Canadian taxes and pension question

[Lise]

Can someone help me? I heard on the radio about taxes and pension but not sure what they're talking about. I'm wondering if it's something about paying less taxes on your pension???

Thanks in advance.

[Lil Me]

Was it about RRSP contributions for 2007?  The deadline is Feb 29.

[Lise]

Nope, it's got nothing to do with RRSP. Something about those with pension will still have to pay taxes but if your partner's income is lower, they give you something something. I'm not sure hence the question.

[49er]

Lise wrote:
Nope, it's got nothing to do with RRSP. Something about those with pension will still have to pay taxes but if your partner's income is lower, they give you something something. I'm not sure hence the question.[/DIV]
 Curious ...... doesn't spouses file together and taxable income is based on combined incomes anyway?

[Gunta]

Lise wrote:
 Nope, it's got nothing to do with RRSP. Something about those with pension will still have to pay taxes but if your partner's income is lower, they give you something something. I'm not sure hence the question.

  Paying taxes on your pension? I believe your pension is actually deductible if it is CCP or registered. I think you only have to pay taxes on a pension if you are collecting one.
 

[Lise]

Gunta wrote:
Paying taxes on your pension? I believe your pension is actually deductible if it is CCP or registered. I think you only have to pay taxes on a pension if you are collecting one.

    Aaah. I see. Thanks.

  Sorry, 49er... Don't know the answer to your question there.
 
 

[Lil Me]

 Gunta wrote:

 [div style="font-style: italic;"]Paying taxes on your pension? I believe your pension is actually [em]deductible[/em] if it is CCP or registered. I think you only have to pay taxes on a pension if you are collecting one.[/div]--
 
 Unfortuantely not.  CPP is taxable income.  The gov't doesn't withhold anything from pension income, so you need to settle up with CCRA on your own.
 
 

[Gunta]

Lil Me wrote:
Gunta wrote:

 [DIV style="FONT-STYLE: italic"]Paying taxes on your pension? I believe your pension is actually deductible if it is CCP or registered. I think you only have to pay taxes on a pension if you are collecting one.[/DIV]--

Unfortuantely not.  CPP is taxable income.  The gov't doesn't withhold anything from pension income, so you need to settle up with CCRA on your own.
   

 Are you sure? I am pretty sure Pensions are only taxable if you are collecting one. Like RRSP's

 [A href="vny!://www.hrsdc.gc.ca/en/isp/common/hrsdc/ris/riscpp.shtml"]vny!://www.hrsdc.gc.ca/en/isp/common/hrsdc/ris/riscpp.shtml[/A]

 

 According to revenue Canada CPP contributions are deductible.

 

 

 LOL,  I must have been confused earlier, I apparently was talking about the Chinese Communist Party.



 

[Lil Me]

You're right, Gunta.  Sorry, I was confused.  Yes, the contributions you make are deductible.
 
 What I was trying to say is this...When you receive CPP in your old age, it is taxable income.  I usually do my grandmother's taxes, and she has a couple grand in taxes payable every April- when CPP and her low income supplement are her only income.
   

[gunta1]

That begs the question then. is Lise collecting a person or simply asking a question about contributions. Her initial post wasn;t the clearest.

  Exactly how old are you Lise?

[Lil Me]

She's as old as Yoda but doesn't look a day over 21.  Go figure.  

[Russ]

Ha! I was trying to figure out a tongue in cheeck way of putting it but LM won it.

  I cant really answer this.. I was attempting to look over the info I had then gave up. I normally use an accountant.

[Lise]

Haha. Good comeback Lil Me. No, I'm not collecting pension but my workplace has offered us a pension package so I was just wondering about it, tis all.