Answers to

Practical Questions

Let's run through a quick example:

  • Go to SimpleTax Software Inc.

  • Select the Province or Territory you live in – let's say Ontario for now.

  • Insert $0 for Employment Income – (you may well have a job today, but humour me).

  • Insert $0 for Self Employment and $0 for Capital Gains.

  • Now, insert $50,000 into "Eligible Dividends" (note that Eligible Dividends are typically what you receive from big public companies that trade on the Toronto Stock Exchange).

  • Insert $0 for "Ineligible Dividends" (note that these are dividends you receive from private companies).

  • Insert $0 for Other.

According to SimpleTax, you'll owe about $0 in tax: $0 in federal tax and $0 in provincial tax.

Now, this benefit is per person, so if you are shacked up with someone, that is $50,000 each, or $100,000 per couple tax free per year!

And again, this is in addition to your tax free earnings in your TFSA!