount =)
@@CanadianTShirt thanks so much
@@Berhane-kf5oxhappy to help! =)
For those of us paying the extra “level 2” CPP can you explain where this money is going? Are we going to have additional money in retirement due to this? Or is this just helping to bolster the existing CPP system for current retirees?
No no it does not benefit current retirees at all. It will ONLY affect the people who pay into it today. So that money will only be used for OUR future retirement
With the CPP, the money you collect depends entirely on how much YOU put in!
My take home has increased by $17 a cheque. Not significant...but hey, that's a McD's meal these days!
It's not going to be a massive increase but take what you can get!
I definitely miss the days when a Big Mac combo was five bucks and change... 😅
Hey Adrian, I recently incorporated my small business. Do you have a video on how to file Canadian corporate taxes? Thank you!
Congratulations on incorporating! That's a huge step! 😁
I haven't made a video on corporate taxes just yet but it is certainly coming! =)
Thank you so much, looking forward to it! 😁
Another good explainer video ;-)
Thank you Candace! I appreciate that! 🙏
Thank you so much. I will do it
I'm happy to help! 😁
Slightly higher pays but 8% percent hike in city taxes, double the groceries bill, higher electricity rates, and 5.8% rates . But hey ! 50$ a week pay raise ! 😂.
Okay but that's a totally separate issue. We're talking about INCOME taxes....
Yes costs are going, no question but that has nothing to do with your paycheque. And it has nothing to do with the federal or even provincial governments in most cases
Grocery prices are set by the corporations, city taxes are set by the municipality etc. It sucks seeing those costs go up, no question. But you gotta focus on the right target. You can't blame the federal government for municipal taxes. Doesn't matter which party is in charge
@CanadianTShirt I completely agree . I get it , stay focused , stay possitive and educate yourself while learning what works to your advantage and maybe escape the "slave wage " and perhaps financial freedom.
I really enjoy your Chanel I was just commenting on the irony life brings sometimes. Thank you for educating me and others to help bring better financial success 👍
1 min in and I have to disagree. My Jan to Jan was actually less this year.
That's interesting! If you don't mind sharing, I'd be curious to know which lines in your pay stub have increased this year?
It's possible that your employer's deductions have increased, such as taxable benefits, RRSP matching, health insurance etc
@@CanadianTShirt I'd have to go through it line by line. But I saw my deductions looked larger. It didn't change by much, but my last year was a few dollars larger.
But, thinking about it more, I probably contribute more to my taxes free savings?
hello Adrian, I recently started watching your Video's and have come across something, you so far have not reported on. Bare Trust new rulings. Do you have any information on this subject
You're right! The rules are changing this year! It doesn't affect the majority of Canadians but I can certainly make a video on it =)
@@CanadianTShirt Based on what I have seen by other wealth management people and ambulance chasers of money , it would e a great asset to us mortals that a true Canadian Tell is the truth. I have seen where it will involve more Canadians than even they think. I might be interested in you as my consultant if that is something that is available. I live in south central Ontario. thank you for just acknowledging and replying.
I'm happy to help buddy! Feel free to message me on Instagram. We can try to arrange a call sometime if you need more specific assistance =)
@@CanadianTShirt seeing something on this subject would be great, I am finding so many of the people I talk to, Do not know about it at all? some think it's a scam?
@@CanadianTShirt I am still trying to educate myself on this bare trust issue. I am in a rather unique situation, being separated, not divorced and share whole /life/term/insurance policies as well as living at the second residence while the ex wife lives at the main residence which both places are in both names. and its been 10 years since the break. would love to contact you soon regarding your help.
Would love another video on credit cards for 2024, maybe some points cards (like MBNA WE) that are on par with the great cashback cards you have mentioned before. Keep it up!
That's certainly coming! I'm working on a few credit card videos in the next several weeks! 😁
I was actually thinking the same thing! In fact, I would like to know which credit cards you are currently using?
@RehanaPatel every 2 years I make a video on the 7 credit cards I use, for different categories of purchases. My latest one was 2022, check it out!
@@RehanaPatel but my 2024 update should be out in February 🙂
@@CanadianTShirt btw The new updates for Rogers "Red" World Elite Mastercard now offers 2% base cashback (If you are an eligible Rogers customer) and equivalent of 3% if redeemed for Rogers bills. It makes the card even better for current Rogers customers!
Not always clear if this is about federal or provincial (which province) rules?
