Canadian Income Tax Calculator 2012

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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 2014, 2013, 2011, 2010 or 2009 see our 2014 income tax calculator, 2013 income tax calculator, 2011 income tax calculator, 2010 income tax calculator or 2009 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 unusued RRSP contributions from prior years.

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1,166 Comments

  1. Simon 11/02/2011 at 1:27 pm

    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

  2. Jo 11/03/2011 at 12:19 am

    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.

  3. 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: link to twitter.com

  4. 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: link to twitter.com

  5. Gawen 11/04/2011 at 1:33 pm

    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

  6. 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: link to twitter.com

  7. Andrew 11/08/2011 at 5:12 pm

    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

  8. Hannah 11/09/2011 at 7:13 am

    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.

  9. 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: link to twitter.com

  10. 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: link to twitter.com

  11. Nash 11/10/2011 at 1:34 am

    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.

  12. 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: link to twitter.com
    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.

  13. Dave 11/13/2011 at 8:18 pm

    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?

  14. 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: link to twitter.com

  15. Susan Waterfield 11/15/2011 at 10:51 am

    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?

  16. 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: link to twitter.com

  17. Andrew 11/17/2011 at 4:49 pm

    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?

  18. 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: link to twitter.com

  19. Craig 11/20/2011 at 12:02 am

    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?

  20. 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: link to twitter.com

  21. albert 11/21/2011 at 1:15 pm

    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.

  22. 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: link to twitter.com

  23. albert 11/21/2011 at 11:14 pm

    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

  24. Connie 11/21/2011 at 11:17 pm

    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

  25. 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: link to twitter.com

  26. 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: link to twitter.com

  27. Anuj Yadav 11/22/2011 at 10:42 am

    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).

  28. Deanna 11/22/2011 at 12:55 pm

    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?

  29. Jill 11/22/2011 at 2:44 pm

    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?

  30. 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: link to twitter.com

  31. 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: link to twitter.com

  32. 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: link to twitter.com

  33. Akter 11/23/2011 at 12:54 am

    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

  34. Giang D 11/23/2011 at 3:03 am

    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.

  35. Amit 11/23/2011 at 9:51 am

    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

  36. Anuj Yadav 11/23/2011 at 1:05 pm

    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.

  37. george 11/23/2011 at 2:21 pm

    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.

  38. Sahir Razdaa 11/23/2011 at 3:41 pm

    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.

  39. 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: link to twitter.com

  40. 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: link to twitter.com

  41. 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: link to twitter.com

  42. 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: link to twitter.com

  43. 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: link to twitter.com

  44. 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: link to twitter.com

  45. Amit 11/24/2011 at 7:44 am

    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.

  46. khan 11/24/2011 at 11:45 am

    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.

  47. 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: link to twitter.com

  48. 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: link to twitter.com

  49. Manish 11/25/2011 at 7:12 am

    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

  50. Manish 11/25/2011 at 7:30 am

    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.

  51. 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: link to twitter.com

  52. denis 11/25/2011 at 2:09 pm

    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..

  53. 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: link to twitter.com

  54. Melissa 11/25/2011 at 11:34 pm

    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

  55. Mashti 11/26/2011 at 1:36 pm

    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

  56. 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: link to twitter.com

  57. 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: link to twitter.com

  58. 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!)

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  59. Sameer 11/27/2011 at 1:10 am

    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.

  60. Mashti 11/27/2011 at 8:35 am

    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

  61. 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: link to twitter.com

  62. 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: link to twitter.com

  63. Anne 11/27/2011 at 7:59 pm

    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

  64. 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: link to twitter.com

  65. Jonathan 11/28/2011 at 12:54 pm

    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

  66. David 11/28/2011 at 2:25 pm

    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

  67. 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: link to twitter.com

  68. 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: link to twitter.com

  69. John Smith 11/28/2011 at 10:53 pm

    -Ho much roughly will you pay in taxes if you receive 100 dollar gift card from your employer with annual income of 60k?

  70. Cardio 11/29/2011 at 7:51 am

    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

  71. 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: link to twitter.com

  72. 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: link to twitter.com

  73. Corey 11/29/2011 at 4:37 pm

    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.

  74. 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: link to twitter.com

  75. Jacky 11/29/2011 at 11:54 pm

    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!!!

  76. 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: link to twitter.com

  77. Susan 11/30/2011 at 2:16 pm

    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.

  78. Farooq 12/01/2011 at 2:19 pm

    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.

  79. 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: link to twitter.com

  80. 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: link to twitter.com

  81. Roxanne 12/02/2011 at 5:23 pm

    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

  82. Susan 12/03/2011 at 9:25 am

    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

  83. Alex 12/04/2011 at 10:29 am

    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!

  84. 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: link to twitter.com

  85. 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: link to twitter.com

  86. 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: link to twitter.com

  87. murai 12/05/2011 at 2:58 am

    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 .

  88. Kumar 12/05/2011 at 6:15 am

    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

  89. Kumar 12/05/2011 at 6:20 am

    sorry, ref above, wish to add that i am planning to move to Canada in about 2 months and will be in Toronto.

  90. 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: link to twitter.com
    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.

  91. 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: link to twitter.com

  92. Shib 12/06/2011 at 10:42 am

    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?

  93. Rachel 12/06/2011 at 1:27 pm

    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.

  94. Lince Peter 12/06/2011 at 3:19 pm

    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

  95. Patricia 12/06/2011 at 4:44 pm

    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.

  96. 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

  97. 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

  98. 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

  99. 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

  100. Patricia Ramirez 12/07/2011 at 11:43 am

    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!

  101. mark w 12/07/2011 at 2:29 pm

    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.

  102. 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

  103. 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

  104. 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

  105. Raquel 12/11/2011 at 10:10 pm

    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

  106. Asif 12/12/2011 at 12:47 am

    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

  107. Gits 12/12/2011 at 10:13 am

    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,

  108. 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

  109. 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

  110. 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

  111. Lenka Zahradnikova 12/12/2011 at 6:54 pm

    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

  112. 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

  113. tony 12/14/2011 at 3:16 pm

    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

  114. Gianmarco 12/14/2011 at 10:30 pm

    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

  115. Derek 12/15/2011 at 12:00 am

    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?

  116. 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

  117. 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

  118. 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

  119. Tanya 12/16/2011 at 12:30 am

    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.

  120. 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

  121. alex 12/16/2011 at 4:20 pm

    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

  122. Amit Patel 12/17/2011 at 2:21 am

    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?

  123. Mashti 12/17/2011 at 5:08 am

    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,

  124. Jason 12/17/2011 at 1:45 pm

    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

  125. 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

  126. 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

  127. 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

  128. 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

  129. Vimal 12/18/2011 at 6:59 pm

    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?

  130. ram 12/18/2011 at 8:06 pm

    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?

  131. wasim 12/18/2011 at 9:45 pm

    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?

  132. 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

  133. 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

  134. 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

  135. Allan 12/19/2011 at 7:46 pm

    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.

  136. Wesley 12/20/2011 at 2:56 am

    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?

  137. gord 12/20/2011 at 12:23 pm

    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

  138. Hiren Soni 12/20/2011 at 2:47 pm

    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.

  139. Brittney 12/20/2011 at 9:24 pm

    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

  140. Brittney 12/20/2011 at 9:35 pm

    I live in Ontario. Also if I can offset paying ax with RRSP contributions how much would that be?

  141. kathy 12/21/2011 at 3:25 pm

    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

  142. kathy 12/21/2011 at 3:30 pm

    oh i'm in Toronto, Ontario to add to that question..

  143. Shriram 12/21/2011 at 5:46 pm

    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.

  144. Quinn 12/22/2011 at 5:38 pm

    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.

  145. 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

  146. 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

  147. 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

  148. David Harris 12/23/2011 at 3:36 pm

    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

  149. David Harris 12/23/2011 at 3:38 pm

    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

  150. Pat 12/24/2011 at 1:17 pm

    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

  151. 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

  152. 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

  153. 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

  154. 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

  155. 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

  156. 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

  157. 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

  158. Jules 12/25/2011 at 8:26 pm

    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

  159. Bob 12/26/2011 at 10:09 am

    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?

  160. 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

  161. 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

  162. Scott 12/27/2011 at 4:17 am

    Is CPP and UI included in the tax calculator? Or do I have to subtract that?

    Thanks

  163. Ali 12/27/2011 at 5:34 am

    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

  164. 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

  165. 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

  166. ian 12/27/2011 at 8:24 pm

    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

  167. Mahdavi 12/28/2011 at 4:23 am

    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.

  168. 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

  169. 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

  170. Tamara 12/28/2011 at 12:56 pm

    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?

  171. Bob 12/29/2011 at 11:27 am

    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?

  172. 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

  173. Bob 12/30/2011 at 10:52 am

    Hi,

    So if you received any ei benefits does it just go under the taxable income just the same as your other earnings?

  174. Toyin 12/30/2011 at 11:05 am

    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.

  175. 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

  176. 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

  177. 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

  178. Ahmed 12/31/2011 at 9:01 pm

    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!

  179. 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

  180. Robert 01/02/2012 at 3:06 am

    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.

  181. matthew 01/02/2012 at 4:46 am

    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!!

  182. 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

  183. 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

  184. James 01/02/2012 at 5:07 pm

    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

  185. 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

  186. Kelly 01/03/2012 at 1:00 pm

    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!

  187. Harry N. Bottomley 01/03/2012 at 3:16 pm

    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

  188. Jenny 01/03/2012 at 3:39 pm

    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!

  189. Matthew 01/03/2012 at 8:06 pm

    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

  190. 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 link to cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  191. Shannon 01/03/2012 at 9:17 pm

    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.

  192. 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

  193. 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

  194. 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

  195. Emma 01/04/2012 at 12:15 am

    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.

  196. James 01/04/2012 at 11:40 am

    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!!

  197. Janice 01/04/2012 at 4:22 pm

    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?

  198. fraser 01/04/2012 at 4:32 pm

    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?

  199. 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

  200. 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

  201. 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

  202. 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

  203. 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

  204. Del 01/04/2012 at 7:38 pm

    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.

  205. abby 01/04/2012 at 8:40 pm

    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!

  206. Daniel P 01/05/2012 at 4:35 am

    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?

  207. Daniel P 01/05/2012 at 4:54 am

    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.

  208. Omar 01/05/2012 at 10:52 am

    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.

  209. Ev K 01/05/2012 at 12:42 pm

    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!

  210. Ev K 01/05/2012 at 12:47 pm

    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...

  211. Kim 01/05/2012 at 5:43 pm

    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 :)

  212. Hol 01/05/2012 at 10:27 pm

    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.

  213. Jenny 01/06/2012 at 1:16 pm

    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!

  214. Vikas 01/06/2012 at 2:33 pm

    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

  215. Anand 01/06/2012 at 3:09 pm

    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

  216. Shirley 01/06/2012 at 11:32 pm

    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

  217. Artemisa 01/07/2012 at 4:04 am

    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?

  218. alvin 01/07/2012 at 2:04 pm

    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.

  219. 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: link to cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  220. 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

  221. 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

  222. 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

  223. 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

  224. 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

  225. 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

  226. 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

  227. 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

  228. 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

  229. 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

  230. 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

  231. 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

  232. Giluy_Tu 01/08/2012 at 1:06 pm

    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

  233. 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

  234. Ev K 01/08/2012 at 5:39 pm

    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

  235. Justin 01/08/2012 at 6:41 pm

    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

  236. 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

  237. 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

  238. Suzy 01/09/2012 at 1:35 pm

    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.

  239. Danish 01/09/2012 at 4:06 pm

    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?

  240. Queen 01/09/2012 at 6:16 pm

    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?

  241. Sam 01/09/2012 at 8:55 pm

    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?

  242. Ahmed 01/09/2012 at 11:49 pm

    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.

  243. 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

  244. 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

  245. 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

  246. Tina 01/10/2012 at 4:59 am

    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.

  247. 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

  248. Joanna 01/10/2012 at 1:29 pm

    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?

  249. 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

  250. Sheila 01/10/2012 at 3:34 pm

    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?

  251. 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

  252. 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

  253. Jo 01/11/2012 at 3:49 am

    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.

  254. Al 01/11/2012 at 11:30 am

    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

  255. Claudia 01/11/2012 at 12:35 pm

    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

  256. Ian 01/11/2012 at 2:37 pm

    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

  257. jimmy 01/12/2012 at 1:46 pm

    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

  258. Kaisar 01/12/2012 at 2:11 pm

    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

  259. Karen 01/14/2012 at 12:35 am

    I made almost 20,000$ in 2011 and didnt pay any taxes will i owe the government alot?

  260. 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

  261. 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

  262. 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

  263. 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

  264. 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

  265. 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

  266. 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

  267. Kim 01/14/2012 at 3:54 pm

    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

  268. 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

  269. JO 01/14/2012 at 6:30 pm

    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

  270. 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

  271. Les Franke 01/14/2012 at 10:56 pm

    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?

  272. Shannon 01/15/2012 at 3:02 am

    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

  273. 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

  274. 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

  275. Mike 01/15/2012 at 3:53 pm

    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

  276. al 01/15/2012 at 6:42 pm

    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...

  277. Andrew 01/15/2012 at 9:27 pm

    I made 24,000 I want to know how much I will get back for 2012 income tax return

  278. 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: link to apps.cra-arc.gc.ca

    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

  279. 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

  280. s 01/16/2012 at 1:01 am

    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?

  281. 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

  282. 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

  283. Sarah 01/16/2012 at 6:55 pm

    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!

  284. 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

  285. Amit Patel 01/17/2012 at 2:25 am

    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?

  286. 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

  287. Angela 01/17/2012 at 12:27 pm

    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.

  288. 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

  289. Ann 01/18/2012 at 4:20 pm

    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.

  290. Jan 01/18/2012 at 5:02 pm

    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

  291. 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

  292. 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

  293. Annie 01/18/2012 at 10:11 pm

    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!

  294. 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

  295. Adam 01/19/2012 at 2:56 am

    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

  296. Derek 01/19/2012 at 10:26 am

    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.

  297. 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

  298. 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

  299. Derek 01/19/2012 at 12:21 pm

    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.

  300. Deepak Taneja 01/19/2012 at 4:07 pm

    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

  301. Tony 01/19/2012 at 6:53 pm

    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.

  302. 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

  303. 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

  304. 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

  305. Bob 01/19/2012 at 10:23 pm

    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

  306. BILL 01/19/2012 at 11:13 pm

    Hi, is the tax calculation here include EI or Government Pension?

    Thank you for the website and Q&As.

  307. Derek 01/20/2012 at 9:38 am

    Well this clarifies things. Thank you for your time. I appreciate it.

  308. 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

  309. 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

  310. JP 01/20/2012 at 1:14 pm

    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

  311. 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

  312. Ann 01/20/2012 at 4:24 pm

    Hi ~ Thank you for your answer. One other question: how do I calculate how much will be withheld?

    Thanks.

  313. juvy 01/20/2012 at 9:23 pm

    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

  314. gurpreet 01/21/2012 at 11:44 am

    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

  315. 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.

  316. 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

  317. 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

  318. Vinu 01/21/2012 at 2:22 pm

    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

  319. Yung 01/21/2012 at 7:35 pm

    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

  320. 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

  321. 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

  322. Ann 01/21/2012 at 9:50 pm

    Thank you for your answers, and taking the time to provide a really informative service.

  323. dean 01/21/2012 at 11:41 pm

    I earned 90,000 for 5 months. I would be taxed as non resident in Ontario. How much would I have to pay?

  324. Yung 01/22/2012 at 1:06 pm

    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

  325. Sushmita 01/22/2012 at 7:50 pm

    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.

  326. 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

  327. 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

  328. 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

  329. lee 01/22/2012 at 11:30 pm

    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 :)

  330. gord 01/23/2012 at 3:52 pm

    I was wondering if the tax calculator includes both
    federal and provincial taxes. thanks

  331. Vinu 01/23/2012 at 4:13 pm

    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

  332. 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

  333. 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

  334. lee 01/23/2012 at 6:35 pm

    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...

  335. Susan John 01/23/2012 at 8:50 pm

    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.

  336. 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

  337. 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

  338. kane 01/23/2012 at 10:29 pm

    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?

  339. Vinu 01/24/2012 at 12:35 am

    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.

  340. 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

  341. 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

  342. 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

  343. Bandon 01/24/2012 at 3:31 pm

    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!

  344. Jason 01/24/2012 at 4:11 pm

    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!

  345. 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

  346. 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

  347. Jefferson 01/25/2012 at 1:21 am

    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

  348. Marie 01/25/2012 at 2:18 am

    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.

  349. pascal 01/25/2012 at 3:03 am

    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

  350. Mark 01/25/2012 at 5:22 am

    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

  351. Gareth 01/25/2012 at 6:14 am

    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

  352. Maria 01/25/2012 at 12:01 pm

    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

  353. 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

  354. 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

  355. 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! link to cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  356. 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

  357. 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

  358. 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

  359. jodi 01/26/2012 at 1:06 pm

    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?

  360. 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

  361. Jay 01/26/2012 at 7:28 pm

    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?

  362. 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

  363. David Rentzel 01/27/2012 at 1:01 am

    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?

  364. Shripad Korantak 01/27/2012 at 11:44 am

    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

  365. 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

  366. AAA 01/27/2012 at 1:17 pm

    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.

  367. 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

  368. Chris 01/27/2012 at 4:34 pm

    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...

  369. 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

  370. 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

  371. Laurie 01/27/2012 at 6:04 pm

    My husband and I moved our family to Peru about 15 years ago, and have been Canadian non-residents since that date.
    My daughter returned to Canada for university in Sept. 2011. She did not work, but she did receive scholarships and bursaries. Does she need to complete a 2011 income tax return?
    Our second daughter will also be going to Canada for university in Sept. 2012. Will their taking up residence in Canada affect my husband's and my non-residence status?

  372. Caitlin 01/28/2012 at 12:19 am

    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

  373. Hi Jodee,

    It's apparent that your caregiver knows she has to pay tax on the money you give her. Do you pay her by cash or cheque? If by cheque (made payable to her), that's a receipt for you to use as a claim.

    Most definitely, the child care claim would be beneficial to you, so it is in your best interest to obtain records or receipts. Pay her by cheque to obtain a receipt, otherwise, if you pay her with cash you let her know you'd want a receipt to avoid the problems like on "Peoples Court" and "Judge Judy". Whether she reports the income is her concern.

    Just a piece of advice, if you do accept her services for cash, keep in mind that others may also and that she may be under scrutiny by CRA. If/when she is found out for accepting cash for work, you may be implicated for supporting her by not notifying CRA.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  374. Hi Laurie,

    Yes, you daughter does need to file a Canadian tax return since she received bursaries and scholarships. A portion of these is taxable in her hands.

