Why Should You File Past Years Taxes Online: Difference between revisions
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Latest revision as of 19:36, 20 September 2024
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of income from someone will be in a high tax bracket to a person who is from a lower tax range. It may even be possible to reduce the tax on the transferred income to zero if this person, doesn't have got other taxable income. Normally, the other person is either your spouse or common-law spouse, but it could even be your children. Whenever it is possible to transfer income to a person in a lower tax bracket, it should be done. If marketplace . between tax rates is 20% your family will save $200 for every $1,000 transferred to your "lower rate" general.
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