905.248.4849
Canadian Income Tax Calculator 2012
There are big savings for filing on time even if you can't pay all your taxes right away.
Find out how much 2011 income tax you owe in Canada in one easy step.
If you would like to know the income tax for 2011, 2010, 2009 or 2008 see our 2011 income tax calculator, 2010 income tax calculator, 2009 income tax calculator or 2008 income tax calculator.
Don't forget to file your taxes on time. There are big savings by filing on time, even if you can't pay all your taxes right away.
These calculations do not include non-refundable tax credits other than the basic personal tax credit.
These rates give you a basic of idea of how much tax you should pay, but depending on your employment and business and personal circumstances you could pay a lot less. Be sure to visit a competent tax advisor before filing your return.
The RRSP contribution limit is based on 2012 maximum contribution limits. This actual contribution limit may be higher if there are unused RRSP contributions from prior years.
Direct line: 905.248.4849 Email:
Hi
I am a student who has paid around $5000 in tuition, residing in British Columbia. I’m also a co-op student and by the end of december I will probably be earning around $20,000. I’ve been automatically paying my income tax, cpp etc on each of my paycheques so I was wondering how much tax return should I be expecting? Thanks
Simon
hi! i love this site! I was wondering if you can clarify something for me. I am currently working in the USA and I plan to land in BC, Canada as a permanent resident in March 2012. I will however, stay only for a month and go back to the USA to finish the rest of my contract (2 more years). My salary from the beginning (US$50,000 gross) has always been taxed by the US government. My question is: Will I be taxed also in Canada? Do I have to file in the USA as well as Canada? I have a common law spouse which USA does not recognize so I always file as “single”.However, in Canada, my spouse is recognized, therefore i’m married. Please advise me on how to handle this. Thank you.
Hi Simon,
To calculate your refund, it is necessary to know how much income tax is deducted from your pay, unfortunately this was not provided.
With the assumption of $5000 tuition and you attended university full time for nine months, you would not be taxable so all the income tax paid should be refunded.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Jo,
Congratulations on becoming a permanent resident!
For tax purposes, you are not taxable in Canada until you are actually resident in Canada. Permanent Resident under Canadian Immigration Law doe not equate to Taxable Resident under Canadian Income Tax Law.
Even though you are established as a permanent resident in March 2012, you will still continue to reside and work and live in the US which does not make you a resident for tax purposes.
When you cut ties and move permanently to Canada, you will then become taxable in Canada.
Once you become taxable in Canada, yes, you are required to file a Canadian Tax Return as well as an American Tax Return.
If you have a common law spouse in Canada, you are not married, you are common law until there is an official legal union (marriage).
Until you become taxable in Canada, your commom law partner is a dependent and you may be eligible for the dependent deduction in the US. This also applies once you reside in Canada permanently.
Similarily, your partner will be entering on their Canadian Tax Return you as common law on their tax return, effective March 2012, so they may be entitled to any additional deductions available.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi,
I am paid cash and the company I work for has not been filing my tax since i started, January 2011. It is a steady and full time job.
Are companies in Canada obligated to file and pay for employees tax? or is that arranged between employer and employee? I never asked my employer if my pay is gross or net, and now I am worried that when I ask, he will say it is gross, so he doesn’t need to pay my tax.
please let me know.
Thank you
Hi Gawen,
If you know the company has not been filing your tax amounts since you started, the likelihood that the employer will say it is your gross pay is correct.
Employers are obligated to deduct and remit the employee’s tax to Canada Revenue regularly. The fact you are paid in cash and don’t receive any statement of your deductions with your pay means your employer does not consider you to be an employee, but a contractor. Contractors are responsible for reportig their income and remitting their own taxes.
Some employers do exactly this to get out of contributing to your CPP and EI; meaning if you leave the job, you’ll not be able to claim Employment Insurance Benefits.
Likely, if you did not sign payroll papers and complete a TD1 form, your employer is paying you Gross in cash.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi,
I make 41,000 a year before taxes and live and work in Ontario. I am only paying 128 dollars combined as my payroll income tax deduction per paycheque every two weeks. My pay agent tells me that I’m paying enough taxes, yet your calculator and a few others I’ve used say I should be paying 6,313 dollars of income tax per year. I divide that by 24 paycheques and that would be 263 dollars per paycheque. To me it seems like the simple logic is that I’m not paying enough and my pay agent is totally wrong. I’m totally confused and hope you can clarify for me. Thank you.
Andrew
Hi,
I am currently working overseas as a Canada government employee supporting the mission in Afghanistan and will be here for a full year spanning 2011 and 2012. I know there is a provision for people who severe their ties to Canada to reduce their payable income tax. I am not able to take advanatage of this, as I am married and have a home, but am wondering if there are any provision related to these types of circumstances.
Hi Andrew,
Unless you are eligible for additional deductions which you haven’t mentioned here, yes, you are correct to assume insufficient tax is being withheld from your pay.
Do you recall completing a TD-1 form when you were hired? This form dictates to the employer the amount of tax that should be withheld from your pay.
I suggest you speak with your pay office and request to complete a TD-1 form so they have the correct information for calculating your withheld tax.
If your employer fails to deduct the correct amount of withholding tax on your pay, you will be in a tax payable position at tax filing time.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Hannah,
If you are working for the Canadian government and having Canadian tax and related deductions from your pay, even though you are in Afghanistan for a year, you are a Canadian resident for tax purposes. The only relief you would have is if there is Afghanistani taxes withheld from your pay. When filinh your Canadian tax return, you can claim a tax credit for any foreign tax paid.
As you mentioned, you do not qualify for the Overseas Emplyment Tax Credit: OETC, reduced taxes if employed by by a specified Canadian Company in the energy or engineering fields. The first Cdn $80,000. of income receive tax advantages.
However, under certain circumstances, some expenses incurred to earn employment income are tax deductible. Examples include business travel (any travel expenses you incurred and were not reimbursed for in your move to and from Afghanistan), meals and lodging while out of Canada (if not supplied or reimbursed by your employer) business, parking, office supplies, salaries for an assistant or substitute, home work space, and automobile expenses.
Several requirements must be met. First of all, your contract of employment must require you to pay for such business expenses, and your employer cannot reimburse you or pay you a non-taxable allowance to cover them. And you can only deduct meals, lodging, travel and vehicle expenses if you ordinarily work away from your employer’s place of business, or in different places. For instance, in order to deduct meals, you generally have to be out of town for at least 12 hours. You can only deduct supplies if they are used up in the course of your employment.
Finally, in order to deduct employment expenses, you must have Form T2200 Declaration of Conditions of Employment, verifying that you are eligible to deduct the expenses. The CRA-ARC form must be signed and certified by your employer in Canada.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi,
I am living and working in ontario and have a salary of $37000 annually.Also have a stock trading account in which i borrowed money (intrests payments of about $600)and had a gain of $20,000(No divident income).I am just wondering what will I be taxed on this additional $20,000.Also wanted to find out more insight on how i could not or pay least taxes if I decide to put this gain towards buying a home(First time home buyer).Your comments suggestions would be appreciated.
Thanks,
Nash.
Hi Nash,
You do not indicate whether this investment account is registered or not.
If the account is not registered, any gains you have are not taxable unless they have been crystalised… meaning you bought stock and it gained then you sold it or traded all of it. Once you sell, that is when you report any gain or loss on your income tax return. 50% of any gains or losses are taxed at your regular rate.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
If the account is registered, there is not tax gain or loss to be reported.
The First Time Home Buyer option is only available if you have a RSP. You can withdraw tax-free from the RSP for your house downpayment. You are required to pay back the withdrawn amount over several years.
Question: my wife and I are both working at this time. She can retire in 2 years at age 58 & receive a pension. I will continue to work, also age 58. Are we able to split the pension income at that time, even though I’m still working?
Hi Dave,
Good question!
- Pension splitting is allowed only between spouses (married or common-law partners)
- The maximum split is 50% of the ELIGIBLE pension income, prorated for partial marriage
- A joint election is filed each year to split the pension income
- The pensioner must reside in Canada at the end of the year
If you wife is eligible to take a company pension at 58, YES, you and she may split the pension income and related taxes, if withheld.
Unfortunately, CPP is not eligible for income splitting.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Recently received a pay out package from my employer in the amount of $27,000, in Ontario. I made $42,000 this year.
What would be the best way to take the package, keeping in mind I still need money to live on until I find alternate employment – while keeping the tax rate as low as possible. Would it make sense to take a portion and put into and RRSP?
Hi Susan,
Firstly, you need to decide how much you’ll need to ‘live on’ until you find new employment. For whatever is leftover, here are your options:
- maximise your RSP contribution for a tax deduction as likely the pay out will result in some extra tax payable by you.
- after maximising your RSP contribution, any remainder of funds should be contributed to a Tax Free Savings Account. The funds will also accessible to you should you need additional funds to ‘live on’.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi,
Does this calculator include include Federal Tax, CPP, and EI deduction. According to this, after taxes I will be making 51250. My employer pays biweekly so that means 51250/2 = 1971.15. This is not what I am getting? I am getting taxed more then 600 more / cheque when as per this calculator I should be less then. Thoughts?
Hi Andrew,
No, the above calculator only calculates tax, not CPP, EI or other deductions.
Without seeing your paystub, a proper response cannot be given.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Great site!
I recently started my own home business and I purchased a desk and computer. Can I write the $4,500 purchase off as a business expense?
Hi Craig,
Desks and computers (basically the rule of thumb is anythng purchased for over $200) are capital assets so normally you cannot write off the expense in one year.
For capital assets, you are able to claim/expense a prescribed percentage each year depending on what class the asset falls under for the purpose of the capital cost allowance rules.
If, by chance, you purchased your computer equipment before February 2011, a special measure allows you to write off computer equipment 100%.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
h&r block filed my income tax claim and i got a return back…now the canada revenue agency are saying i own them money because h&r block claimed things that i was not suspose to claim.
Hi Albert,
If H&R Block filed your return and filed it in error to cause you to pay interest or penalties, bring your Assessment and H&R tax return back to the office you dealt with…. it’s their problem to fix and if they were actually wrong, they will refund you anything CRA charges.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
hi, im just wondering if how much would be my tax in alberta if i earn 50000cad per annum , gross… i have 4 kids and a common law partner, but their not with me in canada, and im just a foreign worker temporarily working in alberta for a 1 year contract. thanks
As a self employed individual with an unpredictable income, I’ve been using the 2011 tables to decide how much to pay in my instalments. However, when I put in my 2010 taxable income of 72500 I got a much lower number than what I actually had to pay for 2010. Now I’m worried I’m going to get hit in April again.
I live in Ontario and actually had to pay closer to the Manitoba numbers. Are these tables taking into consideration that the self employed need to pay double the CPP and that in Ontario we need to pay OHIP based on income? What am I missing here?
Connie
Hi Connie,
Unless you know for certain that your income for 2011 will be lower than 2010, it is best to use the suggested instalment amounts from CRA and your tax preparer.
When your tax return is prepared for you, a good tax preparer will provide you with an instalment schedule and CRA will follow up with one as well. It’s best to use these calculated amounts as they include CPP as well as tax.
If you know your income is going to be higher for 2011 than 2010, you can use the CRA estimated amounts or, if you don’t want anything payable at April 30th, pay some additonal to the estimated amounts.
If you pay less than the estimated amounts from CRA and your income is higher, you will be charged interest and penalty for not paying the instalments on time (even if you did pay on time).
The tax calculator above does not include EI, CPP or other deductions. If you wish to use the above calculator to determine your instalment amounts, you’ll also need to calculate the CPP, EI (if applicable), and OHIP and add the amounts to the tax calculated above.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Albert,
Unless you have your family and dependents living with you in Alberta, there is no deduction available for you.
Your total tax should be approximately $9,335.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi
I am planning to move to Canada as a permanent employee of a Canadian S/W firm from India.Assuming that i have a monthly salary of 10,000 Canadian Dollars per month what would be my monthly tax liability(inclusive of all taxes).
Hi, I live and work in Alberta. I currently have two jobs and to date have made about $42,800.00 for the year. I’ve only paid about $6000.00 in income tax. I’m trying to prepare myself for how much I will owe. Can you tell me approximately how much this will be? How much do I need to contribute to RRSPs to save me from owing the Government?
I am currently employed in the US, on a TN visa, but I am Canadian and hoping to return to Canada (while keeping the same job). I understand that there are some steps to be taken when filing taxes under those conditions… any suggestions? Is this going to be horribly complicated?
Hi Anuj,
Without specifying which province you will be residing in, a specific answer cannot be provided… the amount of taxes withheld from you pay can vary from $33,118 for Alberta to $41,594 for Quebec.
Additional deductions for CPP and EI would be deducted, but also vary by province.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Deanna,
Without knowing what your annualised income would be for 2011, a specific answer cannot be provided. But based on your YTD income of $42,800 your tax payable should be $7,031. If we extrapolate the $42,800 to an assumption of $51,360, your tax payable would be $9,770.
As for an RSP, making a contribution of any amount will give you a tax break.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Jill,
We are assuming since you have a TN VISA, that your initial stay period of 3 years is almost or nearing completion and that since you’re been a resident of the US, you have been filing your US tax returns as a Resident Alien.
If your plans are to continue to work for your US employer and live in Canada, you will need to ensure your employer will not consider you an employee (get a W-2 for taxes), but an independent contractor (get a 1099 for taxes) so that no US taxes, social security, state taxes, etc. are withheld.
If you cut your residency ties with the US and reinstate your Canadian residency, you will only pay taxes in Canada on your world-wide income. Until you cut your US ties, you will be required to file a US and Canadian tax return.
The process is actually quite simple, but many tax preparers do not understand or have knowledge of what is required for filing. If our firm can be of assistance in your cross-border filing needs, please contact us.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi, I have got my PR on 27thOct, 2011, I am staying in canada with family for 40 days, and will be back to home country Bangladesh on 5th Dec, In the mean time, i have opened 4 ban accounts & got 3 credit cards, so that I can start building my credit history.I have plans to move permanently from June2012. I am self employed & want to continue my business in BD for next 3/4 years atleast. I have a steady income in BD around 120k CAD per year. But according to BD law we are not allowed to remit any foreign currency to any country. Now, will you please tell me what will be my income tax status for the year 2011 or 2012 & onwards. How will i pay tax in foreign currency when I am not allowed legaly to bring money to canada? For my day to day expences I have plans to collect gift money from Canadian Bangladeshis & to compansate them in BD through Local currency. Will it be legal?
regards
I am a naturalized Canadian and own a town house in Montreal Quebec (3 sub-unit where my parents stays in the main one and 2 others are for rent). I have moved to US 11 years ago for work and become US permanent residency since. Due to the mortgage, I was making break even so I let my father to combine this town house very little earning into his tax declaration (is that legal and necessary?) This fall 2011, I just paid off my mortgage, which means that town house will have a considerable positive income gain that I have to seriously consider to declare income tax on that town house on my own now. How does this work now? I don’t know what to do next to be correct. Please advice.
Hi,can you please suggest what would be the total home take pay after taxes on a(Weekly/Monthly basis) after all deductions (Income tax, CPP and E.I.) living in a province of Ontario, if i am making 30,000 dollars a year.
Will appreciate your expertise. Thanks
Hi
I would be residing in Ontario.Can you let me know the annual tax that i would have to pay including CPP and EI.
I have an opportunity to work for a year in the UAE. I will be earning $14,000 /month gross. How much of this income will be taxed and at what rate in Canada. I will still own a home and my family will still be living in Canada while I am away on the contract for a year.
Hi,
Thanks for providing such an excellent site for providing us the tax related info.
My situation is:
Moved to Canada in Jan 2011 as a Permanent resident with a job and woring since January 2011.I would earn 74000 in the year 2011.I have a wife and 3 kids and wife doesn’t work.I am paying RESP for kids since arrival and have paid $6000.00 in 2011.I haven’t applied for Child benefits yet as no income tax were filed.When I arrived I had filled a form for deductions for my employer to calculate and withheld tax from my pay. I am receiving $3192.00 biweekly and paying 858.00 as tax to receive a net of 2335.00 biweekly.
Can you please tell me:
How to apply for Child benefits.
How much would i get monthly for three kids 10,7 and 3.
Would I get any Child benefit for the year 2011 in lumsum amount.
Would I get any tax return?
How much tax I suppose to pay in Ontario for 74000.00 per year with 4 dependents?
Please advice.
Hi Akter,
Taxable residency is not the same as landed permanent residency… to be taxable in Canada, you must be deemed a resident, opening bank accounts and credit cards is a a way to do so.
In Canada, as of the date of your residency, Oct 27, 2011, you are required to report your world-wide income on your Canadian tax return. Any income earned prior to residency is not reportable.
If you pay tax on your income in your homeland, this can be applied as a credit on your Canadian tax return to avoid double taxation.
Canada Revenue is not concerned with your homeland monetary restrictions, if you owe taxes in Canada on for foreign income, you must pay the tax or be charged penalties.
As far as it is known, funds can be transferred out of Bangladesh to Canada, it is part of your residency application. Western Union and MoneyGram are two companies that transfer funds to Canada from Bangladesh.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Giang,
To me, it sounds like you may have created an international tax evasion situation.
On your US tax return, you were obligated to report the ownership of the townhouse and the income it earned. If you did not report this, the IRS can revoke your residency status especially with the recent talk of tax evasion and confication of foreign bank accounts.
Paying down the mortgage would not affect the income, it may be that you did not calculate income accurately… mortgage payments are not deductible as an expense.
It is recommened you speak with a tax accountant to review your past US filings as well as your parents’ Canadian filings so to have them redone reporting the income accurately so to avoid penalties in Canada and worse in the US.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Amit,
Based on the information provided, your annual net pay would be $24,400.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Anuj,
Based on the information provided, your annual net pay would be approximately $79,000.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi George,
UAE does not have a tax treaty with Canada in relation to taxation of Canadians living in UAE.
Any income you earn in UAE must be reported in Canada on your Canadian tax return. So in effect, your income would be taxed just as it is now. Without having more details of your specific tax situation, an exact answer cannot be provided. Use the calculator above to determine your tax liability.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Sahir,
Unfortunately, this forum is not capable of answering your questions regarding Child Benefits. Contact Service Canada.