    To reduce her tax liability, your daughter should organise all the receipts related to moving to relocate to Canada for school.

    You have no concern about your Canadian non-residency, when you second daughter moves to Canada for schooling, as long as you and your husband remain residents of Peru, under the tax laws of Canada.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  375. 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

  376. John Sonnier 01/29/2012 at 4:57 pm

    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!

  377. bruno 01/29/2012 at 6:43 pm

    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.

  378. 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

  379. 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

  380. Alex 01/29/2012 at 11:53 pm

    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.

  381. 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

  382. Joel 01/30/2012 at 5:52 pm

    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

  383. 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

  384. AC 01/31/2012 at 12:56 am

    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

  385. Sheher 01/31/2012 at 5:18 am

    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?

  386. 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

  387. 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

  388. Jaebue 01/31/2012 at 10:06 pm

    Just wanted to say that I've enjoyed reading this site. Thank you very much Storoszko & Associates for answering many of my questions.

  389. Jaebue 02/01/2012 at 10:47 am

    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.

  390. Shripad 02/01/2012 at 4:33 pm

    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

  391. Ghenadie 02/01/2012 at 5:59 pm

    I have one question:can someone else to do my taxes while I'm gone abroad?
    Thank you,

  392. Varun 02/01/2012 at 10:07 pm

    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.

  393. 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

  394. 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

  395. 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

  396. Lindsay 02/02/2012 at 12:27 am

    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!

  397. lee 02/02/2012 at 1:20 am

    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?

  398. 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

  399. 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

  400. 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

  401. Nomi 02/02/2012 at 3:04 pm

    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.

  402. lee 02/02/2012 at 3:16 pm

    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.

  403. Varun 02/02/2012 at 5:32 pm

    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.

  404. 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

  405. 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

  406. 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

  407. Beth 02/03/2012 at 12:26 am

    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.

  408. AC 02/03/2012 at 12:47 am

    @
    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?

  409. Joe 02/03/2012 at 7:36 am

    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!

  410. Vinu 02/03/2012 at 10:18 am

    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.

  411. 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

  412. 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

  413. 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

  414. Hi Vinu,

    Since you are not a Canadian resident, you would not be eligible to contribute to a RSP until the following year of your landing. Contributing would reduce your tax by the amount you calculated.

    In Canada we pay higher income taxes, but in return we receive more services than US residents. We have FREE health care, reduced user fees, reduced education costs, and more social programmes.

    In actuality, if we compared US taxes (all taxes, not just income tax) to Canadian taxes, Canadian taxes are lower than US taxes. Local Canadian taxes are non-existent compared to US local taxes, thereby averaging out overall.

    Unlike in the US, Canadians receive value for income taxes; the Canadian standard of living and social programmes benefit all in return for paying tax.

    If you are interested in lowering your taxes, you should contact a tax and financial planner so you can review the options available; this is beyond the topic of this forum.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  415. AC 02/04/2012 at 12:30 am

    @
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

    The $12k that I was tax this year includes my cpp. In getting a refund cpp is not counted? How could I use my tuition credits to maximize my refund?

    Thanks

    AC

  416. Hi AC,

    No, CPP is not tax nor is EI, they are not refunded, only income tax.

    As for your tuition credits, CLAIM THEM!

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  417. Nikhil 02/04/2012 at 9:23 pm

    I am a International student who has paid around $7363 in tuition, residing in Kamloops, British Columbia. I’m also a co-op student and by the end of august I will probably be earning around $29,000. I’ve been automatically paying my income tax, cpp etc on each of my pay cheques around ($800) so I was wondering how much tax return would i get it in next year?

    I attend 2 semester simultaneously in Sept 2010 to April 2010)
    Thanks

    Simon

  418. Nikhil 02/04/2012 at 9:23 pm

    I am a International student who has paid around $7363 in tuition, residing in Kamloops, British Columbia. I’m also a co-op student and by the end of august I will probably be earning around $29,000. I’ve been automatically paying my income tax, cpp etc on each of my pay cheques around ($800) so I was wondering how much tax return would i get it in next year?

    I attend 2 semester simultaneously in Sept 2010 to April 2010)

  419. grace 02/06/2012 at 6:21 am

    hi just want to ask.. last year we ask someone to compute our tax ... then we got a refund for a 23hundred but by sept 2011 we got a letter from cra that we need to pay 23hundred coz wr single and the family wr supporting is in the philippines and not residing here in canada... but if you calculate as if we didnt get any refund at all even a dime... can we still despute that or anything.. sorry we dont know what to do 23hundred is a big thing for us workers... thanks...

  420. grace 02/06/2012 at 6:26 am

    hi .. just a few ? i just started my rrsp just this jan.. it's my saving from last year and i put it in RRSP... is that include for filling my tax? and i dont buy bus pass i only buy booklet can i also include that to my returns? thanks alot

  421. Marcio 02/06/2012 at 2:17 pm

    Hello and thank you for this website.

    My question is: Me, my wife and my 5 years old son, arrived in Canada this January with a temporary visa for 2 years.
    We are both employed and receiving 55k and 58k per year.
    What would be our yearly after tax income?

  422. Marcio 02/06/2012 at 2:24 pm

    Forgot to say it was in Quebec province.

  423. AL 02/06/2012 at 4:03 pm

    Hey,

    I'm living with my wife and son on Toronto, ON; I've got a contract job in Alberta, so I'm going to live there, and travelling back and forth, but my family will stay here in Toronto, please advise, do I have to file tax in ON & AB, or only in one place, please consider both cases (if my wife is working and if does not work)
    Also advise, can I claim the flight’s cost, when I file my tax
    Thanks

  424. Bill 02/06/2012 at 4:58 pm

    im a full time student paying $5000 tuition through OSAP. i have a part time job on the side where I'm making money to pay for transportation, books, etc. i made under $10000 in 2011, so would i be getting the taxed amount back?
    When should i submit the income tax report?
    Can i do it on my own or do i need someone else to do so?

    Thank you

  425. Liza 02/07/2012 at 2:00 am

    Hi!

    I love your website and I hope that you can help me as well.
    I had an occasional babysitter and I want to fill the total amount we paid her last year to write off some child care cost in filling my tax this year. But I wasn't able to get her SIN and now I can't contact her anymore. Is there any way I could still claim some deductions for that? Thanks a lot!

  426. Devon 02/07/2012 at 4:49 am

    Hi,

    I am working full-time with 3 year work permit in BC. I am paying taxes and pretty sure I am also paying for pension. When I decide leave Canada forever, can I get any of pension which is deposited while I am working? I am asking you because Korean government pays foreign workers their pension when they leave Korea while Korean citizens get their pension only when they retire. Also, I dont wanna come back to Canada when I get really old in 40 years to get my pension.

    Thanks!

    Devon

  427. Roger 02/07/2012 at 10:12 am

    Hi there, at the end of 2011 on my last pay stub, it showed I made 103,000 and paid 29,000 in taxes. I am going to receieve another $10,000 in bonuses. Should I take all the bonus in Cash? should I tke some and put some in an RRSP.? How much taxes would be deducted? I do have room in my RRSP, however I would rather take the cash as I have contributed apprx. 7000 throughout the year. Great site bu the way. Thanks

  428. Hi Marcio,

    A quick way to answer your question is to take your respective incomes and enter each into the calculator above to determine your after tax net pay.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  429. Hi Al,

    Your income tax filing location is based on where you lived at Dec 31, 2011, which seems by your question to be Ontario (if you were with your family).

    Generally, the flights for travelling during your off time are not deductible unless travelling is specified and required by your employment contract. Check with your employer and have form T2200 completed if you qualify.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  430. Hi Bill,

    Yes, you are required to file a tax return. Only by filing the tax return would you get your refund of income tax paid.

    As for if you have it completed by someone else or you, that is up to you... if you know how to do your own tax return, do it yourself; if you need help, best have an experienced tax preparer help you... do not go to a tax office offering a discount price as they will likely not have the experience and knowledge to complete your tax return accurately.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  431. Hi Liza,

    In order for you to claim the childcare deduction, you must have valid information for the expense. Without a SIN for your caregiver you may provide a valid current address (and other contact information) for your caregiver, but you must have some documentation to support them claim.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  432. Hi Devon,

    The only way you would be able to get a refund of any CPP you've paid is if Korea has a tax treaty with Canada specifying this availability. Best for you to check with Canada Revenue International tax office to see if such an arrangement exists.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  433. Hi Roger,

    If the bonus you are getting will be paid in 2012, then it will be taxable in 2012 and will be on your 2012 T4.

    When you ask if you will receive the bonus in cash, yes you will, unless you receive company stock as in a DPSP in return... will you?

    As for your decision choice to either contribute the bonus to a RSP or not, that is totally up to you. The bonus will be taxed at your maximum rate so you may end up with $6,000 cash.

    If you have debt (mortgage, credit cards, etc.), it would be best to pay these down first. Then, if you have maxed out or RSP or think you will need the cash for something in the near future, deposit it into a TFSA so it can grow tax free.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  434. Sameer 02/07/2012 at 10:02 pm

    Hi,

    I am making $40,800 in Ontario, my employer is taking off 790.69 per month for tax purposes. According to that calculation I am paying 790.69 X 12 = $9488.28/ year. Don’t you think that’s more than what should I be paying according the calculation on the top.

    Thanks

    Sameer

  435. Hi Sameer,

    If the amount you say is income tax, then yes, it would be excessive and you should check with your employer's payroll office to determine the reason.

    But, is the amount of $760.19 per pay/month actually all income tax or does it include something else? ie. CPP and EI, etc.

    If it does include CPP and EI, these are not taxes and therefore not included in the calculation above. The calculator above only calculates Income Tax, not deductions inclusive of other tax and statutory deductions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  436. Luke 02/07/2012 at 10:30 pm

    HI,
    I'm a professional from Canada ( Quebec) that works in USA on a TN visa since March.Before that i have worked in Canada until March and have earner 17.500 CND.Taxes withheld about 5.000 CND.In USA I have earned since March until Dec 31 ,
    107.000 USD.I have paid 21.146 in federal tax,7.860 in State and total of 6.100 in social security and medicare.So combined I have paid in both Countries 34.06 + 6,110 Social Secur/medicare = 40.000 K
    My question is following..Do I have to report and file taxes combined in both countries or do i just file the earning in Canada and the earnings in USA without combining them?
    I'm a bit afraid that I will be owning Canada 10K or is my fear without a reason?
    I can not find a straight answer anywhere. Any help would be great.
    Thanks

  437. alex 02/07/2012 at 10:34 pm

    hi, im not sure how to do my taxes. i was a subcontractor for a trucking company in alberta. i incorporated myself a couple months ago(10 months after i started). i was earning around $6000 a month and about $4000 a month was going to expenses like my truck lease. could i get money back? idk how this all works

    thanks

  438. KKeil 02/07/2012 at 10:44 pm

    Hello,

    I have a work and travel visa for Canada and it allows me to stay here for 1 year.

    I'm already in Canada for 9 months and I'm leaving at the beginning of march. During my time in Canada I worked in British Columbia for 3 months and in Alberta for 5 months. Now I have to do a tax declaration, but I have no clue how and where. I don't want to seek a tax advisor. I already looked in the internet to solve my problem, but it's pretty weird and hard to find useful information. I hope you can help me out. I only want to know if I can get some money back.

  439. Wasim 02/08/2012 at 2:16 pm

    I am an international student, currently doing 16 month internship after my 3rd year. I understand from reading a lot of the conversations above that as a student, I will get my entire income tax refunded. I just want to know, would I also be refunded for the CPP and EI that is automatically deducted from my Salary along with about 16% Fed Tax? And would I get 100% of my income tax refunded or does that depend?

    extra info:
    tuition fee per year: 26,000$
    tuition fee for internship year: 2,000$
    annual income from internship: 46,000$
    Fed tax: around 16%
    CPP: around 4.5%
    EI: around 1.8%

    p.s. thanks for running such a great blog and actively answering people's queries. This is a great help!

  440. Meagan 02/08/2012 at 4:11 pm

    Hi,
    Im wondering what I can do and how I can check to see if my taxes from the previous 3 or 4 years were done incorrectly. My boyfriend just made 20,000 in 6 months before being laid off for winter, he went to school last year for 3 months and he just went to file his taxes today and is getting over $3000 back. I have been working and filing taxes since I was 14 and went to school in 2009 for a full year, as well as worked and made 20,000 that year. I never got any money back. Last year was the same, they told me I owed $17 and would not let me claim my books or supplies from school. She also told me last year I wasnt having enough taxes taken off so I increased the amount. I am just wondering If Im getting screwed by any chance, as I have never gotten back more than $600 in one year and that was when I was 18 (now 22) ..I always had suspicions about the man doing my taxes (he is now deceased) because he would never let me claim anything that all my fellow students were always bragging about getting money back for! And I know this year I made the same amount if not more than my boyfriend so it makes no sense to me how he is managing to get back $3000!

  441. Elora 02/08/2012 at 8:41 pm

    Hey! I am a full time student in Saskatchewan. I took 13 classes in 2011. I made $31,600 gross for 2011 - i also received 7000 dollars in students loan. I paid 5,721.19 in income tax, 1434.24 in CPP, and 562 in UIC. I also have approximately 500 dollars in business expenses that i am able to write off. Can you give me an estimate as to what i should be expecting back??

  442. monty 02/09/2012 at 11:38 am

    mother lived in own home since 1967.in spring of 2010 she moved to personal care home.home sat vacant until summer of 2011 when it was purchased.she passed away in december of 2011.will there be any capital gains assessed on the sale of her home?

  443. dee 02/09/2012 at 1:16 pm

    hi
    i got married in july and i was a single mom before that and we didn't live together, i have a home based daycare but only made 10000 what am i alound to claim

  444. Hi Luke,

    Without knowing your actual residential status in Canada and US, only best guess answer could be provided.

    If you have cut all residential ties to Canada (ie. family moved to US with you, closed bank accounts, cancelled credit cards, sold house or cancelled lease of apartment), then you would only report the Canadian income on your Canadian tax return and the US income on your US tax return.

    But if you have not cut ties to Canada, you will be required to report your US income in Canada as foreign sourced income... the good news is that you's be able to claim the foreign income tax paid as a credit on your tax return.

    Best you consult with a tax specialist that can assist you with cross-border tax issues. Our firm assists clients like yourself.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  445. Steve 02/09/2012 at 5:05 pm

    I am a US citizen relcoationg to BC in April and am curious if income ditributed as a moving allowance is taxed a different rate than the average rate as calcuated using the calculator above?

  446. Hi Alex,

    By incorporating your company, you have made your tax situation a little more complex.

    You are required to file a Corporate Tax Return for your company (your company will need to issue you a T4 slip for your income you took during 2011). Using your T4, you will then need to complete your personal tax return.

    There are several deductions available to you as trucker corporation to reduce your corporate income taxes as well as your personal income taxes.

    Best to contact a tax specialist that can assist you in both your personal and corporate filings. Our firm has clients in your exact position and we assist them in reducing their headaches 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

  447. Hi Wasim,

    Being an international student does not automatically get you a full refund of income tax paid. You would need to meet qualifications of income and exemptions to do so.

    As for CPP and EI... these are not taxes and are not refunded.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  448. Hi Meagan,

    If you believe your prior tax returns may not have been completed accurately and you missed out on some deductions and exemptions, you can simply take your tax returns to a professional accountant have them do a free review of your prior tax returns.

    Not all accountants do free reviews so check around. If the accountant finds you missed out on deductions, an adjustment can be made to claim any refunds due to you.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  449. Hi Elora,

    Without additional details an exact answer cannot be provided, but minimally, you should expect to get back $5,000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  450. Hi Monty,

    Our condolences for your loss.

    No, there will be no capital gain taxable on the sale of your mother's house.

    Additionally, to reduce her final tax bill, you should maximise the deductions for her care while in the long term care facility.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  451. Hi Dee,

    You are eligible to claim any related expenses to the operation of your home based business... proportionate utilities and living expenses as well as direct operational expenses.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  452. Hi Grace,

    Unfortunately, you have experienced the problem with having your tax returns completed by an unqualified and inexperienced person. If the person was legitimate (a professional accountant), you could have had the accountant reimburse you for the error.

    Best suggestion, do not go and have your tax return done for $15 or $20 as, in this case, it ended up costing you $2300! Always ensure and check that the tax preparer is legitimate and shows you proof they are qualified to do your taxes (being CRA certified to EFile is not something that is proof of experience or qualification). Pay a little more for an accountant and that person will be there to assist you all year long if CRA comes calling.

    As for your RSP question, only the contributions during January to December 2011 and January & February 2012 can be used on your 2011 income tax return.

    Bus ticket booklets are not eligible to tax credit only monthly passes.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  453. Ryan 02/09/2012 at 9:49 pm

    Hi,
    Great website.
    I was wondering if you could please help me with my tax returns. Here is my information for 2011:
    Income - $ 111,862.00
    Spousal transfer – $ 5,000.00
    Tax deducted – $ 33,501.45
    EI – $ 786.76
    CPP – $ 2,217.60
    My question is what amount of RRSP I should buy to get maximum return. My maximum limit to buy RRSP is 20,000.00.
    Also, what will be the return on 15,000.00 RRSP contribution.
    Thank you so much in advance!

  454. Nick 02/09/2012 at 10:47 pm

    Hi,

    I live in Alberta, Calgary.
    And i make 43,000 on one job and 57,000 on the second one, 100,000 in total. I'm paying taxes every pay check. Should I get any return or I will pay extra? I counted and I pay approx 25% of taxes now.

    Thanks!

  455. hilda 02/10/2012 at 1:15 am

    hi,
    I lived in alberta and my YTD is 102,580.99 the income tax i paid is 22,792.97 Im just wondering approximately how much I will pay for tax so I can buy RRSP
    thank you

  456. Eleanor Griffiths 02/10/2012 at 1:06 pm

    How do i calculate tax on cpp benefits now issued to the estate of spouse. He passed March 2011 & i must file

  457. Mash 02/11/2012 at 12:57 am

    Hi,
    I am new immigrant in Canada, landed this July, initially I use to work as free lancer where I earned about 16500 CAD..
    And since 12th September where my package is 55000 CAD.. My employer gave me statement of remuneration paid today where they specified Employment Income = 16923 CAD and Income Tax deducted = 2518 CAD..
    I have my wife and 16 months old daughter with me in Toronto..

    Could you suggest how much total of tax I am liable to pay..

    Many Thanks,
    Mash

  458. Hi KKeil,

    It's odd you say you don't want to contact a tax advisor, but you contact us (we're tax advisors).

    If you have no idea how to file your tax return, you should seek professional help. If you wish to attempt it yourself, pick up a copy of the 2011 Tax Return and Benefit Guide from the local post office.

