Thanks so much. You both gave me a start in figuring out what questions to ask.
Interesting. I'm assuming Net income, not total income. So no RRSP contributons.
On my assesssment it shows capital gains at 50% - $17.5K
Back to RRSP, you can pull from them to inflate your income. Put the extra cash into the TFSA, pay the taxes. It will hurt, its not optimal, but its the simplest way to artificially inflate income that I can think of.
Or, get dividends from stocks in an investment account. Pull all your TFSA money out and buy investments. Those dividends are taxable, which sucks, but thats what you want...I have to check but you may want US dividends, if you buy Canadian I think the Eligible Tax redit might kic=k in and cause a lower Net income.
Yes, it looks like I can only report taxable capital gains - so just $17.5k instead of $35k. Ugh. (Haha...funny grumbling about wanting to pay more taxes!)
So you think I should pull out some of my RRSP investments? If I do, that will be considered taxable income right? Do I have to actually sell the stocks or just transfer to a non-registered account? My TFSA is full but certainly can set aside money to add to it in January. I can also invest in dividend stocks - but will need enough to provide quite a lot of money in dividends. I need $67k a year in total income!
Which line on the tax return do they use to calculate your income level? It is important to find out if they use the line before or after deductions are made.
Also, how close are you with your employment income? Is your husband able and permitted to do some work (up to a certain dollar amount)?
Right now I expect to have about $25k in income this year. My husband is not capable of working at all. He gets about $48k/yr in disability - if it counted, we wouldn't have a problem.
I found that the income required is based on Line 150 (my taxable income):
Your total income includes:
- Employment income (box 14 of all T4 slips)
- Other employment income (such as tips, gratuities, and occasional earnings)
- Old age security pension (box 18 of the T4A(OAS) slip)
-CPP or QPP benefits (box 20 of the T4A(P)slip)
- Other pensions and superannuation
- Elected split-pension amount
- Universal child care benefit (UCCB)
- Employment insurance and other benefits (box 14 of the T4E slip)
- Taxable amount of dividends (eligible and other than eligible) from taxable corporations
- Interest and other investment income
- Net partnership income: limited or non-active partners only
- Registered disability savings plan income
- Net rental income
- Taxable capital gains
- Taxable portion of support payments you received
- RRSP income (from all T4RSP slips)
- Other income
- Net self-employment income (business or professional activities, commission income, farming, and fishing)
- Worker’s compensation benefits (box 10 of the T5007 slip)
- Social assistance payments and
- Net federal supplements (box 21 of the T4A(OAS) slip)
For 2018, we will likely have about $50-60k in taxable income (especially with the capital gains). So I only have to figure out a plan to show an additional $10k in income.
But if I want to FIRE in 2019 or 2020 - I have no idea how I would show close to $70k in income if neither of us are working. The application process could take years - so I must be able to keep proving income for the next 2-5 years. Kinda wish we hadn't just sold our rental property. It didn't bring in much, but it would have helped a little.
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