Add Income

Use this form to add a present or planned source of income. Depending on the income source, you may continue to another form to provide additional information.

Enter employment, self-employment, pension, rental, annuity, inheritance and other income that you receive now or expect to receive in the future.

Do not enter OAS, CPP/QPP retirement benefits or U.S. Social Security here. These are handled separately by the MoneyReady App. CPP/QPP Disability income, however, should be entered here.

Do not enter withdrawals from accounts or investment income such as interest, dividends and capital gains generated by investments. The TIME MACHINE calculates those amounts separately.

Taxable income earned by a dependent should also be entered, with the dependent selected as the income owner.

Select the source that most accurately describes the income. The selection determines how the income is treated for taxes and in the TIME MACHINE.

Before adding rental income, enter the applicable property under REAL ESTATE. Before adding income from a CCPC, enter the CCPC in your PROFILE.

If you are contributing to a defined-benefit pension plan, enter the related salary income before adding the pension. A bridge benefit from a defined-benefit pension should be entered as a separate income.

Enter a unique and recognizable name for the income.

Optional. Use this field for information you may want to remember about the income.

The Owner field is shown when more than one applicable choice is available. Depending on your profile and the income source, the income may belong to you, your spouse, both spouses jointly, a dependent, or another shareholder of your CCPC.

Not every income source can be held jointly or assigned to every owner. The form will warn you if the selected combination is not allowed.

Enter when the income begins and ends. A date may be entered directly or linked to an applicable age or life event.

If the income already existed before the current year, its start may be set to the last day of the previous year. For planned income, enter a future start date.

If the income continues for life, you may leave the end at its long-term default or link it to the appropriate death event.

For a one-time amount, such as an inheritance, use the same start and end date.

Select the currency in which the income is paid. The TIME MACHINE will apply the applicable exchange rates when converting it to Canadian dollars.

Enter the gross annual income before taxes and deductions. Annualize the amount even when it is received for only part of a year. The TIME MACHINE will prorate it between the start and end dates.

For example, if you receive $1,000 per month for three months, enter $12,000 per year and set start and end dates three months apart.

For a one-time income, enter the entire amount and use the same start and end date.

Normally, enter the annual amount in today’s dollars. If the income starts in the future, the TIME MACHINE will increase it to the start date using the inflation settings below.

Alternatively, enter the amount expected at the future start date in the Amount/year in FUTURE currency field. Normally, only one of the two amount fields should be completed.

You can specify how the income changes over time using the inflation checkbox, an inflation adjustment multiplier and an additional yearly adjustment.

If Index to inflation is selected:

Yearly growth = inflation × multiplier + additional adjustment

A multiplier of 1 applies full inflation. A multiplier of 0.5 applies half of inflation. The additional adjustment may be positive, zero or negative.

If the income is not indexed, the additional yearly adjustment becomes its entire yearly growth rate.

The MoneyReady App does not model conditional indexing formulas such as “inflation minus 1% only when inflation exceeds 3%.” Enter a reasonable approximation using the available multiplier and adjustment.

This field is shown only when applicable. Select it if the employment or self-employment income provides benefits that exempt the income owner from paying Quebec prescription drug insurance premiums.

This field is shown for employment and self-employment income. If selected, you will continue to another page where you can enter the dates of each leave and the percentage of income received during it.

Pension, rental, annuity, Other and dependent income require additional information. After saving this form, you will continue to a form specific to the selected income source.

Most income is taxable, but some Other income may not be. For example, spousal support is generally taxable while child support is generally not. Enter amounts with different tax treatments as separate income entries.

Click Save and Continue to create the income. Complete any additional form that follows until you return to the list of incomes.