    The guide explains how to prepare your tax return and provides detail help to your questions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  459. Hi Nikhil,

    Due to the insufficient information provided in your question, I am unable to provide you with a precise answer.

    Enter your total income for 2011 into the calculator above and compare the result to the tax total on your T4 slip (or final pay stub for 2011).

    The difference would be either what you are liable to pay or your refund due.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  460. Hi Steve,

    No, any moving allowance provided by your employer is not taxed at a different rate. All income is taxed at your marginal/average tax rate for your total income level.

    You can reduce the amount of tax payable by claiming the moving expenses (and declaring the allowance) on your tax return for 2012.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  461. Hi Hilda,

    Based on the information you provided, you will be owing CRA approximately $3,717.

    If you wish to contribute to a RSP to reduce your tax bill, for every $1,000 you contribute you will receive a tax credit of $360.

    If you have the funds available and the Contribution room available, you can contribute $10,500 and be in a refund position.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  462. Hi Ryan,

    Based on the information you provided, some assumptions were made to provide you with an answer to your question.

    Assumed you live in Ontario, and wife doesn't work.

    Based on this information, you are in a refund position of approximately $5,400. If you wish to maximise your refund, you can contribute up to your maximum limit for 2011 which is $15,000 (since you have already contributed $5,000 in spousal RSP). For every $1,000 you contribute, you will receive a tax credit for $430. In your case, $6,450 additional tax refund.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  463. Hi Eleanor,

    Firstly, my condolences for your loss.

    When a taxpayer passes away, you need to file two tax returns... the first tax return is for all the income your husband earned up to the date of his death, this is call the Final Return. The second return you must file is the Rights & Things tax return for income and benefits received after his date of death (the CPP death benefit would be reported on this tax return).

    The good news for you is that likely your husband on has little more than the death benefit to report on the second tax return so it should not be taxable.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  464. Hi Mash,

    Based on the information provided, your tax refund will be approximately $4,000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  465. AAA 02/11/2012 at 4:47 pm

    If my income is more than $132,406, I am taxed at the highest marginal income tax rate of 29% at the federal level.

    If my income is over $78,043, then I am taxed at the highest marginal income tax rate of 11.16% in Ontario.

    ( link to cra-arc.gc.ca )

    Therefore if I am earning a million dollars a year my marginal tax rate should be 40.16% (29% + 11.16%).

    However, your calculator indicates that the combined marginal income tax rate of a person earning a million dollars and living in Ontario would be 46%. This seems to be a mistake.

    The calculator only seems to be making this mistake for Ontario
    For instance a person earning a million dolars a year in Alberta will be paying a combined marginal tax rate of 39% resulting from a the flat 10% income tax they will be paying in Alberta and 29% marginal tax rate that they will be paying at the federal level (29% + 10%). So the calculator yields the correct marginal rate for Alberta.

  466. Hi Nick,

    Without more explicit details, an exact answer cannot be provided.

    Enter your total income into the calculator above to determine your tax liability. Then compare the result with your final paystubs for 2011. The difference would be your tax payable or tax to be refunded.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  467. Hi AAA,

    Your calculation from the CRA website does not consider the surtaxes by Ontario.

    Taking the high income surtax into consideration, as the calculator above does, results in the higher marginal tax rate.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  468. Eli 02/11/2012 at 9:44 pm

    Hi, I'm working as subcontractor for a cleaning company in BC. Since this is my first job in Canada, I don't know how to go through the taxation process. Can you help me please? Should I file for a T4A of should my employer/contractor do it? Your help is appreciated.

  469. Hi Eli,

    Generally, your employer would provide you with a T4 slip for filing your taxes. As a subcontractor, your employer should provide you with a T4A slip.

    If your employer provides you with nothing, you are required to report the earnings you received on your income tax return.

    You need to gather together all documents and cheque stubs showing payments made to you and all the receipts for expenses you incurred to do your work.

    Bring all the above to your tax preparer and they will assist you in filing 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

  470. Rodrigo Ordonez 02/12/2012 at 5:42 pm

    Dear friends. What a wonderful website. I have this particular case: I am a mining engineer, USA citizen (by naturalization. I am, originally, from Colombia in South America), currently living in California where we bought a house 2 years ago. I have been self-employed since 8 years ago when we move from Central america. I got a job offer from a mining company in British Columbia for $91,700/year. I have several concerns about how much should I pay in taxes (both: federal and Provincial). The company is getting a permit work for me. My wife and our two children (14 and 10 years old) are USA citizens too.

    If any other information is required, please let me know. I appreciate all your valuable help.

    Sincerely

    Rodrigo Ordonez

  471. Hi Rodrigo,

    To determine the amount of taxes you will have to pay, you would enter your salary into the calculator above for the answer. In your case, the total tax will be approximately $23,500. Any deductions available to you for your family and dependants would be calculated and the tax refunded to you at time of filing your Canadian tax return.

    Also, please note that because you and your family are US citizens, you are also required to file a US tax returns; you likely will be exempt from US tax, but you are required by US law to file US income tax returns.

    If you require assistance in filing your Canadian and US tax returns, our firm specialises in assisting people like yourself with complex tax needs.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  472. J. Cabana 02/12/2012 at 9:10 pm

    Hi there,
    I have a question about income tax and child care expenses. I paid $8000 for daycare in 2011 for my child and separated from my spouse. In our separation agreement, I will be the one claiming the child care on my income tax return. I earned $70,000 in 2011 ($42,000 net) and also paid $800 in tuition costs for a post-secondary course I took. Just wondering how much/what percentage of the $8000 in child care I might expect to have returned to me.
    Thanks
    J.

  473. Shelly Burrows 02/13/2012 at 1:01 pm

    Great site! I was wondering about my situation...
    I am self-employed and consistenly have a credit carried forward every year from my taxes...why is it that I cannot get a refund? Are you not entitled to a refund if you are self-employed? Now I'm worried about this years taxes as I have recently had a child and his daycare is made out in my name but knowing that I dont get a refund, its another credit that is going to sit there. Im frustrated as to why I don't get refunds? IS that normal?
    Thanks
    Shelly

  474. Hi J. Cabana,

    Depending on the ability of your child, the minimum claimable is $7,000; if your child is disabled, more.

    As to what percentage, it would be based upon your average tax rate. Use the calculator above to determine your average tax rate and apply it to the $7,000 deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  475. KENN 02/13/2012 at 9:23 pm

    hi there im just wondering if im going to owe money at tax time or if im going to get money back i made about 25000..with 3000 $takeen off of income tax ..ur expertise would be of great value to me thanks

  476. Mahdavi 02/13/2012 at 10:29 pm

    Hi there, I am a permanent resident of Canada; currently, am living in British Columbia. This is my case: right now I am in an orthodontic treatment; I wore teeth braces in February 2011 and will be finished in February 2013. The total cost is $7100. Basically I pay $250 a month; the payments happened in 2011 were the following $400 + $700 + $2250 = $3350. So, I still owe him around 3750. However, in the middle of year of 2012 (this year) I will have to go through an orthognatic surgery that will cost me another $4000.

    In the meantime, I also had a root canal procedure and few other dental works in 2011; all cost me around $1100.

    In 2011, I earned $11.800.

    Please help me, how much will I get tax return from my dental expenses.

  477. Rodel Matunog 02/13/2012 at 11:00 pm

    I'm a temporary worker here in Canada. Currently, I'm already working here in Nova Scotia, but my tax computation for 2011 is in Leamington, Ontario where I'm working my previous job there. I finished my contract last Nov. 25, 2011. I don't have a work from Nov.25, 2011 till January 9, 2012. How much refund (if I have) I can received based on my information I'm providing below.

    2011 Income Tax - 29,875.56
    Tax deducted - 4,094.30
    CPP - 1,312.25
    EI - 531.81
    Marital Status : Single

  478. shan 02/14/2012 at 8:17 am

    Hi,

    I am an employee and my total income for 2011 was $20,934 and CPP $981 and EI was 373. In 2011 I have worked only for 4 months. My T4 shows that total deducted was around $4314, where as your calculator shows tax of around $2100 meaning I am due for tax refund of around $2200.

    In order to cross check I have filled in T1 general form manually and it shows tax refund of only $540. (I am eligible for only my own personal allowance). I have also noticed that T1 form asked to fill in Ontario Health Premium amount? Does your calculator takes account of this? and also why I am getting a huge difference in tax amounts when compared with T1 general form?

    thank you,
    Kind regards,
    Shan

  479. Jewels 02/14/2012 at 4:02 pm

    I am a Canadian citizen, but am living in Trinidad and Tobago. Although I have no income right now (I am in the process of getting residency here in Trinidad and Tobago) but I need to submit my T1. My question is how do I handle the sections that ask about my spouse (he is NOT Canadian, does not live in Canada, and is a citizen of Trinidad and Tobago)? The form asks for his sin# but he has none, and it asks for his income, but this would not be in Canadian $ since he works here in Trinidad and Tobago. Should I leave these sections blank, or is there a 'code' or something that signifies he has no ties whatsoever to Canada? Any ideas?

  480. Hi Shelley,

    First question to you: do you pay tax or tax installments during the tax year?

    If you pay tax during the tax year, you would get a refund if you overpaid the tax.

    If you are self-employed, the only credits you could carry forward would be capital losses, donations and home office expenses.

    If fact, if you are self-employed you wouldn't be getting a refund (unless you overpaid during the year) because you would be required to contribute to CPP based on your earnings. If you have home office expenses carried forward, it would appear you have no taxable income (because home office expenses cannot create a business loss) and therefore no tax refund.

    Seems to be that if you want to get a refund, you need to pay tax... send CRA some tax installments during the year and they'll refund it to you 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

  481. Hi Kenn,

    Without having more details, an exact answer cannot be provided, but to estimate your answer enter your income into the calculator above to determine the tax liability, then compare the result to the amount of tax deducted from your pay. The difference would be your 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

  482. Hi Mahdavi,

    Your dental/medical expenses are eligible for deduction in the year you incur the expense, not when you pay the bill... for example, your braces were applied in February 2011 and you were billed $7,100, the full expense is deductible in 2011, not just the amounts you paid towards the total bill. When you have the surgery, it will be deductible in that year.

    You cannot carry forward medical expenses more than 12 months from the date of the procedure.

    If you wish, instead of claiming on your 2011 tax return, you can claim all medical expenses for the period of Feb 1, 2011 to Jan 31, 2012 on your 2012 tax return. This would be the better option if you will have more income in 2012 than 2011.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  483. Hi Rodel,

    Based on the information provided, you will be in a tax refund position of approximately $400.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  484. Hi Shan,

    Unfortunately, without seeing how you completed the T1 tax return, I cannot advise when you went wrong. Based upon my calculations, you are due a refund just as the calculator above determined.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  485. Hi Jewels,

    Only Canadian residents must file Canadian tax returns. Depending on the date you terminate(d) your ties with Canada will determine your residency i.e. if you still maintain a home, bank accounts, credit cards or direct family in Canada.

    Assuming you moved to Trinidad and terminated yours ties to Canada the same date (example May 1, 2011), you would enter this date as your cease to be resident.

    As for your husband, you will need to complete the schedule transferring credits from your spouse to enter his details of address and income in C$ (convert his Trinidad income to Canadian dollars). If he has no SIN, do not enter one.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  486. Janet 02/15/2012 at 1:01 pm

    Hi I am a Canadian citizen whose job requires me to work in multiple provinces per year (last year 6). I have just found out that I have been paying taxes in the provinces I have been working in plus my home province while not on location. The company I work for says i will be receiving 6 T4s. I am on site from anywhere from 1 week to 5 weeks. I just need to know if I need to file in each province or only in the province I reside in? As well, does the company I work for really need for me to be paying taxes in every province I work in?

  487. Hi Janet,

    Regardless of where you work and the number of T4s from different provinces, your annual tax return is to be filed based on your residency as at Dec 31.

    Assuming you live in your home province, that is the province of residence for tax reporting purposes.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  488. Jimmy 02/15/2012 at 9:00 pm

    My income for 2011 was 41000$
    If I contributed 15000k in rrsp. What would my approximate tax credit be? I'm in Quebec. Great website!

  489. Conrado Atienza 02/15/2012 at 10:16 pm

    I'm a temporary worker here in Truro, Nova Scotia. I started working here last April 26, 2011. Below is my T4 information:

    Income Tax 2011 - 17,014.08
    Tax Deducted - 2,170.24
    CPP - 728.91
    EI - 302.87
    Marital Status - Married

    P.S. My wife is currently working in Saudi Arabia and she's currently earning $610 cad/monthly.

    Can I still received a refund on this?

  490. Hi Jimmy,

    Based on the information you provided, for every $1000 you contribute to RSP you would receive a tax credit of $320.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  491. Hi Conrado,

    Based on the information you provided, your approximate tax refund is $1000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  492. Siva 02/16/2012 at 11:56 am

    Hello ,
    I moved to Canada in the Month of Aug 2011 and living in ON Province .

    Recently visited H&R Block for my Tax filing -2011 .and i received the below information from them .

    - As I stayed less than 183 days in FY - 2011 hence treated as Non Resident.
    - Also not eligible for Family Tac Benefits .
    - Total Tax deducted is around 6700 CAD , and they were saying I would receive around 900CAD as my Tax RETURN.

    Can you please advise if there is any possibility to maximize my returns.

    Thanks

  493. Michaela 02/16/2012 at 8:51 pm

    Hi there! Lots of great info - hopefully you'll be able to help me...my husband is an American citizen by birth and moved to Canada on a work visa several years ago. His work Visa ended in Sept 2010 and since he left, he has not entered Canada / he closed his bank accounts/ we gave up our apt lease in BC and he filed and paid 2010 taxes that year. Here is our complication...I am a Canadian citizen and still reside in Canada (own a home in Winnipeg) I visit him in the states as I am not ready to make the move to the states yet. I do not work. He has to pay full taxes in the US and I have to pay / file taxes here in Canada - does he have to file 2011 taxes in Canada as well because we are married even though he hasn't even entered Canada since he left in 2010? ( He has no plans on returning to Canada) Also he has sent me money from America in a bank wire, is that money taxable?
    Any help you could provide would be much appreciated - it is so confusing and no one seems to be able to answer this.Thank you so much in advance!!

  494. Hi Siva,

    Without seeing your tax documents or tax return prepared, I cannot comment on whether the tax refund is calculated correctly.

    As for your other comments, yes, they are correct in the processing unless you have proof of deemed residency by tax law.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  495. muhammad 02/17/2012 at 12:32 pm

    Hi,
    I am offered a job in Vancouver with an Offer of 150,113.60/-.

    We are total 6 Family Members.

    My date of birth is March 1 , 1968
    My Wife DOB: Nov 20; 1973
    My Son DOB: April 4; 1999
    My daughter DOB: July 31; 2004
    My Daughter DOB: April 6; 2006
    My Daughter DOB :Dec 28; 2008

    My wife not working.

    We don't have any income.

    Pl can you tell how much will be my take home salary and how much tax I have to pay.

    Regards.

  496. Hi Michaela,

    Your husband is not resident in Canada, so he doesn't have to file a Canadian income tax return unless he had Canadian sourced income during 2011 (bank account interest, etc.).

    Since he is a US citizen, your husband is required and should have filed his US tax returns for the time he was in Canada reporting his Canadian income to IRS.

    Since you've been married and you don't work, he should have filed his US tax returns as Married Filed Jointly to maximise his deductions.

    Since you are resident in Canada and do not have US citizenship (assuming this), you do not need to file a US tax return... but if you have a Green Card or are a US citizen, then you must file a US return along with your husband.

    The payments you receive from him are not taxable in Canada since you are married, he cannot claim the payments as support on his 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

  497. Hi Muhammad,

    To determine your after tax pay, enter your total income into the calculator above to obtain your answer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  498. Monica 02/17/2012 at 4:04 pm

    Hello,

    I was a full-time student in Alberta for 8 months in 2011. My gross pay was 21,195.15, and my income tax, E.I, and C.P.P contributions were 1942.50, 368.56, and 913.02 respectively. I also paid 40.73 in union dues. Because of my full-time student status would I be eligible to receive all of the income tax I paid as a refund?

  499. Hi Monica,

    It would all depend on if you had sufficient tuition and education education deduction to reduce your taxable income to below $10,000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  500. jen 02/18/2012 at 2:37 am

    hi,
    employment income $96380
    income tax deducted $22445
    employee's cpp contributions $2217
    ei $44200
    cpp pensionable earnings $48300
    ei premium $786
    union dues $861
    rpp contributions $4326
    pension adjustment $8315

    and i used your calculator, it said i need to pay $24615. so is this mean i owe cra $2169.26??

  501. Hi Jen,

    The calculator does not take into considerations RSP and RPP contributions, so yes, if you did not contribute to the RPP your tax payable would be $2169.26.

    Taking into consideration the RPP contibution, you are in a refundable position of approximately $30. Any contribution to a RSP will provide you with a tax refundable credit of $360 for every $1000 contributed.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  502. Kazi 02/19/2012 at 5:04 am

    HI,

    I am a landing immigrant only stayed 30 days in Canada open a bank account ,credit card and then left the country,since 2 and half year i am living outside Canada.Now planning to move to Canada for permanently kindly advice me do I need to pay Tax for last 2 and half year.

    regards

  503. Hi Kazi,

    No, you are not required to file tax returns during your non-residency.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  504. Betty Truong 02/19/2012 at 6:50 pm

    I have a quick question, I was in College in May 2011, but then I dropped out of College few months later, I also worked as a part-time job after school and after that full-time, I don't know if the CRA will automatically take my refund that I suppose to receive and given it straight my College?

  505. goblo 02/19/2012 at 7:08 pm

    hi...how much cpp do we need to pay per year to start to get refund and also how much e.i? i am from new brunswick

  506. Hi Betty,

    CRA cannot pay any agency other yourself. If you owe money to the College, CRA will not pay it.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  507. Hi Goblo,

    You will not overpay CPP and EI unless your employer makes a mistake (very unlikely) or you have multiple jobs and more than one T4.

    The maximum CPP contribution is $2,217.60 ($4,435.20 for self employed)for maximum earnings of $48,300 and for EI is $786.76 for maximum earnings of $44,200.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  508. Elke 02/20/2012 at 9:16 am

    I am a single mother of two who separated in 2011. Prior to the separation I was a stay at home mother and did not have an income. Now that I am separated I have been receicing the Canadian Child tax benefit for my children which my understanding is was calculated based on last year's income of $0. I did go back to work in 2011 and have an income of approx $45,000 but continue to receive the child tax credit. Will I need to pay back the monies I have received for the child tax credit once I report my income for this year as I'm sure I will no longer be elligible for the chld tax credit and probably shouldn't have been getting it all along?

