Dear MoneyReady App users,

Updates and new features in the last month:

   1. CPP/QPP sharing. You can apply to the CRA or Retraite Québec for a 2-way transfer of a portion of a pension payment to the other spouse. This can create a tax advantage if it decreases the taxable income of the spouse in a higher tax bracket. As the portion of the amount that can be transferred depends on how long you have been living together, you can now in the MoneyReady App enter a date of when you started cohabitating (approximately) in the CPP/QPP/OAS tab, and pension sharing will then be applied. The resulting net transfer will be shown in the Warnings column of the Timetable.
   2. RDSPs. Calculations of grants, bonds and taxes have been updated. Please make sure to enter previous contributions for accurate calculations. o avoid penalties, RDSP DAP payments will not be made in the TIME MACHINE if there are grant or bond repayments to be made.
   3. GIS. The TIME MACHINE has always calculated GIS and GIS allowance to a spouse when applicable. The amount is included in the OAS column, but we now also show the GIS amounts separately in the Warnings column.

New Year checklist:
  My favourite day to run the TIME MACHINE is January 1. This is because the current year then acts very much like a future year in the TIME MACHINE. There is no need to consider what contributions have already been made, what taxes have already been paid, and no need to prorate any amounts for incomes, expenses and savings. Here is a list of things that need to be updated at the start of the year, and sometimes throughout the year to keep the current year calculation as accurate as possible.

  1. CPP/QPP table(s). An entry for pensionable earnings for last year will appear. You will need to estimate what those were until the actual amount is updated at the CRA or Retraite Québec later in the year.
  2. RRIFs and LIFs.  For each of these, within 'Edit Account properties' enter the balance of the account at the end of last year. If you make any withdrawals during the year, update the total withdrawn this year.
  3. RDSPs. 'Edit Account properties' for these, and update the table of previous contributions if one appears. If you make a contribution this year, enter the amount once made, and you will need to come back and check the box once the grants/bonds have been received so that they are not double counted in the TIME MACHINE.
  4. PRIORITIES. Just review the PRIORITIES. A new entry for this year will be created automatically from last year if you hadn't created one for the new year previously.
  5. TIME MACHINE. There are up to 3 screens that capture current year tax information before running the TIME MACHINE: one for yourself, one for your spouse and one for your CCPC when applicable. Please update the amounts asked for the current year, and keep them updated throughout the year.
  6. Tax owing or refund. If you expect a tax refund from the previous year's taxes, you can enter it as an Income (Other, not taxable) with start and end dates on the date you expect to receive it. Similarly for tax owing, enter it as an Expense for the date you expect to pay it.

Happy New Year!

Elisabeth Tillier, Ph.D.
Head of MoneyReady