Purtzki, Johansen + Associates


Would you like some tax-free income?

The most significant tax-free receipt is the principal residence exemption. However, there is other income that is not taxed, such as:

  • inheritances and bequests from a deceased person
  • any gifts, provided they are not disguised as employment income or business income
  • certain employment benefits, such as
    • the payment from a private health services plan
    • $500 in non-cash gifts and awards per year, such as for birthday or Christmas.
    • A separate non-cash award for long service or anniversary up to $500. It must be for at least 5 years of service and at least 5 years since the last such award.
    • Uniforms, special clothing or safety footwear that you need for your job.
  • Special COVID- related grants to seniors and persons with disabilities are non-taxable
  • Compensation for mental or emotional damage at the workplace, such as harassment of an employee, or for human rights violations.
  • Damages or compensation for personal injury.
  • Reimbursement of expenses to volunteers.

Worker’s Compensation benefits. These must be reported as income, but an offsetting deduction is available when calculating taxable income.

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