  509. Rickcal 02/20/2012 at 1:21 pm

    Hi, great site!
    I have started a home business and expect approx. $10,000.00/month. Can you please tell me how much of that should be set aside for taxes?
    Thank you

  510. Hi Elke,

    First to clarify... you cannot be a single mother of two that separated in 2011. You are a separated mother of two (if you are and still married, you are not single).

    The Child Tax Benefit would have been determined based on the FAMILY income not your income. The monies you are currently receiving is your 2010 tax return calculated amount. So you will not be required to pay back any benefit you received. The Child Tax Benefit for 2012 starts in July, is based on your 2011 tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  511. Hi Rickcal,

    30% is the suggested amount to set aside to cover taxes and CPP contributions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  512. Jen 02/21/2012 at 1:10 pm

    Hi,
    If my husband owes back taxes, am i liable?
    Jen.

  513. Riccardo 02/21/2012 at 1:15 pm

    First off, Thank you Storoszko for taking the time to answer all these questions.

    My wife works in BC. On her pay stub of the year she gross 33,600, yet her T4 says 35,700. She gets MSP as a tax deduction on her paystub. Does that get added into her yearly salary, The reaason why i ask is she was only deducted 3800 dollars for taxes, 600 for ei and 1018 for cpp

    Thank you

  514. Riccardo 02/21/2012 at 1:18 pm

    First off thank you so much Storosko.

    We will live in BC, my wife year end pay stub said she gross 33,600. She was deducted 3800 dollars worth of tax, but her T4 says she gross 35,800? The only thing i can amount this too is that her company pays out MSP deductions for both of us which is i think around 100 dollars a month. Does this amount get added to her income and if so does it get taxed? the reasony why i am asking is according to tax file software even with 2600 to RRSP and 800 dollars worth of union dues she is set to pay the goverment back

  515. Hi Jen,

    No, you are not liable for your husband's back taxes, but if you have a joint banking/savings account with him, it can be confiscated for tax payment.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  516. Hi Riccardo,

    Box 14 of your wife`s T4 will not necessarily be the same as her gross pay. Box 14 will include her gross plus any taxable benefits in Box 40.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  517. JO 02/22/2012 at 2:54 am

    I am weighing out whether it is worth it for me to be become self employed. I have been offered a contracted position in BC at $2,240/mo ($26,880/year). Based on this what would I have to pay monthly (quarterly and yearly) for deductions? I'm assuming Income Tax and CPP? And is there any way I can pay into EI so that I would be eligible in the future? If so - how do I go about this? Thank you so much for your knowledge. JO

  518. Hi JO,

    As an independent contractor, yes, you are required to pay taxes (rates above) and CPP at the rate of 9.9%.

    You can also contribute to EI, but would be only eligible for special benefits, not regular EI benefits. Special benefits include: sickness, parental leave and compassionate leave.

    For more information about this programme, please check the Service Canada web site.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  519. Marty 02/22/2012 at 3:15 pm

    I have moved to Ontario for a new job at the end of 2011. I was told that my moving expenses can only be applied to my earnings in my new job. Is this correct? I only have a few months of wages not really beneficial. Can I apply my moving expenses to my 2012 earnings instead?

  520. Hi Marty,

    Very good question!

    You were informed correctly... moving expenses can only be applied to income earned at the new address.

    If you have insufficient income during 2011 to match the moving expenses, you can carry forward the unused portion to 2012.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  521. Agustina Martinez 02/22/2012 at 9:08 pm

    Hi,

    Would like to ask for a income tax computation if there is a a refund....

    Province: Nova Scotia
    Income tax: 23916.11
    Tax deducted: 2938.24
    CPP: 1010.60
    EI: 425.70
    Marital Satus: Single

    Thanks....

  522. Debbie DeVOS 02/22/2012 at 10:02 pm

    I need to know how much tax should have been taken off of my husband 2011 he made 43757.37and 8356.57 and 10380.33

  523. Matthew 02/23/2012 at 4:25 am

    Hello,

    Thank you very much for doing this --- I'm sure a lot of people have found this site helpful. Here are some points to make my questions simple and all figures are to the nearest thousands.

    * My 2011 income: $68000
    * My Wife income: $0 - housewife
    * Neither of us have started RRSP yet
    * Based on my last yr's assessment, I have unused RRSP limit of $39000
    * I'm considering to start the Spousal RRSP.
    * I'm just a full time employee at a corporation, no kids, no stocks, no loans (pretty straight-forward tax profile)

    My question is I've been considering the optimum amount that I should put into the Spousal RRSP. Should I go with around $31000 (which will put me in lower brackets for both federal and provincial) or just go to the maximum around $38000. What's your advice on how to do this for my situation please?

    And, if I put in b/w $31,000~$38,000 into RRSP, then I'm guessing a return of little over $10,000
    Would this trigger CRA for an audit? Would they ask me where I got such a lump sum money to invest?

    Many thanks in advance.
    Regards,
    Matthew

  524. Hi Augustina,

    Yes, you are in a refund position... you will be refunded approximately $75.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  525. Hi Debbie,

    You did not indicate which province you live in, so the only answer I can provide to you s to sum up the amounts you provided (total $62,312.27) and enter into the calculator above to obtain your answer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  526. Hi Matthew,

    Firstly, an assumption is being made you live in Ontario to provide you with an answer.

    Secondly, contributing to a RSP does not change/reduce your tax bracket... contributing to a RSP provides you with a deductible tax credit.

    At your income level, for every $1,000 you contribute to a RSP, you receive a tax credit of approximately $320.

    The optimal amount to contribute to a RSP is your Contribution Limit to obtain the greatest refund.

    If you do not have a pension plan through your employer, the optimal suggestion for you is to divide your Contribution Limited and contribute equal portions to personal and spousal RSPs so as to maximise income sharing when the funds ware withdrawn at retirement.

    As long as you have an official receipt for your RSP contribution, no potential audit or red flag situation would exist.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  527. scott 02/23/2012 at 12:55 pm

    hey there,
    i am from australia working in canada now for 1 year. i made a total of 77,000. i have paid 23,000 in taxes. what would my likely tax return be for a working holiday progamee??
    thanks guys

  528. Diane 02/23/2012 at 1:01 pm

    My son lives at home was in his last year of high school, worked all year to save for College and in the fall worked full time taking night classes to improve his high school grades (he is only 18). He has earned $27000 in 2011 to put towards school, he has paid all his income tax of about $2800.00 is he eligible to get any of this refunded.

  529. Naomi 02/23/2012 at 2:41 pm

    Hi, I am a single working mom and my Net income is $40,000. a year. I have one dependant equivalent to spouse with 0 income. How much should I be paying yearly in taxes?

  530. Jarome 02/23/2012 at 3:14 pm

    Hi, I was wondering i worked 8 months got sick have not got my T4 slip yet and went on ei benefits for the rest of the year in Ont. $6552.00 total benefits paid $252.00 total income tax deducted for EI. my wife started working in August part time $1956.77 total income paid $39.41 total icome tax deducted then in Novemeber got a full time waitress poisition $2027.07 total income paid $121.69 total income tax deducted we get $406.01 a month for Baby bonus we have no rent to deduct we have two children a 3 and 1/2 year old and a 1 year old we lease a car nothin else what kind return should we be expecting and what other info is needed to figure this out i am sorry great tool up top not sure how to use it haha miner here not the greatest with computers Thank you for the help and reply appericate it

  531. nichole 02/23/2012 at 3:54 pm

    I graduated university last year and i recently got a fulltime job, i am wondering do i get a tax break for the tuition i have been paying for the last 5 years of school?

  532. Ernesto Carrillo 02/23/2012 at 5:18 pm

    Hi, I am retired snd my total pensions are $29,350.00. I also received $34,850 for back pay for the last 10 years. I understand that I have to file my income tax return for my pensions payments as I did it last year and send separate my T4 for the back pay and ask Revenue Canada to reassess my taxes for the last 10 years together with the T1198E. From the lump sum payment there were the following deductions:CPP $1,724.34, EI $620.06 Rpp contributions $ 2,009.41 and Income Tax $4,078.42. How much do you think I will be paying on taxes and If I put $5,000.00 into RRSP what the difference will be and $ 10,000.00. Thanks you for your help

  533. Pete 02/23/2012 at 5:59 pm

    Hello & thank you for providing such a valubale information source!
    Here is my scenario: Place of employment: Alberta, married, no children
    I worked for Company A from January 1, 2011 to May 31, 2011, total income: $14224.68, Income tax deducted: $1507.58, CPP: $537.48, EI: $223.87
    Company B (which bought Company A) June 01 to December 31, total income $19044.90, income tax deducted: $2151.51, CPP: $820.01, EI: $338.98
    After doing my taxes it shows I owe the Gov. $741.74.
    My question is how is it possible I owe such a large amount if payroll (Quickbooks) has deducted the right amount of tax, CPP & EI on each paycheque??
    Thank you for your assistance!

  534. Nana 02/23/2012 at 8:53 pm

    Hi.
    I have a quick question, I have been in school for a four year program. Carried all my tuition credits forward and have aproximately $42000. For 2011 had 3 dif employees and have made $98000.00
    I paid union dues for all 3
    paid pension for all 3
    EI for all.
    RRSP contibution
    Had donations to world vision.
    Tax deducted 20K
    My question is even though i did not give exact figures for the above, is the tuition credit going to be helpful when i file for my taxes.

    Thank you in advance for your answer.

  535. Hi Scott,

    G'Day!

    Without knowing your actual residence in Canada, an exact answer cannot be provided.

    But you can determine this by entering your income into the calculator above to determine your tax liability. Take the result and compare it to the total tax deducted from your pay. The difference would be the approximate 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

  536. Hi Diane,

    Based on the limited information provided (no province of residence provided), an exact answer cannot be given.

    The tax deducted amount of $2,800 is quite low for the income earned. He likely may be in a tax payable position.

    You can get a better idea by entering his income ($27,000) into the calculator above to determine his tax liability. Take the result and compare it to the total tax deducted from his pay ($2,800). The difference would be the approximate refund or tax payable.

    If eligible, obtain receipts for his night classes, they possibly can be used as a deduction against his income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  537. Hi Naomi,

    Without knowing your province of residence, an exact answer cannot be provided.

    You can determine your tax liability by entering your income into the calculator. The result will be the tax that will be subject to your income.

    If you are paid biweekly, take the tax total and divide by 26 to determine the tax to be deducted from your paycheque.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  538. Hi Jarome,

    Well, you need to start with your T4... if you haven't received it yet, contact your employer because you cannot file until you receive it.

    Based on the info provided, an exact answer cannot be given.

    Once you get all your income information, to calculate what your tax liability is, enter your total (wages plus EI) into the calculator above. This will determine what tax you need to pay. Compare it to the total tax that was deducted from your pay (wages and EI). The difference is your refund or tax payable.

    Repeat the same for your wife and you will have an approximate answer for her.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  539. Hi Nichole,

    Yes, you can get a tax break... have you been filing and reporting your tuition and education deduction on your tax returns for the past five years?

    If so, you will have accumulated a lot of credits to apply to your current income.

    If you have not reported your tuition or if you have transferred them to a parent or other person, no, you cannot claim any credits.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  540. Hi Ernesto,

    I believe you have some incorrect information. The retroactive lump sum payment you received is taxable in the year you received it, not the past ten years.

    What year does your employer indicate on the form as year of payment? If 2011, then you report on your current tax return.

    Canada Revenue will not reassess your prior tax returns upon receipt of T1198 UNLESS YOU request to have the proportionate amount of tax paid applied for the back pay for that year. If you choose to do this, the tax deducted from your payment will be processed for the year requested.

    Whatever your tax refund/payable was last year will be approximately the same for this year, if you choose to have the lump sum attributed to previous tax years.

    As for your RSP contribution, do you have RSP Contribution Room available? If you have $10,000 available RSP contribution limit, you can contribute up to $10,000... check your 2010 tax assessment to determine your RSP Contribution Limit.

    For every $1,000 you contribute to your RSP, you will get a credit for $200. So if you contribute $5,000 you will get $1,000 refunded or for $10,000 you will get $2,000.

    If you choose to not reassess your back tax returns, for every $1,000 you contribute to your RSP, you will get a credit for $330. So if you contribute $5,000 you will get $1,650 refunded or for $10,000 you will get $3,300.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  541. Hi Pete,

    Without seeing the information you have entered into your tax calculator, I cannot determine where you went wrong... I calculate you are in a tax refund position of over $2,000.

    As for your payroll deduction amounts, the EI and CPP are not calculated accurately as they appear to be below the amounts for your income (EI and CPP miscalculated). This could be due to the company change over, but probably due to error by payroll office.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  542. Glacel 02/24/2012 at 12:25 am

    Hi, Just want to know if i can also put my travel insurance as one of my taxable expenses? my first time to file my income tax in Canada.

  543. Lori 02/24/2012 at 10:33 am

    Can you tell me how two dependent children affect your taxes. I earn $85,000/year. My husband also earns a similar wage.

  544. Hi Glacel,

    If you were required to travel for business purposes then, yes, you can deduct the travel insurance as an employment expense.

    If you did not travel for business, you can claim the travel/medical insurance as a medical expense deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  545. Hi Nana,

    The simple answer to your question is.. yes!

    The tuition and education deduction credits you've accumulated will create a non-refundable tax credit and increase your tax refund substantially.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  546. Hi Lori,

    Having children as dependants provides you with the dependant deduction along with any related childcare, medical, etc. deductions to reduce your tax payable.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  547. Travis 02/24/2012 at 5:06 pm

    My question is my family lives in BC but i work out of province almost 300 days of the year and the company i work for is based in alberta and i do have a residency in alberta aswell that i stay at from time to time and my drivers liscence has the alberta address on it im curiouse to wich province to claim taxes in. As i will be claiming my family as dependents on my taxes

  548. Hi Travis,

    If you:
    1) work out of province 300 days a year,
    2) have a residency in Alberta, and
    3) have an Alberta drivers licence (^)

    (^) This is the decider

    You are an Alberta resident and file as such.

    When you claim your dependants, you will state their residency address as BC.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  549. Tony 02/25/2012 at 6:10 am

    Hi,
    I'm currently a full time university student. I got an internship job that starts from May.2012 - Aug.2013 (will last for 16 months). And once I finish this job, I'll be back to school to finish my fourth year. I was wondering how my income tax will be deducted for 2012 and 2013.
    Provided that I live in Ontario, my annual salary is 44600, and my tuition fees for 2012 and 2013 would be around 3000 for each year, also, I have non-refundable tuition credit accumelated from previous years.

    Thanks in advance!

  550. Hi Tony,

    When you start to work, you should fill out a TD-1 form to advise your employer of your tax status. This form determines the amount of tax to be withheld from your pay.

    Since you have education credit accumulated, you would enter this information on the TD-1 so when it come to filing your income tax you will already have received your tax refund via your paycheques.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  551. Amanda 02/25/2012 at 9:23 pm

    Hi! My current income gross is 27,700 and my tax deduction was 3,355.80. I dont have anything else to claim such as rent and aparently I didnt pay enough intrest from my student loan or line of credit to be issued a tax form so how much should I expect as a tax return if I qulify?

  552. Amanda 02/25/2012 at 9:24 pm

    Sorry forgot to add I live in Ontario!

  553. Paul 02/26/2012 at 3:40 am

    Hi there,I live in Ontario and I have my T4s for since 2008 and I have never filed for tax. My income for the year has never been over 12000 and I have been a student since 2008 until present. Is the income tax I paid in the past few years lost or can I still file them?

    Thank you!

  554. Hi Amanda,

    Based on the information you provided, you would be receivable of a tax refund of approximately $50.

    I suggest you review your records to ensure you have not exhausted your education and tuition credits from previous years; additionally, some financial institutions do not report your student loan interest, you'll need to review your loan statements and materials to obtain that information.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  555. Hi Paul,

    There is no statute of limitation on claiming tax refunds.

    With your tuition and education credits you're entitled to a large refund.

    I suggest you file as soon as possible to get the money owed to you: tax refund, GST, HST, property tax/rental credits and PST.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  556. Harsh 02/27/2012 at 6:14 am

    Hi, I am a PR cardholder since 2010 and working in Middle East. I am planning to buy a Condo in Toronto, where my son who is currently studying in UofT will be staying. Will I be taxable on my income in middle east?

  557. mary 02/27/2012 at 12:38 pm

    Borrowing against life insurance policy:
    Is there income tax payable if you decide to take a loan against your whole life insurnce policy?

    I have a whole life insurance policy and borrowed against my policy and ended up getting a T5 slip. May they thought I removed my built up capital. Please help. No one seems to have the answer and the life insurance company is being vague.

  558. Jay 02/27/2012 at 12:38 pm

    Hi,

    This is an amazing website, I am currently an independent contractor for a client and I get a monthly pay of 5k. I have been actively involved with their day to day operations and am weighing the advantages of requesting to be an employee or remain as an independent contractor. I am not too concerned about benefits and prioritize getting the most dollar amount after filing for tax. Can you please advise which is the best route for me to take? Thanks!

  559. Hi Harsh,

    Without knowing which country your are working in and the employment conditions, I am unable to advise if you are taxable in Canada.

    If based on residency, if the country you are working in doesn't have a tax treaty with Canada, you may be 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

  560. Lucy 02/27/2012 at 3:35 pm

    My son, my dependant ,...turn 18 on dec 2011,He is still studing full time.
    Can I still claim the 20000 tax free credit due he is still my dependant__

  561. Hi Mary,

    A T5 is issued interest and investment income. If you received a T5 from your insurer, the amount on the T5 can be a combination of interest, cap gains, etc., that was paid out to you in the loan you requested.

    If you borrow against your insurance policy, and difference between the cost basis and the cost value would be taxable if your loan exceeded this amount.

    Your best option to understand what the taxable portion on your T5 is would be to contact your whole life policy issuer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  562. Hi Jay,

    Being an employee would be the optimum choice for a better after tax pay. As an independent contractor, you are responsible for double your CPP contributions. Considering this, your after tax pay would be higher as an employee.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  563. Hi Lucy,

    There is no dependant $20,000 tax free credit.

    Once your son turns 18, even though he may be dependent upon you, he is not considered a dependant for tax purposes unless he has a disability that would exclude him from this statue.

    Parents that support their children are entitled to have the tuition and education deduction transferred to them from their dependant child.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  564. Kevin 02/27/2012 at 6:09 pm

    Hi I made around 15000$ this year. My total taxes I paid without cpp is only 650$. I am currently unemployed and according to your table I should owe another 500$. Will I end up having to pay more? I am a little confused because some sites say I will get my money back while others say I will have to pay more. I am currently separated from my wife and I am living with my parents.

  565. Hi Kevin,

    The calculator above does not take into consideration the Working Income Tax Benefit and other provincial benefits available to you, only the income tax.

