Monday, April 27, 2009

Taxes in 2009: A CRA Snapshot for the Young, Childless Types

In thinking about how much I want to make next year, this comes into consideration.

The increase of the basic personal amount (the primary deduction) isn't terribly exciting, offering about $50 to your single middle income earner. A small boost to the lower tax brackets is more than welcome in a year where I won't be earning a lot but I'd like to keep what I do earn - and it gives me an an amount to aim for.

If I cash out my pension it's likely I'll lose at least a quarter of it, assuming I have a job in the Fall. If I don't have a job in the Fall I can probably cash it out without risking those consequences. It kind of serves as an emergency fund until otherwise designated - yet is making a decent rate of return in an economy where that's not typical.

Even if I can't move the funds into a TFSA, putting $5000 into an RRSP would go a long way towards making $25K available (temporarily and penalty free) when I might finally be ready to throw down on property in a few years. The fact is, I don't have anyone else to provide a down payment (or dowry... or inheritance...). Am I saying I'm going to buy somewhere and stay put? Not necessarily. I do know if I move with my Other next year then I may be establishing a five to ten year base in whatever community we wind up in and a mix of owning and renting out a basic piece of property would be timely.


I ran some numbers today and in a couple of days my financial house is rapidly coming into order. The money to pay for my time off is flowing into the bank and I can't wait to bust out in about a month. Most of the stuff on my financial 'to do' list, like making sure claims and reimbursements get filed, has been done. The taxes are filed, I owe no one rent, and my phone will quietly decline in thirty days and wait with the rest of my stuff for a return. Within forty days I'll be somewhere on a beach... until Fall. I really can't imagine not taking these three months and doing exactly what I want this year because too soon it will be next year.

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