Salary Splitting Hacks and other tricks!

Salary Splitting Hacks and other tricks!

Trying to figure out how to split your paycheck? This article has some clever tips for you!

Salary Splitting HacksSalary splitting is the process of making payments to two or more people who are not married to each other, for the purpose of lowering the total tax liability.It allows an individual who pays higher income taxes to split their salary with someone who earns less and thereby pay lower taxes.This means that there’s no need for you to get divorced, separated, or unmarried in order to get a tax break.

The majority of the posts on this blog are about incorporating a spouse or partner into a business, but they have a few posts that talk about other sorts of hacks to save money. For example, one post talks about splitting your salary with a spouse, which can be important if you’re paying for expenses just for yourself. The idea is that you get paid the same amount every month and your spouse gets to take off work for a while to figure out what they want to do for their next career move.

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Salary Splitting Hacks

Salary splitting hacks

Salary Splitting Hacks: You and your spouse/partner work the same job. Why should your employer get to keep all of your hard-earned money? Salary splitting is a way for you and your spouse/partner to both contribute equally to the main household income, while still taking advantage of spousal or partner deductions.

First things first, you need to have a partner. The good news is that if you have a spouse or common-law partner and they earn an income, then you’re halfway there! They may be able to sign up for a tax-deferred savings plan like the Registered Disability Savings Plan (RDSP) or the Tax-Free Savings Account (TFSA), which will reduce your taxable income. Not only can this help keep your taxes down, it will also increase the number of your potential benefits.

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