    Based on your information (assuming you were separated from your wife before Dec 31, 2011), you are in a tax refundable position of approximately $1,000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  566. cal 02/27/2012 at 8:05 pm

    hi there,im a student working on a tax question and I'm wondering if i could get a little help with something.. "say" a woman who just started a job in ontario has received a paycheck of 685$, she has previously been classified as a code 2 claim , how much federal income taxes would she be entitled to pay? ..im not even sure if there is more information needed to complete this "problem".

    thanks for reading.

  567. Shanda 02/28/2012 at 1:25 am

    Hello, I am currently working full time and my employment income for 2011 was 5040 dollars ( i was a student up until july and only started working full time in october) on my T4 the income tax deducted says 389.88. I am wondering how much tax return i will get or if any,

    Thank you! and let me know anywhere else you can help me

  568. Maroun Mourani 02/28/2012 at 2:32 am

    hi,

    I have been working abroad in UAE for almost 8 years now, first with a Canadian company who relocated me to open an office in Dubai and then for an american company. I have a house outside and assets. I don't want to sell the house and keep it and may sell it much later on,

    I took all my family to Dubai and we were considered non-resident of canada.

    Now, I would like to come back to Canada and work, but I cannot take my family back with me at the moment and would like to find a job first. I will bring back the family home only when I have the house, car, etc... all in place.

    My question is: how much taxes will I have to pay if I have 3 kids and a wife living outside canada and I am working in Canada ? How do I make my revenue declaration ? How does it work ? let's take a example for a $80,000 annual income.

  569. Francesco 02/28/2012 at 6:41 am

    Hello, I am an italian researcher who is going to visit University of British Columbia in Vancouver as a post-doc. I will receive a fellowship of 43000 CAD for one year. I will get a work permit, so I am not a permanent resident. I don't have any spouse and children. I would like to know how many taxes I will pay and if I have also to pay a health insurance: how much is it approximately?
    Thank you very much for your help.
    Francesco

  570. kanth 02/28/2012 at 12:39 pm

    Hi,

    I will relocating to Nova Scotia..may I know wht is amount non- taxable in case of Married with one Kid.

    Would like to know the CAP amount for year 2012

    thanks,
    Kanth

  571. kanth 02/28/2012 at 12:39 pm

    Dear all,

    I will relocating to Nova Scotia..may I know wht is amount non- taxable in case of Married with one Kid.

    Would like to know the CAP amount for year 2012

    thanks,
    Kanth

  572. Hi Cal,

    What you are questioning is the TD1 and TD1-ON forms. These forms determine the personal exemption, they do not determine the tax to be paid.

    Someone with a code 2 on TD1 would have a higher personal exemption that code 1 or the common code 0. A higher personal exemption means less income tax to be deducted from the pay. Whatever the value of code 2 vs code 0 would be the amount of additional exemption.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  573. Hi Shanda,

    Since your total income for 2011 is below the personal exemption amount, you will receive all your income tax paid refunded to you.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  574. Hi Maroun,

    As a resident of Canada, you will be are required to file an income tax return annually.

    Tax will be withheld from your pay by your employer and at filing time, you will report your income to determine if you are due a refund.

    If your family lives overseas, you cannot claim them as dependants. Dependants must live with you in Canada for you to be eligible for deduction.

    To determine your tax liability, use the calculator above by entering your income and looking up the tax for the province you wil reside within.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  575. Hi Francesco,

    As a non-resident, you are not eligible for the provincial health care available to residents.

    You will need to purchase travellers health insurance from an insurance company in your country or through your travel agent.

    To determine your tax liability, use the calculator above by entering your income and looking up the tax for the province of BC.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  576. Teri B 02/28/2012 at 1:45 pm

    I was on maternity leave from Jan 9, 2011 to Jan 9, 2012 and received my T4 from EI. I received $22,000 for the year I took off but they only took off $890 in tax. Did they take off enough tax in order NOT to owe for tax time? I did manage to put money away in an rrsp throughout that year but could you let me know if there was enough money taken off.

  577. Hi Kanth,

    The personal exemptions are the same across the country. The personal exemption you claimed on your 2010, 2011 tax returns will be the same for 2012.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  578. Hi Teri,

    Generally EI deducts 10% for withholding income tax.

    The amount you indicate is definitely low, you may wish to contact Service Canada to determine why insufficient tax was deducted.

    Perhaps you advised them of certain personal exemptions which affected the tax deducted, best to contact Service Canada to discuss.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  579. Shripad 02/28/2012 at 3:10 pm

    Hello,

    I am classed as Canadian resident although I am here on work permit working for a Canadian employer since June 2011. My wife is also working for a Canadian employer. We have one kid who is 2 year old son. I am filing my taxes in Canada for the first tiime and we did't receive any Universal Child tax benefit for 2011 and not currently receving as we are not eligible until 19th month from the date we have arrived in Canada. In such case, do we need to fill in just zero amount in front of Universal child tax benefit? in our tax returns. Also, we don't have Netfile no and we understand that we need to mail our tax retuns. Can you please suggest which documents we need to attached to our tax returns? Many thanks, kind regards Shripad

  580. Rudi 02/28/2012 at 3:51 pm

    Need help.

    I am a fulltime freelance writer in Ontario. I get paid by the U.S. dollar. The money is wired from U.S. to Canada.

    From Jan 2011 to Dec 2011: I got $22,849.63 USD NET.

    I wonder how much tax liability I have to pay. Note: What I got was the NET amount.

  581. Addy 02/28/2012 at 7:45 pm

    Hi there,

    I was on short term disability for Dec 2011. My T4A box 107 is $2166.60 and box 022 is $216.60. Before I added this onto my taxes I was looking at a $5.00 oweing, but with the T4A I now owe $475.00. Is this normal? Just wondering why they wouldn't take the proper amount of tax off that was needed. Am now worried about 2012 because I'm going from STD to Mat leave....Help!!!!!!

  582. rainier 02/28/2012 at 8:02 pm

    Hello there!

    I would like to ask on how to file my income tax if i have 2 casual jobs?

    Will a wrong address on my T4 affect my filing? or will I just ignore it

    since my SIN number is written on it? I already informed my employer about it since November... but nothing was done!

    Thanks and more power!

    Yours truly,

    Rainier

  583. Hi Shripad,

    When completing the tax return, you would enter the information from the receipts you received. If you received the UCCB, you enter the amount from your receipt.

    When filing you submit almost all your tax slips and receipts.

    If you are filing by preparing a paper T1 Tax Return and Benefit Guide, the information book that accompanied the forms contains all the information you require.

    If you are filing via a tax return prepared with tax software, the return when printed will provide you with a list of all documents to attach to the tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  1. Hi Rudi,

    To have an idea of your tax liability, calculate 30% of the GROSS US amount and convert to Canadian dollars at the exchange rate of the date of payment.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  2. kanth 02/29/2012 at 12:14 am

    Dear Sir, Madam

    Thanks for below response, may I know the Personal Exemption limit for year 2012. This is my first time visit to canada and I will move on work permit effective may 2012

    thanks,

    <<<<<<

    Hi Kanth,

    The personal exemptions are the same across the country. The personal exemption you claimed on your 2010, 2011 tax returns will be the same for 2012.

    I hope this has answered your question.

    <<<<<<

  3. Allan 02/29/2012 at 1:07 am

    Hello,

    My girlfriend and I are temporary residents (on working holiday visa`s) and are just looking over our tax forms. I was wondering that since we are work visa`s and will be leaving the country soon do we file our taxes differently than permanent residents?
    We have been paying federal income taxes, along with CPP and EI contributions, can we get any of that back? Or do we just submit our gross pay and federal tax amount?

    Thank you in advance for any advice,

    Regards
    Allan

  4. Hi Addy,

    I cannot answer you saying this is normal, because each individual's tax calculation is personal.

    Generally the amount of tax deducted from your payments is determined by your income level or if you specified if your personal exemption differed from the basic amount.

    If you have entered the information from your T4A slip accurately, then the result accurate.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  5. Hi Rainier,

    Regardless of the number of jobs you have, you file your taxes the same way.

    If the casual jobs you have did not provide you with T4 slips, you must report the amount of earnings you received as Other Employment Income.

    As long as the SIN on the T4 is correct, you have no worries.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  6. Hi Kanth,

    The personal exemption is $10,822 and will vary for you proportionately based on the time you are in Canada the first year.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  7. Hi Allan,

    Regardless of being temporary or permanent residents, the same tax return is completed by by all taxable residents of Canada.

    You should note on the return your entry to Canada date and your status to be eligible for the correct deductions and benefits.

    Unless the employer miscalculated (which does happen frequently) your CPP and EI deductions, you will not be refunded these amounts... only any over payments. This is done through the tax return calculation.

    In addition to any refundable tax, you are also eligible for other tax benefits which you can only claim by 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

  8. Steve 02/29/2012 at 12:49 pm

    Hi,

    Just would like to say that I love this site.

    My mother is turning 58 this year and is receiving a defined benefits pension plan of approx 40K a year. My father also just recently passed away.

    She has approx 200K in RRSP.

    Can you please suggest a plan to withdrawal her RRSP's? I know that she is suppose to turn 14K of the RRSP to a RRIF at 65. but what about from years 58-65? Any suggestions would be great.

    Steve

  9. Crystal 02/29/2012 at 3:24 pm

    Hi, great site!
    I have major delema, complicated tax question! I have a disabled dependant (T2201)I have had to leave my job to care for my son. My husband makes $58 300 per year and we have had to file a new TD1 with his employer. Before my husband was paying as a single person usually between $13 000 and $14 000 per year in income tax and we would get a huge refund at the end of the year. Now without my income we cannot make end meet, hence the new TD1. Now that for next year he will be claiming me, my son, and disability transfer from dependant how much tax should he be paying so at the end of the year we won't get a refund but we won't have to pay either?? I have been told from revenue canada we should only be paying about $4000 in taxes if we want to break even, is this true? Thanks

  10. Crystal 02/29/2012 at 3:50 pm

    Hi sorry me again, I should mention we live in SK

  11. Hi Steve,

    First off, your mother is required to collapse (convert) her RSP to a RIF or other option at age 71, not 65.

    Your question is really one of retirement planning, not taxation, but I'll try to provide you with some idea of questions to take with you to a planner.

    1) How much does your mother need annually to support and live the live style she requires? If that can be accomplished with the pension, there is no need to withdraw from the RSP.

    2) Any money withdrawn from the RSP will be taxed.

    3) Once the RSP is converted to a RIF, minimum amounts must be withdrawn annually following the formula by law (about 6% and increasing as time goes). So assuming the $40k pension continues, starting when she is 72, her income annually will be $53k approximately.

    4) How long does your mom expect to live?

    5) How much of an inheritance does she wish to leave in her estate?

    The answer to these questions is what would decide if your mom needs to dip into the RSP prior to 65 or if the she wishes to have a safety net in case of critical illness.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  12. Hi Cyrstal,

    Based on the information provided and assuming your son is under 16 (no age stated), the 2011 tax liability for your family would be approximately $6,500.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  13. Hi Steve,

    First off, your mother is required to collapse (convert) her RSP to a RIF or other option at age 71, not 65.

    She will also be entitled to CPP (at 65 or earlier) and OAS when she turns 65.

    Your question is really one of retirement planning, not taxation, but I’ll try to provide you with some idea of questions to take with you to a planner.

    1) How much does your mother need annually to support and live the live style she requires? If that can be accomplished with the pension, there is no need to withdraw from the RSP.

    2) Any money withdrawn from the RSP will be taxed.

    3) Once the RSP is converted to a RIF, minimum amounts must be withdrawn annually following the formula by law (about 6% and increasing as time goes). So assuming the $40k pension continues, starting when she is 65, her income annually will be $50k and at 72, her income annually will be $63k approximately.

    4) How long does your mom expect to live?

    5) How much of an inheritance does she wish to leave in her estate?

    The answer to these questions is what would decide if your mom needs to dip into the RSP prior to 65 or if the she wishes to have a safety net in case of critical illness.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  14. Karen 03/01/2012 at 1:35 pm

    Hi,

    I worked in a company shortly during 2011, Christmas time in Montreal, and got my 1st payroll check in January 2012. I tried to ask my T4 from my employer who told me that because I got paid in January, so the income will go to 2012 T4, and I will not have T4 of 2011. Can this be true? A friend told me that even he got paid in January 2012 for 2011/Dec., he still needs to do tax.

  15. Saurabh 03/01/2012 at 4:28 pm

    Hi,

    I am PR holder. I landed in Edmonton in May 2011 then moved to Vancouver in July 2011 with my wife. Then I got a job in September 2011. Can I claim my moving expenses (flight travel) from Edmonton to Vancouver and setting new home while Tax return ?

  16. Adee 03/01/2012 at 5:03 pm

    Hi sir,

    I got the PR status in August 2009 that when i landed as a skilled immigrant. I stayed in Canada for only 2 months and went back to dubai to continue my contract with the company. I didnt apply for SIN and didnt earn any income. I came back to Canada in december 2011 to settle down here. I got my SIN in Jan 2012 and started working in Feb 2012. The question is that if I should be filing my returns for 2011 and the previous years? I would like to take the child care benefit in 2012 so would then it be good fo rme to file the return in 2011 as well?

  17. Heather 03/01/2012 at 8:56 pm

    I am presently working part-time in SK - making $16,750. I have an opportunity to pick up an additional part time job - probably will pay close to the same. It seems that anytime I have additional pay - I end up paying so much of it in taxes. Why does it seem so different when you work 2 part time jobs, than if it was 1 full time job? Also what do you recommend doing with the 2nd income (increase the taxes deducted, or leave it at the minimum and make RRSP contributions)?Hope this makes sense - thank you.

  18. Hi Karen,

    A T4 is issued based on when you are paid income, not when you worked for it. For example, if you worked Dec 16 to Dec 31, 2011 and got paid Jan 6, 2012, the T4 is issued for 2012, just as your employer advised. T4s are based on cheque dates.

    Your friend may have had a paycheque dated Dec, but didn't get it until January so then he'd have a T4 for 2011.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  19. Hi Saurabh,

    When claiming moving expenses, CRA requests the start date of your employment after moving. If you had employment offer before moving or were to commence work shortly after moving to Vancouver, the moving expenses would be deductible.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  20. John 03/02/2012 at 12:14 am

    Hi,

    I made 14,500 on E.I and paid 1,700 in taxes.
    I also received 40,800 in severance which was put in an RRSP.
    I then cashed out 10,800 of the RRSP's and paid 2,200 in taxes.
    I also had an additional 4,700 in separate RRSP contributions.
    What kind of a refund am I looking at??

    John in Ontario.

  21. Achuth 03/02/2012 at 3:11 am

    Hi,

    I am planning to move to BC, by Apr 2012 under my current employer in India. I might be paid 80,000$ per annum. Can you please let me know what would be my tax contribution per month. I am moving along with my family (spouse alone).

  22. Hi Heather,

    In your case, if you are not taxed enough it would appear that your pay may not be taxed because of the smaller amount. ie. if your pay is $200, it's taxed less than if your pay is $600 because the calculation considers your personal exemption each time. If you have two part time jobs each paying $16,000, the tax deducted would be less than half if you had one job paying $32,000.

    As for whether increasing tax deducted or RSP... the higher your income, the better the benefit for contributing to a RSP. In your case, for every $1,000 contributed you would get a tax credit of $230.

    So here, the suggestion is to request more tax deducted from your pay.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  23. Hi Achuth,

    Based on the information you provided an answer cannot be given.. too many variables are missing.

    Will you be paid by your employer in Canada or India? How long will you be residing in Canada? Will you be applying for a temporary visa or permanent residency?

    The question you should pose to your employer as they will be able to answer as to what your tax obligation will be.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  24. Shirin 03/02/2012 at 3:12 pm

    Hi,

    I'm a Permanent Resident of Canada Who left Canada From April 2011 till now. I just would like to know if I should fill out the Tax Statement or not. Actually, I'm Student in My home country and came back to finish my thesis. I would appreciate it if you inform me about my Tax situation in Canada.
    Regards,

    Shirin

  25. Hi Adee,

    Even though you received your PR in 2009, you were not resident in Canada sufficiently to be a taxable resident.

    You must file tax returns going forward, now that you have a SIN.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  26. Hi John,

    Based on the limited information provided, you are in a tax refundable position of approximately $1,700.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  27. Sandi 03/02/2012 at 9:46 pm

    I had 3 jobs last year, two of them gave me T4's. Where I work at gym as a kinesiologist I am getting paid an hourly wage but they do not give me a pay stub just a check and now there is no T4. I understand that I have to file my tax return as self employed, can you explain what I need to do exactly. I have no paper showing how much I made from them, but I made about 6000.00 over 6 months so also think I may have to figure out and pay CPP as well as tax? My total income is going to be apprx 27000.00 I also have left over tuition amounts I can use. Any help you can give me especially about how to figure out the CPP and if I need special forms, would be so appreciated. Also the other company I worked for put Ontario as my place of employment rather than BC, should I get them to issue me a new T4? Am so looking forward to your reply...thank you so much what a terrifice site.

  28. Alex 03/03/2012 at 2:48 am

    Hi,
    I sponsored my girlfriend to become a permanent resident in the common law partner class while she was in Canada. She has not worked during the time she has been in Canada. The application took almost one year to be processed. I am just wondering when I can start to claim her as a dependant spouse? Is it from the point the application was in process or from the point when she received her PR card?

  29. Hi Shirin,

    If you had any income during the period you lived in Canada or any Canadian income during the year, yes, you must file a Canadian tax return for 2011.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  30. Hi Sandi,

    You are correct, that you will need to report the non-T4 income as self-employed. If you are using tax software, it will assist you with which line to enter and the calculation of CPP. Please note that as an independent contractor, you are eligible to deduction any work related and home office expenses to reduce your self-employment taxable income.

    As for the Ontario slip, when entering the info into the tax software, be sure to take note and indicate province of employment to ensure you receive accurate credit of taxes paid.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  31. Hi Alex,

    You can claim your common-law spouse as soon as she becomes a tax resident in Canada. To be a tax resident, you must have a SIN and have resided in Canada at least six months.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  32. gordon 03/03/2012 at 3:08 pm

    I married last year with a non Canadian. My wife currently unemployed due to her processing of her Permanent resident status. Can I claim her as dependent

  33. jason 03/03/2012 at 4:28 pm

    I am thinking of selling the trademark for my business. The business is incopratared. Is this taxable to me or the company and is it a capital gain or regular income. What are the tax rates for my company in Ontario. I'm estimating the trademark is worth a $100,000. Thanks so much. J

  34. Hi Gordon,

    You can claim your spouse as soon as she becomes a tax resident in Canada. To be a tax resident, you must have a SIN and have resided in Canada at least six months.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  35. Hi Jason,

    For an accurate answer, you should contact a trademark lawyer.

