Consider CERB tax implications and other ‘financial hygiene’ practices during pandemic

In an unprecedented time where personal hygiene is a heavy topic of conversation, everybody wants to come out of this Covid-19 pandemic healthy.

Some hygiene practices are done daily while others are weekly, monthly or yearly.

“Financial hygiene is just like personal hygiene,” says Karin Rimnyak, Investment Advisor with Action Financial Group, HollisWealth, a division of Industrial Alliance Securities Inc. and Insurance Advisor with Hollis Insurance in St. Thomas. “It involves routines, improves your condition and prevents financial problems the same way personal hygiene prevents medical problems.”

She adds: “So now is the perfect time for some spring cleaning to critically review all the systematic expenses you have running.”

Things like Netflix, Prime video, cable subscriptions, magazine or newspaper subscriptions, book clubs, video clubs, donations, car and home insurance can really start to add up each month.

Rimnyak challenges people right now to consider if they are truly using each one of the repetitive services they have signed up for.

“Or can you improve the value by cutting something back, stopping it all together or shopping around for a better alternative,” she asks.

During the Covid-19 pandemic it is especially important to understand the different programs in place to support businesses, individuals and students so you can take advantage if you are eligible.

CERB, or the Canadian Emergency Response Benefit is a taxable payment.

“People are getting up to $2000 a month while they qualify,” says Rimnyak. “But this is taxable money and there is no tax being withheld at the source.”

“If you get two months of CERB payments of $2000 each month, even in the lowest tax bracket that is taxed at roughly 20 percent. The tax burden of this equation equals $800,” she adds.

Quite simply, when you file your tax return next year you are going to have an extra $800 of tax to pay on those CERB payments.

“People need to recognize this because ignorance of the program is no excuse,” says Rimnyak. “They need to go to reputable sources for information and can’t just rely on what friends are posting on Facebook.”

“If you practice good personal hygiene, home hygiene and financial hygiene you will be healthy in all these aspects of your life,” she adds.

For more information call 519-631-4724, visit the website or find them under Action Financial Group on Facebook.

Action Financial Group, HollisWealth in St. Thomas is a team of investment advisers who have been offering solid financial advice as well as investment products and services for more than 23 years. Financial services include investment and insurance products, retirement planning, income tax planning and much more.

Karin Rimnyak, is an investment advisor for HollisWealth®. Opinions expressed in this article are those of the Investment Advisor only and do not necessarily reflect those of HollisWealth®. Holliswealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Regulatory Organization of Canada. Insurance products provided through Hollis Insurance. Only those services offered through HollisWealth, a division of Industrial Alliance Securities Inc. are covered by the Canadian Investor Protection Fund.

Original Article: