Personal Finance

A number of Canadians have problems with their income taxes, or corporate or other business returns, whether they haven’t paid them; haven’t filed; unknowingly (or knowingly) filed incorrect information; or have been notified of an audit.

These problems are common, and most can be avoided; if it’s too late for avoidance, they can usually be fixed or at least handled a bit easier with a bit of knowledge.

Note: If unsure of any aspect of your taxes, it is wise to consult professionals such as accountants and tax lawyers.

Unfiled or Unpaid Taxes...

RRSPs (Registered Retirement Savings Plans) are considered an important part of retirement for Canadians; they enable people to set aside money for the future while lowering the amount of tax payable in the year in which the money was deposited.

But just when should you start investing in RRSPs? And how much should you put in? That depends on several factors.

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Last year, more Canadians moved to Arizona than any other year in recent history. A bit ironic given the state is going through one of its worst economic crises since the Great Depression. But it is, in fact, one of the biggest reasons there is such a Canadian boom.

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Congress is making some major tax law changes now that will impact American taxes for many years in the future. One of the biggest changes will occur after 2012 and will involve a 3.8 percent Medicare tax on investment income. First, this new tax will apply only to those single taxpayers who earn at least $200,000 and any married couple earning at least $250,000 ($125,000 if filing separately– just another example of a marriage penalty in our tax code). The tax also applies to estates and trusts (but not to any charitable trusts that are otherwise exempt from paying taxes).

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Unlike couples of the Baby Boomer generation, where sharing a bank account was nothing out of the ordinary, young couples today have quite different financial needs and attitudes toward their accounts. According to a poll conducted by RBC in Canada near the end of 2009, only 10 percent of Gen X/Gen Y couples between 18 and 35 hold all of their financial accounts and products jointly. Is this the right way to approach couples' finances?

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Due to the inherent complications of tax legislation, it’s extremely difficult for Americans to fully comprehend how the Internal Revenue Service (IRS) operates and, ultimately, how to deal with tax issues.

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Personal finance is a constant area of struggle for Canadians. It is often pushed to the bottom of our list of priorities to be dealt with later, while other problems are tackled first. Individuals often procrastinate in dealing with their monetary problems. This can be a result of a lack of financial knowledge, a feeling that there is not enough time, or simply not having the right tools.

Whatever an individual's reason, people tend to look for a quick and easy way to fix these financial issues and get misled by myths along the way.

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Debt is different from expenses. Expenses are something you have to have, like food and clothing. Debt is something you want but don′t have the cash to pay for. You can control expenses and you can also control your debt load.

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Every new year, many of us begin thinking about our finances. But should we continue to make resolutions for better financial management—resolutions that often aren't kept—or should we consider revamping our budgets entirely, once and for all?

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A popular scam aimed at American seniors never seems to go away — it goes through cycles of heavy use, almost disappears for a while, and then reappears. The scam involves drug "discount-card" sales.

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