    The trademark belongs to the business so it will be business income.

    It is considered regular business income and the income is the difference between what it is sold for and what it cost the company.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  36. Brad 03/04/2012 at 1:17 am

    Subject: T4

    Hello, this may be a silly question but I am just wondering if all of the deductions plus net income should equal the Employment income.

    Thank you

  37. Andrew 03/04/2012 at 1:22 pm

    I worked in Ontario for 3 months last year and then worked in Alberta for the remainder of the year. My company also allotted me moving expenses but tax was deducted from this portion. Question is two fold:
    1. How is the tax rate determined on being in two different provinces? Is it just simply adding the two incomes and basing the taxable rate from Alberta?
    2. Are moving expenses tax deductible? How do I separately declare these? Are there any additional tax credits I can apply for for inter-province moving?

    Thanks!

  38. Hi Brad,

    Box 14 of your T4 includes all payments plus any taxable benefits (Box 40) you received.

    Working backwards, adding all the deductions plus net income plus taxable benefits will equal employment income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  39. Shirin 03/04/2012 at 4:45 pm

    Hi,
    Thank you very much. You exactly answered my question. I really appreciate you for your help.
    Regards,
    Shirin

  40. Hi Andrew,

    Basically, you correct... the tax liability and therefore the tax rate is based on your residency as at Dec 31.

    Yes, moving expenses are deductible, if the move resulted in you relocating to an address at least 40km closer to your place of work than your previous address. You declare moving expenses using the schedule in the income programme or package. Completing the schedule will determine your eligibility. There is no difference between inter-provincial or intra-provincial relocation.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  41. Nick 03/05/2012 at 10:41 am

    Hello,
    I am a Canadian citizen living in Ontario and considering work oversea's, either in UAE or Malaysia. I was wondering what would be the best general strategy for reducing the taxes I pay to the Canadian government? My wife and kids will remain in Canada, so non-resident status is not an option. Both of these countries have Tax treaties with Canada, but there is no tax in UAE (except for Dubai, as far as I know) and about 26% in Malaysia. Either way, the Canadian government will want their share of what I make. So is there another strategy, say for example, to go on contract under my own Canadian incorporated business?
    Thanks,
    Nick

  42. eamonn 03/05/2012 at 2:38 pm

    i am currently considering a move from Ireland to Saskatchewan,when there i hope to be earning approx $30 per hour and working a 50 hour week so 10 hours at time and a half.for the first year i will be classed as single but my two children and fiancee will then follow me for the second year can you tell me what my tax obligations will be for both first and second year,and will i have to file tax returns or can it be done at source by the employer

  43. Revanth Chunduri 03/05/2012 at 3:08 pm

    Hi, I am an international student completed my studies in Ontario and moved to Regina. I started my studies in Sep 2010 and completed by Dec 2011. I have my T2202A tuition tax receipt for 2010 ($5,097.12 for 4 months) and for 2011 ($15,927.41 for 12 months). I am looking for a job and thinking to do my tax this year as I didn't file tax for 2010. My question is whether I can file tax return for the fees I paid. By the way I have SIN and work permit as well. And another question is that the addresses on the receipts are different from the present address. Can I still be able to do it. Because this is first time in Canada and never filed taxes in India as well so confusing for me. Your response is highly appreciated. Thank you.

  44. Adriana 03/05/2012 at 7:38 pm

    Hi,

    I am a Canadian citizen married to a foreign national which holds an A2 visa. I would like to know if I need to declare my husband's worldwide income on my tax return? Is there a treaty between Italy and Canada whereby an Italian foreign national is not legally required to declare his income on his spouse's Canadian income tax return?
    Thank you

  45. Hi Nick,

    Unfortunately under the conditions you have mentioned, there is no way to avoid paying your share of Canadian tax. Incorporating a personal service business (you) is not a tax advantage and can the denied by CRA.

    The term of your work contracts would determine if there was a way to avoid Canadian taxes. Your best option is to contact CRA International Office and request a ruling of your actual residency per your employment contract, even though your family remains in Canada you may be deemed a non-resident and therefore not have any tax filing in Canada required.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  46. Hi Eamonn,

    Without any specifics available, yes, you will be required to file Canadian tax returns as you will be working and residing in Canada. Each individual is required to report income by filing as tax return.

    Depending on your employment contract, you likely would be an employee vs an independent contractor and therefore your employer will be required to withhold taxes at source. They will provide you with tax slips at the end of the (calendar) year for you to use to 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

  47. Hi Revanth,

    Simply paying tuition does not entitle you to a tax refund or refund of your tuition. Tuition provides you with a credit you can use to lower your taxable income.

    If you did not file a tax return for 2010, the tuition paid that year cannot be claimed in 2011, so the 2010 tuition credit is lost. Any tuition paid in 2011 must be reported on your 2011 tax return even if you had no income so as to allow you to carry forward the tuition credit so you can apply it when you have sufficient income in 2012.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  48. Hi Adriana,

    Yes, you are required to report your spouse's world-wide income on your return, but only for information purposes.

    If your spouse lived in Canada for at least 183 days during 2011, he is deemed to be a taxable resident of Canada. As a taxable resident of Canada, he is required to report his world-wide income earned WHILE he was resident in Canada on his own Canadian tax return.

    There are tax treaties between Canada and Italy, but the tax treaties were signed to avoid double taxation of citizens and residents of the two countries. Tax filing is still required per residency rules of each country, not citizenship.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  49. John 03/06/2012 at 2:47 pm

    I have traveled from sask to fort mcmurry with my car.5 different times.new company each time.1300 klm one way.I lost reciets.Can i right it off on my income tax.

  50. Monique 03/06/2012 at 2:55 pm

    I live in Ontario and contribute $5200 per year to an RRSP on a base salary of $47000 paid in 24 installments. My income tax refunds for the past few years have been in the $2000-$2300 range.

    I would like to reduce the amount of taxes taken at source. What would be the net amount to request for tax waiver on the CRA form T1213(11)and how much more would I receive.

    Thank you for your time,

  51. Joe 03/06/2012 at 4:34 pm

    Hi, Great to find this website useful,

    I am in a negotiation with a company in New Brunswick, and they will probably pay me around 80,000 CAD, I don't know the salary break up structure yet. As I am not a Canada citizen, I don't have knowledge about the deductions which can bring down this salary to some other figure.

    It will be really great if you could help me to provide an approximation on what can I expect a take home after all the deductions like CPP, EI, income tax etc or any other deduction so that I can negotiate keeping such figure in mind?
    I just know that they will be paying bi-weekly , so will that matter too ? if yes then any idea on what will be the bi-weekly take away ?

    Is there a way I can calculate an approximation from my salary package without knowing salary structure, but considering a generic one is used ?

    Great Thanks!
    Steve

  52. YAZAN KHALED 03/06/2012 at 6:53 pm

    hi my income at 2011 was 23,000 iam a single and i paid a rent for 5500 for all the 2011 year
    ASSUME THERE ARE NO DEDUCTION ON MY PAY CHEQ SO HOW MUCH SHOULD I PAY A TAX IF there is any .
    thank you

  53. YAZAN KHALED 03/06/2012 at 6:59 pm

    SORRY I FORGOT TO SAY I LIVE IN ONTARIO

  54. Hi Monique,

    Unless you have a contractual obligation to contribute to your RSP, you cannot use form T1213, but if you made your total 2012 contribution before Feb 29, 2012, you could use form T1213 and provide a copy of the receipt and confirmation of the contribution as an over payment.

    Other than the above, the only way you can have less tax deducted at source would be to complete the form TD1, but RSP contributions are not included in this form.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  55. Hi John,

    The ability to deduct the cost of kms driven would depend on how you answer these questions:
    - what is the purpose of the travel?
    - was this travel required by your employer?
    - why did your employer not reimburse you for the kms driven?

    Receipts and travel logs would be required. You would also need to account for any personal or non-business kms driven and would require receipts for this as well.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  56. Hi Steve,

    Unfortunately, we cannot provide the details you are looking for as well... the best option for you is to contact your employer to know what deductions (both mandatory and discretionary) would be applicable by your employment agreement.

    For an estimate, you can plug your gross salary into the calculator above to determine the income tax that would be deducted; subtract an additional 7% (of gross) to cover CPP and EI and the result would be the net pay after mandatory federal deductions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  57. Hi Yazan,

    If your employer did not deduct taxes, there should have been $2,355 deducted 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

  58. April 03/07/2012 at 12:32 am

    Hi there,

    I have a question regarding which provincial tax I should file. I worked in AB until April and then found a job in BC. However, the job allowed me to work in AB 50% of the time. My husband is currently still in AB. I still have an AB license but I have BC medical insurance through work. We also have a house in AB and a townhouse in BC.

    1. Can we both file AB taxes?
    2. Which property should be considered our primary residence?
    3. Can we claim moving expenses?

    Thanks in advance,
    April

  59. Hi April,

    Based on the details you provided, your province of residency would be Alberta as you have stronger ties there.

    The primary residence would be in Alberta. Saying that, you are unable to claim moving expenses due to the job in BC being further away from your principal residency than your previous job.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  60. shireen ali 03/07/2012 at 1:09 pm

    hi I live in Ontario and i paid rent about 5500 all the year my income was 20000
    What is the total tax i have to pay assume no tax deduction was in my cheque

  61. Frank Hallett 03/07/2012 at 1:38 pm

    Hello,I am retired and receive pensions from my employer,OAS, CPP,MPP,and US OAS. Last year I reached the age where I had to remove funds from my RIF and RSP(the minimum) which increased my total income to about $80K. Now stuck in this bracket I find I do not qualify for most deductions enjoyed before retirement. Is there a good way to control the tax collector?

  62. paul 03/07/2012 at 1:47 pm

    Hi there,
    Great site. Quick question. I made 84,000 last year. My wife is a stay home mom to 3 kids under 7. I wonder what are some tax breaks that i qualify for? I bought $4000 in spousal rrsp to off-set my taxes. My wife took some courses at college last year, can i claim that on my taxes? As i have a non-working spouse can i claim day-care cost for my kids who attended after school program? Thanks

  63. Martin 03/07/2012 at 2:32 pm

    Hello;

    We my wife and I are thinking in opening a small business (sole propietorship in Ontario).

    Currently, both of us have a formal job in a company as employees with my wife making around $45,000 and me making around $95,000 gross income.

    From the tax perspective,the registration of the small businees should be on my name or my wife's name?

    Thanks;

    Martin

  64. Hi Frank,

    Your higher income doesn't affect the deductions available to you as a retired person, the higher income limits the benefits you receive.

    Unfortunately, your OAS will be clawed back as your higher income disqualifies you from this supplement.

    The only suggestion for you to reduce your tax liability is to review your position and maximise the deductions available you and take advantage of a TFSA.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  65. Hi Paul,

    Yes, your wife can transfer her unused education credits to your through her tax return.

    If your wife was not employed outside the home, you are unable to claim day care expenses, but after school programmes may qualify for the activity or arts credits.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  66. Hi Martin,

    From a tax perspective, it doesn't matter how the sole proprietorship is registered... the proprietorship will be registered by the owner (either you or your wife) and then be reported on the applicable personal tax return. For a sole proprietorship, there is a single owner than profits or loses from the business.

    As an alternative, you may consider an partnership to share the business profits and loses on your personal tax returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  67. tiffany 03/08/2012 at 12:20 am

    If I made 45,000 and combined from 2 jobs would i get money back or would i have to pay in?

  68. Joey 03/08/2012 at 8:51 am

    Hi:

    I have two jobs. One of them I made $47,000; while at my second job I made $9,777 for 2011 (gross)...

    I fear that my second job did not deduct enough taxes on federal and provincial income taxes... based on the above, I'm wondering how much I will owe. Does the gov't allow you say a year to reimburse the taxes you owe?

    It's a lesson learned, I will be asking my second employer to deduct more for taxes for 2012.

    THanks

  69. Charlie 03/08/2012 at 10:19 am

    Hello,

    I earned 63000 gross this year and paid about 13000 in taxed (in Ontario)... but I live in Quebec. How much can I expect to be paying in taxes this year?

  70. Stephen 03/08/2012 at 7:13 pm

    Hi,

    I am looking to move to Canada from Ireland with my wife and two children. I have been offered an job with a steel company in Saskatchewan. I will be paid $40.74 p/hr and I will work a 40 hrs per week. Can you tell me what my net income wil be after all taxes and deductions as I am not sure how your tax system works?

    Thanks,
    Stephen

  71. Hi Tiffany,

    It would depend on how much tax was deducted from both your jobs.

    Enter your total gross wages from both jobs into the calculator above and it will determine your tax liability.

    Compare the result of the calculator to the total of taxes withheld from your pay to determine if you will be in a refund or payable tax position.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  72. Hi Joey,

    It would depend on how much tax was deducted from both your jobs.

    Enter your total gross wages from both jobs into the calculator above and it will determine your tax liability.

    Compare the result of the calculator to the total of taxes withheld from your pay to determine if you will be in a refund or payable tax position.

    No there is tax relief programme from the CRA if your employer did not deduct sufficient tax for your pay.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  73. Hi Charlie,

    Based on the amounts you provided, you will have to pony up about $4,000 in tax payable to QC.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  74. Hi Stephen,

    Based on the figures you provided, your net pay after statutory deductions (tax, CPP, EI) will be approximately $62,400. You may be subject to other deductions that may affect your net pay which you should confirm with your employer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  75. Dan 03/08/2012 at 11:05 pm

    I currently reside in Alberta and make a salary of approximately $135,000/year. In addition, I expect to realize a capital gain of about $40,000/year for the next several years as I sell company shares. I am considering moving to BC and am wondering how much additional personal income tax I may have to pay in BC than Alberta

  76. Anita 03/08/2012 at 11:14 pm

    Hello,

    I am a full time student and earned $5,827 this year and paid tuition around $5,000. One of the jobs I had paid me as a subcontractor. I worked in promotions doing liquor tastings so I don't own my own business nor do I do work for any other company.

    Taxes were not taken off that job as I was advised when I began with them. When I received my T4A the company uses box 48 -fees for service. When I enter this information into my tax system it says I need to enter a T2121-business income (I think that was the number)

    But once I do that my results say I owe money, $149.00. This seems wrong to me since I only made less than $6,000 this year.

    Am I doing something wrong?
    Can I enter the info in box 28 instead?
    Last year box 48 worked the same as box 28 but it is different this year.

    Also, I am a BC resident, if that makes a difference.

    Thanks

  77. Hi Dan,

    If, when you move, the same employment income is maintained, you'd be required to pay an addition $2,000 in taxes as a result of the move.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  78. Hi Anita,

    Yes, you've used the correct form T2125 and, no, you cannot decide to use different boxes than is indicated on your T4A slip.

    If you check your tax results, you will see that the amount you are payable is not income tax, but your CPP Contribution.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  79. sam 03/10/2012 at 1:13 am

    is the income tax on severance pay the same as that on the regular pay, for the province of quebec?

  80. Hi Sam,

    The answer to the question would be dependent upon how your employer approached the payment of the severance pay as either a lump sum or regular pay.

    Likely the standard lump sum rate was used which would make it seem higher taxed.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  81. sam 03/10/2012 at 10:49 pm

    I am sorry, I was not clear in my query. I will be getting severance pay as lump-sum. Should I expect to pay the tax at the same rate as the regular pay or the rate of the severance pay is calculated differently? I live in Quebec.

  82. Hi Sam,

    As I indicated in my previous response... the answer to the question would be dependent upon how your employer approached the payment of the severance pay as either a lump sum or regular pay (ask your employer which rate they will be using).

    Likely the standard lump sum rate will be used which would make it seem higher taxed, to avoid having a 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

  83. Brandon 03/11/2012 at 11:02 pm

    I'm a co-op student residing in Alberta and will be doing a 8-month work term starting in summer. As a result, i'll only be in school 4 months for the year 2012. How much do i expect to pay in taxes and would i get any back in tax return?

  84. Anni 03/11/2012 at 11:39 pm

    Hello there,

    I've been working in British Columbia as a self employee (I do have a consultant contract but am responsible of paying all taxes myself). I'm a foreign worker with temporary work permit and was working both in EU and Canada in 2011.
    I have several questions about my tax duties:

    1. I would like to know if my tax duties are the same as Canadian citizen's. As a non-citizen I wasn't applicable to charge any HST from my employer, so will the income tax rate be the same for me as for local people? I do not get any medical or other insurance nor any benefits from my employer.
    2. Where would I get the information about any other taxes I might need to pay if there are any?
    3. Is paying taxes once a year acceptable at all? Should I somehow set up a monthly payment on my own and where could I get information about that?
    3. Do I, as a temporary resident, need to declare my EU earnings in Canada as a foreign income?
    Thank you!

  85. Joey 03/12/2012 at 8:57 am

    Thanks!

    Will the contributions to my pension help offset some of the amount I may owe to the CRA?

    I did not contribute to a RRSP this year.

  86. Girish 03/12/2012 at 12:20 pm

    Neat and comprehensive website!

    Had few questions though.

    I am an engineer who is planning to move to Canada on a work Visa in June 2012. The salary I have been offered is 95,000$ [Canadian dollars].The job location Vancouver, Canada.

    Could you let me know what Tax liability I would have, including the Federal tax, Provincial Tax, CPP and EI [those are the tax types I am aware of, please fill me in if there are more].

    Thank you!

    Girish Singh

  87. Heather 03/12/2012 at 12:56 pm

    Hi,
    My mom lives in a long term care facility and pays $1300/mth. She receives only CPP and Old Age Pension and the subsidized amount (can't remember what it's called but it's not much) . She thinks she should be getting money back on her taxes but my husband says because she didn't pay any she won't get anything back. Her medical expenses for the year are approx $400.

    Thanks in advance
    Heather

  88. Hi Brandon,

    I wish I were clairvoyant, as the information you provided gives no indication of you tax liability or deductions applicable.

    To best answer your question, enter your gross income into the calculator above to determine your tax liability and compare the result to the income tax you had deducted. This will be your 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

  89. Hi Anni,

    To answer your questions:
    1) Yes, you are taxable just as a permanent resident of Canada is taxable
    2) By completing your tax return, all applicable taxes will be presented to you in the one filing
    3) Yes, paying taxes once a year is acceptable UNLESS you are advised by Canada Revenue Agency otherwise
    4) You are responsible to report all world-wide income earned by you during your residency in Canada only. In other words, you are required to report any/all income you earned (from everywhere) only while you are resident in Canada, not income you earned prior to living in/working in Canada.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  90. Hi Joey,

    Any contributions to your pension would have been taken into consideration when calculating the tax deducted from your pay.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  91. Hi Girish,

    This is a question you should pose to your potential employer as taxes and deductions vary according to employer benefit plans, etc.

