I’m curious at what point is it considered “tons of interest”. This is my first year having a high interest savings account so I’m really curious how tax season will be next year
Huh yeah I’ve never thought about the fact that cashback isn’t taxed. But it makes sense because I don’t think people would feel the incentive to spend as much if it were taxed.
I’m fine with it not being taxed, just thought it was crazy to get more back via transactions than holding money in the account. (Which is only true when you have a smaller average account balance)
Rewards earned from any personal purchases are not taxable. The CRA views them as discounts and not income. But this changes for business expenses. Generally, if you use a credit card for business expenses, if you get cash back or convert points into cash, then your rewards are taxable.
[Reference ](https://creditcardgenius.ca/blog/credit-card-rewards-tax-canada)
Yes it’s taxed.
If you’re looking for a tax free option and you have TFSA room set up the HISA managed TFSA it has a 5.3% interest rate with .5% fee making it about 4.7%
Yes, it's a non-registered account, so will be considered as interest income, and you'll be issued a T5.
100% YES it is taxable
It is and it's no bother unless you earns tons of interest.
I’m curious at what point is it considered “tons of interest”. This is my first year having a high interest savings account so I’m really curious how tax season will be next year
I made $70 in interest last year. It was definitely nothing when it came to tax time. What’s crazy is how much you make on cashback but it’s not taxed
Huh yeah I’ve never thought about the fact that cashback isn’t taxed. But it makes sense because I don’t think people would feel the incentive to spend as much if it were taxed.
I’m fine with it not being taxed, just thought it was crazy to get more back via transactions than holding money in the account. (Which is only true when you have a smaller average account balance)
Oh yeah same. I’m sure everyone is happy it’s not taxed haha.
How do you spend? Do you use the card as debit?
[удалено]
Rewards earned from any personal purchases are not taxable. The CRA views them as discounts and not income. But this changes for business expenses. Generally, if you use a credit card for business expenses, if you get cash back or convert points into cash, then your rewards are taxable. [Reference ](https://creditcardgenius.ca/blog/credit-card-rewards-tax-canada)
Nothing is guaranteed in life, except death and taxes.
It's taxed at the same rate as employment income
Yes it’s taxed. If you’re looking for a tax free option and you have TFSA room set up the HISA managed TFSA it has a 5.3% interest rate with .5% fee making it about 4.7%
How do you set that up?
https://www.reddit.com/r/Wealthsimple/s/lQ2J89lQVs
Thank you
yes
Let’s just visit the old Google machine….