Self-employment income is the income earned from a business, profession, commission sales, farming business, or fishing business. If you are self-employed, the federal and Saskatchewan income tax rates that apply to other workers also apply to you. If you are a self-employed business owner or earn income through commissions, use form T2125 to file taxes. For self-employed business, professional, commission, farming, and fishing income-related information you can check out the form T4002 on the CRA website.

RRSP deductions refers to the amount you put in a Registered Retirement Savings Account which can be deducted from your taxable income. Utilizing the RRSP deductions can reduce your income subject to taxes. Additionally, the income you earn in the RRSP is exempt from taxes as long as it remains in the RRSP. You have to pay taxes when you start receiving the payments after retirement or withdraw funds before retirement.

Capital gain refers to the income earned on selling an asset at a higher price than its purchase price because its value increased during the holding period. Capital gains are included in taxable income and are reported on tax return in the calendar year you sell the asset or considered to have sold it. Capital gains are to be reported even if you don’t have to pay taxes on capital gains.

Under section 89(14) of the Income Tax Act; an eligible dividend is a taxable dividend paid by a Canadian Corporation to a resident of Canada. The corporation can make the whole amount of the dividend; eligible divided or make a portion of the dividend eligible. The corporation issuing eligible dividends should make every possible effort to notify its shareholders that the dividend is an eligible dividend. The gross-up tax rate charged on eligible dividends is 38%.

Ineligible dividends or non-eligible dividends are dividends paid out by corporations that are not eligible for the eligible dividend tax credit. The gross-up rate charged on non-eligible dividends is 15%.

Other income includes income other than your salary, self-employment income, retirement income, or investments, foreign income, and canceled debts. It can be your income from a death benefit,casual income (income from lottery, horse races, etc), scholarships, or grants.

Interest Income is the income you receive for lending money to an entity such as a bank or a business corporation. Interest income is a part of your total income and therefore must be reported on your tax return even if the amount is less than $50. Interest income or income from the investment is shown on the T5 slip, Statement of Investment Income.

Ordinary dividends are widely known as non-eligible dividends in Canada that are paid by corporations that do not qualify for the eligible dividend tax credit. Corporations that earn less than $500,000 in net income payout non-eligible dividends. The ordinary dividends or non-eligible dividends are taxed at a gross-up rate of 15%.

Canadian Companies that qualify for the eligible dividend tax credit payout qualified or eligible dividends. The corporations are required by the Canada Revenue Agency to notify shareholders that dividend paid is an eligible dividend. Large business corporations pay corporate tax at higher tax rates therefore the eligible dividends are taxable on a gross-up rate of 38%.

Passive income refers to the income you generate with minimum labor. An example of passive income is royalty on a book, rent from a property, or dividend income. Most passive incomes are taxable at higher rates. An example of passive income in Canada is the eligible dividend that is taxed at a 38% tax rate.

Capital gain is a profit made on the sale of an asset that increased in value during its holding period. For instance, you buy stocks of a company for $800,000 and hold it for a certain period, after which you sell it for $1,000,000. The additional $200,000 earned is your capital gain. Capital gains are taxable in Canada, however, some capital gains that qualify for Lifetime Capital Gains Exemption LCGE are not taxable.

Other income is your income from sources other than your salary income, capital gains, self-employment, retirement income, or investments, foreign income, and canceled debts. Other income can be a casual income (for example income from lotteries, horse races, or gambling), or a death benefit.

Tax exemptions refer to a relief from taxes, reduction in taxes or taxes on only a portion of your income. Tax exemptions reduce your taxable income so you pay less Sask tax. Some tax exemptions are available to individuals on a temporary or permanent basis to reduce their tax liability. For example gifts and lottery winnings are exempt from taxes.

The Canadian Revenue Agency allows contributions to the Registered Retirement Savings Plan RRSP without paying taxes. RRSP contributions can be used as a tax deduction on your tax return. The income earned in the RRSP is tax-free until withdrawn. So, you’ll pay the deferred taxes on RRSP withdrawals later.

Mortgage interest refers to the interest you pay to your lender when you mortgage a house. Interest payments on personal mortgages are not tax-deductible, however, the mortgage interest payments are tax-deductible if you are using your mortgage property to generate rental income.

If you give charitable donations to registered and qualified charities, you can save the tax receipts and claim a tax credit. If you make charitable donations to the registered charities recognized by the CRA, you can claim tax credits to lower your taxes.

In some provinces of Canada, you can claim tax credits on student loan interest. In Saskatchewan, you can receive tax credits on the actual amount of your student loan interest. Students in Saskatchewan can claim up to $20,000 in tax credits through the Graduate Retention Program. The provincial tax credit can be claimed on the T2202A tax slip issued by the educational institution.

The Disability Tax Credit is a non-refundable tax credit which can be claimed for eligible children and adults with severe and prolonged disabilities. A person is eligible for the disability benefits or tax credits if a medical practitioner certifies on the Form T2201, Disability Tax Credit Certificate, that the person has prolonged and severe physical or mental impairment.

The eligible students can rebate up to $20,000 of tuition fees in Saskatchewan under the Graduate Retention Program. The rebate is based on your tuition fee that is indicated on the T2202A tax receipts issued by your educational institution.

To check eligibility and calculate the tax credit amount, individuals under 18 years of age use Worksheet SK428. For disabled individuals who are 18 years or older, the Saskatchewan tax credit of $9,464 can be claimed on line 58440 of Form SK428. Medical practitioners can fill out their portion of Form T2201, print and return it to the applicants of digital application for disability tax credit.

Tax deductibles and deductibles are expenses that a taxpayer can deduct from their adjusted gross income. Deductibles can reduce the amount a taxpayer owes in income tax.