    To estimate your after tax pay, enter your gross salary into the calculator above to determine your tax liability. From the resulting after tax pay calculated, deduct a further 7% of your gross salary to come to your take home pay.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  92. Hi Heather,

    Depending on the province in which your mother lives, she may be entitled to refundable tax credits or other benefits from filing her tax return.

    Your husband is correct in that if your mom does pay taxes, she won't get a refund as a refund is only a pay back of any excess tax paid during the year.

    She must file a tax return to claim the GST/HST credit and GIS (the supplement she receives). She may also be entitled to benefits such as property tax/rent credits, energy tax credit, or other provincial credits available.

    BTW, you mom's medical expense is far more than $400 as a portion of the monthly long term care rental/care costs are also considered medical and/or rent expenses.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  93. Dilawer Khan 03/14/2012 at 11:50 am

    Hi,

    I became a Canadian Permanent Resident on June 11th, 2011 upon landing in Calgary along with my family which includes my wife and two daughters aged 6 and 9 years respectively.

    I will be filing tax returns for myself and my wife for the first time in Canada. I was in Calgary from 10 June till 17 July, 2011 (38 days); however, left my family there. Have bank accounts and credit cards both for myself and my wife in Calgary.

    Need guidance with regards to filing the returns. I am working in Pakistan. My wife is not working and looks after the kids. Need answers to the following:

    1. Do I report entire income for 2011 or just the income earned from June 11 till December 31, 2011?

    2. Do I only report gross income, tax amount deducted and net income or the monthly expense incurred on account of monthly rent, grocery expense, kids lunch room fee, utilities paid, etc?

    3. If for instance my annual gross income is C$ 38,000 and tax paid on this income is C$ 5,000 and my wife not working with two school going kids as dependents, how much federal and provincial (Alberta) tax do I pay (if required)?

    4. Do I report my monthly rent, grocery, kids lunch room fee, utilities expenses on tax returns?

    5. My wife applied for CCTB and has been receiving C$ 550 each month for kids since July 2011. Does she report this amount in her return?

    6. One of my daughters also received UCCB of $100 per month from July-Oct 2011 (4 months) till she turned 6 years of age. Does my wife report this amount?

    Look forward to your response.

    Best regards,
    Dilawer Khan

  94. Pam 03/14/2012 at 2:22 pm

    Hi, I rent out my parking spot in my condo for $175.00 a month. Do I need to claim this on my taxes?
    The person who rents out my spot wants a receipt as he can claim this on his taxes cause his work is not permanent?
    Will I be penalized if I do not claim this and he does?

  95. DREW 03/14/2012 at 2:53 pm

    Hi -

    I am a resident of Canada for tax purposes. I was divorced in 2011 - my ex-spouse never resided in Canada. I was obligated to pay US health insurance for several months of 2011 and would like to know if this is deductible on my Canadian taxes.

    Many thanks,

    Drew

  96. Hi Dilawer,

    You are responsible for reporting your world-wide income from the date of residency in Canada on your Canadian tax returns.

    The income tax return will provide you with the details you need to file... generally all tax slips and receipts related to your foreign employment and income during your residency in Canada. Living expenses such as groceries, lunches, utilities, etc. are not deductible for tax purposes.

    To get an estimate of your tax liability, enter your gross world-wide income into the calculator above and compare to any Canadian tax paid or withheld.

    No, you do not report monthly rent, grocery, kids lunch room fee, utilities expenses on tax returns.

    Yes, she is required to report any income she receives on her tax return.

    Your daughter did not receive the UCCB, your wife as the primary received it and must report it as income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  97. Sue 03/14/2012 at 4:25 pm

    I have a sole proprietorship and don't pay myself a wage. All money just goes back into my business. Can my husband claim me as a full dependent?

  98. Brenda 03/14/2012 at 8:05 pm

    I am in midst of a divorce & have to pay my ex-husband spousal support. I also owe him half-value of my stock options and Restricted Stock Units. I have to net out value of these options/RSUs (their value as of date of separation) less taxes that I will pay when I cash them in). How do I derive the tax percentages I should use? Date of Separation was Sept 2009 and my annual income then was $139,000. Can you help me determine what tax rate I should use? I am a Ontario resident. Thanks.

  99. Hi Pam,

    Yes, you should claim this parking space income on your income taxes.

    You may be penalised by CRA if he claims the deduction and as a result of an audit, he advises CRA of your agreement to rent the parking lot, you can be assessed tax on this unreported income.

    Better to claim the income than not. The income can always be written down as you must be incurring expenses as a result of the lot ownership.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  100. Hi Drew,

    Your question has several variables which all would determine a different answer.

    Was the US health insurance for yourself or your ex-spouse? Was the health insurance for travel or mandatory (via payroll deductions or manual payment), court mandated as part of support (did you pay support as well) or voluntary, do you have decree?

    Based on the information you provided, likely, no, it would not be deductible in Canada if paid for the support of a non-resident.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  101. Hi Drew, /2

    As continuation, you more than likely can deduct on your US tax return, which as you likely know, you must file regardless of your country of residency.

    If you require assistance with your US/Canadian filing requirements, our firm is available to assist you in this specialised area of expertise.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  102. Hi Sue,

    As a sole proprietor, any profit the business makes is your profit, regardless of if it goes into your pocket or the business.

    Completing your form T2125 along with your tax return will determine your profit and eligibility for your husband to claim you as a dependant.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  103. Hi Brenda,

    You have some work ahead of you here.. first you must obtain the value of the options and RSUs as of the date they were issued to you (you should be able to obtain this from your employer or ESOP administrator).

    Second, you'll need to obtain the value of the options and RSUs as of the separation date from your employer or ESOP administrator.

    This will provide you with the Gross Capital Gain and/or Loss for which you will use to calculate the split for your divorce. Note that only 50% of the gain is taxable.

    So as an example, if the total gain from option receipt date to separation date is $1,000, your husband's portion of the gain would be $500. The taxable portion of the gain would be $250. This amount is used to calculate the tax payable.

    The combined federal/provincial tax rate to be applied to any gain is 23.2% in your income bracket.

    So the tax on the gain of your husband's share would be (per example) $250 x 23.2% = $58. So the amount due to your husband (per example) is $442. For the actual calculations of tax, substitute your numbers.

    If there is a Loss in the options value, nothing is due to your husband.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  104. Jermaine 03/15/2012 at 12:23 pm

    Hello,

    34k taxable income for 2011, I've also contributed $5500 to my rrsps, and continue to pay off my student loan, which allows me to submit $150 in interest payments.

    My CPP, EI etc is all deducted by my employer, how much of a return can I expect?

  105. Ashley 03/15/2012 at 2:22 pm

    Hi

    I am currently working a full time job making $47,500 a year.....along with this I have a part time/casual job that consists of 1 regularly scheduled shift a month of 17 hours at a rate of $15.55 - after CPP and EI this pay cheque is usually $262.00 per month (no fed or prov taxes are deducted from this part time job). In order to compensate for my part time job not having fed or prov taxes take off, I have asked my full time job to take an extra $10.00 per week off my pay (we get paid weekly).

    My problem is that since my part time job is casual I have the opportunity to pick up shifts. For instance, in Feb I picked up 3 extra shifts and earned $262.00 on one cheque and $523.00 on another. How do I ensure that I am having enough income tax taken off so that next April i don't get dinged????? I need to earn the extra income, but I also want to be smart about taxes. Should I be asking my full time job to take off more $$ weekly?

    What can I do? Help! Trying to find a solution to this before I get too far into 2012.

    Thanks so much

  106. Michael 03/15/2012 at 2:39 pm

    Great stuff on here!

    I live in Alberta with my wife and 4 children, but I'm going to work in Montreal, for a Montreal based company on a 4 month contract. I am responsible for my own housing out there and what not. My question is, to which province am I liable for taxes at the end of the year? Is the money earned in each province subject to that provinces taxes? My wife and children aren't coming with me, do they still count towards my tax deductions on my pay for that term?

    Again, great side here!

  107. Hi Jermaine,

    Based on the limited information you provided, an exact answer cannot be provided... no income tax paid?

    You can determine if you are getting a refund by entering your gross income from your T4 into the calculator above and comparing the tax calculated to the tax deducted shown on your T4. The result will be your tax refund, adding your RSP contribution will increase your refund by about $300.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  108. Hi Michael,

    Your tax liability on your income tax return is based upon your residency status at Dec 31. You are responsible for calculating your income tax liability based on your residency at Dec 31. The province of residency at Dec 31 will determine the tax rate regardless of where you worked in Canada during the year.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  109. Hi Ashley,

    Personally, if I were in your situation, I would take 10% of the casual paycheques and deposit them into a high interest (free) savings account and come tax time, you will have the funds set aside to pay your tax bill.

    Why let CRA earn interest on your tax refund when you can earn interest on the tax you'll pay at filing time.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  110. Ashley 03/15/2012 at 4:48 pm

    Thank you so much!

    That's exactly what I am going to do!

  111. Sarah Portell 03/16/2012 at 6:40 am

    Hi.
    I am a Canadian citizen working for a missionary organization overseas. My husband (an American) received his permanent residency status in 2010. According to immigration law, as long as he resides with me (the Canadian citizen) overseas, it counts towards his residency in Canada. However, our missionary organization has a Canadian office (where I get my stipend from, and T-4) and a US office (where my husband gets his stipend from, and W-2). He files income taxes on his income in the US and I file income taxes through an accountant in Canada. We report his US income on another form I guess because the accountant requests a copy of his W-2's, but we don't pay taxes on this income in Canada. Is this correct?
    Thanks for your time.

  112. Hi Sarah,

    Unfortunately, your accountant is not filing your tax returns correctly.

    Your husband, as an American citizen, must file a US tax return reporting all his world-wide income, but this is done after he files his Canadian tax return reporting his income in Canada. Canada tax law requires all residents to report their income and pay the appropriate taxes on the income to CRA.

    When your husband files his taxes in the US, he will receive a refund of all taxes paid in order to pay the Canadian taxes.

    If your accountant is not following the above process, 1) you are paying too much tax, 2) you are creating a problem with CRA in not reporting your husband's income which could result in his permanent residency being cancelled.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  113. jeff 03/16/2012 at 3:36 pm

    i made 14000 dollars last year . one job i made 9300 and they took 1500 tax. the other i was on welfare so i make like 4200 but they took no tax.

    so im wondering how much you think ill get back , i want to buy my mom some glasses.

    thanks

  114. andrew 03/16/2012 at 3:50 pm

    i live in nova scotia and unfortunately have not filled my taxes in a long time, so long im not sure how long. it started when i had lost my prior years information that i needed to submit the next year it was about 4 or 5 years ago and i havent submitted them since. i have also moved and lost most of my information that i need to file my taxes in this time(t4's and t3's and such). im not really sure where to start but i know that i have to get doing it soon before i get into some sort of trouble

  115. pauline 03/16/2012 at 5:04 pm

    I just sold my small engine repair business and I am the sole owner. The company was sold for 95,000 which was divided as 60,000 for goodwill and 35,000 for inventory. (my actual inventory was approx 50,000) the lawyer of the new owner is requesting us to change the agreement to 43,000 for goodwill and 50,000 for inventory + 2,000.chattels. For my income tax purpose should I agree to his new agreement or keep my goodwill at $60.000.
    thank you

  116. Teja 03/16/2012 at 6:40 pm

    I have recently been migrated here. if I get offer of 70000 $ per year what will be tax for federal and province and how can i save maximum tax.

  117. Hi Jeff,

    Based on the information provided, you should receive close to all the tax paid refunded to you.

    Make sure you buy your mom a nice pair of glasses!

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  118. Hi Andrew,

    By not filing, you may have lost out on a good amount of refundable tax credits and benefits so it is a very good idea to get back in gear and up to date with your tax filings.

    What I can tell you is that if CRA hasn't come after you it's because you're due a refund or at least have no tax payable.

    If you do no recall when you last filed and you've lost your tax slips, the good news is CRA will help you out. They will tell you when you last filed and will even send you copies of the tax slips your employers and such would have issued you for the unfiled years.

    Contact CRA at this number: 1-800-959-8281

    If you require assistance with filing back returns, our firm is available to assist.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  119. Hi Pauline,

    I am assuming your business is an incorporated business and not a sole proprietorship.

    Based on the information you provided, a conclusive answer cannot be provided without seeing your financial statements.

    If you wish a more conclusive answer, please contact us off this site at 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

  120. Dan 03/16/2012 at 11:46 pm

    I am a fulltime college student and resident living in Ontario. I graduate in april, I was in school for 8 months for 2011 with a tuition of around $3000. For my summer coop I was in Manitoba for 12 weeks, I made $33000, paid just about 11,000 into income tax, $1600 into CPP, $600 to EI

    In ontario for 2011 while going to school I made $4200 working part time hours and $50 or so dollars into Income tax, and $50 or so to CPP and EI each.

    Any idea what I can expect back with writing off my tuition? Thanks for your time!

  121. Tom 03/17/2012 at 10:15 am

    Hi, I am being recruited by a company in New Brunswick area, and salary negotiations are going on I want a take home of around $5000 per month,

    Can you please suggest me a salary package figure I should ask per year in order to achieve my take home as above.

    I don't know much about taxes and deductions over there, so if you can suggest me a rough guess to ask then i can tell them that salary before I join.

    Thanks,

  122. Hi Teja,

    Based on the insufficient information your provided, for you to obtain the information you ask, enter your gross income into the calculator above to determine the tax liability for the province in which you will reside.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  123. Hi Dan,

    Utilising your tuition and education deductions will provide you with an approximate tax refund of $7,000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  124. Hi Tom,

    As part of your salary negotiations, you should be discussing what taxable benefits and deductions will be applicable to you as these are included in your taxable income and affect the net pay.

    Looking at only the standard responsibilities, an approximate gross salary of $83,000 will result in a net pay of approximately $60,000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  125. Pam 03/17/2012 at 3:40 pm

    Hello people. This is my first time to file my own income tax separately. Before I had someone to file it for me, it's still here not sent in.

    In my income tax, there is this page called "Carryforward Summary" which has a line stated "Capital gains exemption available" a huge amount of money
    $$$,$$$.00 and I was like.....what is this!.... I never work and never have this big money laying around my banks. Then again, I asked myself if this is some kind of investment made by my ex husband laying around somewhere without me knowing and now it's pop up on my income tax. What is it.... can anyone help me to make me understand this kind of "capital gains exemption available" mean? Is it a donation for me from our government or what? I will be the luckiest person on earth if it is a donation.

    Thanks for all the help.

  126. Liana 03/18/2012 at 12:12 am

    Hello. I have applied for permanent residency in Canada in March 2011 under spousal sponsorship, and my application is still in process. I have resided in Canada since March 2011 and received child benefits as my son is a Canadian citizen. I was issued a temporary taxation number. I have also recently (in early 2012) received a work permit and applied for a SIN. My questions:
    1. Do I have to report the child benefit income and file for taxes separately from my husband (he has a sole proprietorship with no wages paid to him or anybody else)?
    2. If I have to file, what number shall I use: the TTN (issued in 2011) or the SIN (issued in 2012)?
    3. Can I transfer my tuition fees and medical expenses to my husband's tax filing?
    4. I have not worked in 2011, but my son attended a cooperative day care for 6 hours a week. Can we deduct the amount from my husband's filing?
    5. Can I deduct all my medical expenses(doctor's office, dental, medication, x-rays, tests)?
    Thank you very much!

  127. Hi Pam,

    No, it is not a donation from the government.

    Everyone is eligible for a capital gains deduction on certain business income. The amount reported on your return is the balance available to you if you ever have the eligible capital gains.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  128. Hi Liana,

    If you have been issued a SIN, the TTN is not valid and not be used.

    Yes, in Canada each person is responsible for filing their individual tax return, which means yes, you do need to report the child benefits you have received. Even though your husband had no wages paid to him, he must report the income from his business.

    Yes, you and your husband are able to deduct all eligible expenses on your tax returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  129. Raghav 03/18/2012 at 4:17 pm

    Hi, I will be starting work this summer 2012 and will be making around $57000 yearly. I am single and 25 years old. Can anyone tell me how much tax, CPP plus EI and other applicable taxes. How much will I take home from $57000. Thank you.

  130. Pam 03/18/2012 at 5:41 pm

    Thanks, Storoszko. I think it is opening my door to understand something new in here.

    Other questions:

    If I am able to sell one of my rental property, will I be eligible to claim these capital gains deduction on my income tax return next year?

    Is there an end to this balance on capital gains deduction?

    Thanks for your help. It is nice to know that there is someone here to help me.

  131. Hi Raghav,

    Based on the insufficient information your provided, for you to obtain the information you ask, enter your gross income into the calculator above to determine the tax liability for the province in which you will reside. For your net pay after CPP and EI, subtract 7% of your gross income from the after tax amount calculated above.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  132. Hi Pam,

    The Capital Gains deductions is only available for certain business capital gains... rental income and/or capital gains on rental income is not business income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  133. Mary 03/19/2012 at 9:12 am

    Hi,

    I would like to know if Saudi students who are or would like to study in Canada are exempt from paying taxes and whether it's included in tuition fees? As Saudi Arabia is a tax-exepmt country.

    Thanks

  134. Joe 03/19/2012 at 1:14 pm

    I moved to Canada in July...should my Basic Personal Amount be pro-rata-ed for 6 months or be the full amount?
    Thanks
    Joe

  135. Hi Mary,

    The tax status of the home country makes no difference if the person is residing in Canada.

    Canada taxes based on residency, if someone lives, works, or schools in Canada, they are a taxable resident and must report their world-wide income for the period they are resident in Canada.

    Income tax is not included in tuition.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  136. Hi Joe,

    The personal exemption is based on your residency, so to answer your question, it would be pro-rated for the number of days you were in Canada.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  137. Michael 03/19/2012 at 11:01 pm

    Hello,

    I'm an Ontario Resident, married, 2 kids, and a homeowner.

    I was laid off From April 12, 2011 to Dec. 15, 2011 - Collected E.I. (Amount $13,572, Tax Deducted $1,653)

    I started a business in June 2011 (not sure year end but HST period runs Oct. 1, 2011 to June 30, 2012) - To date, business has earned $28,594 and I've Collected HST $3717.22. Have set HST aside in a separate account and set $3,375 aside for income tax.

    New business is very slow and only brings in $499 + HST/month (before expenses) from 1 client with another client looking to spend $1,600/mth starting at the end of March.

    I started a second business (Incorporated company with HST period of Dec. 7, 2011 to July 31, 2012) Dec. 15, 2011 as a consultant for an Engineering firm. Pay is $60 per hour and I'm through an agency. The agency pays a portion of the CPP (not sure what that portion is called)

    My agent pays me every other Friday and pays me HST which I set aside.