Based on the information provided, your annual net pay would be approximately $57,350.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Kind Attb: Storoszko & Associates
First of all, thank you for providing your professional consulation, which is a great help to many people.
I have one query. We are a family of three people including a newborn), i am the only bread earner in family and somehow the job market is not that great in Ontario.
My question is which are the provinces in Canada where you can avail getting more money in your hand after paying all applicable taxes (including CPP and E.I.) – Let’s assume a salry of $35000 – which provinces will end up in getting more returns as compared to Ontario. As, i am thinking of moving and your expertise answer will surely help my family in making a decision.
Thank you and awaiting for your expertise.
Hi,
Great work.
Can you please suggest what would be the roughly tax return in 2011 for married filed jointly after taxes/deductions (Income tax, E.I.) in Ontario, if i will make Gross of 68309.00 and net of 51,460.80 in 2011 with 3 young kids and one non working wife.
I am paying RESP but not receiving any Child benefits like previous question from Sahir (above).
How Child benefits, RESP and RRSP effect any tax return/breaks please inform with the percentages.
Will appreciate your expertise.
Thanks in advance.
Hi Amit,
Unforutnately, your question is beyond the scope of this forum… without knowing your employment skills, status, and numerous other factors, advising where to live in Canada is not possible.
Utilise the calculator above to determine the lowest tax liability for any of the provinces or territories of Canada. Factor os economy, differ by not only province/territory, but also city/town.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Khan,
Tax filing jointly is not an option in Canada… each tax payer must file an individual tax return to report income and receive benefits.
Based on the information provided, you will be in a tax liability position of owing approximately $2,100.
Without additional precise details additional calculations are not available.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi,
Great site. I have a quick question. I will be in canada for a short period – 2 months on an intra-company transfer. If my gross pay is 95,000 per annum, how much tax will I pay for this 2 month stay in Canada ? I am a tax resident of India
Hi,
Great site. I have a quick question. I will be in canada for a short period – 2 months on an intra-company transfer. If my gross pay is 95,000 per annum, how much tax will I pay for this 2 month stay in Canada and what will be my net salary after deductions? I am a tax resident of India
Some additional info – I will be in Alberta and will be without my family.
Hi Manish,
You wil not be taxed as you will not be a tax resident of Canada.
If you do have Canada tax withheld, you can apply for a refund of the taxes.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Me and my hasbund own a business ..We make around $180.000 in 2011 .. but after all deduction we have $18.500.00 left.
..How much tax we have to pay on that amount..Tank you in advance..
Hi Denis,
Based on the information provided, a quick answer is not available.
It depends on the type of business… partnership or corporate, province of major activity, profit based on cash or accrual accounting, any depreciation calculated?
If the business is a simple partnership, there would be no tax liability.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi, I made only $14,000 last year because I went to school part of the year ($6300 tuition for 2010) . I had two separate contract work jobs that equaled to $14,000 self employed income. Do you know aproximately how much of a tax return I can expect, if any? Thanks
Hi,
Currently i work in middle east and I am planning to land in Canada May 2012 as PR for a short time. My plan is to go back but my family will stay in Canada. I would join them in a year or so.
Please could you advise if during this period of being away and working abroad of Canada should I pay taxes. I understand from your answer to Jo that “Even though you are established as a permanent resident in March 2012, you will still continue to reside and work and live in the US which does not make you a resident for tax purposes.” but what if my family reside in Canada?
Thank you in advance, Mashti
Hi Melissa,
Without knowing how much tax you have paid, we cannot determine how much of a refund you may be entitled to.
You likely will not pay mcu tax, but you will be responsible for paying CPP contributions which will exceed any tax liability.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Masti,
When you establish your tax home in Canada when you move with your family in May, you will be equired to file your tax returns on your world -wide income even though you will not be living in Canada for a portion of time after May 2012.
Residency for tax purposes is based on ties to Canada. If you family lives in Canada, rents an apartment, then you also will be resident in Canada for tax purposes.
All income must reported in Canada effective the date you land in May 2012. If you pay foreign taxes while outside Canada, you will be able to get a credit for taxes paid.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
To the faithful readers of this blog, Storoszko & Associates is offering you a chance to win an opportunity to Get your tax return filed for FREE! (A $150 VALUE!)
Hi All,
How would you like to have your 2011 or any other year’s tax return filed for free?
Well, that is exactly what Storoszko & Associates is offering in our facebook contest.
FRIEND/LIKE US on facebook and get a chance to win having your personal or small business tax return completed for free! (A $150 VALUE!)
Simply LIKE US/FRIEND US using this link in facebook.
https://www.facebook.com/pages/Storoszko-Associates/237291146304048
Contest closes Dec 31, 2011
A winning name will be picked at random January 4, 2012
Hi ,
I am an immigrant and staying in Toronto from July 2011. My wife is not working. We have a 3 yr child. I am getting 5100 per month after tax deduction( 2033 per month ) . What will the amount I will get as tax return, when I am going to get that. Do I need to invest some where to get tax benefit.
Thank you very much for your quick respons, I truly appreciate it.
May I have one more question: Since I have to pay tax worldwide,Which one of below is taxable or can be exempted from taxes
My salary includes below payments:
1- Basic salary : monthly basis
2- Car allowance: monthly basis
3- Annual bonus: once a year
4- house allowance : once a year
Thanking you in advance for your kind response.
Kind regards, Mashti
Hello Sameer,
Based on the information you provided, an accurate response is not available. When asking about potential tax refunds, wwe need to know what your toal tax paid for the year is, what other deductions are applicable to you, where you live in Canada, and muh more.
If you are due a tax refund, it will be issued to you within a ffew weeks of filing your tax return… tax preparation time starts late February until June.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Masti,
To answer your question:
1- Basic salary : monthly basis YES, TAXABLE
2- Car allowance: monthly basis YES, TAXABLE
3- Annual bonus: once a year YES, TAXABLE
4- house allowance : once a year YES, TAXABLE
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi,
I am starting my new job in January (Montreal) and according to the actual offer I will be getting 44,000 a year. However, for post-docs, the salary should be exempt from provincial (but not federal) tax. In that case, would you be able to give me an estimated value of my net income?
Thank you in advance.
Best
Anne
Hi Anne,
If the job offer indicates the position is provincial tax exempt, based on a salary of $44,000, your pay break down would be as follows:
Gross $44,000
Fed Tax -3,845
QC Health -704
QPP -2,005
QEI -620
QPIP -236
NET $36,590
If applicable, QC tax would be $4,901.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi there,
I am a contractor who has worked several contracts to term this year for the same company and continues to be on contract but on a month to month renewal since November, I’ve been renewed for December as well. Until these month to month contracts I would not have breached 30,000.00 in earnings. However, I will land in around 34,500.00 by years end. My invoices say “HST not required due to income limit not exceeding $30,000 in 2011″ at the bottom. This is not true at this point though.
So since I’ve been paid in full without deductions, in an hourly fashion this past year I assume I’ll be required to pay nearly 5,000.00 in taxes for 2011.
My question is this, does the company I contract out to need to do or change anything now that I’ll have I’ve made more than 30,000.00? And if the company does not renew my contract for January will I be eligible for EI? Can I pay my own EI contributions at tax time or how does that work? This is my first year working as a full time contractor and I know little about taxes. Any help is much appreciated.
Sincerely,
Jonathan
Hi Jonathan
(Montreal, Qc )
I am unsure of a couple of things as i have always been self employed ( 100% commission ) and i am making a transition into a base+ commission environment
If my base is 36000
what is my net every month ?
and with 45000 what will it be
no special claiming , no exemptions just a regular guy , single no kids
thx
Hi Jonathan,
Once your income exceeds $30,000, you are required to contact CRA to obtain a GST Registration. Do this as qyuickly as possible, because any income over $30k that you delayed collecting GST/HST, will come out of your pocket.
Unless you have registered with Human Resources Development Services Canada, to participate in the self-employed EI programme, you will not qualify for EI benefits. However, if you contact HRDSC now, you may be able to qualify for 2011.
The company you are working for has no requirement to make changes… the onus is upon you to follow the rules… get GST registered, find out about S/E EI, be ready to be hit with a large tax bill at the end of the year which will include CPP contributions.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi David,
There is no difference between commission only and base+commission. They are taxed identically, although you may have more tax deductions (higher limits) available to you with 100% commission.
Respectively, your net pay for $36,000 would be $28,800 and $45,000 would be $34,900.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
-Ho much roughly will you pay in taxes if you receive 100 dollar gift card from your employer with annual income of 60k?
I am planning to take up a position as a post doctoral researcher in British Columbia, my package was decided to be around 39000CAD per year. I would like to know how much tax i need to pay and what are the possibilites of refund. I am married and dont have any children.
Thanks
Hi John,
The difference in additional tax for the $100 gift card is $31.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi John,
Based on the information provided, you would have a tax liability of approximately, $5,500.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
hi
I am hoping you can help me out. My income will be 75000, i made 50000 profit in stocks. As well losses of 50000 in stocks. I rounded numbers a bit. how much income tax am I looking to pay? I live in Ontario.
Hi Corey,
If you sold the stock and made a profit of $50k and at the same bought and sold a stock and lost $50k the tax effect is zero.
If you have the stocks and did not sell them and one went up and the other lost…. it’s not taxable until you actually sell.
Only until you actually sell a stock will there be a tax transaction.
Based on $75k, your tax liability is approximately $16,950.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
I work two jobs. One will gross about 17000 and the other about 22000. What should I tell my employers for 2012 so additional tax can be deducted during the year. I have calculated that I may have to pay about $3000 in taxes this year although each employer is deducting the appropriate amount. Help!!!
Hi Jacky,
All you need to do is approach your payroll dept or manager and ask for a TD-1 Form.
The TD-1 Form allows you to tell your employer to take additional tax from your pay so you will not have a tax owing at tax filing time.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi,
I have a question regards: Line 331 – Allowable amount of medical expenses for other dependants
My information is: My Mom (year 62) – has net income about $9000 (receiving cpp & oas) every year. – living with me (I owned the house), I have employment income of $50,000.
My mom has medical expense: total of $6000 for Aug-Dec. 2009; total of $18000 from Jan – July 2010.
Question1: Can I treated her as my dependants for this amount? If I claimed this amount, will CRA asked me to provide more information to prove that?
Question 2: if yes, how can I maximize the use of credit from both above two years?. I don’t claim any medical expense for myself for those two years.
Question 3: How can I use the 12-months period?
Question 4: does usued medical expense for one year can forward to the future year?
Thanks a lot and I look forward to your response.
Hi;
I have a question regarding Canadians working abroad. How much taxes are they supposed to pay if they are living outside Canada with their families on a permanent basis because of their Jobs and that country has no tax treaty with Canada. What if they do or don`t have any assests in Canada such as house car etc.
Hi Susan,
Yes, if your mom lives with you and is dependent upon you, you can claim the medical deduction for dependant. You would have to prove she lives with you, but if the mailing address CRA has on file for her is the same as yours, it’s proved. You will also have to state her infirmity.
When claiming an Other Dependant’s medical deduction, it is not calculated along with yours as your family’s is based on your income and the Dependant’s calculation is based on their own net income.
You can use any 12 month period to your advantage as long as it ends in 2010 and you are consistent in future years. In your case, depending if your mom has additional expenses after July 2011 to Dec 2011, you have two options: (1) take the best (maximum expense) consecutive twelve months or (2) request to have your 2009 and 2010 tax returns adjusted to take advantage of the respective deductions for each year and report by the twelve month calendar year rather than splitting the year and possibly calculating incorrectly in the future.
No, medical expense deductions cannot be carried forward or back.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Farooq,
If the taxpayer is not resident (no residential ties) in Canada, there are no taxes payable in Canada.
If the taxpayer has assets in Canada (house, etc.) they can be considered resident in Canada even though they live abroad. If this is the case, the taxpayer must pay Canadian taxes and foreign taxes.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
My husband has been off for the past 18 months due to Cancer. He was never unemployed but was on sick leave from work. He did get short term sick benefits but when the cancer came back within 14 days of treatment completion and he was signed off for a further 6 months he was not able to claim any type of benefit from government or benefits. As his income is $0 for 2011 will he be eligible for a rebate?
Thanks
Hi,
My Father has claimed the Ontario Property tax Credit on the rent that he paid to me. Can I still claimed the “Allowable amount of medical expenses” for my Mother? She is living me and she is 62. In this situation, can I treat me as my dependents?
Thanks
Hi there,
I work for the federal government in Ottawa, but commute there every week from my home city. This means that I have to take the train to travel to and from Ottawa, as well as keep an apartment there. Do you know if there’s a way I could claim at least part of these expenses on my income tax?
Thanks!
Hi Roxanne,
If your husband had no income, then he paid no tax… unfortunately the only way to get a refund is to have paid tax.
The better news is that you can claim your husband as a dependant and get the tax benefit.
Even better would be for your husband to apply for and claim the Disability Tax Credit which, if he has no income, will pass to you for your benefit.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Susan,
If your parents live together and with you and they pay rent to receive the seniors rebate, no, you cannot claim them as dependants for any deduction.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi Alex,
Unless your employment agreement/contract states you must travel using your vehicle for work purposes during the work day, no, you are not able to claim any commuter or extra living expenses.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hello ,
I have a question , Am a dentist , resident of quebec but will be working in small city which is part of ontario 200 km from montreal. to which province i should declare taxes ? one more question , transportation costs will be refundable ? thanks .
Hi
quite informative site…
would like to get confirmation on two things.
1. is there a yearly maximum on CPP and EI deductions…my HR says that the deductions from payroll will be high in beginning and then reduce or end when the max is reached.
2. my gross salary is told to be $135k p.a. (biweekly payments) could you help me with net pay after tax, pension and employment insurance?
rgds
sorry, ref above, wish to add that i am planning to move to Canada in about 2 months and will be in Toronto.
Hi Murai,
If you will be working in Ontario, you will be having Ontario taxes and related deductions withheld from your pay.
If you live in Quebec, when you file your tax return in April, you will be reporting your income to Quebec and will result in paying Quebec taxes and related deductions.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Your Ontario employer is not able to withhold Quebec remittances, so if there are differences at filing time, you will be responsible for the tax liability.
Hi Kumar,
Yes, if your annual pay exceeds the maximum insuable amounts for CPP and EI, yes, the biweekly deductions are higher than the calculated average so that it ends up that the annual premiums are generally paid by September.
Based on your salary, your net annual pay would be approximately $89,000.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: http://www.twitter.com/Storoszko_Assoc
Hi
For the year 2007 and 2008, my Tax Preparer, Mr. Nazrul Islam at Danforth, Toronto told me that if I donate to GLGI, I will get back refund more than I donate.He convinced me by showing so many papers that the procedure is legal by CRA. I was new at that time in Canada. Accordingly, I donated $2000 each year and got refund more than that. Now CRA wrote me that they will not consider the donation at all and asked me to give back the refund to them.
Can I charge my Tax preparer for the amount now I owe to CRA?
I have been seperated from my husband since April 2010…due to his mental illness and finances no seperations papers have been filed. When I did my claim in 2010 we marked seperated but he is still using our post office box. I sent in my information to proof he did not live in our home. We have alot of debt…I asked him to cash in some of his pension to help reduce the debt. If he cashes in the pension…do i have to claim any of the income. I currently work and live an reserve so my income is non-taxable. And because my income in non-taxable i receive child tax…since my husband is not giving me any money and i cant afford a lawyer… i need this extra money to make ends meet…I dont want to lose the child tax.
HI
I am working from home for a company registered in USA.I am like a contractor for them though I have full time position.This is mainly because, my company is not registered in Canada.
I get an annual income of 70,000 USD, can you help me calculating my tax. My company don’t deduct any tax as they pay be the full amount in hand and its my duty to pay the overseas tax to Canada. Please let me know
Hello there,
I have a full time job where I made 103,000 last year.
I have been offered a contract at a company for a specific job and the offer of $16,500.00.
Can you tell me if I am better off opening my own independendent consulting business and claiming all my expenses this way or add it up to my full time tax claim? I had a balance payable of $5,146 for this year and want to make sure that I will not do more harm adding this contract to my Total income that i already have. Your help would be greatly appreciated it. I have 2 childre, ages 17 and 12 and my husband who is my dependent as he lost his job 1 year ago.
Hi Shib,
If Mr Islam specifically advised you to make this ‘donation’ with the intent to boost a tax refund, yes, you can go after him for the monies CRA is taking back as well as the original donations.
Whenever prompted to donation to a little known charity, always check out the charity by visiting CRA’s web site to be certain its operation is ligitimate.
To all readers here, kindly keep in mind that when tax time comes around and the fly by night tax prepapers put out their signs, you really do get what you pay for…. having your tax returns prepared by someone like this will only guarantee YOU will have headaches…. always consult with a knowledgeable tax preparer, preferably a Certified Accountant to ensure you get the correct results.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Rachel,
If your husband cashes in his pension, no, you do not have to claim it.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Lince,
Since your company is not registered in Canada, your pay may be subject to US Tax withholding. Any money paid to a foreign person by a US company must be reported to the I.R.S.
You should receive a form 1099 Misc for your pay received. It will also show if any withholdings were made.
To determine your tax liability, enter your income into the calculator above and see the total tax payable. Take this amount and add $5,000 for your total tax liability at tax filing time.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Patricia,
It already sounds as if you have a consulting business. You do not need to create a corporation to operate your business, simply file your additional income as Self-Employed and take advantage of the deductions available to you.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Thanks so much for your reply.
My income currently is not from a business but from a full time employer. The contract I have been offered is another place which will then add to my income. Is there a place then in my tax form to add this as additional income? =)
Thanks again!
Just wondering I am in the military I was stationed in Alberta till mid July then got posted to New Brunswick if my pay was corrected to reflect the new province I made about 70,000 in Alberta 62,000 in NB (living differential) a year which I have plugged into the calculator it gives me a difference of around 1,600 for the year(if i calculate both at 70,000) half that is 800 just curious everyone says im going to get hammered with taxes is there any other variables(ei,cpp etc.rate change) I should be expecting other than the 800?. Also my wife was working in Alberta then had to go on EI when we moved for 3 months but is working again her EI income tax was only $40 per cheque she has 4000 from the Alberta goverment for pension which she can put into an rrsp or cash out taxed will this help when she files her taxes oh and we are newly married in Jan do we or dont we have to file together is there a benefit to either thank you for your time.
Hi Patricia,
The contract work – will you be an employee or contractor?
If employee, you will receive a T4 slip and will be employment income.
If contractor, you may receive a T4A slip or nothing, but you will be considered self-employed and be able to take advantage of business deductions. It’s reported in Business income.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Mark,
I’m not sure to whom you’re referring when you say they are advising you are being ‘hammered’; the tax rates for federal tax is consistent across the country regardless of province.
Any difference in tax calculated using the calculator above is due for provincial tax.
Since the military adjusts your pay for living differential, it has absolutely nothing to do with taxes! Taxes in NB are 2.4% higher than AB. This is the only thing you’re being ‘hammered’ by = 2.4%, the result of moving.
Your wage was adjusted because to cost of living in NB is lower than the cost of living in AB. AB charges less provincial tax than NB which results in the 2.4% difference.
Your question is not actually a tax question, but an economics question… after tax, after cost of living, etc., your amount of savings (not net pay) is the same.
As for your wife’s situation, unless you need the $4000 cash, transfer it to RSP, otherwise it will be taxed upon withdrawal.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Mark, continued…
Re: you’re married and tax filing… everyone in Canada files their own income tax return, unless you leave her before Dec 31, law is you report as married and this determines any benefits you are allowed.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
HI,
I live in Ontario , I am single and I have no children. I have no expenses. I worked at my last job from September 2010 until August 2011 because there was no more work for me. I worked a total of 1380 hours and had earnings of $15,870. On my ROE it says that the total insurable earnings were $9280.48. I received $659.53 for vacation pay. I have been receiving EI for 10 weeks now. From EI I receive $191 per week and I am entitled to 29 in total. I am not sure how much I should receive on my tax return. Does EI affect the amount? I really would appreciate your help.
Thanks a lot!
Raquel
Hi,
I am just wondering i have paid my tuition fee of $6000 in 2010 but i could not fill it in my tax this yr as i recieved my tax thingy from my college very late so can i put it in this coming yr.
Thanks
Hi,
My in-laws immigrated to Canada in March 2011 and have been living with us since then. Can me and my husband claim them as dependents and what other benefits or tax deductions can we get? Do my in-laws need to file a tax return? they do not have any income.
Thanks,
Hi Raquel,
As EI only withholds 10% for tax from your payments, you will likely be in a tax payable position when it come to tax filing time in April.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Asif,
In order for you to obtain the correct benefit, you need to apply your 2010 tution receipt to your 2010 tax return.
You need to complete a T1-Adjustment to notify CRA of the ommission.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Gits,
If your parents are considered Landed Immigrants as of March, then they are required to complete tax return for 2011.
If your parents are infirm, you may be able to claim them as dependants, but only if confirmed infirm.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
I have working-holiday (Im from Czech Rep.) visa and I started working for family which told me that I can pay me tax by my own-but I have no idea how to do it. I have my SIN number and all items but please can you give me an advice.
Thanks in advance.
Lenka
Hi Lenka,
As you are on a working visa, details of your employer are provided to to allow you to work.
As you are an employee, your employer must withhold from your paycheque and remit to Canada Revenue on your behalf. You would be able to do this on your own if you were an independent contractor, but as you are on a working visa, this is not possible.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Dear sir/Madam:
I came to your add through searching engine.
Me and my wife are living seperated.
I give her monthly 400CAD for two child supports.
Now while i am doing income taxes how can I make proof child support?
As needed cause we are not legally seperated.
Or they money i have given to her during last year must be confirmed by her?
Let me know about this
with best regards
tony
Hello
I am wondering…I’m late filing my spouse’s and my own tax return for 2010. One of us has a small balance owing, the other a refund, and the net result is a small refund. Can I just send the returns in together and expect the small refund…or, do I have to go through the steps of assessing what penalties are owing on the tax owed, send and send a cheque for that amount? Any help would be greatly appreciated.
Regards,
Gianmarco
Hello,
In her early twenties, my wife purchased a retail store without much of a business plan, and a shady “accountant” who complicated things.
Needless to say things didn’t work out. The store has been closed for eight years (although we still have $30,000 in personal debt from this) , but the final year’s taxes weren’t submitted until a few years ago. Now we owe a ton of tax that we didn’t know about. i don’t understand the difference between a corporate tax account and a personal one, but understand that she is responsible for the amount owing. my question is if there are any departments who can help us figure out some sort of compromise? they are very demanding because it is so old, and a corporate account. The thing that I can’t make them understand is that we can’t afford to pay much. We are just private citizens, and my wife has been on maternity leave, so has been collecting EI (and now we owe a fortune in tax because of this…why doesn’t EI take off more tax?)Between these three separate burdens, life is becoming very hard.
Is there anywhere that we can turn?
Hi Tony,
Any monies paid for child support is not tax deductible by you nor taxable to your wife.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Gianmarco,
Tax returns in Canada are filed and processed individually, regardless or marital status.
If your spouse had a balance owing and you have refund due, the CRA does not net the two accounts together to calculate any penalties due.
If yours and your wife’s tax returns are completed and ready to file… FILE THEM. Waiting will only increase the penalties and interest accruing on the balance owing. Once you file the tax returns, CRA will calculate and assess penalties and interest as deemed necessary and will issue you an Assessment Notice notifying you of any balance due, including tax, penalties and interest.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Derek,
First off…. a corporate tax account is for a business registered as a corporation, a personal tax account is for an individual taxpayer.
I suggest you contact a reliable accountant or a tax lawyer, as, if the business did not do well, there would not be any income taxes owing and there should be an appeal process.
If your wife failed to pay the Employer Remittances on behalf of her employees. Yes, CRA would demand payment from her as she would be personally responsible for her neglect.
There are no ‘departments’ to assist as this appears to have been an ongoing situation which your wife neglected to resolve earlier.
Contacting a tax lawyer is likely your best alternative. The fact that you are unable to pay the debt, is not something the CRA would consider. Employers that fail to remit Source Deductions abuse the trust of their employees because the money belongs to the employees, not the employer.
By contacting Service Canada, your wife can have more tax withheld from her EI payments, if you wish, but it will not resolve your corporate debts.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi! I am a Canadian but I have not been living in Canada since for a decade. I did my undergraduate degree in Malaysia (where I am also a citizen and a resident) and came back for a visit for 5 months in 2003. By January of 2004, I left Canada again and went back to Malaysia to study. By 2007, I started working in Malaysia. From 2004, I did not come back to Canada, until 2 weeks ago. I do not own a home in Canada, I don’t have property such as cars or furniture, I don’t pay for the provincial health care plan, I don’t have Canadian sources of income, I don’t have a spouse or dependents living in Canada (I’m single), I do not receive any kind of financial support from the Canadian government and I don’t have a driver’s license. The only thing I have in Canada is a bank account that I have asked my Uncle to maintain, but the account has already become dormant because I haven’t used it for quite some time. I also have a Canadian passport, but I renew it at the embassy in Malaysia. My question is this, being a Canadian, am I required to pay Canadian taxes for the period between 2007 until now despite not residing in Canada? But when I left Canada more than a decade ago, I never declared myself as a non-resident for tax purposes. It simply did not occur to me because I was a student and I did not really have income.
Hi Tanya,
Tax residency is based on the length of time you are present in Canada. You are a taxable resident if you are physically in Canada for more than 183 days in a calendar year.
If you have not been physically resident in Canada for 183 days or more, then you are not a taxable resident in Canada and are not required to file a tax return reporting your world-wide income.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi
I was wondering how bonus taxes are calculated.
Say for a more unrealistic bonus of 42k which would be all paid as one lump sum on Jan 30th 2012 as a bonus for the performance of 2011. My question is how is the tax bracket for said bonus calculated?
This would be for the province of Ontario and also the T4 amount for 2011 would be around 65k
Thank you
Hi,
I need to congratulate you on good information you shared.
I need your help to calculate net take home salary for my case.
I am about to moving to Edmonton, Alberta in next 2 month. My Employer had hired me through an agency. I will be on contract of 12 months with average salary of 10500 CD p.m. The payment will be once in two week. I will be working on business to business relationship with my agency providing service to a Canadian Company. I will be called as Contractor / sole proprietorship.
I am planning to move with my family include Wife + 2 Children (below 10 years age).
Can you please let me know the total tax I need to pay in a year?
You may also let me know the net take home salary (i.e. equation is like = Total income in a year – (Total Tax + CPP + EI).
Do I have any tax benefit if my family members are dependent to me and there will no other source of income?
Hi
As newcomer I would like to understand the amount of money that I bring with me at the time of landing, after opening a bank account in Canada would it be subject to annual tax?
If we plan to sell our property in my country after landing in Canada and pay the taxes in our country, do we need to pay tax again when we plan to transfer the money?
Thank you for your guidance in advance,
Hi There,
I work for an employer who doesn’t deduct any tax from my pay cheque. They said I’m considered a contractor, and its not required
When comes tax season, I dont want to pay 10s of thousands of tax. Do I have to register a business in order to write stuff off? Income is roughly 70k
Hi Alex,
Bonuses and lump sum payments are taxed differently based on how the payroll processor may choose.
The CRA method is to tax the bonus or lump sum payment at the tax rate as if the payment was a regular payment rather than a one time payment, the $42k would be subject to income tax of $16,760, CPP of $2,079 and EI of $769, resulting in a net bonus of $22,392.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Amit,
To calculate your net pay, enter your annual salary in the above calculator. From the net pay calculated, deduct an additional $5k for CPP and the result will be your take home pay.
As a contractor, you will be required to register and collect HST from your employer, this is an additional tax you will be required to remit to CRA.
Once you register as a contractor with CRA, they will advise of your filing requirements.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Mashti,
Any business transactions (business income, property sales, etc.) you conduct after landing in Canada must be reported on your Canadian tax return even if you pay taxes in your home country. If your home country has a tax treaty with Canada, you will be able to claim a credit for any foreign taxes paid abroad.
If you transfer money to Canada OR ANYWHERE ELSE, you must report any income on your Canadian tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Jason,
If you are a contractor for this employer/company, and your income is in excess of $30k, you are required to register with CRA to charge and collect GST/HST from the employer/company.
As a contractor/sole proprietor, you don’t need to incorporate as you will be eligible to deduct legitimate business deductions from your income when you file your income tax return.
Unfortunately, you will be responsible to pay 10s of thousands of tax appropriate for your income. I suggest you use the calculator above to calculate your tax payable and add to it $5k for CPP contributions. Take the total and divide by 12 so you know how much you will need to stash away monthly to cover your tax bill at tax time.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
i came in canada in 2005. now i want to transfer my all money to canada from my back home.i dont know whether i disclose or not when i landed.My questions are…
1. How can i transfer my money?
2. should i have to pay any tax? If yes, how much?
I am US green card holder who came to Canada on July 3rd. I am expecting to earn about CAD 98,000 until Dec 31st. Am I treated as resident or non resident for Canadian tax purposes? How much tax do I owe to Canadian govn. considering its a self employed amount in Ontario?
Hello Mr Storoszko,
I am wondering as to how much tax credit would i be getting if i make around 35k in Toronto. Provided that i do not make any RRSP contribution , would i be getting any TAX credits from the Government if my liabilities would be just 1500$ in payment of student loans. I dont pay rent as well. So what would my scenario look like?
Hi Vimal,
When you have filed your income tax returns since 2005, you should have declared if you have assets (money, property, business, etc.) overseas. If you did not, you committed fraud by not declaring it.
To transfer the money, simply use a wire service like Western Union or MoneyGram, or through your Canadian bank.
You will not pay any tax on the money transferred. Only interest and income from the assets are taxable in Canada.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Ram,
For tax purposes in Canada, yes, you are a taxable resident and must file a Canadian tax return for 2011 for the time you were resident and working in Canada; as a Green Card holder, you must also file a US tax return for all your world-wide income during 2011.
Use the calculator above to determine your tax liability using your net income as the taxable income.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Wasim,
Based on the information provided, an answer cannot be provided to you.
Enter your income into the calculator above to determine your tax liability. From your paycheque stub, take the year to date tax deducted and compare it to the result calculated above to obtain an amount of refund or tax due.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
I have recently retired with a govt pension of $76k starting January. I am debating taking a reduced CPP now at age 63 – $787 monthly – to reduce my mortgage of $175k or delaying till I turn 65 – $910 monthly. My thought is better to tackle the mortgage soonest since any overall shortfall at age 65, when my govt pension is reduced to accomodate CPP, will be negated by OAS.
Your thoughts are appreciated.
Hello,
I joined the military in August and have been paying provincial income taxes to Quebec for three months and New Brunswick for 1 month. My primary residence is, however, in British Columbia where I paid income tax prior to joining. My annual gross income will probably be around 17000-18000. Knowing that B.C. has the lowest rate, how do I file to ensure maximum return?
Hi.my wife went to school about 10 yrs ago. She paid 10,000 dollars for tuition, she never used any of it for taxes yet, is it possible that I can use it,,,,thank you… GORD
Hi There.
Pretty amazing information it is here.
I have a question here. I have been in Canada for about 8+ years now, out of which 4 years 8 months as an international student on visa. I worked as co op student and some on campus jobs. I paid income tax then.
Is that correct, or as a temporary resident, I can claim tax credits? I claimed tution fee credits on the income I earned.
Thanks,
Hiren.
Hi
I recently had a baby (Nov 2011) and am on EI $298 I will have received 3 payments by year end. Also I have 2 jobs one which I started in March and made about 5500 and my other which I made about 20000 before deductions. I do have an RRSP which I also have contributed about 1050.00. I am just wondering how much tax, cpp etc. I would have had to pay since I don’t believe my second job was taking enough off
I live in Ontario. Also if I can offset paying ax with RRSP contributions how much would that be?
Hi guys,
This year I think i am going to owe the tax man a fortune.. please help me determine the appx amount.
I have two unionized jobs.
Niether of them have deducted taxes from me Properly.
job 1 income earned for 2011 = 73240
union dues paid about 1000 / yr
fed tax paid 12000
job 2 income earned for 2011 = 27790
union dues paid 800/yr
fed tax paid 3000
OMG so in short i earned 101 k
and only paid 15 k in tax. I think that means I will owe appx 18k in taxes!!!!
Is that appx right?
What if I contribute 18k to RRSPs.. will i still have to pay!??!?!
OMG..
Thx,
Kathy
oh i’m in Toronto, Ontario to add to that question..
Hi,
I Completed my school in April 2011, and I have a tax credit of 40,000 from 2010. I worked in Ontario from April 2011 -till November 2011. Now I moved to Montreal (dec 15th) and I will have only 1 pay cheque for 2011 here in Montreal. I am still staying in a temporary place. I would like to know where I should be filing my tax for the year 2011 and what will happen to my tax credits. I understand Quebec has a completely different Tax system. Any inputs/suggestions is appreciated.
I am from Ontario and went to school there until April 2011. In the past income tax years I have always filed in Ontario. I moved to BC in May 2011 and started working in BC in August, 2011. Should I be filing my taxes in BC, since that is where my income is from? If I worked in Ontario for the first part of the year, and BC for the second part, could I file it in either province?
I guess I am just curious where you file your taxes.
Hi Allan,
With the generous pension you are eligible to receive, you may not be eligible to receive OAS, but this cannot be confirmed until your tax return is prepared.
As for the question to take an early or late CPP, my belief is that it’s better to have the money in hand sooner than later.
Paying down your mortgage is the idea thing to do and when you have excess funds, contributing to an RSP (if contribution room is available) or a TFSA would help with a rainy day fund for unexpected expenses.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Wesley,
Your primary residence is where you work and sleep, in the military that means where you are stationed.
Where ever you are stationed at tax year end, will be the province you will report and file your income return.
Regardless of you working in different provinces and paying different tax rates, when you file your tax return it will be based on your province of residency at Dec 31.
If you wish to have the opportunity of filing your tax return in BC for 2011, you must be stationed in BC on Dec 31.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Gord,
Did your wife ever report on her income tax return (10 years ago) the receipt she received for her tuition?
If yes, then she may be able to transfer the credit to you under certain circumstances.
If no, then not because there is a ten year limit on changing and claim tax credits under the Taxpayer Relief Act.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi, I became a tax resident in Ontario on 1 Apr 2011 and my common law spouse joined me on 16 May 2011 and began earning. We had previously landed on 26 Mar 2011 as Permanent Residents. We emigrated from the UK. I will have earned 8 months of an $84,000 salary and my spouse will have earned around $3000 by the end of Dec. Will I be able to use her unused personal allowance against my tax return? How much will this be and do I see it as a rebate as my employer has been taxing me at source. Many thanks,
David
Hi, I became a tax resident in Ontario on 1 Apr 2011 and my common law spouse joined me on 16 May 2011 and began earning. We had previously landed on 26 Mar 2011 as Permanent Residents. We emigrated from the UK. I will have earned 8 months of an $84,000 salary and my spouse will have earned around $3000 by the end of Dec. Will I be able to use her unused personal allowance against my tax return? How much will this be and do I see it as a rebate as my employer has been taxing me at source. Many thanks. David
Hi. I always try to figure how much to set aside as I am self employed. The calculations for CPP, EI and tax are fidable. My question is. If I make 31K and I see in Ontario there is about 4500 tax. My before tax income might be 51000 , so, above the top bracket for EI and CPP
My Question
1) Do I pay the top level for CPP and EI or do I pay the rate on the 31K taxable income?
2) When I see that it is about 4500 tax on the 31K is the CPP and EI included in that?, or is the amount owing paid in addition to that?
I want to plan ahead, save what I need to for the tax man( Including CPP and EI) and then put some away for retirement, but I find I can never calculate with much certainty the amounts.
Thanks
Pat
Hi Hiren,
First off to clarify…. you become a tax resident responsible for reporting your world-wide income after you have resided in Canada 181 days…. there is no such thing a temporary tax resident.
