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Why it pays to understand marginal tax rates


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Why it pays to understand marginal tax ratesWhy it pays to understand marginal tax rates
To the many Canadians in the throes of tax return preparation, Jim Yih at the Retire Happy blog presents a clear explanation of how marginal tax rates work. Essentially, it’s like this: You’re taxed at a series of percentages of your income, not at a flat rate.

That means that if an increase in income puts you into a higher tax bracket, you only pay the higher percentage on the amount within that bracket, not on your entire income. Use that knowledge for tax planning, says Yih. “Learn how to use the [tax] system to your advantage.”
Marginal tax rate vs average tax rate

Keep track of your kids’ shots on your phone
If you have trouble remembering which of your kids has had which immunization, or when they’re next due for a booster shot, a new free, mobile app – ImmunizeCA – may be just the remedy, writes the Portage Daily Graphic.
New mobile app to help with immunizations

Speechless no more
If you’ve ever had to split a tab in a restaurant even though your meal cost much less than the other person’s, or lent something to a neighbour that you didn’t get back, or been asked for a favour you didn’t want to grant, Sara Dimerman at the Savvy Mom blog has some great coping tactics.
How to deal with awkward moments

Try these proactive career strategies
“Instead of waiting for opportunity to knock, why not get out there today and create it yourself?” asks Sidneyeve Matrix on the Career Incubator blog at Talent Egg. Get inside industry intelligence, expand your referral network, develop your skills portfolio and become more “discoverable.”
Creating your own career luck with DIY opportunities

Planning for post — RRSP finances
Rob Carrick of the Globe and Mail chats with a chartered financial planner about what to do when you must (by law) wind down your registered retirement savings plan by the end of the year you turn 71, and start taking annual payments.
The fine points of converting an RRSP into a RRIF (Video)

Post of the week

Are you entitled to a tax refund for your medical expenses? Are you entitled to a tax refund for your medical expenses?
I was surprised to learn following my son’s accident that I could claim a portion of both his health expenses and our health insurance premiums on my tax return.

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Brian Poncelet,CFP on

Here is another reason to know where your tax bracket is. If your tax bracket is low then the TFSA is really the only choice. In Ontario making less than $40,000 (gross income) RRSPs should be avoided.

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