Overview of Other Income and Deductions
Overview of Other Income and Deductions
Other Income Inclusion for Individuals (subdivision d – other sources of income)
- Pension Benefits (RPP, CPP, OAS)
- Annuity Payments (only the income portion is included in income; the principal portion is not)
- Employment Insurance (EI)
- RRSP, RRIF, DPSP income from withdrawals or payments
- RESP income from withdrawals
- Legal costs awarded to the taxpayer by a court on an appeal in relation to an assessment of any tax, interest, or penalties
- The taxpayer is also allowed to deduct legal expenses to fight an assessment of tax, interest or penalties
- Retiring Allowances
- payments for unused sick leave credits on termination
- amounts individuals receive when their office or employment is terminated
- Research grants in excess of expenses incurred to carry out the work
- Social assistance and workers’ compensation
- You get an offsetting deduction under Division C
- Universal Child Care benefit ($1,200 per each child under 7)
- Spousal Support received
Other Deductions for Individuals (subdivision e – deductions in computing income)
- Split Pension Amount – the amount transferred from pensioner to his spouse (usually 50%)
- CPP contributions on self-employed earnings (50% * total CPP contribution)
- you also get a tax credit for the other half
- Spousal Support Paid
- RRSP Contributions
- Payments to a Registered Pension Plan
- Transfer of refund of premiums under RRSP (see the death of taxpayer notes for example)
- OAS/Employment Insurance repaid to gov’t
- Universal Child Care benefit repaid to the gov’t
- Legal Expenses
- To fight assessment of tax, interest or penalties
- To fight assessment made under the CPP
- To collect retiring allowance or pension
- Moving Expenses
- Child Care Expenses
- 15% OAS clawback