You should have filed tax return for the past 8+ years.
As a tax resident, just a any other resident of Canada, you file a tax return to report your income and claims benefits.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Brittney,
With the limited information you have provided, we cannot provide you with a precise answer.
Based on the information you provided, we’ve calaculated a tax liability of $4,418 including tax, EI and CPP. To determine what you’ll have to pay CRA, subtract the total from your paystubs from the $4,418.
Yes, you can reduce your tax liability by contributing to your RSP. For every $100 you contribute, you will save $20 in tax.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Kathy,
Based on the information you provided, your tax liability will be $12,520.
Yes, you can reduce your tax payable by contributing to a RSP… for ever $1000 you contribute, you will save $430 in tax. RSP contributions must be made before Feb 29, 2012.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Shriram,
If you reported your Education Deduction/Credit on you 2010, and you did not utilise it in 2010, yes, it is carried forward for you to utilise in future years.
Moving to a different province does not impact on your ability to claim the credit.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Quinn,
In Canada, you file your tax return based on residency. The tax return you file is determined by where you reside Dec 31. In your case, if you are living in BC on Dec 31, you file a BC tax return for 2010.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi David,
Firstly, to correct you, your tax residency commenced the day you landed in Canada, not the day you commenced to work.
Since your wife has earnings below $10,000, yes, you can claim her as a dependant and utilise her personal exemption credits. The credits are transferred when you both have your tax returns filed.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Pat,
Firstly, what is the income you earned during 2011? From your question, it’s unclear what your actual income is.
The calculator above only calculates Income Tax, not CPP or EI or any other applicable deductions.
If you earned $51,000 before expenses, your taxable income is: [Income - expenses = Net Income]
Your taxable income = [Net Income - Deductions]
CPP and EI (EI only if you qualify) are not expenses for a Sole Proprietor because you must pay both the regular Employee portion and the Employer’s portion. When calculating the Taxable Income the Employer’s portion is a deduction.
Taking your example, you earned $51,000 gross, assuming you had $6,000 in expenses resulting in $45,000 for your Net Income. Your CPP and EI contribution would be calculated based on your Net Income. Deducting the Employer portion of the CPP and EI calculated from your Net Income would result in your Taxable Income.
To make things simple, simply set aside 30% of your income to cover your tax, CPP and EI in a savings account; then at tax filing time you’ll have enough to cover your tax liability.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
I’m self employed mortgage agent and didn’t make a dime all year due to the lending law changes. My husband didn’t work for the year either and combined we made $0 and survived off of savings. What do I do at tax time. Do I need to file taxes as we have nothing to claim. I’ve always filed my taxes and not sure what to do this time around. Never been in this situation before. We collected no assistance and have no T-nothing to bring forward. How does this work? Can someone out there help please. We live in Ontario
Hi I only work seasonal but when I work I make a high salary. For this year I made 57000 but 8600 was tax free money so taxable amount was 47000. I paid 14500 federal tax. When I put my 47000 amount it says I should of only paid like 9800 but I paid in 14500. So does this mean I have a good chance of getting some money back?
Hi Jules,
Sorry to hear of your financial situation.
As required by law, yes, even if you have no income to report, you are required to file an Income Tax and Benefit Return.
The purpose of the Income Tax and Benefit Return is not only to report income and pay income tax, but also to determine your status for claiming benefits available to you as a low income earner.
Filing your tax return, will determine your eligibility for the HST/GST rebate, Ontario Property Tax and Rental Rebate, and others.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Bob,
Under some very limited situations is income tax free in Canada. What gives you the notion part of your earnings are tax free?
If you have determned using the calculator above there is a great difference in the tax withheld and the year end tax liability, yes, you may receive that as a refund, but likely there is also the possibility that you didn’t have any tax free income and the $8,600 was indeed taxable income.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Is CPP and UI included in the tax calculator? Or do I have to subtract that?
Thanks
Hi,
I am impressed with the detailed advice / tips you provide on this site. I am in a bit of dilemma, i was wondering if you could help me out. I am a PR of Canada but dont live there as yet; I am evaluating a job option in TORONTO where the package looks like this >> annual gross salary CAD 175k, 30% bonus annual, & Car. I dont know how to claculate the net-in-pocket salary as different people are giving different amounts. Can anyone guide me that out of CAD 175k gross, how much can i expect to take home AFTER paying ALL taxes, social contributions, & manadatory health or other insurances? Is there any separate tax on bonus and company car/allownace?
thanks in advance
Ali
Hi Scott,
The calculator above only determines the TAX. You will need to manually calculate the CPP (4.95%, max $2300) and EI (1.73%, max $795).
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Ali,
Without specfics, your best option for answers is to contact the potential employer to determine all applicable deductions and allowances to your pay.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
Terrific site!
Just a little confused about taxable residency.
I am a Canadian PR. I own a house in Canada, and have bank accounts + Canadian credit cards. For the tax year 2011, I worked in Russia and paid tax there. My family remained in Canada. I was physically present in Russia for around 300 days in that tax year. Am I still required to declare my Russian income in that tax year as worldwide income – given that I was not actually in Canada for 183 days in that tax year? I am assuming yes – but would value your clarification.
Thanks,
ian
Hi Sir/Madame – I think I have been cheated by my employer. Here is my situation: in a month my payment is based on biweekly basis. First two weeks, I worked for 53.75 hours and he paid me $450 and then for the another two weeks, I worked for 65.50 hours and he paid me 527. My rate per hour is $9. I know, he should pay me at least $9.50 per hour. My job is a dishwasher and having responsibility of making salad, and sometimes I did small prep. I am a permanent resident of Canada. I have been working for him for 34 months. Usually my tax was deducted for employment insurance, tax and that was it. No union fee, no medical/dental insurance. It is a family restaurant. This case in British Columbia, Canada.
Other, he asked to work on New Year’s Eve to be a kitchen helper. Based on my previous years, he paid me the same rate as usual work day, but he give me tips around $125. I worked for 18 hours for New Year’s Eve in two days. Did he cheat on me or not? Please answer me as soon as possible.
Hi Ian,
Based on the information provided, your tax home for 2011 is Canada.
You are required to report all your world-wide income on your Canadian tax return. Any foreign tax paid by you can be used as a credit when completing your tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Mahdavi,
Unfortunately, your question is beyond the scope of this forum. Questions related to income tax are answered here.
If you have concerns about employment, it is suggested you speak with your employer or contact the Ministry of Labour in your province to determine if wrongs have been done to you.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
I will start a second job in Jan 2012. My earnings in my full-time position for 2011 were 72,000 and I paid 14,290 in taxes. My earnings for 2012 in my full-time job will be the same and I anticipate my earnings in my part-time position to be 12,000. I will be making $12 per hour for 20 hours per week work. I know I need to have extra tax deducted from each pay but could you suggest how much?
The $8600 is indeed tax free money. It is living allowance when I was away working. It shows up on my check under expenses but it does not show up on my ROE under taxable money cause it is tax free. It is money for my hotel and meals. but I did make or will make around $9000 on ei benefits besides my 47000 taxable income so how does that play out with caluclating income tax?
Hi Tamara,
To get an idea of approximately what you need to know, plug $84,000 into the calculator above for your taxable income.
From the amount calculated subtract $14,300, the amount will be the total tax for the new income.
Divide this number by 26 to determine what your biweekly tax should be; compare this number to the tax deducted amount on your first full pay… the difference is the amount you need to have extra off your pay.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
So if you received any ei benefits does it just go under the taxable income just the same as your other earnings?
Hi,
Please I would appreciate your advice regarding my tax situation as a new resident in Canada
I became a Canadian permanent resident in Feb. 2011. I landed with my family then, set up a home, bank accounts and credit cards for their use and I returned to my job elswhere in the Carribean where I earned close to 50,000 between Feb and September. I finally rejoined my family in Canada in October 2011 and started a job from which I expect to have earned about 8,000 by year end. My wife worked June to December 2011 and earned about 15000 here in canada.
I wish to know if I am expected to pay income tax on my earnings in the Carribean from February to September.
Hi Bob,
Yes, with very few exceptions, all income is taxable.
So if you received EI for part of 2011 and regular wages for the other part…. add together all your income for 2011 and enter that number as your taxable income in the calculator above.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Toyin,
Based on the information you provided, your tax home, effective Feb 2011, is Canada. Any world-wide income earned after your landing date must be included o your Canadian tax return.
If you were required to pay tax on your earnings from your employer in the Carribean, you can take credit for that tax paid on your Canadian tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Bob,
A living allowance is taxable income; a living allowance would not appear on your ROE as it only pertains to EI earnings; in your case a living allowance is not subject to EI and therefore not included in the calculation of your EI benefits.
Calculation of EI has no effect on taxable income.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
I and my family live in Ontario and I work from home. My office is based in Quebec. Which tax rates applies to me. Will it be Quebec or Ontario provincial tax rates. If my employer has calculated and deducted tax based on Quebec rates, will I be eligible to get a refund as the tax rates are comparatively less in Ontario.
A reponse to my question and a clarification from your end is highly appreciated.
Thanks and Best Regards!
Hi Ahmed,
Regardless of where you work in Canada during the year, your tax filing is based on which province you live as of Dec 31.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
While reading a lot of your feedback, I felt the urge to ask a question as well.
As I’m going to need a bit of money to pay some expenses this year. I’m not sure how to calculate my tax return using a stub as i don’t have a T4 yet, I am from Manitoba. According to my final paystub of 2011, the following shows;
Gross Pay – Year to Date: 15,684.93
Deductions are… Federal Tax : 1,310.79
EI: 279.19
CPP: 605.16
I only work a single job and it’s casual as i don’t get full time hours all the time. Last year i started in september till december and my tax return was $1300. I was just wondering if i might be getting back the same amount this year? or will it be less? Thanks in advance.
hi,
Im a canadian citizen residing in europe since 2007. I will be moving back and residing in ontario in march 2012. Will I be able to claim my moving expenses (flight, shipping costs, etc) on my 2012 income?
thank you!!
Hi Robert,
Based on the information you provided, it’s estimated you in a tax refund position of approximately $950.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Matthew,
Good question!
Yes, your 2012 travel expenses are elgible for deduction on your 2012 tax return… be sure to retain every receipt pertaining to the move… shipping, travel, meals, accomodation, etc.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
i was in school from january 2011 – april 2011.
tuition paid was approx $1500.
i am now working full time from may 2011 until dec 2011 for the year of 2011.
my gross pay for the year would be approx $48,000. but since i started in may i made approx. $31,000 for the year.
i get paid every 2 weeks ($1300 after taxes and $90 RRSP contributions) approx and get approx $400 tax deducated per each paycheque.
I was wondering if you could help give me a rough idea of my return or how much i would owe as this would greatly help me determine my finances for the next few months.
THANKS!!
-James
Hi James,
The information you provided is inadequate to provide you with an accurate answer.
If you wish a more precise answer, please provide the year to date details from your 2011 last paystub and which province you live in.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hello,
I live in Nova Scotia and have worked fulltime since October 2010. I have heard that I am able to claim my car, tires, etc as I need them to complete my work….is this true?
Thanks so much!
Could tell me how much dividend income I can earn without paying any income taxes. If I have no other income.
Would also let me know how the calculation works when you consider the gross up of actual dividends and the dividend tax credit.
Thankyou
Hi,
Both my husband and I are Canadian citizens and are working in USA with TN Visas. We have house in US and have paid US resident Tax for 4 years. Within these 4 years, we did not fill any Canadian tax return since we do not have any income from Canada.
But, this year my husband will be transferred to Canadian Office for several months to 1 year and then come back to USA office. He will be paid by Canadian office (about $150K). My kids and I will still reside in USA and I can keep the health insurance for him. I am wondering if we can keep our tax home (married jointly) in US and he pay Canadian tax as no-resident for his Canadian income.
He will keep all the major ties in USA, but I think he has to have a Canadian driver license. Could you please let me know what we should do to not moving tax home back to Canada? If he has to pay Canadian resident tax, how about my income form USA? It is too complex. You answers are great appreciated!
Hi.
thank you for your fast reply.
Considering my costs will be in Euros and I will be claiming in Canadian
dollars, what conversion rate will I use?
I appreciate your feedback.
regards,
Matthew
Hi Kelly,
Yes, under some circumstances you can claim auto expenses on your income tax return.
Do you use your car for businesss, not just driving to and from work? If so speak with your employer as there must complete form T2200 for you to be able to make the claim. The form is available at http://www.cra-arc.gc.ca/E/pbg/tf/t2200/
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
I live in Ontario. I was a student from Jan2011 to apr2011. My tuition was approx 1,500. I’ve been working at a non-for-profit organization since may2011 and for the year I have made $8,445 from there. The problem is I get paid in cash from there and I want to know how this will affect my tax return. I just started another job in October2011 because I wanted a job that took taxes off my pay and from Oct to Dec I brought home $3,682(take home. I just get standard taxes taken off these paychecks for example on a paycheck where I earned 1,050.12 there was 199.19 in taxes so I brought home 850.93. I hope this helps. My main concern is that cash from my one job and how that will affect my taxes.
Hi Harry,
If you have no income other than Canadian dividend income eligible for the enhanced dividend tax credit, you can earn approximately $49,000 before any federal tax is payable. For every $100 of these dividends, $145 (grossed-up amount for 2009, $144 or less in later years) is included as taxable income (the extra $45 is called the dividend “gross-up”). Then taxes are reduced by the enhanced dividend tax credit, resulting in a low tax rate.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Jenny,
Depending on the total time your husband spends in Canada would determine if he was a tax resident or not. Either way, he would have to file a Canadian tax return for his Canadian income.
You will continue to file your US taxes as you have in the past. If your husband’s tax residency changes, he won’t file a US return, but you’ll be required to report as non-resident.
A more precise answer cannot be given without knowing exactly the terms of your husband’s employment.
Should you require assistance with your cross-border tax filing, our firm specialises in this area.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Matthew,
The excgange rate to be used would the one for the given day of transaction… if you use a Canadian credit card, it will be that rate. Otherwise the exchange rate of the day of transaction from the Bank of Canada will be the conversion rate you use.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
Thank you for this site. My husband and I are retired now, he is 65 and I am 60. Can we split our Canada Pension? I have heard a few different answers. Thanks again.
Hi,
I’m looking to get an estimate of my tax return as i would like to get a rough idea to plan my finances for the next few months and whether ill get a return or owe money. I live in Ontario.
The information is as follows:
In school (college) from Jan 2011 – April 2011.
$1500 tuition
Full time work May 2011 – Dec. 2011 (8 months).
Gross bi-weekly earnings: $1864
Tax deducations:
-Federal tax: $290 (YTD: $5100)
-E.I: $33 (YTD: $550)
-Canada Pension Plan: $86 (YTD: $1400)
-RRSP contributions: $93 (YTD: $650)
Year to date earnings (8 months): $30,700
Year to date deductions: $8200.
Net total: $22 600.
Hopefully with this information you could provide me with a rough estimation of whether i will be getting a refund or owing.
THANK YOU SO MUCH FOR YOUR HELP. AWESOME SITE/BLOG/FORUM!!
Hi. I was wondering, if I am a canadian citizen receiving paychecks from a US employer, must I file this income on my canadian tax reports?
Hi,
I am living in BC, Canada. my daughter is applying university for financial aid. the universities request Tax Return information due on Mar 01, 2012.how can I get the Notice of Assessment before that day?
Hi Shannon,
Without knowing if the not-for-profit, even though they paid you cash, withheld deductions is the question you need to ask of the NFP.
NFPs are not permitted to pay cash without deductions for employees wages… were you an actual employee or did you receive an honourarium for helping out?
Contact the NFP to see if they will be issuing a T4 for your tax return. If not, you are required to report this as Other Income and will subject to paying tax and CPP on this money.
If you don’t get a T4 from the NFP, expect to pay a hefty tax amount.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Emma,
Unfortunately, CPP is not a pension that is eligible for the pension splitting option. If your husband has a private or company pension, it is eligible for pension splitting.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hu James,
Based on the information provided, you are in a refund position of approximately $2000.
You can increase your refund by contributing to a RSP… for every $1000 contributed, you will benefit by a $200 increase in your refund.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Janice,
It all depends, but yes.
If you live in Canada, YES, you must all world-wide earnings on your Canadian tax return. You will also get the benefit of claiming a credit for any foreign tax deducted.
If you live in US, no, you do not have to file a return for any income earned while residing in the US.
If you live in Canada, you should also file a US tax return to get a refund of the tax deducted from your pay as well as any social security taxes. As a non-resident, you’d likely get 100% tax back.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Fraser,
It’s very unlikely you will have filed your 2011 tax return by Mar 1, 2012.
With the university funding application, submit your 2010 Tax Assessment with a note that your 2011 Tax Assessment will follow once it has been processes by CRA.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
My family had kind of a rough year. Our two year old was diagnosed with Leukemia and my wife quit her job (45k) to care for our little guy. As we approach tax time I am wondering if there are any tax laws that we need to be made aware of that might help us out.
Thanks in advance.
hi,
just wondering in bc – when you move can you submit your moving costs in your income tax return? if so what is the percentage on the return?
thanks!
Hi there,
I hoping to just a rough estimate of what i will either be owing or getting back when i do my taxes, so i can plan a bit for the next couple months. I live in BC.
I worked the full year.
YTD Earning: 37,598.74
YTD Deductions: 7,231.78
Tax Deductions:
CIT 342.96 4,878.60
CPP 101.13 1,686.58
EI 38.21 666.60
Total 482.30 7,231.78
I Also just opened an RRSP acct and deposited 5k into it earlier today.
I also have a tfsa acct in which i withdrew the 5k to put into my rrsp. Over 2011 i contributed 9k but also had 2.5 k of withdraws in 2011. I dont think that effects any as its a tfsa though.
Once again just curios of what i can expect and also if u have any other suggestions in helping increase my return?
even though i dont think it will make much of a difference i also donated $120 to childrens hospital which i was told is tax deductible..even though its not much of a donation i thought i should include it.
