What is Caesar’s
"So give back to Caesar what is Caesar's, and to God what is God's." — Matthew 22:21 NIV
As tax season approaches every year, this verse often comes to mind. In biblical times, Jesus was asked whether taxes should be paid to Caesar, given the oppressive nature of the Roman government. His response was simple yet profound: “So give back to Caesar what is Caesar’s.” This still applies today—we are under the authority of our political leaders, whether we agree with them or not. And when it comes to the CRA, failing to comply can result in massive fines or even jail time. I’ve heard some horror stories… we’re all too pretty and fun to be in jail for tax fraud.
During my years working with families in wealth management, I noticed that taxes were often the largest bills they would ever pay in their lifetimes. That always disturbed me—and often disturbed them. As a result, I spent countless hours researching and learning from experts on how to maximize refunds and minimize unnecessary tax payments.
My goal is simple: to ensure that we aren’t paying more in taxes than we need to. However, my goal is not to lie, cheat, or steal from Caesar in the process. We must act with the utmost integrity when handling our money. Can I get an Amen?
Women and Taxes: Breaking Generational Barriers
Historically, many women have been excluded from conversations about taxes and financial management due to cultural and societal norms. As a result, most women haven’t had the opportunity to develop financial confidence, leading to fear when faced with complex topics like taxes. And when we fear something, we may have a tendency to avoid it—just like a bear in the woods.
Unfortunately, working with tax professionals and financial experts who struggle to explain complex things simply often makes matters worse. It leaves people feeling overwhelmed and unwilling to explore strategies that could save them thousands, tens of thousands, or even hundreds of thousands of dollars.
I encourage you to push past any hesitation and take control of your tax situation this year.
Women saving money in taxes and using it for more fun activities.
What is Caesar’s? Let’s Talk Taxes.
How Do Income Taxes Work?
When you’re an employee, your employer estimates your annual income and withholds taxes accordingly. Your tax rate is based on a progressive system—the more you earn, the higher percentage of tax you pay.
To find out your tax bracket, search online for “Federal and provincial marginal tax rates in [your province].” This chart will show income ranges alongside their corresponding tax percentages. As your income increases, the percentage of tax on each additional dollar also rises.
Let’s break this down using food, because I love to cook and eat. Imagine you’re making lasagna:
For the first few lasagnas, Caesar doesn’t take any slices.
For the next batch, he takes one slice out of eight.
Then, he takes two slices out of eight.
As you keep making lasagnas, he starts taking three slices… then four and a half out of your eight slice lasagna.
Eventually, more than half of each lasagna goes to Caesar.
Doesn’t seem fair, does it? But no one asked for our opinion on tax fairness—so let’s move on!
If you work for yourself as a sole proprietor, partner, or corporation owner, your tax situation changes. If you take a salary from your corporation, you’ll pay income tax, but if you take dividends, your tax burden may be lower. I’ll keep this discussion simple, but just know that the way you structure your income can significantly impact your tax liability.
Now that we understand how income tax works, let’s talk about tax deductions—ways to legally get some lasagna back from Caesar.
The tax lasagna.
Tax Incentives: How to Get Your Lasagna Back
Governments use tax incentives to encourage behaviors they want to promote. These incentives often come in the form of tax deductions or credits. Essentially, they allow you to reduce your taxable income, meaning you owe less to Caesar.
I must make this part very clear. This part of Not Caesars. What we have paid in taxes initially doesn’t mean it is the right amount of taxes to land on at the end of the day, or at tax time.
Here are five common tax deductions that are especially relevant for women in Canada:
Childcare Expenses – The government allows families to deduct some childcare costs from their taxable income.
Home Office Expenses – If you work from home or run a business from home, you may be able to deduct a portion of your rent, utilities, and other home-related costs.
Business Expenses – Advertising, marketing, and business-related meals or entertainment can be deducted if they are legitimate expenses.
Professional Development – The government incentivizes skill-building and education by offering tax deductions for courses and training that enhance your career.
Medical Expenses – If your medical expenses exceed a certain threshold, you may qualify for tax relief.
Can you see the pattern? These deductions align with the government’s priorities. Encouraging remote work reduces traffic and infrastructure strain. Investing in childcare gives an opportunity for both parents to work, leading to more tax dollars in the government’s hands. Investing in education increases workforce productivity, leading to higher tax revenue in the long run. The government creates these incentives for a reason—it wants us to use them.
So, when we ask - What is Caesar’s? - this part is not that. Let’s discover more areas of our finances that we can confidently say… this is not Caesar’s.
Now that we’ve covered income tax basics and common deductions, stay tuned for next month’s article on tax deductions Canadian women often leave on the table. Let’s make sure we’re keeping as much lasagna as possible!
