How are Dividends Taxed in Canada? (CANADIAN DIVIDEND TAX CREDIT)

[@sarahneal4356]

Excellent explanation. I’ve watched several videos but I just couldn’t get my head round it. Now I understand it 100%😊

[@MrsInvest]

awesome. thanks.

[@shirleycrosner634]

Tax efficient income / being retired - the dividend tax credit works well - and I don't have to worry about eroding my asset base to find income / thank for your guidance 😎

[@MrsInvest]

awesome!

[@BrockoM]

That is awesome information! I am about 5 years old way from retiring and have a substantial amount of money and high interest savings accounts and GICs, but the interest I'm earning is being taxed the same as my income. I would definitely like to start buying Canadian dividend stocks, so I can take advantage of this. Do you have a list of Canadian dividend-paying stocks that you hold or would recommend for this purpose? Also, do you have more videos on this topic?

[@kevinj2334]

I just subscribed, sad to see there arent any new videos though. Thanks for the video.

[@dianatrac81]

Thank you! thank you Mrs Invest! Your videos are so informative and educational.

[@anthonyluu6557]

Great video! You explained it very well and you got a new subscriber. Question: If it was holding company getting dividends, would the tax bracket still be 15%? Also would the tax credit for dividend still apply for holding companies?

[@bobtilarso2278]

Thank you, that's very informative and helps me understanding dividends income

[@Booo858]

Awesome video! So interesting I'm going to print out that chart 👌❤️

[@suresh_manokaran]

Hello @Mrs Invest. I have finalized my Canada dividend stocks. 1) TD 2) RY 3) 3) BNS 4) BMO 5) CM 6) NA 7) ENB 8) BCE 9) T 10) RCI.B. Could you please check this and give your insight.

[@jamesbaumann9691]

Thank you for the video Mrs Invest. This is very helpful for all of us. Perhaps one day you would consider making a follow up video on exactly where you input all these amounts including dividends and capital gains when you are filing your own taxes? Assuming you file your own taxes and don’t use an accountant. Thank you again!

[@MrsInvest]

Thanks! Glad you enjoyed. My accountant does everything. I just like asking lots of questions and understanding the basics of tax on my investment income, and passing along what I’ve learned here on youtube. Cheers!

[@andrewmorales5485]

@@MrsInvest may I ask you a question how many Americans have invested in Canadian monthly and quarterly stocks dividends if I may ask

[@steveplays5408]

@@MrsInvest ok your not capable of filling your own tax but your going to try and tell people how the tax works 🙄 😒 😑

[@MrsInvest]

basic understanding of tax laws in Canada != being an accountant.

[@ssy333kk5]

Thank you for the information. What would happened if I invested US dividends in my RRSP?

[@cryptowhale9350]

Hey if regular income is $0 but my divided income is 100k. Which tax bracket would I be in lower level tax bracket or my regular income + divided income tax bracket

[@dashap9288]

Hi thank you for the video. Really enjoy it. So are you saying that if my salary is 50,000 and rest is dividend of $100,000, I’ll be getting government tax credits on top of that?

[@igorbotnaru9615]

That's a real good one👍 Keep them coming :) Here is an idea for the next video: can you please do review on crypto ETF .

[@MrsInvest]

thanks. I don’t invest in crypto.

[@user-ir5pt4ws2z]

Dear Mrs Invest Is there a tax return program you like using?

[@eltraveluis]

Funny :) Thanks- I almost understood the dividend tax thing.. almost...maybe :)

[@danawc5595]

GREAT JOB!!!

[@norbertpires1518]

Thank you so much. Does taxation of dividends remain the same for seniors (65+)?

[@PerfectFitVacations]

Great work!!

[@RicardoYoshioTomizawa]

Hi, usually all this calculation is ready from the tax slip from the brokers? I invest with Questrade and I wondering if they provide all this calculation in the tax slip provided or do I need to advisor my accountant ?

[@carolyn9547]

Very helpful, thank you for sharing

[@Devon.Martin]

Thanks for the video. Am I right in thinking that based on this tax credit, it doesn’t make sense to hold your dividend generating assets in your TFSA since the taxes you would pay on them is low anyway and it would be better to use that room for things like long-term growth stocks?

[@MrsInvest]

It’s a great question. Really depends on the mix of things you hold and if there is a best way to allocate them. Remember capital gains (selling growth stock you mentioned) have the most favourable tax treatment so it’s not a bad idea to have those in the taxable, plus there is no tax in years you don’t sell. On the other hand, growth names that have gone up huge like aapl, msft etc. long term, in hindsight it would have been best to have them in the tfsa since the gains are massive over the long term. About the dividends, I would say you cant go wrong either way - in the tfsa there is no tax, and in the taxable acct you get a nice tax credit.

[@Devon.Martin]

@@MrsInvest thank you.

[@flyinginvestor8181]

Does your dividend income affects your basic personal amount?

[@khris5953]

How Canadian ETFs that only contain Canadian stocks is taxed, especially on devidends? is the ETF taxed the same on eligible dividends as regular Canadian stock? let's see XDIV etf and RBC stock, are they taxed the same? thank you!

[@MrsInvest]

yes, treated the same

[@khris5953]

@@MrsInvest thank you!

[@ACTOHydromet]

i love your hair:)

[@jordanthomson8675]

Are the dividends only taxed or the money you invested to get the roi

[@MrsInvest]

Just the dividends if you continue holding the stock. If you sell the stock, then there is capital gains tax if you made a profit (of course not in TFSA and only in RRSP when withdrawn).

[@rainoofblood]

Thank you!

[@Booo858]

Please make more videos!!

[@jordanthomson8675]

If shareholders own a percentage of the company why are we being taxed

[@nekeol]

Great 👍

[@denishamelin8683]

Are REIT distributions treated the same as dividends?

[@MrsInvest]

no, they have completely different treatment. see my recent video on reits.

[@JOKERkid761]

Looks like no more Ms.Invest video's. 8-( Not, even a... "video coming this weekend" post. Big thanks for all the ones you did and hope your great returns continue and you enjoy retirement.

[@MrsInvest]

Thanks! I’m not gone, just travelling a lot this summer and haven’t been able to film a video. I hope to get one done next weekend.

[@JOKERkid761]

Another GREAT video. I have that taxtips website page opened all the time. It's great. As per our quick chat last time as to what you actually pay...I made a copy-paste chart...what do you think? It's not pretty but, I think the real amount in taxes is much lower than the $17,790 implied on that site. 2022 Taxable Income ON 2022 Marginal Tax Rates On Eligible Canadian Dividends first $46,226 -6.86% credit over $46,226 up to $50,197 -1.20% credit over $50,197 up to $81,411 6.39% $1,995 in actual tax paid... over $81,411 up to $92,454 8.92% $985... over $92,454 up to $95,906 12.24% $422... over $95,906 up to $100,392 17.79% $798 So if you earned 100,391 in Eligible Canadian Dividends in Ont in 2022...you pay $4,200 in tax. Instead of the $17,790. Can anyone confirm this with their last years' taxes? It doesn't seem right if you make $50,198 ($1 over the next level)...and have to pay $3,207 I've been living in Australia for a while and this will be my first CAN tax return in a LONG time. Any tips from anyone would be appreciated if I'm on the right track or NOT.

[@MrsInvest]

Thanks. The 100k in my example is the employment income (T4) level not the dividends you earn. at 100k dividends per year you’d be balling lmao 😎

[@JOKERkid761]

@@MrsInvest I'm semi-retired. I'll have no capital gains. 100% of my income will be from Eligible Canadian Dividends. Maybe it is more tricky than you say. The chart seems pretty straightforward. I'll have a chat with the accountant and see what they say. Thanks.

[@MrsInvest]

If you have no T4 income and only dividends in the non reg acct you can check out my other video about how to make 50k in tax free dividend income per year (or 100k say for a couple). It’s a few videos back. Long story short if you have no other income and dividends only the tax treatment is amazing you pay almost no tax. In the video here it applies to people who also currently have T4 income. Cheers!

[@JOKERkid761]

@@MrsInvest Understood. That's my 2nd FAV video of yours. The SBLOC being #1. You crack me (and I'm sure many others) when you go off on your "it changed my life statements". Very honest and what makes your videos better than the others who may cover the same subject matter. Now it's time to start the sad 3 week waiting period for the next vid. 8-(