Author Topic: retiremnet tax calculator that includes credits  (Read 1372 times)

c-kat

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retiremnet tax calculator that includes credits
« on: April 25, 2023, 11:04:08 AM »
Hi,

Is there a retirement calculator that includes pension credits and over 65 age credits? We will be retiring earlier than this, but I'm trying to figure out what our net income will be at different stages and recently learned about the over 65 age credit and pension tax credit.

Also, most tax calculators include CPP and OAS deductions but someone who is retired wouldn't have these.


Sun Hat

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Re: retiremnet tax calculator that includes credits
« Reply #1 on: April 28, 2023, 02:18:45 PM »
I'm not sure what you mean by credits, but this calculator factors for OAS and CPP, though you have to add the amounts yourself.
https://srv111.services.gc.ca/generalinformation/index

c-kat

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Re: retiremnet tax calculator that includes credits
« Reply #2 on: April 28, 2023, 02:45:25 PM »
I'm not sure what you mean by credits, but this calculator factors for OAS and CPP, though you have to add the amounts yourself.
https://srv111.services.gc.ca/generalinformation/index

I mean the senior tax credit you get at 65 that is income based.

Heckler

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Re: retiremnet tax calculator that includes credits
« Reply #3 on: April 28, 2023, 10:02:38 PM »
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31400-pension-income-amount.html

https://www.canadalife.com/investment-management/news-insights/answers-about-the-pension-income-tax-credit.html

Quote
How much can your clients claim?

The federal tax credit rate is at 15%.
The maximum federal tax savings available is $300. This is based on $2,000 15% (the capped rate).

if $300/year puts you either side of FIRE, you aren't FI yet.

However, to answer your question, the big bank financial advisor told me about pension tax credits, and this peaked my interest too.  He said that his software includes them.  Walk into a bank and ask for a financial plan might be the answer?  Just ignore their sales pitch.
« Last Edit: April 28, 2023, 10:49:17 PM by Heckler »

c-kat

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Re: retiremnet tax calculator that includes credits
« Reply #4 on: April 29, 2023, 05:56:49 PM »
There's also supposed to be an 8K tax credit for seniors 65+ but I'm not sure how it works. We plan to retire much younger than that but I'm just trying to figure out what our taxes would be at that stage.

Heckler

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Sun Hat

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Re: retiremnet tax calculator that includes credits
« Reply #6 on: April 30, 2023, 02:33:10 PM »
I mean the senior tax credit you get at 65 that is income based.

Cool! I didn't know that this existed!

Mighty Eyebrows

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Re: retiremnet tax calculator that includes credits
« Reply #7 on: May 02, 2023, 05:10:41 PM »
TaxTips has a decent tax estimator, that includes standard age credits:

https://www.taxtips.ca/calculators/canadian-tax/canadian-tax-calculator.htm

Many tax preparation programs allow you to install and run scenarios for free. I like StudioTax and it only requires payment if you choose to use it for filing:

https://www.studiotax.com/home.html


cdn5cents

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Re: retiremnet tax calculator that includes credits
« Reply #8 on: May 04, 2023, 10:57:52 AM »
If you're interested in a Spreadsheet solution that will allow you to setup and compare Multiple Income Scenarios .... take a look at https://taxsheets.ca

AJDZee

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Re: retiremnet tax calculator that includes credits
« Reply #9 on: May 19, 2023, 09:11:22 AM »
Lately I've been looking for good planning tool as well, I feel like I've out-grown the simple excel sheets I've been using for years.

Does anyone use & recommend a good retirement planner that's useful for Canadians? (i.e. knows our tax, RSP/TFSA/RRIF/OAS, CPP programs)
There's a few options for americans, but falls apart when being used by a Canadian.

For the last few weeks I've been trying out a program called ProjectionLab. By default it is american, but you can set it up for Canadians, and input our tax brackets.
I found it after watching a review of it on Rob Berger's youtube channel, he basically does a whole tutorial on how to use it.

So far I'm impressed with the tool, but it's a little tricky to set up. (first few times I set it up, it showed me going bankrupt 2 years into retirement, but several million net worth lol )

I'll paste the link here if anyone wants to try it - but any other recommendations?


https://projectionlab.com

https://www.youtube.com/watch?v=k0iEIfMxBEc

FLBiker

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Re: retiremnet tax calculator that includes credits
« Reply #10 on: May 19, 2023, 10:43:37 AM »
For the last few weeks I've been trying out a program called ProjectionLab. By default it is american, but you can set it up for Canadians, and input our tax brackets.
https://projectionlab.com

I used this for a while.  I think it's great for what it does, but it doesn't do what I'm most interested in -- what I really want to do is be able to experiment with different drawdown strategies to maximize FIRE success rates and tax efficiency.  With Projection Lab, I could sequence them, but then it would just drawdown from one source until it was empty then move on to the next.  For me, it has been more helpful to do this modeling in Excel -- figuring out how much money we need per year, what % would come from taxable vs non-taxable, and then what that would mean in terms of our taxes and CCB.  If this functionality were to come into ProjectionLab, though, I'd jump back in a heart beat.  It is really well designed for the accumulation projection piece.