This is a very useful site. I just got a quick question. My situation is different then some people. Since January 01,2011 i was working part time than in April landed a full time temp job til september and was working that part time job as well. I was laid off in september than started receiving EI benefits early October, I also was working part time as well. I calculated my earnings. Gross earnings full time job was $18000, Gross earnings for Part time job was $5200 and Ei earnings were around $4200. Will I have to own taxes. While i was working part time I did not have to pay income tax for some reason.
Hello,
I am a full-time student (my 2011 tuition was roughly $5000). I work part-time and my gross pay was $9,500 and approx. $750 of it was withheld. I also have a 7 month old daughter (as of Dec. 31/11). We collect child benefits. I know my situation entitles me to tuition, dependent and employment credit. I also live in a common law relationship since May, 2011. My rent has been steady at 825/month for the entire year (9,900 total). Not too sure what else I should provide, but could you estimate my tax return? My girlfriend did not work, we did not have any medical expenses and my gf’s income for the year is $0. I live in Ontario, Canada.
Thank you!
From the $747 that was deducted from my pay; $273 was federal tax, $304 was CPP & $170 from EI.
Just a follow-up on my original post…
Hello,
I have carry over federal unused tuition amout of $107671 and provincial amount of $94706. My income in 2011 was ~$22000, total income tax deducted was ~$1000, cpp ~$790, ei ~$350. Am I able to get my income tax deducted amount if I use my carry over tuition fee? If so, How much should I put on “line 323 and 5856″ in order to get my income tax deducted?
Thank you
Ive a few quick questions. I only work part time, and made a little over 12,000 in 2011. i paid a total of 875 in fed tax, with an additional amount for cpp, ei etc which came total to 1660. I also received a small gift of 10,000 from a property sale from my fathers estate. So, my questions are these. 1. was enough tax taken off,as I asked did fill out a td1 and asked to take an additional 20 per pay. 2. Is the 10 grand I recieved from the estate taxable? and 3. Would you recommend an rrsp for the remaining balance of my inheritance or will it not make any difference on my tax rebate at all? Any thoughts appreciated. Thanks.
Thank you so much for answering my above question.
My husband will be employed as ordinary staff by Canadian company from February 2012 for one year. He is supposed to be back to USA February 2013. To my understanding of your answer, he has to fill Canadian resident tax return from February 2012. If it is impossible to fill Canadian no-resident tax, I do not need to keep his health insurance in US. Please confirm if I am right.
But for 2013, since he only live in Canada for 2 months(less than 183 days). Could he fill Canadian tax for his Canadian income only?
By the way, how much you firm charge for filling an Canadian tax return (or/and US tax return two w-2 only) like my situation
I appreciate you help!
Hi,
I came to canada ontario on work permit for 3 months starting from 1st Jan to 31st march
I will be getting my salary in canada while i stay here.
I have declared TD1 form and submitted the total claim amount equal to basic personal amount. Same done with Ontario tax form.
I am non resident and it is short term trip. I will also be submitting my tax return in india for same period april 2011 to march 2012.
My question is
1. Is my submission of TD1 and Ontario Tax form is correct?
2. How much gross salary should be getting if my annual package is 80000.
thanks
I have a Employment income of 80K in toronto. I have spouse who is not working and 2 kids under 12. How much Income Tax – Fedral and Provisional – I have to pay
Hi,
I have a question for Canadain personal income tax, I live in Ontario and I am still a student (paying $2200 tuition) with a part- time job (Earn $16000 per year). I started file my income tax since I was 18 but some of my friend have told me that we do not need to file our personal income tax every year. and we will have up to 7 years to do so? Made I know if that is true and if I do not file my income tax this year will I get any penalties from CRA or owing them tax?
Thanks
Hi, I received a canadian work permit in September 2011 and start working full time in October, they already send me the forms to fill and I already send them, but in mid November I got hired as an independent contractor for a small project (I was paid $800 dollars for the job and my contract was terminated. I need to do my taxes for that, the think it’s that it’s my first time doing it myself and I am quite confused, should I fill another form? How much I have to pay?
Hi,
I would like to seek a little help pls. I am a foreign worker under a work permit and skilled qualification. I have earned about 40thousand since feb 2011. every payday bi weekly about 450 dollars is deducted to my salary to pay taxes and everything that is needed to pay. I have been sending money to my family overseas amounting to 600 dollars to my wife & kids and 250 dollars to my parents every paychecks. how much do you think I can refund? is the money I spent sending to support my family gonna be a factor to make a difference in my taxes and refund? plus I am renting an apartment for 600 a month. Thank you and hope you can give me some info.
Hi Del,
My sympathies for your child’s diagnosis.
As for your question, if you do not belong to a medical plan through work, all the medical expenses you are incurring are deductible… best to claim on your wife’s tax return to receive maximum benefit.
Depending on the diagnosis for your son, he may be eligible for the Disability Tax Credit which definitely would be a tax relief for you. You can obtain more information here: http://www.cra-arc.gc.ca/E/pbg/tf/t2201/README.html?=slnk
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Abby,
Yes, moving expenses are claimable as long as you relocated at least 40km closer to your workplace.
This applies for moving for a new job or just moving closer to your workplace.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Daniel,
Based on the limited information you provided, it appears you are in a tax refund position of approximately $1,100.
To maximise a refund for yourself, you can contribute to your RSP. Any contribution to your RSP up to your allowable Contribution Limit will provide you with a return of 20% in refund.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Omar,
Based on the information your provided, we are unable to determine if you will be in a tax refund of payable position.
For you to determine your answer, sum up all the income you have for 2011, including EI and work income and enter the total in the calculator above. This will determine your tax liability… then take the total tax deducted from your income and subtract it from the calculated amount. The difference is your actual refund or tax payable.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Ev,
Based on the information you provided, it is estimated your tax refund would be minimally $273. You would also qualify for provincial tax credits.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Kim,
To obtain the maximum refund, you’d need to enter the maximum allowable amount. This amount is calculated on your tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Hol,
First off, the inheritance you received is not taxable… any taxes on the Estate would have been paid for by the Estate’s Trustee.
Without additional details from you, whether you are in a refund or tax payable position, this can be determined by entering your $12,000 income into the calculator above to get your tax liability; from that deduct the tax you had withheld and the result is your tax refund or actual tax liability.
If you do use your inheritance to contribute to your RSP and cannot use it this year, you would be able to utilise it in future years.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Jenny,
An answer cannot be given to you regarding your health insurance, as this is a tax forum; for this you need to contact your insurer or broker for details.
Yes, for 2013, depending on his tax status, he would have to file minimally his Canadian income on his Canadian tax return.
As for details relating to our tax services and rates, please contact our firm via email at info@storoszko.net for more information.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Vikas,
Firstly, an answer whether you have completed the TD1 form completed is not possible as only you would know what you would be eligible to claim or not. If you completed the form and considered all the possible deductions available, then it would be correct.
As for your gross salary, if you are working for three months, your gross salary would be that proportion (3/12 x $80,000 = $20,000).
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Anand,
Based on the limited information you provided, it is estimated your tax liability would be approximately $16,050.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Shirley,
Your friends are very incorrect. You must file your tax return every year you have income or are eligible to receive benefits.
If you do not file your income tax return and you are in a payable position, yes, CRA will impose tax, penalties, and compound interest until such balance is paid. There is not such thing as a seven year rule.
If you do not file your income tax return and you are in a refund position, you lose any additional benefits payable to you that you would obtain if you filed your tax return on time.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Artemisa,
To solve your confusion, you must file a Canadian tax return for all the income earned in Canada.
By completing the tax return, you can calculate your tax payable or refund.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Alvin,
Based on the information you provided, an answer to your tax refund cannot be completed.
To answer this question, enter your pay information into the calculator above and determine your tax liability. From this amount deduct your income tax withheld from your pay. This would be your tax refund or tax payable amount.
Any monies you send overseas to support your family are not eligible for any support deduction. Dependants must live in Canada for you to obtain a credit for payment.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Dear Sir/Madam,
I am a foreign postdoctoral fellows in Montreal, Quebec. My contract is from Jan 1, 2012 to Dec 31 2012. I have some questions about the Canada Tax.
1/ Can Postdoctoral fellows be exempted from Tax?
2/ If No, can I file a tax return at April 30th? my salary is 30,000 CAD yearly.
3/ What kind of expense can I claim to get tax return? Ex: air-ticket, transport,etc…
4/ If I want to meet a private tax advisor, where can I contact? how much does it cost?
Waiting for your reply soon.
Thanks.
Giluy_Tu
Hi Giluy_Tu,
No, Postdoctoral fellows are not exempt from tax.
You, can file a tax return April 30 if you were resident and had income in Canada during 2011.
Perhaps, without knowing your tax situation an exact answer cannot be provided.
You have your choice of tax preparers, we do not discuss services or fees within this forum, you may wish to contact us via email for more information. info@storoszko.net
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Thank you for the answer.
Do I not qualify for any refundable credits at all? Such as Low Income Tax Credit/Working Income Tax Benefit…
Thank you for your help!
Ev K
Hi,
I am working as a dropsite manager for the morning newspaper and earns $2000/month. I’ve calculated my total gas consumption for the year and got about $5500. I dont get T4 from my employer but i have a record of my payslips. How should i go about filing taxes and approximately how much would i be paying with those amounts i have? This will be a great help!
thanks,
justin
Hi Ev,
As I mentioned in the previous response, you may qualify for additional provincial tax credits and other benefits, but to know if you will, the only way would be to file your income tax return…. an estimate of these credits cannot be determined without seeing your tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Justin,
Good question!
When completing your tax return, complete the self employment form T2125 and you’ll be able to claim all your auto expenses (be sure you have tracked your kilometres driven during 2011 so the business can be claimed from the personal use)as well as home office expenses.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
A very informative site. My question is I have 401Ks in the US and would like to move them into an investment account in Canada – can I do this without incurring taxes(for both Canada and US)? For instance if I cash them out I pay IRA then it would be considered extra taxable income in Canada. I will keep them in IRAs up here if necessary just want them moved. Second besides the 401s I also have other investments(IRAs) in the US however, cannot get access to them because I moved up to Canada how do I get information about them? Speaking to the US bankers they tell me I need an american address I could provide one however, it wouldn’t be legit where I live anymore.
Hi,
I am working in Manitoba as independent contractor; I am registered as sole proprietor in Manitoba to file my GST because I am collecting the GST from the employer. I am falling under the 43.4%MTR for income tax. My question is that am I able to hire somebody (Spouse) for my accounts and other administrative work to reduce my taxes? Or I have to register myself as cooperation. What is most beneficial for me?
Hi ,
I am going to work in Toronto from Feb 2012. I will get 85k per annum.
I am married & have a kid. Both are dependent.
How much tax, CPP, EI I have to pay ? I want know my net home salary.Will I get any benefit in tax for dependent Spouse & kid?
Simon
I am about the same as you but I live in ontario, not sure the difference but last year i got about 1300, so probably somewhere around there?
I am woking a self employed and running business under sole proporiter category, in last year I was working as a employee and get total gross income of $16,854 the employer deduct tax 3080.97,EI 300.01 and CPP 774.28. In Soleproperiter buisness I earn 15333.71$. As per you the tax calulater is shows 4559$ to pay in the tax but I already paid 3080$.So how much I have to pay now.
Hi Suzy,
Very good question!
You can transfer your 401ks and IRAs into Canadian RSPs; it won’t be totally tax-free, but you can minimise the tax.
If you have lived or worked in the U.S., you may have an Individual Retirement Account (IRA) or 401k plan. Leaving these accounts in the U.S. can be administratively challenging and you may wish to consider moving them to Canada.
In certain circumstances, a person with a 401k or IRA may be able to rollover their U.S. retirement account to a Canadian RSP. The process can be tricky because the tax systems in Canada and the U.S. are different.
What Is A 401k?
The 401k is an employer sponsored defined contribution retirement plan that is similar, in many respects, to the Canadian Deferred Profit Sharing Plan (DPSP).
Step 1 – Does The 401k Qualify For A Rollover?
The tax implications of moving your 401k to Canada depends on whether you were a resident of Canada at the time the contributions were made to the plan.
If You WERE A Resident When The Contributions Were Made
If you were a resident of Canada when your employer contributed to the plan, you will not be allowed to rollover the 401k to a RSP. Although you can cash out your 401k, the lump-sum will be taxable in Canada. However, you can offset this by contributing to your RSP, if you have RSP contribution room available.
If You WERE NOT A Resident When The Contributions Were Made
A lump-sum payment from a 401k that are considered to be in the form of pension or superannuation attributed services rendered while you were NOT a resident of Canada may be transferred to an RSP without affecting your RSP contribution room.
Step 2 – Meet The Conditions To Transfer The 401k
Transferring a 401k to an RSP without affecting your RSP contribution room is possible provided you meet the following conditions:
> Lump-Sum Payments Only – The amount received from the 401k must be a lump-sum payment and be part of a series of periodic payments.
> Non-Resident Contributions – As outlined above, the payment must be the result of services rendered while you or your spouse or common law partner was not a resident of Canada.
> Included In Taxable Income – You are required to report the gross amount (i.e. before U.S. withholding tax or the penalty tax) in your taxable income on Line 115.
> Contribute By The Deadline – You must make a contribution to your RSP for an amount up to the gross amount received within 60 days after the end of the tax year you received the lump-sum payment. This is done under s.60(j)(i) of the Income Tax Act and is reported on Line 240 of Schedule 7.
You should advise your RSP plan provider that the contribution is a section 60(j)(i) contribution.
Step 3 – Consider The Tax Implications
The lump-sum payment will be subject to a 30% U.S. withholding tax and if you are under age 59-1/2, a 10% penalty tax.
For Canadian tax purposes, the gross amount is included in your income and you deduct the amount contributed to your RSP under s.60(j)(i). The 30% withholding tax may be claimed as a foreign tax credit, but if you paid the 10% penalty tax, it cannot be claimed.
The foreign tax credit and foreign tax deduction system is complicated and you should consider having your taxes done by a designated accountant, like our firm, Storoszko & Associates.
What Is An IRA?
An Individual Retirement Account (IRA) is very similar to a Canadian RSP. Contributions made to the account may be deducted from income in they year the contributions were made. Income accumulates in the account free of tax and is taxed as income when withdrawn. Withdrawals or collapse of the IRA before age 59-1/2 are also subject to the penalty taxes.
From a Canadian point of view a regular IRA can be rolled into an RSP without affecting your RSP contribution room.
The lump-sum payment (from the IRA) must be included in your taxable income and you can make a contribution to your RRSP under s.60 of the Income Tax. Like the 401k, the IRA will be subject to U.S. withholding tax and potentially the penalty tax. The withholding tax may be claimed as a foreign tax credit.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Danish,
Very good question!
YES, of course! You can hire your spouse to assist you with the bookkeeping and other duties. The better news is that you can also hire your children and you don’t need to be an incorporated business to do so.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Queen,
Based on the information you provided, an approximation of your net pay would be $60,500.
Any benefit for your wife and child would need to be claimed on the TD1 form from your employer.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi!
I am working in British Columbia and earning 54600.00 per year(gross). My RSP contribution limit was 7000.00 which I already invested. I have also contributed my spouse RSP for this year (2000.00). My spouse is not working and we have a kid. How much we have to pay for tax.
Thank you and hope I will get feedback from you soon.
Hi Ahmed,
Using your numbers, if you calculated $4,559 and paid $3,080 so far, the difference is $1,479, in addition to tax, as a sole proprietor, you will also need to contribute to CPP which amount to approximately $1,550.
So, to answer your question, on your tax return, you be in a tax payable position of $3,029.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hello!
I make 42,000/year gross income. I’m originally from Ontario and moved to Alberta at the end of October 2011. How will my taxes be affected? Ontario’s income tax is higher than Alberta’s, does that mean that I will be getting some of my taxed income back?
Hi Tina,
Without knowing the amount of tax you’ve had withheld, I can only provide you with what your tax liability is based on your information.
Your calculated tax liability is approximately $4,210. Deduct this amount from the tax withheld and the difference is your payable or refund.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
I have self-employment income of less than $6,000 but when I do my taxes, my required CPP contribution comes up as just under $300. So I am left with a balance owing even though I do not have much income. Does this sound right or am I missing a deduction somewhere?
Hi Joanna,
Completing/filing your tax return is based on your residency within Canada.
Whichever province you reside in at Dec 31, determines your residency and filing requirements.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Sheila,
CPP contributions commence to accrue when/if your income is over $3,500.
Even though your income may not be taxable, it still would qualify you for CPP contributions and in this case you are required to contribute your regular contribution plus the contribution of the employer if you are self-employed.
The amount of $600 based on income of $6,000 would be accurate.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
I live in BC and did some cleaning in 2011 for a large company. Each time I was paid $500 by company cheque. They did not take off any deductions or taxes. In total I earned approximately $4,500. Am I considered self employed? What am I going to owe come tax time? Please help. I can’t find this information anywhere. Thank you.
Hi,
I bought a house in April 2011, Is there anything for which I can claim for tax rebate such as cost for furnishing the house etc etc
Thanks
Alcina
I arrive to Canada on February 15, 2005, as a Landed permanent resident. I sta yed in the country for one month and went back to my country and continue living and working there til march 2008. At that time, I came to Canada as a Foreign Diplomat and resign to my permanent resident status before coming back (I was given a Diplomatic visa). As I’ve been reading your comments, in my case, I never actually settled down in Canada (I did open accounts, and came several times to visit, even bought a house, but personally never live in it).
I was instructed I should pay canadian taxes for my foreign income, which I did since 2006. As I actually never established in Canada as a Resident for tax purposes, do you think I could claim my taxes back?
Regards,
Claudia
Hi,
I am a bit confused as to the total amount of income tax being held on my pay check. I currently reside in Quebec, and work in Ontario. So I am trying to calculate the amount of tax I will owe Revenu Quebec when I file in my income tax.
This being said, I found numerous salary tax deduction calculator (webTOD, impot.net, CRA tool, etc) and they all seem in line as far as calculated income tax deduction.
The amounts posted in your income tax calculator seem really low compared to the ones provided with the above calculators…
I was hoping you could shed some light on this!
Thanks a lot,
Ian
How much will my income tax refund be for 0ntario 2012. I worked 1 full year in 2011.