Almost everything in this video is on a federal level. Federal Income tax, EI and CPP are all federal wide. If you live in Quebec, it will be QPP instead of CPP
But the income tax portion of your paycheque also contains provincial taxes (sometimes these are separated into two lines, in my case they are combined as one) Although federal taxes will always be the bigger chunk of the tax
@@CanadianTShirt thank you daddy
@obesia1873 lol I hope that was an autocorrect 🤣
I live in Canada we don't have take home pay.
lol taxes hurt, no question. That's why it's so important to understand where your money is going!
Pull up your own pay stub and follow along with the video! 😊
He lives in Alberta (probably Calgary). Not exactly Canada -- more like wannabe Florida or Texas. I also live here and I have plenty of take home pay.
INFLATION ADJUSTED, The average paycheque has been going down for 50years.
As I said in the video, inflation is a whole other factor you have to consider on top of it. But inflation is incredibly subjective, it depends on your spending habits and it changes every single day
That's why we are only talking about pure numbers. Dollar amounts, that's what we can make policy on
What if your self employed
It will depend if you're incorporated or not! I am self-employed and my corporation pays me a salary, so this is my paycheque I receive
But if you are running a sole-proprietorship, then you won't be receiving a salary and thus no paycheque. You just keep all the money your business earns. Make sure you set aside money for taxes and CPP!
You really pay attention to the details. Very clear explanation. Overall good news. Thanks Adrian.
Thank you Enid! I appreciate your support and kind words as always! 🙏
Is this why I have been getting a different pay for the same default eighty hours? I looked at my pay stubs and noticed slight differences. I’m ok with my pay check going up haha. Awesome video 😊
It's always nice to see a boost in your takehome pay but you should still go through your paystub line by line to see the changes! 😊
My pay check will decrease because I’ve worked in healthcare for the last almost 20 years and no raise in the last almost six years and little hoe for a raise in my future because I work in Alberta and our wages are frozen and no raise in the near future because of the conservative government which is promoting foreign workers to keep wages lower !
I'm very sorry to hear that... I can't imagine how frustrating it must be to work in the healthcare field right now...
Try to do the best you can and keep hanging in there. If at all possible, try to save and invest whatever you can. It will make a huge impact on your future in the long run
Excellent explanation and break down of how our paychecks will change. How can one opt out of EI payments. I am retired with a comfortable pension, when I do some casual work they always deduct EI which of course I will never be eligible to collect again. Can I opt out of paying the EI?
If you are self-employed, you can choose to opt out of EI. But if you are employed, even part time then you can't
Appreciate the well-researched video. Great job as always, Adrian 🙏
Thanks Moe! I appreciate it! 🙏
Hey Bro. Can you make a new video on best business banking accounts in Canada with 5 Bank and other small banks for small business banking. Thanks
There aren't as many options when it comes to business bank account but it really does depend on the nature of your business and what kind of transactions you use!
For me, I am a purely online business with ZERO cash transactions so I like the BMO eBusiness plan. Very low fees and all of my transactions are online or etransfers so it's great for me =)
@CanadianTShirt Thanks for the info currently I m into food industry ebusiness plan might not be right choice. Do u think what others options I have. Thanks
Hi Adrian…can you suggest a few High Yield Savings Accounts to keep 3-6months living expenses pls ? I know the normal banks only give you like a 1.% , but does some online banks give close to 5% ? Thank you!
Eq bank right now is it's 4% for 12 months if you have automatic deposits of minimum 500$ month in the account, then after 12 months it goes back to 2.5% a year, wealthsimple cash I believe is fixed at 4% but I don't have it so I'm not sure
@@gianfrancopuli5448 Thank you! Appreciate the info..I’ll check it out!
@@gianfrancopuli5448Excellent suggestions! Love them all! EQ Bank is my all time favourite savings account. WealthSimple Cash which is new, also offers a very generous 4% interest rate. You can find even higher promotional rates for 3-5 months with Tangerine and Simplii Financial. I am currently getting 5.5% at Tangerine until April so take advantage of those! =)
@@CanadianTShirtThank you very much! You’re the best!☺️
NO, inflation means take home pay is going down.
As I said in the video, inflation and purchasing power of your money is a whole other story
But inflation is not a static thing, it changes every single day and it affects everyone differently based on their spending habits. That's why policy is made based on dollar amounts and that's what I'm talking about in this video. The cold hard numbers
When do I should pay the taxes if this year I start a job as a contractor ?
