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Thread: Getting more money from exchange rates, is this good or bad for when taxes come?

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    Default Getting more money from exchange rates, is this good or bad for when taxes come?

    Hi everyone


    I work on mfc and have for almost 2 years now, I was working on mfc in the USA while I lived there but I decided to move back to Canada (Im canadian) this past september here while still working mfc. I get my money from MFC by check and I deposit my money into my main Canadian checking account at my Canadian bank now, I have a USA checking account too at my Canadian bank but I never plan on going to the USA and I like getting more money when I deposit into my canadian account because of the exchange rates alot.

    Alot of the time I get a huge amount of money back when I deposit into my canadian checking account because of the exchange rates. But for some reason I feel like I shouldnt be doing that, I dont know why but I feel like when its time to do my taxes Its not something I should be doing because I get such a good amount of money back and I feel like im going to have to owe more taxes or soemthing (I dont know im probably overthinking)

    Should I be depositing into my usa account even tho I never use it (I dont even know why I have it to be honest) or keep doing what im doing and enjoy the extra cash lol...im legit asking hahah (I will have to file Canadian taxes and USA for living in both countries this past year, if that matters lol)
    Last edited by mishimishi; 03-16-2015 at 03:47 PM.

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    Default Re: Getting more money from interest rates, is this good or bad for when taxes come?

    Are you having to file US income taxes because the co. is US based? I'm sorry I am a bit confused by what you're asking...
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    Default Re: Getting more money from interest rates, is this good or bad for when taxes come?

    Interest rates? Are you talking about exchange rates?
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    Default Re: Getting more money from interest rates, is this good or bad for when taxes come?

    yessssss exchange, I had a dumb moment and put interest for some reason lol

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    Default Re: Getting more money from exchange rates, is this good or bad for when taxes come?

    I'm in the UK. When my MFC payment comes in I have to enter it in my accounts in sterling at the exchange rate on that day.
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    Default Re: Getting more money from exchange rates, is this good or bad for when taxes come?

    i've posted about this many times you claim the Canadian dollar amount.

    You don't need the US dollar account is just a rip off and a way the bank to make money off you.

    If you can switch to payoneer and have the money send to your Canadian account.

    Your bank may one day turn around and put your MFC check on hold for 15 business, because you went to a different branch or people at your home branch are no longer there.

    payoneer is the cheapest way to get money into your Canadian account just verify that payoneer is sending your money as a Direct Deposit and not a WIre, you will lose more money if payoneer switches it in their back end as a wire.

    Corrected - You claim the Canadian value based on where you are living .
    Last edited by minniesoporno; 01-04-2016 at 01:51 AM.
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    Default Re: Getting more money from exchange rates, is this good or bad for when taxes come?

    Bottom line is that you are now living in Canada full time, thus you must pay taxes to Revenue Canada based on the total number of Canadian dollars you are earning ( which has increased due to the US$ : CDN$ exchange rate increasing ), and Revenue Canada and provincial income tax rates are 'progressive' ( meaning that a higher tax percentage applies as income level increases ).

    A little internet research shows that for 2015, the federal tax bracket jumps from 15% to 22% at $44,700 of annual income, and jumps again from 22% to 26% at $89,400 of annual income. I don't know which province you are in, but provincial tax adds to this. For example, combined Revenue Canada plus Ontario provincial tax brackets for 2015 look like this ...

    $40,900 income = 20% tax
    $44,700 income = 24% tax
    $72,000 income = 31% tax
    $81,800 income = 35% tax
    $84,900 income = 39% tax
    $89,400 income = 43% tax

    The point of course is that if you are continuing to earn say ~US $800 per week = ~US $41,600 per year from webcam hosts, the recent changes in exchange rate have pushed you from 1.195 * 800 = 956 CDN$ per week = 49,700 annualized on January 1st to 1.277 * 800 = 1022 CDN$ per week = 53,100 annualized this week. This has already kicked you up from the 20% tax bracket to the 24% tax bracket. Depending on how much you are actually earning in US dollars from webcam hosts, and depending on the future direction of the exchange rate, you could be kicked up to the 31% and higher tax brackets before the year is out.

    Obviously there won't be any problems if you set aside an appropriate percentage of your earnings to cover these taxes.

    I would also add that, like the situation with Payoneer now being required to report funds transfers on behalf of US residents to the IRS via form 1099-K, Payoneer may now also be required to report funds transfers on behalf of Canadian residents to Revenue Canada via FINTRAC. From

    (snip)"•In the 2013 Budget, the Government of Canada announced measures to strengthen the ability of the Canada Revenue Agency (CRA) to combat international aggressive tax avoidance and international tax evasion. One of those measures called for the reporting of international electronic funds transfers (EFTs) of $10,000 or more to the CRA, for use in the administration of the Income Tax Act, Excise Tax Act, and the Excise Act, 2001. Starting on January 1st, 2015, reporting entities that currently have an obligation to report EFTs to FINTRAC under the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA) will also be reporting to the CRA when they report EFTs using the Shared Reporting Process.(snip)

    No issue, of course, if you are reporting your 'international' camming income to Revenue Canada.
    Last edited by Melonie; 03-17-2015 at 08:39 AM.

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    Default Re: Getting more money from exchange rates, is this good or bad for when taxes come?

    Question regarding taxes and income? If im canadian living in canada and working for a cam site thats based in the u.s. does the website report my earnings to revenue canada? Ive been offline for 6 years and was in the cam industry between '99-2009 but im worried that things may have changed. If anyone has any info they can provide I truly appreciate it!

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    Default Re: Getting more money from exchange rates, is this good or bad for when taxes come?

    I think you're supposed to convert foreign income using the average exchange rate when you report to CRA. It doesn't matter if you deposited the money in you're US account or Canadian account, you still have to pay money on the exchange gain.

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    Default Re: Getting more money from exchange rates, is this good or bad for when taxes come?

    Quote Originally Posted by SandyB38ddd View Post
    Question regarding taxes and income? If im canadian living in canada and working for a cam site thats based in the u.s. does the website report my earnings to revenue canada? Ive been offline for 6 years and was in the cam industry between '99-2009 but im worried that things may have changed. If anyone has any info they can provide I truly appreciate it!
    Cam sites will only send US citizen a 1099 , everyone else filing your income you are on your own.
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    Default Re: Getting more money from exchange rates, is this good or bad for when taxes come?

    Quote Originally Posted by MinnieVicious View Post
    I think you're supposed to convert foreign income using the average exchange rate when you report to CRA. It doesn't matter if you deposited the money in you're US account or Canadian account, you still have to pay money on the exchange gain.
    With claiming the Canadian value you earn and then adding up all your expenses it evens out.
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    Default Re: Getting more money from exchange rates, is this good or bad for when taxes come?

    Quote Originally Posted by MinnieVicious View Post
    I think you're supposed to convert foreign income using the average exchange rate when you report to CRA. It doesn't matter if you deposited the money in you're US account or Canadian account, you still have to pay money on the exchange gain.
    With claiming the Canadian value you earn and then adding up all your expenses it evens out.

    A lot easier to have your numbers in order every month, or quarter so your not scrambling.
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