Year to date–28672.48(end of year)
Shift Prem——-64.50
Bonus———–705.78(before taxes)was taxed
Gross———29442.76
Net pay——-23898.72
Tax————3553.55
Cpp————1277.54
Ei————–524.06
Benefits——–188.89
55000 is the tuition fee carry forward 45000 is the income. The Federal Tax Paid is 7500… what is the income tax for that year (approximately)?
Many thanks
Kaisar
I made almost 20,000$ in 2011 and didnt pay any taxes will i owe the government alot?
Hi Jo,
It appears from the information you provided, that yes, you are self-employed.
If your only income for the year was $4,500, then you would not be in a tax payable position, but will will be required to contribute to CPP and that would amount to approximately $100.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Alcina,
Congratulations on your house purchase!
Unfortunately, there are no tax deductions available to you, unless you have a business and use your home for part of it.
There may be a new home ownership rebate available to you, best check your provincial ministry of finance web site for details, if applicable.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Claudia,
Your question is complex… who instructed you to pay Canadian tax on your world-wide income, what this a CRA ruling?
Even though you may have had a PR card, you seem to not be a resident for tax reporting purposes.
I would suggest you seek out who you originally instructed you and request confirmation. If indeed, you were not tax resident in Canada, you would not be required to report your world-wide income. If you had at anytime Canadian source income, regardless of your residency, you are required to file a Canadian tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Ian,
The tax calculator above only calculates income tax. The other tax calculators you’ve mentioned include other deductions such as EI, CPP, QPP and others.
Being that you work in Ontario, your withholdings would be mandated CRA and Ontario, but when you file you tax return, because you live in Quebec, your tax payable or refund will be calculated by Revenu Quebec.
To best guess at your tax liability or refund, enter your total income (salary plus others) into the calculator above and calculate the Quebec tax. Compare this number to the tax withheld on your final paycheque for the estimated amount.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Jimmy,
Based on the information you provided, you are in a tax payable position of approximately $100.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Kaisar,
Based on the limited information provided, your estimated tax refund would be approximately $5,000.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Karen,
Without knowing where you reside, an exact number cannot be provided, but if you enter your $20,000 earnings into the calculator above, it will let you know the amount of tax you will be liable for.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hello, if I have carry over federal unused tuition amout and provincial amount for more than $50000 each, am I able to use those credit to get cpp and ei that I paid in 2011 as well? or is “carry over unused tuition amout” usable only for federal income tax deducted in 2011?
Sincerely,
Kim
Hi Kim,
CPP and EI are never refunded. CPP and EI overpayments are refunded (this occurs when you have more than one employer during the year) on your tax return.
If you have any unused tuition credit carry over, it is used to reduce income tax payable.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi again. I previously received a reply that I would be owing approximately $100 to CPP on $4,500 earned in 2011 from self-employment income. To furthet clarify – Ineed to know if this response still stands considering the self-employment income was not my ONLY income for the year. I also earned approximately $14,000 from other sources which DID take off the appropriate deductions. Therefore, given this new information, will I still only be owing the $100 CPP amount on the self-employment income? OR does this change the entire scenario? This is in BC by the way. Thank you again for your advice. I find this all very confusing and welcome any assistance. JO
Hi JO,
This additional information changes my previous estimation.
As a result of the additional information, you will be in a tax payable position of $1,500 including approximately $900 in CPP contributions.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
My wife and I are considering re-patriating back to Canada. We are retired. We currently have an interest income in a Panamanian Bank of $36,000/yr USD, and a Canadian income of $18,000/yr. We don’t pay tax on the Cdn. income as we are non-residents for tax purposes. If we continue our current situation after return to Canada, what would our tax responsibility be?
Hey I message you a bit ago and I was hoping to get some more questions answered. This site is amazing I love it!! I copied previous question and response..
Hi,
I live in Ontario. I was a student from Jan2011 to apr2011.My tuition was approx 1,500 i think I have unused tuition as well (don’t know what that means).
I’ve been working at a non-for-profit organization since may2011 and for the year I have made $8,445 from there.
The problem is I get paid in cash from there and I want to know how this will affect my tax return.
I just started another job in October2011 because I wanted a job that took taxes off my pay and from Oct to Dec I brought home $3,682(take home.
I just get standard taxes taken off these paychecks for example on a paycheck where I earned 1,050.12 there was 199.19 in taxes so I brought home 850.93.
I hope this helps. My main concern is that cash from my one job and how that will affect my taxes.
Hi Shannon,
Without knowing if the not-for-profit, even though they paid you cash, withheld deductions is the question you need to ask of the NFP.
NFPs are not permitted to pay cash without deductions for employees wages… were you an actual employee or did you receive an honourarium for helping out?
Contact the NFP to see if they will be issuing a T4 for your tax return. If not, you are required to report this as Other Income and will subject to paying tax and CPP on this money.
If you don’t get a T4 from the NFP, expect to pay a hefty tax amount.
I hope this has answered your question.
NEW QUESTIONS:)
They didn’t take any taxes off and i dont get a t4. He said I was a personal assistant (not sure if that was it esactly) and so I can claim gas for travel as well?
I don’t think I am an employee so i guess more of an honourarium for helping out? either way what’s my best option?(maybe for next year) Is there a certain amount of money u can make before it has to be taxed?
Also,(seperate issue) I live with my boyfriend, have for a year now does that mean we have to claim our taxes together? He makes about 95,000 net and pays a lot in taxes about 45,000.
If we have to claim together does it have any benifits or negative for either of us?
Thanks a lot, this feeling of not knowing what to expect is killing me. I feel like I may have put myself in a not so good situation.
Shannon
Hi Les,
From the information you provide, I believe someone perhaps has misinformed you.
Even if you are a non-resident of Canada (for example living in Panama), if you have Canadian source income you are taxable in Canada and you must file a Canadian tax return, regardless, reporting your Canadian income only.
If you were to repatriate back to Canada, you would be required to report your world-wide income while resident in Canada.
With the introduction of the American law FATCA by the IRS, your foreign account holdings with be disclosed internationally and foreign income will be required to be reported on income tax returns.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Shannon,
If you were in a contract position as an assistant, yes, you would be able to deduct some expenses (including home office) from your income.
Generally, you can earn approximately $10,000 before it will be taxed (any tax paid on this will be refunded at tax time).
If you have been living with your boyfriend for at least one year, you are considered to be in a common-law relationship.
When completing your tax return, since you are a low income earner, it would be beneficial for you and your boyfriend to file your tax returns as common-law so he can take advantage of the tax deductions available for a dependant spouse.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hello,
I am working as a contractor for an engineering firm. I incorporated my own company and I’m paid $60/hr by an agency.
I have no idea how many hours I’ll actually work in 2012 but I’m trying to figure out how much to set aside for:
Income tax
CPP
EI
…and I’d like to find a calculator that tells me how much to set aside for each based on the gross income for each 2 week period.
I collect HST and I set that aside properly.
I’d also like to find a decent guide on what I’m allowed to claim for expenses.
Thank you
Mike
Hi,
I’ve moved to Canada last June and been here for less than a year with my wife and son(2yr old). I’ve earned some money through my resigtered corp. in Alberta and have cut myself and my wife a cheque as wage for nov and dec 2011. I’ve talked to an accountant (not a chartered one! to do my accounting) and she told me to cut an RP cheque (from my business account) for CRA every 15th of month for $554.9 for the wage cheques ($2000 myself and $1500 my wife). Is it enough for tax’s, CPP and EI? or I have to pay other cheques to the government as an employer? I am not sure if my accountant is competent enough and know what’s she doing!!
Also I’ve become an employee from Jan 2012 and want to stop writing cheques for myself (because earning enough money through my employer +100K) and just want to write cheque for my wife every month until the business account money finishes and probabely close the corporation by that time! Does it work that way? Can I have an employee (my wife) and pay her while I myself work elswhere? (my corp. doesn’t earn no more money, I was a consultant before to my current employer)…
I have also cut a $ 20,000 cheque for myself from my business account to buy some personal stuff in 2011… how does this work? Should I call it dividen? how the taxation work for my personal and corporation account?
I do appreciate your advise…
I made 24,000 I want to know how much I will get back for 2012 income tax return
Hi Mike,
For an estimate, you should set aside 30% of your gross pay to cover the tax and CPP (you are not eligible for EI, unless for parental leave).
If you will be calculating your payroll manually, you can use Canada Revenue Payroll Calculator located at: https://apps.cra-arc.gc.ca/ebci/rhpd/startLanguage.do?lang=English
But one thing you must remember… the $60/hr your invoice your client is not your take home pay… if it were your company would not have sufficient cash to pay you or your other bills.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Al,
Firstly, if pay cheques were cut for you and your wife in 2011, you effectively were an employee as of those dates, not Jan 2012 as you mention.
Secondly, there is a difference between an accountant and a bookkeeper. If the accountant is not a CA, CGA or CMA, they are not an accountant, only a bookkeeper. You get what you pay for and may end up paying more in the end if you’re looking for a bargain bookkeeper/accountant.
Based on the limited information provided, a quick estimation of your monthly payroll remittances results in an amount of approximately $1,350. This amount includes tax and CPP contributions, you are not eligible for EI.
I am unsure how your accountant determined the monthly payroll remittance cheque calculation of $555, but it would result in a deficiency when the T4s are calculated and processed resulting in you paying penalties and interest for late filing.
You can make payments from your company for any reason you wish, the only thing to consider is if the payments will be allowable as expenses or shareholder advances.
If you cut yourself a cheque for personal expenses, depending on when you cut the cheque and the corporation’s year end date, you must either repay the $20,000 or claim it as salary. Your corporation’s tax accountant would be able to determine which way to report.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
I have 2 jobs. At my full time job i will gross $38000 for the year my part time will vary on a weekly basis from 5-7 hours. How to know what the right amount of tazes should be taken off for my second job?
Hi Andrew,
You haven’t provided much information to give you an answer, but here goes… enter your taxable income $24,000 into the calculator above and it will give you how much tax you are required to pay.
Then look at your last paystub for 2011 and compare the total tax deducted to the amount calculated above.
The difference will be your refund or tax payable amount.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi S,
To now if the correct tax is be calculated on your second job’s pay, you could start by talking with your payroll office. Be sure you have completed a TD1 form (your payroll office will know what this is) and you can then be certain if the tax is being calculated and deducted correctly.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi there, hope you can help me,
I am a Canadian citizen who returned to Alberta, Canada after living in the UK in May 2010. Part of my relocation package was reimbursement of moving expenses which I paid in December 2010 but the reimbursement took place in January 2011, forming part of my 2011 income, when I had a container shipped from England to Alberta. My regular salary is $65,00 but my total earnings less taxable benefits is $77,357.66.
My husband and fifteen year old daughter joined me in Alberta in May, 2011 and have been 100% dependent on me financially.
According to my final paycheque in December 2011, I have paid $15,577.28 in federal taxes, $2,217.60 in Goverment Pension, EI Cont = 786.76, LTD (not sure what this is) = $535.98, and company pension $3,409.75. According to the calculator I need to pay over $18,000 in tax this year – is this correct? Or are there other deductions that will minimize this tax hit?
My moving expenses I understand are not tax deductible from overseas, but someone suggested that the portion of expenses that took place in Canada (the container landed in Halifax and was shipped via rail to Alberta) might be tax deductible. Is this the case, and what kind of documentation would I need to provide to back up my claim, as I only have one invoice from the moving company.
Thanks for any and all advice provided!
Hi Sarah,
You have been misinformed… your moving expenses (travel, shipping, accommodation, food, etc.) to take employment in Canada are deductible against the Canadian income. Find all your receipts; if you submitted your receipts to your employer, then the moving allowance would not be taxable to you.
Without knowing of how you completed the TD1 form for your employer’s office in Canada, a determination of under/over paying tax is not possible.
As you are a Canadian citizen, do you know if you have any RSP Contribution room available to you for work done in Canada prior to moving to UK? If you do have some contribution room, you can contribute to a RSP to reduce your taxes.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
I am going to work as contractor and will work for one canadian company through agency in edmonton. My salary will be paid by agency @ 67 CD / hr. rate. Can you expalain on what kind expances i can have tax benifits?
Hi Amit,
With the limited information provided, it’s suggested you speak with your employing agency to determine your actual status as contractor or employee to the agency. The employment agency is your employer not the hiring company.
Your agency will know your status an d advise you.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
2011 Tax Questions please help:
I am a Canadian Citizen, living and working in Ontario. Recently married in July 2011 to an American Citizen. Husband LIVES full time and works in the US (pays US taxes etc). No financial ties in Canada (we dont share bank accounts, or transfer money etc…). I have to claim as married but what do I do with his income on the 2011 tax forms? He doesnt have Canadian income or bring money into Canada. He has not yet applied for his PR card or residency status.
Any help would be great.
Hi Angela,
Good question!
Even though your husband is not resident or taxable in Canada, you are required to report your husband’s income on YOUR Canadian tax return so as to determine the benefits to which you are eligible.
Depending on your income level and his, you may both be eligible for additional deductions, both on YOUR Canadian income tax return and HIS US tax return (which he files as Married Filed Separately) where he reports your Canadian income.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
My former employer is going to pay me overtime I am owed. I have been asked if I want to receive it as a lump sump, after deductions, or in bi-weekly payments. I expect to earn more this year, so would like advice on the most tax-efficient way to receive this payment. Also, do I have the option of receiving it as a lump sum with no deductions and the appropriate tax slip from the employer, to submit with my next return?
Thanks for your help with this.
Hi, I am using Quickbooks for processing payroll. My tax tables are up to date.
Employees paid semi monthly. I have taken the first pay of the year Income Tax $ 255.85 x 24 pp = $ 6140.40 on $ 42457.44 yearly income. this calculator calculated that amount to be $ 6939.00. why the difference? Would appreciate your comments.
Jan
Hi Ann,
Whether you want a lump sum or spread out with your regular pays, is totally your choice… in the end it makes no difference.
A lump sum payment will be subject to proportionate increase in your CPP and EI deductions and escalated tax withheld.
Spread out would result in proportionate increase to all your deductions.
In the end, when you file your tax return in 2013, if you had extra escalated tax withheld, you’d get it refunded to you (same with the proportionate increase of tax through spread out method).
You do not have the option of receiving the lump sum payment without any deductions as your employer would be subject to penalties for not withholding the amounts.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Jan,
We cannot provide you with an explanation for the difference between QB’s calculation and the calculation above.
When I compared the calculator above with CRA’s Payroll Deduction Calculator, it came within an acceptable difference since the calculator above uses the exact marginal tax rate, not exactly, but very similarly to the PDOC.
Are you sure you have updated the employees’ personal exemption amounts (not just the payroll tables)? If you have, it would appear QB is off in it’s calculation. Is the pay above an hourly result or salary? This would affect how QB calculates as well.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hey there,
I just have a question—I earned about 119300 gross this year (salary and commission) and paid about 32000 in income tax. According to your calculator, I am to pay about 35400 in taxes soo not too far off. If I contribute 10000 to RRSPs should that wipe that difference clean (for now…)? I am relatively new to this game, as I graduated about 3 years ago, but I just want to avoid as many surprises as possible. IE if contributing a bit more to RRSPs will save on the income tax, I will do it!
Hi Annie,
You don’t mention the province you reside in, but for discussion sake I’ve assumed Ontario (doesn’t affect the outcome of the discussion).
At your tax margin, for every $1000 you contribute to RSP will save you $434 in tax… so $10,000 contribution would reduce your tax payable by $4,340.
Another option to you, as a commission employee, is that you are eligible to deduct any expense related to you earning your commission. You should obtain a signed T2200 form from your employer to do this.
Also, don`t forget if you have any unused education tuition deduction or student loan interest paid, these can be used to reduce your tax payable as well.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi, i have a Question ….i’m a newcomer In canada Live in winnipeg, I made 26400$ in 2011, I have three kids age 2,4,5 and my wife is not working at all.
I want to know how much tax I contributed .
and how much should i get back
THank you
God bless you
Hi,
Another tax season is upon us. I cannot seem be able to get a straight answer from either CRA or IRS. I currently live in the US and I am working for a Canadian company in AB. All work is performed in the US however I am paying CDN taxes, EI, CPP through payroll. As such is my income source from Canada taxable in Canada or do I file a return and ask to be exempt? Last year I filed as a deemed resident but it does not seem right? Any suggestions would be greatly appreciated.
Thank you.
Hi Adam,
Providing just your income does not give us much information to work on, but based on the family details, you are likely to get a refund of all the tax you have paid.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Derek,
Unless there is something you have omitted, there is nothing complex in this issue.
If you are an US citizen, living in the US with Canadian source income, your filing requirements are:
>File a 1040 tax return for your world-wide income utilising the Canadian tax for your foreign tax credit.
>File a T1 tax return as a non-resident of Canada, since you do not live in Canada.
If you are a US citizen and have no plans to move to Canada, or if employment with the Canadian employer will last for awhile, it would be best for you to contact CRA and IRS to request forms to request to be CPP exempt in Canada and pay SS in the US.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Thank you for your answer. One more question – I am not US citizen rather a US residents for tax purposes. The US considers this income US source (not foreign source), as the work is performed in the US. Are you saying that since it is paid by Canadian resident it is taxable in Canada and I claim foreign tax credits in my US return? I am trying to figure out if i should be paying taxes in Canada. Even though none of the work is done in Canada? It seems both countries claim that this income is sourced on their soil. Would you be so kind to explain why CRA makes it a CDN source income. Thank you for any further comments.
Hi
I moved to alberta as foreign worker. My wife is living in london ontario and she is doing her masters and took OSAP for her education.
I am in Alberta working in gas station as Retail Supervisor on $16 Per hour for one year. How much total i will be making at the end of year after deductions like (federal, provincial, cpp and EI).
And how much tax including CPP, EI And Provincial and federal withholding) I will be paying annually.
Thanks
Deepak
Hi there. I am currently going into a job where I will be working as a Contractor on a 21 days in, 7 days off period being paid 300$ per day. How much will I be paying as tax when income tax comes around? I will be making less than 30,000$ as I will only be doing it for 3 months.