The best approach is to pay quarterly or even monthly tax installments!
That way you won't be surprised with a big tax bill at the end of the year! But if you just start a contracting gig, you technically only have the pay taxes once, at regular tax time which is April 30 this year =)
Just checked mine went up 11$😮
Ooh not bad! Glad to see a bit more money in your pocket =)
Mini wage is going up.. in April 16.00
That's always nice to see! =)
GOAT of canadian personal finance
Awww thanks man! I really appreciate that! 🙏
Bro I do get the math, and I'm still getting paid less than Jan last year :( even with an increase in my salary!!!!!!
Same. Do you contribute to a pensions plan/ESPP?
Wait you had a salary increase but still a net DECREASE in take home pay?... that's very unusual....
Are there any new deductions this year? Such as employer medical insurance? Or RRSP contributions?
Go through your paystub and compare each line (CPP, EI, taxes and the other employer deductions like taxable benefits and union fees) And make sure you compare Jan to Jan =)
@@CanadianTShirt this happen to me but it’s because I started contributing to my pension plan in August of 2023 so my net pay is less in Jan 2024 than it was in Jan 2023 after a ~$5000 increase in salary :/
If taxes went down and ei went up. Doesnt that mean our pay check broke even?
Make sure you watch the whole video!
EI went up by a maximum of $1.80 per paycheque. My taxes went down way more than that =)
@@CanadianTShirt i dod watch the whole video. Unfortunately, i am one of the fe who will be paying more as my income has gone up! And i have followed the increases according.
5:16
If I am earning more than 73200, for example 75000, then I will have to pay extra 300 for CPP as you mentioned. What if I am contributing that excessive salary into RRSP or FHSA, for example 5000 into RRSP which makes my income below 73200, will I still be charged that extra 300? How will it be determined then?
Same case if I contribute to FHSA and RRSP with total of 15000 from my income, that means my salary will be 60000, that is less than 66600. Does that mean no changes in my CPP?
I like where your head is at but those tax deductions from FHSA and RRSP only apply to taxes!
CPP and EI are not taxes. So those rates (5.95% and 1.66%) are applied on your GROSS pay! So they are unaffected by RRSP contributions
@@CanadianTShirt So, there’s no way out from CPP? Are there any other ways we can save from CPP?😂
@vaaasu the only way to avoid CPP is to earn less than $3500 a year LOL
@vaaasu or technically you could open a corporation and pay yourself no salary and exclusively in dividends but I've never heard anyone do that lol
Hi Adrian, question unrelated to the video:
If you max out your TFSA (Ex.: $88,000) and your book value is higher, what happens/what does it mean when years down the road you go to take that money out? Are there any penalties or something along those lines?
Also, would be cool to have a video about an investment ''rhythm'' for new investors (Ex.: When I receive a paycheque, should immediately take a % and put it towards my Questrade TFSA account? Should I do it weekly, monthly, every quarter, etc.?)
I'm new to investing and your videos have been extremely helpful so far!
Nope! That's the beauty of the TFSA! Whatever profits you earn inside the TFSA will be 100% tax free and it will NOT affect your contribution room! =)
You could literally grow your TFSA to a million dollars and that's totally fine! You get to keep all of that money tax-free, worry free. The contribution limit only restricts how much you can put INTO the account
There is no limit on how much it can grow! =)
For your second question, I have discussed this in a previous video! Comparing Dollar Cost Averaging vs lump sum investing or "buying the dip" Check it out! =)
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@@CanadianTShirt Thank you!
Thanks for the, as always, great content 👏🏽 Would love to see a video with your take on HISA accounts, if you use them and which ones you recommend.
That video is certainly coming! EQ Bank has been my all time favorite for many years. But I also take advantage of promotional savings rates from Tangerine and Simplii every few months 😊
WealthSimple Cash is also a fantastic and newer option 👌
thanks for this
My pleasure! I'm glad you found it helpful! 😁
Approx $100 increase in take home pay tada
Oh wow! $100 per paycheque! That's one of the highest boosts I've seen
I'm guessing you also had a salary increase as well? Well done! 😁
So happy for you 😌
Great videos Adrian!
Thanks Omar! I'm glad you find them useful! =)
This just sounds like everything is staying the same when it comes to our pay. It is NOT decreasing, but it is NOT increasing. Hmmm, I have to watch this again. 🤔
It's not a big increase by any means but it is increasing slightly. It certainly isn't decreasing.... like all those misleading posts would have you believe
Is there an income range where people are actually hurt with the new 2024 taxes/cpp/ei?
Not really because CPP and EI are cutoff after the max limit. That's what prevents those increases from overpowering the tax reduction
There can always be exceptions such as people working multiple jobs. Those pay stubs can get complicated and you can often end up over paying throughout the year but it will always be resolved when you file your tax return
Would like to hear about you becoming self-employed. Any advice?
Absolutely! I have a WHOLE playlist of videos on running a Business in Canada! Check it out! =)
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Very well explained! Thanks for this amazing video. Now to cry staring at the income tax they've taken
It hurts! No doubt about that!
That's why it's so important to learn the rules of how Canadian taxes work so that we can make a plan and reduce our taxes (legally of course!)
And hopefully my videos help with that! 😊
love it, great explanation
Thanks man! Glad to be of help! =)
Why we pay CPP 300 more so mean we can get more when retired????
Exactly! The more you pay into your pension, the more you will receive. I talk about this in detail in my CPP Changes video here =)
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Thanks Adrian for superb video , once again- loud n clear info.
Thanks buddy! I appreciate that! 🙏
What does above $173k reduced? Those that make above that will have a reduction in the basic personal income?
Yes if you make above $173k (top tax brackets) the credit starts getting clawed back. But it never goes to zero! Just reduced by a bit
Watch my 2024 Tax Changes video for the full details of this clawback 😊
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Informative...thanks keep it up!!!
That's the plan! 😁
I paid off my CPP and EI on my first cheque. And my second cheque is slightly bigger than my normal paycheques last year.
Wait you are saying that you paid the max amount, $4000 in CPP all in one paycheque?.... That's very unlikely... unless your salary is $2 million lol
@@CanadianTShirt I can bank overtime at my job. So I paid a bunch out on my first pay cheque to take care of EI and CPP. Was almost $42k just in deductions on that pay day.
@@scootsmcdoots80 wow... $42k deductions in one paycheque.... that's a good problem to have! Well done! 🙌
My EI went up by $7 per check… and CPP went up by $14 per check what’s going on?? In BC btw
If you have a very high income, you could see such an increase to EI but that just means that you will max it out sooner!
Once your gross pay reaches $63K, your EI will be maxed out for the year. Similar to how CPP maxes out
Also remember that EI and CPP are based on percentages. If you had a salary increase, then naturally the amount you pay will increase as well
In my case, I keep my salary fixed which is why CPP didn't increase per paycheque
Does smartcenters REIT distribute monthly or anualy cuz I had a look at the statistics In the page and it had me a bit confused
Smartcenters pays out their distribution every month. Most REITs do. However when it comes to investing (finance in general) all percentages will be an annual calculation
So if SmartCentres pays a 6% dividend yield that's for the whole year. Since it's paid monthly, it's about 0.5% per month
Watch my DIVIDENDS EXPLAINED video to see the full explanation 😊
@@CanadianTShirt thanks very much
I received a salary increase around October 2023, and also maxed out CPP around the same time. My net pay in 2024 is lower than before both of those changes took effect, makes absolutely no sense. The lady running payroll at my company is insisting this is correct. Makes 0 sense, the CPP increase should not reduce my pay by this much.
Well that's because you maxed out CPP and got a raise at the same time
Now in 2024 it's the first time you are paying CPP AND the higher income
But if your salary increased, your take home pay should increase. Unless you have new deductions like employer medical insurance or RRSP / RPP deductions etc
If you go line by line in your paystub, what's causing the biggest increase in the new year?
There are no new deductions, RRSP contributions and everything remains the same. I also maxed out on EI contributions one pay period before my salary increase. Maybe this is why? I'm having trouble figuring it all out.@@CanadianTShirt
Hi Adrian, do you think is a good time to buy REITS?
I certainly am! Especially since the prices are still undervalued. I DRIP every month and buy extra shares on top of that
I expect a strong recovery once interest rates come down and I enjoy those monthly dividends in the meantime =)
Great! Which ones from your portfolio would you recommend to buy this upcoming week?
you rock!
Right back at you buddy! 😁
I think the only reason your fed/prov tax deduction shows it as less as cause you keep paying yourself the same every year. For people who get salary increases every year this may not look like they are taking less cause as the saying goes, the more you make the more they take.
Of course! But that's the point, for the same income (which I control) I am paying less in taxes. That way I compare apples to apples
Of course if you make more money, you will pay more taxes. Especially on new income in a higher tax bracket!