AJDZee

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Re: retiremnet tax calculator that includes credits
« Reply #11 on: May 19, 2023, 11:09:04 AM »
For the last few weeks I've been trying out a program called ProjectionLab. By default it is american, but you can set it up for Canadians, and input our tax brackets.
https://projectionlab.com

I used this for a while.  I think it's great for what it does, but it doesn't do what I'm most interested in -- what I really want to do is be able to experiment with different drawdown strategies to maximize FIRE success rates and tax efficiency.  With Projection Lab, I could sequence them, but then it would just drawdown from one source until it was empty then move on to the next.  For me, it has been more helpful to do this modeling in Excel -- figuring out how much money we need per year, what % would come from taxable vs non-taxable, and then what that would mean in terms of our taxes and CCB.  If this functionality were to come into ProjectionLab, though, I'd jump back in a heart beat.  It is really well designed for the accumulation projection piece.

I totally get what your mean. I was still working through how it's showing cashflows in the later years, and I think you've hit the nail on the head why it seemed off in my eyes.
Just looked at the drawdown setting and looks like that's still the case. But it looks like the team is making significant upgrades to the software every few months, so maybe that will be addressed at some point.

Snap Projections is another tool, it could probably do what you're looking for. It is the software a lot of CFPs use, technically you can't get access to it unless you're certified - that's what they say anyway...

FLBiker

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Re: retiremnet tax calculator that includes credits
« Reply #12 on: May 19, 2023, 11:51:19 AM »
Snap Projections is another tool, it could probably do what you're looking for. It is the software a lot of CFPs use, technically you can't get access to it unless you're certified - that's what they say anyway...

Interesting.  I will definitely take a look at that.  Thanks!

cdn5cents

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Re: retiremnet tax calculator that includes credits
« Reply #13 on: May 20, 2023, 04:15:40 PM »
For the last few weeks I've been trying out a program called ProjectionLab. By default it is american, but you can set it up for Canadians, and input our tax brackets.
https://projectionlab.com

I used this for a while.  I think it's great for what it does, but it doesn't do what I'm most interested in -- what I really want to do is be able to experiment with different drawdown strategies to maximize FIRE success rates and tax efficiency.  With Projection Lab, I could sequence them, but then it would just drawdown from one source until it was empty then move on to the next.  For me, it has been more helpful to do this modeling in Excel -- figuring out how much money we need per year, what % would come from taxable vs non-taxable, and then what that would mean in terms of our taxes and CCB.  If this functionality were to come into ProjectionLab, though, I'd jump back in a heart beat.  It is really well designed for the accumulation projection piece.

This is why I put together Taxsheets as it struck me that it would be impossible to model spend down tax efficiency where taxes are left as a plug and/or rough heuristic.  Using spreadsheets over a dedicated web-app is a nod to the fact there is unlikely just one way structuring tax related problems and that these applications tend to lack transparency into the assumptions that are made behind there calculations.  Having said all that (and despite the lack of Canadian tax calculations) I think that ProjectionLab seems to do a pretty good job of walking the user through the key determinants of retirement spendown analysis.

FLBiker

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Re: retiremnet tax calculator that includes credits
« Reply #14 on: May 25, 2023, 01:02:21 PM »
This is why I put together Taxsheets as it struck me that it would be impossible to model spend down tax efficiency where taxes are left as a plug and/or rough heuristic.  Using spreadsheets over a dedicated web-app is a nod to the fact there is unlikely just one way structuring tax related problems and that these applications tend to lack transparency into the assumptions that are made behind there calculations.  Having said all that (and despite the lack of Canadian tax calculations) I think that ProjectionLab seems to do a pretty good job of walking the user through the key determinants of retirement spendown analysis.

Thanks!  I just subscribed to your email updates.  I'll be interested to see where you take this!

Blissful Biker

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Re: retiremnet tax calculator that includes credits
« Reply #15 on: May 25, 2023, 02:06:20 PM »
While unfortunately not free, I've become a fan of the https://www.planeasy.ca/ tool for modelling a complete financial plan including Canadian taxes and optimum withdrawal strategies. 

I'm FI, and standing on the brink of RE.  I decided to hire a fee for service financial planner to validate my numbers and give me the courage to jump.  I was referred to Spring Financial, who are excellent but after discussion told me I'm knowledgeable enough that their $8K fee isn't warranted and suggested PlanEasy.  For $500 plus a $15/month fee I get advice from a planner and ongoing access to their modelling tool.  I'm not sure I'll continue indefinitely but for the moment it's exactly what I need.  The website says this level of service is only available in Ontario but that's no longer true.