Thank you.
Hi Derek,
Whomever you are getting this foreign/domestic confusion from is not correct and understanding the complete picture.
The income your are receiving is for work done for a foreign company (to the US) in Canada. This income is foreign income in the US since the Canadian company is not resident in the US. It is obvious that, the Canadian employer does not consider you to be in a foreign country doing the work, as you are subject to Canadian payroll deductions. Who cares where the work is done? You’re paid by a Canadian company!
American citizens are taxed on world-wide income regardless of residence and source. American residents are taxed on world-wide income regardless of source. I would assume you are Canadian since you are eligible to work for a Canadian employer, if you are not an US citizen.
If you are resident in the US and not an US citizen, you are a Resident Alien and file US taxes as such. Just as you are required to file a Canadian (Non Resident) tax return because you have Canadian source income.
Both countries cannot claim it’s domestic income… this is confirmed by Tax Treaty and specified in both the US and Canadian tax returns.
When you filed your tax return for 2010, you were not a deemed resident of Canada, unless… your wife and children and family home were in Canada while you worked in the US for less than a year. Whomever decided to designate you as a deemed resident never read the Tax Act.
As mentioned previously, you are required to file tax returns for both countries. You must file your Canadian tax return because you worked for a Canadian company (and had Canadian tax and deductions withheld). Depending on your withholdings, you may either be taxable or refundable.
You then take the Canadian return to file your US tax return stating the Canadian income and other income you had for 2011. Depending on your filing and exemptions available, you may be taxable or not.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Deepak,
This is not a question we can answer…. you and/or your employer are the only ones that can.
All your answers can be found on your paystub.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Tony,
To answer your question, take the number of days you will be working and multiply by $300.
Take this calculated amount and enter it into the calculator above. This will determine your tax liability.
Next, take the calculated amount from step 1 and multiply by 9.9% to determine your CPP contribution amount.
Add the result of step 2 and step 3 together to determine what you will need to pay when you file your tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi there,
I’m an Australian who began working in Nova Scotia in September 2011 and earned $17,822 from then until Dec 31 2011. My tax paid was $4,414.86.
I worked from Jan 1 to March 31 2011 in New Zealand where my net income was NZ$7,349.70. I didn’t work at all anywhere in between as I had been backpacking around Europe and North America. My taxes are all paid up and finalised in NZ.
I have been told that because my foreign income is more than 10% of my total income for the year that the Canadian government will not give me a tax refund. Is this correct?
Thanks
Hi, is the tax calculation here include EI or Government Pension?
Thank you for the website and Q&As.
Well this clarifies things. Thank you for your time. I appreciate it.
Hi Bob,
You have been given incorrect information.
For Canadian tax purposes, you have no foreign income, if the only other income you earned during 2011 was prior to you landing in Canada. Your New Zealand income has no reason to be reported on your Canadian tax return.
As a Non-Resident for tax reporting, you must file a Canadian tax return for all your Canadian sourced income effective the date you landed in Canada.
Please keep note for your 2012 tax return, that if you are Resident in Canada for 183 days or more, you are considered a Resident for tax reporting.
When you have your tax return prepared, be sure you have it prepared by a knowledgeable, experienced firm, not a fly-by-night-put-a tax-sign-out office as your tax situation include a slightly different method of determining your credits and an inexperience preparer may result in you having errors filed on your return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Bill,
The above calculator only determines the tax payable, sorry, it does not include CPP or EI because there is not a simple method to determine the CPP and EI due to individual taxpayer differences.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
hi, so i am paid by cheque every week and my boss pays me hst on my chq, so does this mean i am going to have to pay the hst forward or will it just mean i wont have that money returned, i am in college full time and i have only been working at this job since june and made approx $13000
Hi JP,
The way HST works is whatever HST you collect, you pay to CRA. Whatever HST you pay for expenses, you get back from CRA.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi ~ Thank you for your answer. One other question: how do I calculate how much will be withheld?
Thanks.
hi,, im new comers here in canada april 13 2011 until jan 13 2012 my working permit, im single when im enter here in canada but actually im married and my husband have no work in philippines,,if i write is married in the form to applying the tax refund is it ok? my income tax deducted is 1,956.28 do you think how much i recieved my tax? thank you
juvilyn
i have done 2year business managemment diploma in toronto as a international studentin 201o.i lived there for next 7 months, then i moved to saskatchwan .i started my first full time job here in july and second part time in october.i earned around 33000 gross from both.do iam eligible for tax return or payable?
and should i get tax return from ontario as well under international student program?
thanks
gurpreet
Hi Ann,
Take the total bonus amount and enter it into the above calculator. This will be the tax liability.
To the tax liability add 8% of the total bonus amount to cover CPP and EI.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Add the two together to get your total withholdings.
Hi Juvy,
Without additional specific information an accurate answer cannot be provided to you.
Enter your gross pay into the calculator above and see how it compares to the tax deducted, it will provide you with the information you are requesting.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Gurpreet,
First, please understand here is only ONE tax return for Canada. Each province, except for Quebec, has a supplement to the T1 tax return.
Regardless, if you are international student, temporary worker, temporary resident, permanent resident or Canadian citizen… all file the same tax return.
When you file your tax return, the calculations of tax payable and benefits is based on where you reside Dec 31, 2011.
As for if you are payable, enter your pay in the above calculator and compare the amount to your paystub to determine if you are payable or refundable.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
For a $85000 per annum salary in Quebec, your website shows the salary after tax as $59,390. But when i checked on “paycheck city canada”, its much lower at around $51000(or $4298 per month).
So which is the correct figure and how much will i get in hand after tax for a $85,000 per annum salary in quebec.
Thanks
Vinu
Hi,
I am a residence of Ontario, Canada and will be working for an UK company in China for a year. I will be liable for paying the Chinese IIT (Individual Income Tax) while I am there. How does the China/Canada Tax Treaty work so I will avoid being double taxed?
Thanks in advance,
Wayne
Hi Vinu,
The above calculator calculates income tax (federal and provincial taxes) only.
Your paycheque is subject to other deductions not included in the above calculator: CPP, QPP, EI, QPIP, etc.
The additional deductions that are on your paystub would be the difference between the calculated amount above and your paycheque.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Wayne,
You won’t need to worry of double taxation China/Canada as you would pay taxes only in the country you are resident, but you may be double taxed via UK/China as your employer will be UK based.
As for your Canadian taxation, you must notify CRA of your leaving Canada via your tax return of the year of your departure (ie. if you take the job in China March 1, you effectively departed Canada Feb 29 and will be required to file a Canadian tax return for the period during 2012 you lived in Canada). Similarly, for your return to Canada after your assignment.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Thank you for your answers, and taking the time to provide a really informative service.
I earned 90,000 for 5 months. I would be taxed as non resident in Ontario. How much would I have to pay?
Thanks for the quick answer.
One more thing, since my family will still be in Canada while I work in China, in this case, do I need to report the earning for 2012 in both China and Canada as well as applying for the federal and provincial foreign tax credits?
Would the following example apply to me?
In addition, how would the China/Canada treaty work and any examples on how the foreign tax credits are calculated so I will not need to pay tax on my China portion of the income.
Example
Tim is an industrial designer. His employer has sent him to work in Hong Kong for 18 months. His spouse and children stay at the family home in Saskatchewan during his absence.
We consider Tim to be a factual resident of Canada for tax purposes because of his residential ties in Canada. When Tim files his Canadian return, he will report his income from all sources both inside and outside Canada, and he can claim all deductions that apply to him. Tim will pay federal tax and Saskatchewan provincial tax. He can reduce both federal and provincial taxes by claiming all federal and provincial non-refundable tax credits that apply to him.
Thanks,
Wayne
Wow! this is a great resource for people like me. My husband and I moved to Vancouver after living abroad for two years where we did not make any income. We moved in April 2011 and i started work with monthly income of 43000. My husband has not been able to find any employment until now and is enrolled in a course for which we paid 5400 dollars in fee. I have additional debt of 40000 dollars which needs to be paid of (especially 5700 of which is credit card). I would like to know if I can hope for some refund if we file a joint tax return. Thanks so much.
Hi Dean,
An exact answer to your question cannot be provided, but here is some info… when you say you are non-resident, where are you resident? Canada or foreign country?
Non-residents pay the same tax as residents pay. If you want to know what your tax liability will be, enter $90,000 into the calculator above and compare the answer to the tax on your paystub. The difference will be the tax owing or refundable.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Wayne,
The information you included in the second question totally changes the answer to your question.
The tax treaty between China and Canada avoids double taxation by requiring you to pay tax in both countries and utilising the tax credit in the higher taxed country.
There is no calculation method for the tax credit, it is dollar for dollar. Whatever tax paid in China would be credited to you when you file your Canadian return.
But keep in mind your situation is more complex because you have an UK employer which may withhold taxes for UK.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Sushmita,
An exact answer cannot be provided to you due to the lack of information given by you.
In Canada, there are no joint filing of tax returns. Each resident files their own tax return as required. If your husband had no income, but did have education expenses, he would file his return and report on your tax return he is dependant.
To determine your tax liability, enter your income into the calculator above and review the answer to your tax withheld on your paystub.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi.I just wanted to ask a question…I worked in alberta in 2011 for 9 weeks. I was with the union boilermakers.I made 26000 and i payed 9500 in taxes…all the rest of the year i was on E.I at 800 per 2 weeks..my tax dedution is a rate of 30% on E.I…I am from N-B and live here…can u tell me if i will pay taxes this year or receive? If so how much? Thanks
I was wondering if the tax calculator includes both
federal and provincial taxes. thanks
Hi,
For a $90,000 per annum salary in quebec, the calculator shows me $62,119 after taxes. Adding CPP,EI,QPP etc, this may further be reduced by another 8-10K.
So my question is, is there any way i can save on taxes.
like if i buy a house or take an educational loan etc. Can i avoid paying such a large federal and provincial tax.
Thanks
Vinu
Hi Lee,
Without additional information of your total income and total tax paid, an exact answer cannot be provided.
But based on the detail you did provide, you are looking at more of break even or small refund.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Gord,
Yes, the calculator above does calculate both federal and provincial income taxes.
It does not reflect other deductions including CPP and EI.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
I did 43500 gross with the work and e.i..when i worked i payed 9500in taxes. so its 26000 worked and 17500 on e.i…
I am a new permanent resident here and moved to B.C. in July 2011 I purchased a new residential property (town house) in B.C in Sept 2011. I was not eligible for the exemption of first time buyer property transfer tax as I have not resided in B.C for a taxable year. My question is after I reside for a year can I claim for a refund or be eligible for this first time buyer exemption. This is the only property I own and reside in.
Hi Vinu,
To reduce your income tax payable, maximise your tax deductions available.
The easiest of which is to contribute to a RSP.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Lee,
Using the calculator above, entering your income results in a refund of approximately $500.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
I am working on a temporary work permit in Nova Scotia since july 2011 and earned around $40,000 in 2011. My spouse and children live abroad. I live in a rented apartment. Am I considered as a resident for tax purposes? Do I need to pay income tax?
Thanks for your reply.
For a $90,000 per annum salary i.e 7500 per month, Can i maximize my tax deductions so that i am paying only 1000-1500 in tax and get the rest 6000-6500 in hand.
I just want to know if this is possible. If not, what would you say is the maximum that you can save from tax.
Can i contact you for help. How much do you charge for your services.
Hi Susan,
To claim the credit, as you know you need to be a resident for at lest one year.
Unfortunately, you are not eligible to apply in a different calendar year and even worse for you, once you own a home, you are not able to be a first timer even again (federally). You should check with your provincial revenue ministry as to if this rule is different in your province.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Kane,
Regardless of the amount of time you are working in Canada, you are a taxable in Canada. Even only working one week in Canada, you are required to file a Canadian income tax return.
Residency allows for some exemptions not provided to non-residents.
You likely are going to get a refund of tax, but for you to get it, you need to file a Canadian tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Vinu,
Unfortunately, the tax system doesn’t work the way you wish. All taxes are collected upfront through pay deductions.
During the year, if you maximise your deductions and contribute to a RSP, when you file your tax return the following year you file for your refund.
It would not be possible for you to attain the type of tax savings you are looking for.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
I made 53,000 in 2011 (Ontario), and paid 9,275 in fed tax. I have so far contributed 1,500 to an RRSP and 1500 to TFSA, with another 5,000 in cash. My goal is to save for a down payment on first house purchase. Should I take all my free cash/TFSA and put into RRSP for return and re-invest? How much would I get back at 7,000 RRSP contribution?
Thank you!
Hi,
I am trying to come up with a rough estimate. I currently made 62,000 last year in quebec, I moved to ontario on Dec 16 2011 and am trying to determine how much of a rebate I should get from that. I also contributed 19,250 into an RRSP and have approx 600 dollars in interest paid on my student loans. how much should i roughly expect to get back assuming i paid the proper amounts of each paycheque?
thanks!
Hi Brandon,
If your plans are to save for a down payment, you best option is to max out your TFSA contribution and then if you have excess cash to contribute to a RSP.
Any tax advantages of contributing to the RSP would be lost when withdrawn for use.
If the $1,500 TFSA deposit is the first and only contribution so far, you can contribute up to another $18,500 for 2012.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Jason,
Without knowing the amount of tax deducted from your pay, an exact answer cannot be provided to you.
But with the following, you can calculate the approximate refund:
Enter you income into the calculator above and take the tax payable amount for Ontario.
Subtract from this amount 32% of your RSP contribution ($32 tax refund for every $100 RSP contribution), in your case $6,160; this will be your actual tax liability.
Review your last paystub for 2011 and take the total tax deducted and compare to your tax liability. The difference is your refund.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hello,
I would like to know if it is normal that I received about 260$ back after taxes in 2010 while I made over 8300$ ? I was a full-time student in cegep and used public transportation at the time (roughly 45$/month).
Since tax season is coming up, I would like to know if this is normal so I can decide wether or not to continue filing my taxes with the same person.
Thank you
I think this was answered partially already but I’m confused.
Can you please clarify: my dependant child (less than 18 years) earned $7700.00 as ‘independent contractor’ in 2011 (no deductions).
Is he required to file tax return because of CPP? Or does he not have to file because income is under $10000.00? He has never filed a return before.
If he is required to file a return can I still put him as ‘equivalent to spouse’ on my return. Am I right in thinking ‘yes’ but I would have to declare his income on my return?
Thanks so much for your great answers.
I got a JSPS postdoc fellowship (japanese) free tax in japan. I’ve to fill japanese tax decalration also.
I think I’m considered Factual resident of canada even I’m abroad.
I receive monthly allowances as ‘travel expenses’ in japan approximatly $55000 last year. is it free tax too in Canada too ?
Thank you
Hi,
I have a question regarding capital gain. I bought a second house in Mississauga, Ontario 4 years ago and selling it now. This second house was used as my office but is registered under residential home even though its in a commercial area. since I am selling it for more than I purchased it for, and it is not my first house, are there any tax laws that apply? if so, are there any ways in reducing the tax required to be paid? also, I plan on purchasing another property very shortly, using the money i make from selling the house. Any knowledge regarding this matter will help me.
Thanks,
Mark
Hi
Firstly thanks for an unbelelievable informative site!
My wife and I are coming to BC in the near future with an intra-company transfer visa from South Africa where we are currently resident citizens. The South African tax year runs march-february. We will apply for permanent residence in Canada once we’ve arrived. South african tax law stipulates the same 182 day situation for tax liability as the CRA. Since the CRA tax year runs jan-dec I believe that if we come to Canada in either july or august we will not be liable for tax in either country? Does this seem possible?
Regards
Gareth
Dear Storoszko & Associates Tax Specialist,
I am residing in Toronto, Ontario and working part-time for 3 small organizations. I heard from people that working for more than 1 company will make me have more tax deductions. Is it true? My wages per week is as follows:
1. 7 hours @ $10.40
2. 24 hours @ $14
3. 15 hours @ 21.5
Thank you very much for your kind attention.
Regards,
Maria
Hi Jefferson,
Without actually seeing your tax return, no answer could be provided.
Your best option is to take your last year’s tax return to a competing tax professional (not a seasonal tax return shop) and request a no charge review. If your tax return is incorrect, the tax person will let you know what was wrong and help you get it corrected.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Marie,
Your son is required to file a tax return because he earned because he earned more than $50. He will not be responsible to pay income tax because he is below the personal exemption amount, nor will he need to contribute to CPP as he is under 18. Filing an income tax return and reporting the income will benefit him in the future by building RSP Contribution room.
Yes, you are correct that he can be claimed by you for the equivalent to spouse deduction, after reporting his income from his income tax return.
Depending on the type of work your son performed, he may be eligible for independent contractor expense deductions… this would benefit you if his income lowers the spousal deduction.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Pascal,
If you are indeed a factual resident of Canada, all your world-wide income is taxable in Canada… even if it is tax-free abroad… it must be reported as income on your Canadian tax return.
I suggest you contact CRA to get an official ruling as to your tax residency, if you wish to save tax! http://www.cra-arc.gc.ca/E/pbg/tf/nr73/README.html
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Mark,
I am assuming you mean by second house that this is not your primary residence.
Only your primary residence is free of any capital gain when you sell it.
Since the second (investment) house was sold at a gain, 50% of the gain is taxable to you. If you wish to minimise your capital gain, your best option is to look at the Adjusted Cost Base of the house (cost to purchase and all related expenses to improve – not property taxes or utilities). Adding up all the expenses you paid for improve the house will decrease the gain and therefore you pay less tax.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Gareth,
The CRA ruling is such: you are deemed a tax resident of Canada after residing in Canada 183 days; once deemed a tax resident of Canada, you are required to report your world-wide income on your Canadian tax return from the first day you landed in Canada.
If you are in Canada less than 183 days in the calendar year, you are still taxable in Canada on any Canadian sourced income only.
In other words, landing in Canada at anytime during the year and working at least one day will make you taxable and responsible for filing Canadian tax returns.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Maria,
It is not true that you are subject to more tax deduction for having more than one job.
