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Whether it’s tax season or not, getting your finances right is really important. It helps you in
And the list goes on and on…
Despite all the advantages, it can still be difficult to understand money management at times.
Registration costs, maintenance payments, tax deductions, and credit card security - there’s so much on the plate that you need to deal with.
That too while thinking how to benefit from all the tax breaks, money planners, refunds, etc.
Do you wish to resolve your financial issues then? Do you want to learn more about handling your money? Yes?
Simply grab your pen and pencil, and head to the points listed below, and take down all the information you require about typical fees and deductions in Canada.
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We get it; when it comes to financial terms and everything in between, we all can get confused pretty easily.
And, there’s no shame in it!
You are not a finance pro or a money guru that needs to know every credit term. However, that doesn’t mean one can give up learning new things. ;)
Therefore, below are the basic definitions you must know now before getting into the complex stuff.
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Credit card fees are the amounts banks or money lenders charge you for using credit cards and other related services.
However, when it comes to the exact numbers, there’s mostly no rule of thumb that everyone has to follow. This is mainly because of the services, account type, type of loans, and a lot more.
One thing that can be said for sure is that,
| A secured credit card usually comes with the lowest interest rate and overall operating fee than other cards available out there. |
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Tax deductions and tax credits, as the names suggest, are directly related to the taxes you have to pay.
However, instead of adding to it, these two terms basically work to lower the tax burden on your finances.
How?
You don’t receive the payment but only the benefit in the form of reduced tax.
This credit often results in payment, according to your situation and the amount you deserve, that helps you with your taxes in business.
Of course, there might be many more taxes or deductions depending on the age, occupation, family and financial status.
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As mentioned earlier, there’s no rule of thumb when it comes to defining the exact number of fees.
Instead, there are common types of fees you might have to pay in the future.
These are as follows:
You will often have to pay late fees if you have passed the due date to pay a bill, credit card payment, debt installment, etc. If the late payment passes the 60-day limit, then you are probably charged with a penalty.
As the name suggests, you have to pay the annual fees at the end or start of the year, to keep enjoying endless services. However, some lenders might not charge for the first year but after that, standard fees apply.
These are also called finance charges because of the work they do or balance they provide you every month. The interest charges can depend on how your financial profile looks, your balance used, and the card’s APR.
Losing a card can actually cost you card replacement fees. Therefore, it is always wise to never forget your card at a coffee shop, etc.
This is the fee you pay every time you withdraw money using your credit card. However, using the wrong card or doing so in the wrong way can actually cost you more than you borrowed.
So, it’s always good to spend wisely on your credit card to avoid accumulating any unwanted debt.
Every time you swipe your credit card outside your country of origin, you are charged a foreign transaction fee. It can be as low as 1% on secured cards. But on others, it can go high up to 3%.
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Below are the tax deductions that CRA allows you to claim and reduce your taxable income and keep going with your financial plans.
Operating a business or being self-employed costs a lot. And this is why major banks or money providers allow you to claim deductions on certain expenses to lower the overall financial burden.
This was introduced mainly due to the surge in the WFH trend. Through this deduction, you can claim a fixed flat rate of expenses you have to bear while working for another company.
Whether you are a student or someone working full-time, you can claim a moving expense deduction under certain situations. This reduces the cost you had to bear with rent, travel fares, relocation, etc.
Each dollar that goes into your retirement savings actually lowers your net income. This, ultimately, reduces the tax you have to pay despite saving for the gray-hair days.
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As we said earlier in the tax deduction section, the tax credits are here to help you with your finances and how you can use them to get the best out of your taxes. So, let’s get into a bit more detail before ending the guide:
It is a refundable tax credit rolled out to help relatively lower-income families deal with the withholding tax they pay on usual goods and services.
It is a non-refundable tax credit applicable to first-time homeowners. It helps to reduce the federal tax that comes on any new property.
You can check the official website of Canada for more such tax credits and deductions. Surely, you can find many more types that we have failed to mention here.
Note: Don’t go straight into applying for tax deductions. Instead, remember to check your eligibility criteria or even talk to a tax analyst.
Earning money in the best way you can is not enough.
You are also supposed to make wise use of that hard-earned money to avoid uninvited situations.
And for the exact reason, we have curated this guide to enlight almost all the possible tax deductions, tax credits, and credit card charges. So, give it a read and find what you can benefit from!
Hopefully, the information provided above was useful enough to take and act upon for the rest of your financial life.
Lastly, let us know what queries you have regarding this or any other financial matter? We’ll be happy to answer! :)