Author Topic: Managing taxable income after a return to Canada  (Read 890 times)

EnjoyTheJourney

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Managing taxable income after a return to Canada
« on: January 09, 2022, 04:31:15 PM »
In Canada it's helpful to spread income across spouses to lower the overall tax bill.

We're wondering if the following ideas for spreading income across my wife and I can work when we move to Canada later this year. We'll be FIRE'd and living off of assets saved up. The ideas are as follows:

1. My US situs deferred tax assets (401K type investments) and Roth IRA are in my name and they pretty much stay that way. (My wife stayed at home and does not have such accounts)
2. We take money left after the sale of our home and those funds go to taxable investment / banking accounts in my wife's name.
3. We are eligible for money from the Canadian and provincial government for our 2 young sons. All totaled up it would be $10,000+ per year in US dollars, as long as we keep declared income low. We'd like to claim those funds as income for my wife and not me, or half to each of us if we need to do that (not sure about the rules for that).
4. I'll have Canadian accounts to receive money withdrawn from my US Situs tax deferred accounts and Roth IRA accounts. Such funds that are not spent in the year they were withdrawn would be transferred to my wife's taxable investment / banking account.

Thank you in advance for finding flaws or suggesting improvements.



treffpunkt

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Re: Managing taxable income after a return to Canada
« Reply #1 on: January 09, 2022, 07:15:49 PM »
Quote
3. We are eligible for money from the Canadian and provincial government for our 2 young sons. All totaled up it would be $10,000+ per year in US dollars, as long as we keep declared income low. We'd like to claim those funds as income for my wife and not me, or half to each of us if we need to do that (not sure about the rules for that).

If you're referring to the CCB, there are no "funds as income" to claim. It's a non-taxable benefit and you do not include it on your tax returns.

EnjoyTheJourney

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Re: Managing taxable income after a return to Canada
« Reply #2 on: January 09, 2022, 08:09:29 PM »
Somehow I didn't notice that. Thank you for bringing it to my attention.