The consequence of having more than one job is that employers would are likely to over deduct CPP and EI deductions. This is not a problem to you as you will be refunded this over deductions when you file your income tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
I am an Ontario resident who will be working overseas (Abu Dhabi) for 2 years. My permanent residence is just with my roommates who will probably move in August). I technically co-own a house with my dad in Quebec, but this is only on paper. I have a bank account and credit cards, and I own a house. Should I declare I have no permanent residence? What should I do to pay the least amount of taxes to Canada?
Hi Jodi,
Abu Dhabi (UAE), does not withhold income taxes from earnings (tax free country).
Under the Tax Treaty between Canada and UAE, a Canadian citizen/resident is required to pay income taxes in Canada for any world-wide income. UAE doesn’t not consider foreigners to be permanent residents regardless of time residing in UAE.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
I am working for a company on a 3-4 month contract, after which I will be laid off/unemployed. I am getting roughly 1/3rd of my gross taken off of each cheque. Being that I will still make over the basic personal claim amount in that period, is it possible to see any of that tax money before next years tax return? If so how?
Hi Jay,
Unless you are eligible for additional deductions (which you would have already informed your employer through the TD-1 form), unfortunately nothing can be done to reduce the tax withheld from your pay.
A note, if you are going to receive EI, the additional tax deducted with your current employer will reduce your tax payable at tax filing time as EI only withholds 10%.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
I am considering immigration to Canada. I am a USA citizen on pension of about 37,000 yearly. I have a wife and child 12 years. If I understand correctly, I will always have to pay USA taxes. How hard am I going to get hit on taxes if I move to Canada? And what is considered to be taxable income? Or in other words, what is not taxable? And what about money that I have now? If I bring it to Canada, is it taxable?
Dear Sir,
I just received my T4 and it shows that my employment income is $48,711 (this is the only income I have for the tax year 2011). The total tax deducted $10,494 and CPP paid was $2217 and EI paid was $786. Can you please let me know whether I am eligible for any tax refund? and how much?
Many thanks,
Kind regards,
Shripad
Hi David,
If you emmigrate to Canada, you are responsible for reporting your world-wide income to the IRS, but at your income level there would be no US tax payable.
To give you an idea of the tax ‘hit’, enter your annual pension into the calculator above to determine your liability; obviously this is approximate as you would qualify for deductions for your dependants. Keep in mind the extra taxes paid in Canada are a benefit to you as they provide free health care and other social benefits.
Your private US pension is taxable, a portion (not all) of your US Social Security would be taxable. Selling your principal residence in Canada is not taxable.
If you bring your money to Canada, no it is not taxed… only income is taxed.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
The CRA website says that Ontario’s rates are as follows:
5.05% on the first $39,020 of taxable income, +
9.15% on the next $39,023, +
11.16% on the amount over $78,043
Shouldn’t Ontario’s highest marginal rate be 29 + 11.16 = 40.16.
Your calculator claims that the marginal rate is 46% for high incomes in Ontario, which appears to be a mistake.
Hi Shripad,
Without additional information from you an accurate answer cannot be provided.
But, you can easily determine your answer by entering your income in the above calculator and comparing the result to your T4. The difference would be your tax payable or tax refund due.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Afternoon..
I am currently a sole proprietor sales agent residing in Ontario, the compmay I represent is in the US and I get paid in US funds. I recieved my 1042 from them, and my salary was 100k. I know I am responsible for my own taxes. I invested about 34k in TFSA/RRSP, what would my estimated tax payable be? am I entitled to claim HSt on CDN expenses? ITC credits, do I need to file a US return/
thank you very much…
Hi AAA,
The average and marginal rates calculated above are combined federal and provincial.
Your calculation does not take into consideration the federal portion of the calculation above.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Chris,
Firstly, why did your US employer send you a 1042 form??? This is supposed to be completed and filed by them if they withheld US tax from your payments.
Did you pay US taxes, etc.?
Per GST ITC, without knowing specifically more of the type of business you are operating, an answer cannot be provided… your best option is to contact the CRA GST office.
Contributing to a TFSA does nothing to reduce or create tax credits…. only contributions to RSP will generate tax credits for a tax refund.
If you had US tax withheld from your US pay, then yes, you would want to file a US tax return to get your tax refunded. If there was no tax withheld, there is no need to file a US tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
I am a coop student and I’m having some trouble with taxes this year already. The company i am working for is paying for my lodging but i still have to pay the taxes on it. my pay that is supposed to be almost 2300 every 2 weeks, is actually taxed for over 3000 every 2 weeks because of the lodging. so over all I lose about 1000 in taxes and get a about 1300 in actual pay. This isn’t a small amount, but I am also a student and planned my budget without this adjustment.
My question is, what I can expect to get back in my return next year? I have 2 work semesters this year and 1 academic term (work terms are counted as full time). I will end up paying about 2500 in tuition fees and probably 3000 with all the other university fees. If i assume that i make around the same amount (minus lodging adjustment) on my next work term, how much of the taxes can I get back, if any?
Thanks, Caitlin
Hi Caitlin,
An answer cannot be provided to you based on the information you provided, but here is how you can get your answer:
Look a your final paystub or T4 (preferred) for 2011, enter the total income (box 14) into the calculator above to calculate your tax liability.
Compare the result to the tax deducted on your T4 slip and the difference is your refund or payable amount.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Good Afternoon,
You have an excellent site and are very helpful with answering of questions.
I have a quick question to make sure I am figuring my approximate tax correctly. I will be moving to Toronto in a few weeks to start a job. I am married with 2 kids (twins – age 11) and my wife does not work. I will be making $92,000 CAD/year. Please let me know what my ballpark take home pay will be after tax deductions.
Thank You!
Hi I’m the owner of the house and I pay in interest $12,000 yearly, I would like to know if my house’s interests are deductible or refunded in my income tax.
Hi John,
Your new employer would provide the best answer to your question, as there may be deductions you are subject to beyond the statutory income tax, CPP and EI deductions.
Based on your details provided, an approximate net pay would be $68,000.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Bruno,
Unless you use the house for employment, business or rental, unfortunately, no, the mortgage interest is not deductible.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi,
Could you please clarify that for me, regards Ontario, 2011 tax year.
if you earn less than 10000/year, you don’t pay any taxes since it’s below 10382/year income line
but if you earn more than that, let’s say 50000/year, you actually end up paying taxes on those first 10000 you earned, as well as on the rest of your income isn’t it?
Thanks,
A.
Hi Alex,
Fortunately, you are incorrect.
Regardless of the income level, everyone receives and personal exemption of $10,382.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi There,
Love the calculater, last year it told me I would get $54 back, and ended up with $55. This year, got a promotion.
I had a few questions regarding my tax filings. I have not received my T4 yet, but maybe you could give me some hints. Quebec resident.
I made 47,295 in 2011
I received 24,00 in car allowance
I also received 175 for physical health.
Total gross income is 49,871
I paid 6,505 in federal and 4,637 in provincial
I put money in “RRSP” and put a total of 1,419
Also have 1,892 for “DPSP”?
I also have a gas card. Not sure how that is calculated, but I was told it is taxable.
Thanks,
Joel
Hi Joel,
Without knowing the tax status of your DPSP and the total charged to your gas card, an exact answer cannot be provided, but with not taking those into consideration, your refund will be $38.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
I used this calculator to calculate my 2012 Tax Payable.
Canadian Income Tax Calculator 2012 | Life Insurance Canada
It shows that I need to pay $7,735 of income tax on a $45,000 income. If I got taxed above this would I get a refund?
For example
I got taxed $12,000 this year and my tax payable is $7,735 that means I will have a $4,265 refund?
Thanks
Hi there,
I became a landed immigrant in Canada during June 2010. Soon after landing I applied for PRSP for my only daughter. However, unfortunately, due to unabvailability of job I had to go back to my home country in a month time. In the mean time my account started getting credits of CAD 350 per month which only stopped when I did not file tax in 2011. I did not file tax assuming that I was not a resident for tax purpose however I had no idea at that point that PRSP is related to tax return. After doing some research I came to understand that my child is not eligible for PRSP since I am not a tax purpose resident of Canada. The amount is now lying in my account in Canada and i want to retrun it. Could you please advise how can I do it?
Hi AC,
Your thought methodology is correct. If you have had tax deducted in excess of the tax calculated above, you would receive it as a refund.
When you receive your T4, the best idea for you is to enter the amount in box 14 as your taxable income in the calculator above and compare the result for tax with the tax deducted shown on your T4. Unless you have other taxable income, the difference would be your expected refund.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Sheher,
If you have received payments undue to you, you should contact Service Canada or your provincial Service equivalent, for example if you live in Ontario, contact Service Ontario.
Service Canada can be reached at: 1-800-622-6232 When you speak with them ask them for the provincial office in your area.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Just wanted to say that I’ve enjoyed reading this site. Thank you very much Storoszko & Associates for answering many of my questions.
As for a brief testimonial of my experience, I am currently a non-resident of Canada, living in Seoul for the past 6 years. I have recently been married, and now the father of a month-old baby. I have applied to sponsor my wife, who is a native Korean, to be a permanent resident (PR) of Canada. This application will take several months. However, I have been informed that we can relocate to Canada in the meantime. This is where my following three tax questions arise:
1. If i were to bring 20K CAD in savings, I don’t believe this will be taxed as I am still a non-resident (based on the reply to a thread above). Regardless, what are the proper means of reporting this money when I land? Would it be better to wire the money before I leave using my local bank? Who would know if I were to (hypothetically) have a relative wire this money in portions less than 10K (to avoid being flagged) to an associate of mine in Canada be it a relative or a friend, only to withdraw that cash to me at a later time? i feel like i’m opening a can of worms right now with that last question..
2. I’m also wondering how I should begin filing my taxes once my family and I land in canada, particularly if I’m married with children and I’m the sole breadwinner of the house. I’m pretty new to taxes and lack some basic understanding of listing dependencies. Maybe i should’ve googled this before asking..
3. I plan to keep my bank account active in Korea for at least another year or indefinitely due to the chance of visiting the country again in the future. I only plan to leave a few thousand dollars in this account. Having a debit/credit card is very convenient in this country. If this is the case, how must i report that I have an offshore account when doing my taxes? when and where does this have to be reported?
Once again, i think this site is awesome and will recommend it to anyone. The info you guys provide for free and with good nature make me feel as if I should be paying for your service. If one day i really need to have my taxes done perfectly, I will give you guys a call! Please keep this site live and kicking until then.
Thank you.
Hi,
I am from Ottawa,ON. Our 2 year old kid goes to privately registered child care provider for 5 days a weeks and we pay $200 per week. The childcare provider is ready to give us the receipt and her SIN number for my income tax purposes. I woould like to know
1)whether there is any limit per week I can for childcare expenses for while filing tax returns and
2) for 2011 tax returns, upto what month we can use the above? i.e Can we use childcare expenses occured after 1st Jan 2012 in 2011 tax returns or we need use only the expenses occured from 1st Jan 2010 to 31st Dec 2011?
Thank you,
kind regards,
Shripad
I have one question:can someone else to do my taxes while I’m gone abroad?
Thank you,
Hi,
I am working in co-op job at Sparwood, BC being an international student, Am I eligible to get refund on all the provincial and federal taxes.
I came to Canada in September 2010 and I studied 8 months full time in Thompson Rivers University, Kamloops, BC means up to April 2011. And I paid around $7363 per Semester fees so I attended two semesters.
I also worked as a part time in Ottawa where I always get check and they deduct my CPP and EI. Am I eligible to get back these ones too or not?
Now I income is around 3700 per month according to offer letter and they paid biweekly around $1621.00 + 4% vacation Pay. So I don’t how much I am paying tax because income goes directly in my account. So it means I don’t have any information about Federal taxes, Provincial Taxes t, CPP and EI I am paying.
If you please let me know about this taxes that ould help me filling tax form.
Hi Jaebue,
Cash and savings are not taxed in Canada, only the income derived from the savings. Any funds you bring into Canada are never taxed. Do you have a Canadian bank account? If not, how could you transfer money, you must have a bank account to receive funds. You cannot use a third party for transfers as any third party activity is automatically red-flagged. If you were to receive a large sum of money from a third party, even though you transferred the funds to the third party so they would transfer to you, the funds would be considered income in your hands and therefore taxable.
Once you are a resident of Canada, you are taxable from day one and are required to file tax returns on your world-wide income regardless of source.
When completing your tax return, questions regarding off shore assets must be answered.
I hope this has answered your questions.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Shripad,
There is no limit to the child care expenses you can utilise on your tax return.
Expenses can only be claimed based on the calendar year, just your income and as the tax return is based.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Ghenadie,
The only way you can have another person/representative file your taxes while you are abroad is if that person/representative is authorised to represent you AND is on file with Canada Revenue Agency to do so.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hello,
I am a resident of Ontario, and a full-time student at a University. I am in co-op program and am on my first work term and because of the way it falls, I will be in school for only a semester for the calendar year of 2012 from May to August (4 Months). I will make around $9000 gross in the co-op job, and presuming I am paid at least minimum wage will be paid around $4000 to $5000 if not more on my next co-op job, but I don’t know. On my first paycheque, I was not deducted CIT, but on my second I was – 10.2 or 10.3% I believe plus CPP and EI which I’ve always paid. This is a new tax to me, should I be paying it? Will I get it back when I file my tax return next year?
Thank you!
hi..i have worked 9 weeks in 2011..and i made 26,000$ and i was on e.i and made 20,000…My question is this…Will i need to pay more cpp and e.i in my income tax? and 3nd question..i don’t have my t4′s yet but i have my paystubs and on it, there is 1 big total that i have payed tax…that includes fed,cpp and e.i…is that the total they take when i go for my income tax? or it’s just the federal tax?
Hi Lindsay,
I’m not quite sure what you mean by “this is a new tax to me”; income tax hasn’t changed.
The reason you didn’t have income tax deducted from your first pay was that it likely was not a full pay period so it did not meet the threshold to which tax is applicable.
Yes, based on the information you provided, you likely will get a refund of all the income tax you paid.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Lee,
No you will not be required to pay additional CPP and EI, unless you report self employment income which is subject to CPP deductions.
Without you T4s, you cannot get your tax return processed as your paystubs will not have the full details required for a preparer to help you with your tax return. You should have your T4s by the end of February at the latest.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Varun,
Depending on the deductions and exemptions available to you, you will get the appropriate refund of income taxes.
CPP and EI are not refunded as they are not taxes.
If you are not getting details about the make up of your pay deposit you should contact your payroll office and request it be provided.
All employers are required to provided T4 slips which contain all your income details for reporting and filing your income tax return.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hey,
Kudos on running such a informative site, i just wanted to know how much tax would be deducted from my 68K annual pay ? can you please tell me is there any percentage of RRSP? I am resident of Ontario, my wife is FT university student and i have a one year old daughter.
Ok so the total of tax that i have payed on my paystub isn’t good? or do i just look at the federal tax… your calculator indicates me that i have to pay 9100$ in tax…where do i get that number if i dont have my t4 yet.
I am paying 20% income in the tax which also include CPP and EI. Could you please let me know approximate how much I would get back if income is around 3300/m.
Hi Nomi,
Entering your annual salary into the calculator above, results in tax payable of $16,634 to be withheld from your pay.
Your RSP Contribution Limit can be found on your 2010 Tax Assessment, the contribution is based on 18% of your previous year`s eligible income, but if you have not contributed the max in previous years, your contribution limit would be greater than 18%.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Lee,
No it isn`t good for a tax preparer to accept… they require T4 slips to obtain the correct amounts and the allocations to the different box types.
You must wait for your employer to send or give you your 2011 T4 slip. If they have not provided you with the T4 slip by Feb 28, 2012, ask them for it.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Varun,
Without specific details no answer can be provided.
For you to determine this, enter your 2011 total wages into the income box in the calculator above and it with determine your tax liability. Compare the result to the total tax (not CPP or EI, just income tax) you had deducted from your pay and the difference is your refund or payable amount.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hello,
I have been working for the past two years as a groom for a horse stable being paid cash. I make 18500 a year and support my spouse who does not work. If i file taxes for the past two years will I owe or will I get a return because my spouse lowers my income? Could some help me to figure out the proper way to file? On turbo tax the definition of Employed or self employed leads me to check the employed box and on the site shows me getting 1200 dollars back on my return. would this be accurate? someone help please.
@
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Thanks a lot you guys are the best…. I cant wait to get my refund
BTW do you know why I got tax that much?
Also I do have 25k tax credit from my school fees… someone told me that it will expire after 5 years is that true?
Great and informative site, and excellent work with providing answers to so many specific questions.
I have a friend who is moving from Europe to Vancouver, she arrives on 20 March as an immigrant (she’s been approved as permanent resident), but will not have a job before June or whenever all of her local documents are ready. Does she have to file anything with the CRA for the period 20 Mar to 30 Apr 2012? I assume not, but she asked me to check it for her. Thanks!
Hi,
I am currently in the US and make around $100000 per year. So after tax i get around 6600 in hand every month. But if i were to get 100K in canada, i would get only 4900 per month in hand after tax. Thats almost a 1700 dollar per month difference which is huge.
So how do people generate wealth in canada inspite of the huge tax.
can you help me in reducing the difference(1700 dollars per month) so that i am paying less tax
Even someone who earns 180000 per year gets only around 7500 per month after tax. so whats the point in earnining so much if i get only a few thousand dollars more per month.
Apart from RRSP, what are the other ways of reducing tax.
Hi Beth,
If you are paid by cash, you are considered an independent contractor and therefor self-employed.
If your spouse does not work, you likely with have sufficient credits to reduce your income tax payable to zero.
Although you will not have any tax payable, you will be required to contribute to CPP (which is your money you’ll get when you are 65).
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi AC,
Best check with your employer for that answer… likely the TD-1 form was not accurately completed and you were subject to over deductions of tax.
As for the tuition credits, use it up as fast as you can to maximise your refunds even more.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc
Hi Joe,
In Canada, the tax year follows the calendar… Jan 1 thru Dec 31. If your friend arrives in Canada March 20, she is responsible for reporting all world-wide income from that date through to the end of the tax year on her 2012 tax return due April 2013.
I hope this has answered your question.
Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
647 367 3477
Twitter: @Storoszko_Assoc