6 Other Income and Deductions

Canadian Tax Fundamentals · 3:06

Listen on 93

Lyrics

[Verse 1]
Sarah gets her pension check each month
Section fifty-six says income's what it's called
EI benefits when she lost her job
Social assistance helps when times are hard
Scholarships for school might count as well
But research grants have different tales to tell

[Chorus]
Fifty-six includes, sixty deducts
Moving costs and RRSPs
Support payments flow both ways you see
Remember the sections, fifty-six, sixty, sixty-two
Other income, other deductions too

[Verse 2]
RRSP contributions bring you down
Section sixty deductions, money in the ground
Growing tax-free till you take it out
Contribution room is what it's all about
Eighteen percent of income from last year
Minus pension adjust, keep the limit clear

[Chorus]
Fifty-six includes, sixty deducts
Moving costs and RRSPs
Support payments flow both ways you see
Remember the sections, fifty-six, sixty, sixty-two
Other income, other deductions too

[Verse 3]
Support payments tell a twisted tale
Who pays, who gets, the tax will never fail
Alimony paid means your taxes drop
Child support received won't make you stop
Court orders matter, dates are key
Pre-ninety-seven rules differently

[Bridge]
Moving expenses, section sixty-two
New job location, what can you do
Forty kilometers closer to work
Travel and storage, don't go berserk
Only deduct from employment new
Moving expenses coming through

[Chorus]
Fifty-six includes, sixty deducts
Moving costs and RRSPs
Support payments flow both ways you see
Remember the sections, fifty-six, sixty, sixty-two
Other income, other deductions too

[Outro]
Pensions, benefits, and scholarships
RRSP contributions on your lips
Support and moving, know the game
Canadian tax law's not the same

← 5 Capital Gains and Losses (Subdivision c) | 7 Tax Credits and Final Tax Calculation →