Tax Free Savings Account
February 27th, 2008 by Alan YuI was reading the news on how in 2009 anyone 18 years or older can place up to $5000 annually into what is being dubbed as a Tax Free Savings Account (TFSA) here in Canada. From what I gathered, you can essentially earn and withdraw money from these accounts without any worry of being taxed.
It sounds like a great idea to me at this point. I have never been a fan of things like an RRSP personally and this TFSA seems like it would have a more universal appeal to encourage people to save their money. It’s almost like having a regular bank account with some good benefits.
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February 27th, 2008 at 10:05 pm
Review your savings and investments to make sure you are making the most of any tax free products and accounts, such as Individual Savings Accounts (ISAs) and certain National Savings products, including savings certificates and Premium Bonds. Bank and building society accounts Interest from bank and building society accounts has had basic rate income tax deducted when ita s paid to you (you will have to pay more tax if youa re a higher rate tax payer). If you dona t pay tax, you can ask for interest to be paid gross (before tax has been deducted) by filling in form R85, available from your bank or building society. You can reclaim tax already deducted by filling in form R40, available from your tax office.