Comparing taxes on a 90k income vs 100k income isn't a useful comparison. That's like comparing the cost of 10L of gas to 15L
@@CanadianTShirt right but I feel this really only works if you run your own business.
But to be clear if, I increased my salary to $100k this year. Then the taxes I would pay on the first $90k would be LOWER than my $90k salary last year. The taxes on the new $10k is extra
Thank you for that 2024 view!
I'm glad you found it helpful!
Of course we all wish that these tax savings were greater than they are. But I just had to make this video because there is SO much flat-out dishonest "information" out there....
Thank you.@@CanadianTShirt
TY. I can agree and this peership is amazing. This basic cost is a lot to know about and can result in more sucess. The basics are realising the cost of 300$ and realising the cost is helpful. I have so many basics to acheive. I am a writer, so I take what time I can to study the neccessry accounting.
@@CanadianTShirt
The income number you mentioned is for household or individual?
Individual! I am a one person company. Just me 🙂
@@CanadianTShirtI also watched your similar video for 2023 in which you indicated we would get more on every paycheck due to tax bracket increase. However, there is nothing change for me, still paying the same amount for taxes. I am not sure if I will get something back in this tax season 🙃 Let see
Which province do you live in? You're saying that your salary is the same but the tax deductions are unchanged? That shouldn't be correct... I would speak to HR and confirm those numbers
Even if you are in the lowest tax bracket, you would still benefit from a decrease in taxes due to the larger Basic Personal Tax credit
@@CanadianTShirtI’m in Ontario. My tax deduction is still the same compared to 2022, that’s the thing. If I pay more tax than what I suppose to, will CRA pay it back when I claim my income tax?
Awesome content as always! Thank you for being so detail-oriented!
In the previous video you did about FHSA you mentioned you bought an investment property and are planning to rent your primary residence for now. It'd be great if you can make a video about the rational behind that while providing the numbers. Many ppl use rent to own cost ration to decide if it's better to buy or rent and they consider 20 to be the threshold for that ratio yet there's a lot of factors that must be considered when making such calculations and those ppl those those factors very lightly or use very inaccurate approximate amounts. You'd be a great person to do this type of analysis in a detailed and true to facts manner.
I can certainly make a video talking about my experience and I can share my numbers which led me to that decision =)
My CPP went up significantly. I compared my December pay which was in line with my regular take home pay in 2023 with January. And my take home has decreased. And I just got paid and it was the same again and the increase in CPP was $200 for each pay.
You paid an extra $200 in CPP in one paycheque? The maximum CPP increase you will face for the entire year is $301...
Make sure you are comparing January to January.... If you're saying that your CPP in Dec 2023 was similar to Jan 2023, that means you didn't max out CPP, so your income is below $66K?
If that's the case, then you shouldn't be paying more than $150 in CPP in a paycheque.... so you certainly wouldn't see an INCREASE of $200.... these numbers don't seem to make sense...
been watching your videos for a couple years, they keep me well informed. Thank you for making great vids
Thank you so much for sticking with me over the years! I really appreciate that! 🙏
Hey Adrian, Love the channel and the advise. We have been aligned on many things and the extra incite you provide fills in some of the blanks.
I know your a big Questrade promoter and I have been with them long before discovering you.
Recently i have had issue with their far less than steller customer support which has had my recently opened RESP account and funds tied up. Its been 33 days and still not resolved. They cant seem to fix the issue nor show where my funds i transferred a month ago are. They acknowledge they have it, but cant see to put my money in the account. This has been most distressing. Calling/ emailing gets a start over response as no one you can speak with seems to be able to do anything other than say " give us 3 days and I have escalated this to the right team". Instead of calling me they reply with emails which puts it on me to follow up.
Honestly I think I am done with them. Its a great platform until you have the littlest of issue and then its a black hole.
I am reaching out to you in a hail mary appeal as maybe you have stronger connections.
I'm so sorry to hear that.... I have never had anything close to that kind of experience with Questrade. All of my transfers and withdrawals have been super smooth with no hiccups. Unfortunately I don't work for them and I don't have any contacts with the support side. I only know a few people on the Questrade marketing side...
Don't give up, keep contacting support and try your best to resolve the issue. If you like, send me a detailed email with your name and contact info and Questrade username. I can try to send it to my Questrade marketing contacts but I have no idea if they would be able to help you....
Thanks buddy
Thanks Bruce! I'm glad you found it helpful! =)