Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. Here are more quality stocks that you might consider. The post Canada Revenue Agency: A $2,071 Basic Personal Tax Credit for All Canadians appeared first on The Motley Fool Canada. You have already lost $75 income by not investing $2,000 in Magna at the start of the year. The earlier you jump the rally, the better. This is because it is in a long-term growth cycle. The stock has completed its five-year growth in four months and is still growing. It also hopes to manufacture Apple car and Google’s Waymo AVs in the future. Magna will supply components and also manufacture EVs for automakers like Fisker. Both public and private transportation will switch to low-carbon vehicles. America, Canada, and Europe are investing billions of dollars and bringing policies that encourage EV adoption. Moreover, the company is at the core of the electric vehicle (EV) wave and is also preparing for the autonomous vehicle (AV) revolution.Įven the government policies are on Magna’s side. With factories in the world’s largest auto markets of China, Europe, and the United States, Magna gives you international exposure. Magna is not an automaker but a supplier, engineer, consultant, and third-party manufacturer for most automakers and tech companies trying their hands with auto. You can invest the $2,000 amount in growth stocks like Magna International (TSX:MG)(NYSE:MGA). But if you put this amount in the Tax-Free Savings Account, it can even double in two to three years. If you spend your tax savings, the tax credit is the above amount. The real amount of the basic personal tax credit can be more than $2,071, depending on how you use it. Story continues Enhance your CRA tax benefits He can leverage the BPA tax credit to reduce his federal and provincial tax bill to zero and claim a $456 GST refund. He is a student, and his overall income is around $10,000. Several tax benefits, like the BPA tax credit, will reduce your tax bill and encourage you to claim the above CRA cash benefits. You will also get an additional CCB of $1,200 only for 2021.Ī 65-year-old earning below $79,845 can get the Old Age Security (OAS) of $7,384. If your income is below $48,000, you can get the Goods and Service Tax (GST) refund.Īs a parent, you can get the maximum Canada Child Benefit (CCB) of $6,833 for a child below six if your income is below $32,028. You can leverage the BPA tax credit to claim some CRA cash benefits it offers low- and mid-income Canadians. If your 2021 net income is between $151,978 and $216,511, your BPA will reduce gradually. People earning above $216,511 can claim $1,863, and those earning below $151,978 can claim $2,071 in basic personal tax credit.
Now, I said the BPA tax credit is for the rich and poor, but the CRA has set the tax credit range of $2,071 and $1,863. It also calculates the minimum amount a Canadian needs for essentials like utility bills and healthcare and exempts that amount from the 15% federal tax.įor 2021, the CRA arrived at a basic personal amount of $13,808, which brings a tax credit of $2,071. But it does not charge any tax on essential goods like grocery and prescribed medicines. The CRA adopts a progressive tax system, where it charges higher tax to the wealthy and lower tax to low- and mid-income earners. Are you eligible for the CRA’s basic personal tax credit? For 2021, the basic personal tax credit is $2,071. Like all its benefits, the Canada Revenue Agency (CRA) adjusts the BPA tax credit for inflation and income. And this one benefit is the basic personal amount (BPA) tax credit.
But there is one basic benefit for all Canadians, rich or poor or single or married. As a Canadian or a resident of Canada, you get many benefits depending on your income, marital status, age, and the number of children.