    I also set aside 17.7% for Federal Income Tax, 9.8% for Provincial Income Tax and 5% for CPP ($4869.99, $2693.41 and $1315.47 respectively set aside for each with income brought in from December to March of $27,540)

    Questions:

    1) Do I have to do one tax return for the E.I. now (January) and then two more for the businesses around their year end dates?

    2) Have I paid the proper amount of income tax for the EI portion?

    3) Am I setting aside the proper amounts for each business?

    4) I have the option to go staff with the engineering firm that I'm contracted to and I'm trying to determine an equivalent rate of pay. If I go staff, the company provides health/dental benefits, 40 hours of sick time, 4 weeks vacation, $350 fitness allowance, 10 stat holidays and 4% RRSP matching. The only drawback is the increased flexibility of the contract arrangement. I'm trying to prove which method results in higher earnings.

    Could you tell me an approximate before tax rate of pay per month or year that would match what I'm getting now (I know the benefits vary a lot...I'm just looking for a rough estimate).

    5) Can I /should I be paying into E.I. for either business?

    Having been laid of twice since 2009, it seemed to make more sense to create multiple streams of income rather than hoping E.I. would be there as a safety net, but I do want to stay within the law as well.

    Thank you so much for all your help, this site is an amazing resource!

  138. Stella 03/20/2012 at 3:36 pm

    Hi,

    Before I came to Canada, I worked in my home country. I will have pension from my home country a few years later when I reach my retirement age. May you advise how should I report that pension from my home country. That pension was earned before I immigrate to Canada. And may you advise is there anyway I can put them into RRSP until my retirement age in Canada.

    Thanks

  139. Hi Michael,

    1)
    Yes, you have to file a tax return for any and all income you received during 2011.

    If your businesses are sole proprietorships (not incorporated), any income from the businesses must be recorded on your personal tax return.

    If you businesses are incorporated and classified as personal service corporations, your year end filing date is Dec 31, 2011 and you must file a corporate tax return.

    If you businesses are incorporated and not classified as personal service corporations, your year end filing date must be within 52 weeks of the date you incorporated the business and you must file a corporate tax return.

    2)
    You determine this by completing your tax return.

    3)
    For corporate income tax, you should be setting aside 30% of net profit. CPP is only applicable if you have employees.

    4)
    This is beyond the scope of this forum, you would need to make personal decisions based on every detail including the cash and non-cash benefits as well as other implied and fringe benefits available to you.

    5)
    One you own a business or are self-employed, you are no longer eligible to contribute and benefit from EI.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  140. Hi Stella,

    You are required to report your foreign pension as pension income in Canada.

    If you have available RSP Contribution Limit, yes, you can contribute your foreign pension earnings into a RSP up to age 71.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  141. Mike 03/20/2012 at 6:40 pm

    Hello,

    My father is 65 this year and plans to retire. He is Ontario resident, and a widower. He's going to claim CPP and OAS. He also owns a residence, where he currently lives, that he is planning to rent out for around 22000 a year. So here are my questions:
    1. With this additional income, is he going to be qualified for OAS?
    2. The residents are going to be responsible for the utilities, but my father still pays property tax, alarm service, boiler rent, insurance, and probably something else. Are these expenses tax deductible?
    3. When calculating his tax obligation, are CPP and OAS taxable as well?
    4. If he's required to do the repairs to the property, is this expense deductible?
    5. While renting out the residence, he will be staying with relatives, and making contributions to help with household expenses, can he claim that?
    And finally, I am studying abroad, and have no income. Both, my father and I hold the title to the house, would it be of a benefit to split the income, even though I'm not going to see any of that money?

    Thank you in advance,
    Mike.

  142. Mary Elizabeth 03/21/2012 at 8:39 pm

    Hi i was a resident of Ontario for the full year of 2011 but worked in quebec during that time and was wondering where i should file?
    -Also if it would benefit me to add in my rent that i paid $450 a month.
    I am single and have no dependents.
    Thank- you for your help.

  143. maliv 03/21/2012 at 8:59 pm

    our family landed in Canada as PR last June,2011. Me and my husband are both employed in Canada starting September,2011 up to now and has earned $10,000 combined for the rest of 2011.My husband worked in the US in a working visa, with an income of $46,000 from Jan 2011-April 2011. Do we need to declare our US income in filing our taxes in Canada since we are going to file our taxes in US for the 2011 income? Thanks

  144. DK 03/22/2012 at 2:21 pm

    I am a 72 year old Canadian/US dual citizen living in the US. I am receiving a disbursement from a small pension account in Canada and received a NR4 indicating that they are withholding Non-Residents tax. The gross amount is under $5000.

    The tax calculator above indicates that I actually owe zero tax on this and I'm considering filing in Canada and getting the $ back and declaring the gross amount on my US returns. Is this the best way to handle this or is there something more clever? Thanks.

  145. Computer Squad 03/22/2012 at 10:55 pm

    Great tax calculator!

  146. Hi Mike,

    Answers to your questions:
    1) Yes
    2) Yes
    3) Yes
    4) Yes
    5) No
    6) Yes

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  147. Hi Mary Elizabeth,

    You file your tax return based on your residency at Dec 31, 2011.

    If your residency was Ontario, then your file as resident of Ontario.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  148. Hi Maliv,

    You are required to report your world-wide income on your Canadian tax return once you have established residency in Canada. Any income earned prior to residency in Canada is not reported.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  149. Hi DK,

    If you receive Canadian sourced income, you are required to file an income tax return.

    You may be eligible for a full refund of any Canadian taxes paid.

    As a US citizen, you are required to report your world-wide income on your US tax return. You can claim credit for any Canadian tax paid on your Canadian tax return as a foreign tax credit on your 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

  150. Christine 03/23/2012 at 3:57 pm

    I’m 24 and have only filed my taxes once in my life. I haven’t really worked very much since 2006 when I first filed. Mostly part time, and probably less than $5000 a year. But for the last few years, I’ve worked a little more than that, and I’m going to file my taxes this year, and for the last two years as well.

    I’m wondering how likely it is that I will get into trouble for not filing for 2007 and 2008 if I just file for 2009, 2010, and 2011 instead, and skip those two years. I did have employment, but it was so little that I don’t think it would be worth it to file. I have to pay to have my returns done, so I don’t want to pay to send in a return when I won’t get anything back.

    Or, is there a chance I will get a refund for 2007 and 2008 (however small) which will cover the cost of the return itself? I just don’t want to get in trouble for not filing for those years. Also, because I worked so little during those years, and always had taxes deducted from my pay, I assume there is no chance I will owe the government money.

  151. Vazgen 03/24/2012 at 12:17 am

    Hi,
    I am a citizen of Canada but have been working in another country until last year. I returned to Canada with my family in early 2011 and am self-employed (sole proprietroship). I will be filing the 2011 return based on my business income from Canada and abroad. I have a spouse (not working and not a Canadian citizen) and a four-year son (citizen of Canada). My spouse's only income for 2011 was the UCCB.
    1. If my business income is CAD 25000 and expenses are around CAD 5000, how much tax would I pay on the pre-tax income?
    2. Also, does personal tax credit apply to me, i.e. can I deduct the personal tax credit for myself, my spouse and my child from my business income? Could you explain how this work? Since we are still in a very low income bracket, I would like to reduce the taxable amount as much as I can.
    3. How can I deduct the medical expenses paid for myself, my spouse and child from my business income?
    4. Can I deduct tuition expenses for my spouse from my income?
    5. Since my spouse received UCCB, does she have to file separately her income?
    6. Is is better for her or for me to show all the personal expenses mentioned above to qualify for tax credit?
    Thank you very much!
    Vazgen

  152. Hi Christine,

    Based on the information you provided, it seems you've missed out on about $4,000 in tax credits and rebates.

    The purpose of filing a tax return is not only to report and file your tax slips, but also to determine if you qualify for tax rebates and be eligible for future credits.

    You cannot file only the tax years you desire and not file others. If you were to file a tax return and the previous year's return remained unfiled, CRA would not issue you any tax refund you are due until all your filing is up to date.

    It is not a wise choice to not file your tax returns because you felt the cost did produce a benefit. In your case, the cost of approximately $200 would have returned to you about $4,000... well worth the time and cost!

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  153. Hi Vazgen,

    Unless your business is incorporated in Canada, your 'business' income is self-employment income and therefore is personal income.

    Based on personal income you stated, you would pay very little, if any tax.

    Medical expenses are not deductible from self-employment income unless you have set up a Personal Health Spending Plan. Medical expenses can be claimed as a credit to increase your personal exemption.

    Tuition can only be claimed by the student unless the student passes the credit for education on to their parent or spouse through the filing of the tax returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  154. kanth 03/25/2012 at 8:33 am

    Dear Storoszko & Associates,

    You guys are really doing a great job and data on this site is really useful..may I know the all TAX deductions for an Individual with wife and a kid (In order for me to calculate TAXABLE INCOME)

    I.e all TAX DEDUCTIONS for year 2012

    thanks,
    Kanth

  155. Hi Kanth,

    Your question is beyond the scope of this forum as it cannot be answered in a few sentences. There are hundreds of deductions available to taxpayers, for your convenience CRA can answer your questions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  156. Carmen 03/25/2012 at 4:21 pm

    Hi. My son didn't file his 2010 taxes. How can he file that year with his 2011 taxes? Or can he? What are his options? He will be using Turbo Tax.

    Thank you,

    Carmen

  157. Hi Carmen,

    Your son's options are either he obtain TurboTax 2010 or he go to a preparer that can file prior years' returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  158. Samantha 03/26/2012 at 1:17 am

    Hi, wow this is so helpfull and very much appreciated! I have a question myself. I live with family and pay rent just under $500 a month. Legally i am unsure if i have to claim that but i was wondering...will it benefit me to claim that i pay rent on my income taxes in order to get more $ back?

  159. Hi Samantha,

    Legally, you can claim your rent on your tax return, but then legally your family will need to report the rent income on their tax return.

    Working out the numbers, you all may find whether it is beneficial or not for you and your family to claim and report rent.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  160. Rodolfo Hernandez 03/26/2012 at 10:05 pm

    Hi

    In last year I worked one month (january)and received EI, the all income was 23400, I have 3 kids and my wife work all year (earned 57000), why did my tax return calculation turn out that I had to pay 750$.

    Could you say me that calculation is correct, please?

  161. Susan 03/27/2012 at 11:31 am

    Hi,

    I lived in Ontario. I have annual salary of $40,000 and my spouse have annual salary of $30,000. I have 5 children and 3 of them below 15 years old, 2 of them are over 18 years old. I paid the rent for my home at $19,200 and utilities(gas, hydro, water) at $2400 for 2011.

    I want to ask that can I claim the rent expense to reduce my taxable income? or can I claim the utilities expense to reduce my taxable income?
    how much tax credit will I get when I report the rent and utilities expense?

    Thanks,

    Susan

  162. Hi Rodolfo,

    Without being able to see how your tax returns were prepared and for which deductions you took advantage, I cannot answer your question.

    Best for you to review your tax return or take your tax return to a tax preparer for a review to ensure it was correctly calculated.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  163. Hi Susan,

    Sorry, you cannot claim your rent or utilities as a deduction to reduce your taxable income.

    If you were required by your employer to have a home office, then you'd be able to claim a deduction for that portion of your home expenses, but otherwise no deduction is available.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  164. Lee 03/27/2012 at 12:31 pm

    Hi I made 40,000 gross in 2011 and paid 3500 income tax. I had 2500 in tuition carry over from 2010 and had another 2200 for 2011s school year. Will this cover my taxes paid deficit and give me a refund? thanks in advance

  165. Hi Lee,

    Employers base tax deducted on the CRA estimates for the salary level including any standard personal exemptions.

    If you take advantage of any personal exemption deductions other than the standard (personal, CPP, EI) exemptions, it will definitely result in a tax refund to you.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  166. AL 03/27/2012 at 3:50 pm

    Hi,
    Myself and my family landed in ON, Canada in July 2010 as permanent resident, we stayed 3 weeks then we went back home in Middle East, then we left the Middle East ‘for good’ in Sep 2011, we just settled and I started my work here in Toronto.

    My question for you ‘if you don’t mind’, shall we be able to claim our moving expenses (flight, shipping costs, temporary accommodation ‘hotel’, etc) on my 2011 income tax?

    Thank you!!

  167. Hi Al,

    Provided you met all conditions and requirements, you can claim eligible expenses for a
    move to Canada if you are a factual or deemed resident.

    To determine your residency status, you should obtain a ruling from Canada Revenue Agency.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  168. Mark 03/27/2012 at 5:10 pm

    Hello, and thank you for this forum.

    My in-laws are Australian and are looking to move to Ontario this summer, open bank accounts, buy a house etc.
    The Canadian government has temporarily suspended parent/grandparent family class visas and has introduced a “Parent and Grandparent Super Visa” allowing them to remain in Canada for up to 24 months. They also have the option of entering on a visitor’s visa and applying for an extension.
    They are currently retired (early 70's), receiving an Australian government old age pension of $50,000 (combined) which will continue while they are in Ontario. I don't know if they pay Australian tax on their pension.

    1) When would their deemed residency (and requirement to file taxes in Canada) begin? (Date of arrival, date of home purchase, 6 months after one of these)?
    2) Do either the Visitor’s Visa or Super Visa impact deemed residency from a tax perspective?
    3) Would they pay tax on their old age pension income in Australia (and hence have a credit/deduction when filing in Canada)?
    4) Are pensionable earnings taxed at the same rate as income earnings?
    5) How much Canadian tax will they have to pay?
    Thanks so much!

  169. Hi Mark,

    Residency status has no connection with tax residency.

    In Canada, a person is a tax resident if they have been resident in Canada for 183 days or more during a calendar year.

    A tax resident of Canada is required to report, via a Canadian tax return, all world-wide income earned during their residency in Canada.

    Tax is calculated on non-Canadian income in the same manner Canadian income is taxed. Depending on the tax treaty and tax residency rules of the foreign country, the income tax paid abroad is permitted to be claimed as a credit on the Canadian tax return or vice versa.

    The calculator above will assist you determining tax liability; the actual tax that will be payable would be determined by the deductions and credits taken and available.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  170. Bharath Srinivasan 03/28/2012 at 12:35 pm

    Hi,

    We have employment income in canada for $16000 and we want to file our personal income tax for the year 2011. We are resident of United States and our status in Canada is non resident as our total stay during the year 2011 was only 12 days. Also we have understood that we are not eligible to Netfile.

    What are our options of filing income tax and could Storoszko & Associates provide their service for our tax filing.

    Regards
    Bharath Srinivasan

  171. Lynette 03/28/2012 at 6:25 pm

    Hi,

    Thanks for the great service you offer! I am wondering what my tax situation would look like if I chose to move/immigrate to the US from Canada, become a permanent resident of the US, but continue to work for a Canadian company. I currently make 75,000 before taxes.
    Would I have to pay taxes in both countries, or is there a way to live in the US, work in Canada, but pay fewer Canadian taxes (as I would not be resident there)?

    Thanks very much for your time!
    Lynette

  172. Jay 03/29/2012 at 12:39 am

    Hi,
    Great site! I have a question:

    I'm currently living in Quebec but I just got a job in Ontario and planning to move there in April. Would I pay my first year provincial tax to Quebec or Ontario? Thank you very much!

  173. Sandra Giancola 03/29/2012 at 11:18 am

    Hi there,

    I am moving from Ontario to Quebec soon and would really like to know how much tax I would be paying on an income of $48,000, including all other deductions etc. I would really appreciate your help.
    Thanks in advance,

    Sandra

  174. Sandra Giancola 03/29/2012 at 11:21 am

    Also I was wondering what the land transfer tax or 'welcome tax' would be if I purchased a condo for the price of $262,400?

    This is such a help for people like me.

    Thankyou so much
    Sandra

  175. Sandra 03/29/2012 at 2:13 pm

    Sorry to bother you again, I think someone else made reference to the fact that they are paying higher income tax than what the calculator calls for. Last year my income in Ontario was $48,000. I did it on turbo tax. It was straightforward and had me owing $12,000 in income tax. I managed to buy an RSP for $4,000 and this brought my tax down to $8,000. However on the calculator it puts me in the 20% income tax bracket which would have been $9,600 or thereabouts. I really don't understand. It was the same for the previous year, with an RSP I brought it down from the $12,000. Can you help please?

    Thankyou

  176. Hi Bharath,

    Yes, you are correct in that non-residents of Canada are unable to NetFile.

    The only alternative is to paper file your tax return.

    Yes, our firm can assist you in your filing needs, contact us 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

  177. Hi Lynette,

    The answer to your question can be numerous.

    Firstly, you couldn't work in Canada and live in the US unless you lived and worked at the border. If you lived in the US and worked for a Canadian company in the US, your employer may not tax you as an employee, but as a contractor.

    As a US resident you would be responsible for filing tax returns in Canada, if tax was deducted at source, and the US. Any tax paid in Canada would be utilised as a tax credit on the 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

  178. Hi Jay,

    Regardless of where you work in Canada, your province of residence is your tax responsibility. As you will be resident of Ontario at Dec 31, you will file an Ontario tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  179. Hi sandra,

    using the calculator above will provide you with an idea of the tax liability you will have in Quebec vs Ontario.

    As for other deductions, you should consult with your employer as the provincial deductions of Quebec vary to Ontario or other provinces and are independent of individual employer non-standard deductions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  180. Hi Sandra,

    Land Transfer Tax is not an income related tariff, best to consult a Realtor for this information.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  181. Hi Sandra,

    Yes, other readers have made mention to differences between their calculations and the results of the above calculator.

    The calculator above is in fact CORRECT and does calculate accurately. Individual calculations may vary as a result of different deductions available or applicable to different tax payers. Most readers also miss including surtaxes and not including exemptions.

    If, when you used TurboTax, it determined you had a liability of $12,000 on income of $48,000... your calculation included more than tax payable. If you are self-employed, the difference of $4,000 in your calculation to that of the calculator above would be the result of CPP Contributions, not income tax. If you are not self-employed, you made a horrific error.

    If you contributed $4,000 to an RSP, your tax liability would not be reduced by $4,000... the RSP contribution would reduce your taxable income which would result in a reduction of tax payable by approximately $1,200 - no way near $4,000 - for a liability of approximately $10,800.

    The calculator above does not take into consideration CPP or EI deductions. Any difference between the results above and your calculation is due to the inclusion of other deductions or contributions, in your case CPP.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  182. Christy 03/30/2012 at 12:33 am

    Hi there
    I had approximately 8 months of regular salaried employment, 2 months of unemployment, and 2 months of self employment income. How do I add the self employment income to my tax return? Do I make deductions from the gross amount I billed?

  183. James H. 03/30/2012 at 11:14 am

    I live in British Columbia, work remotely for an Ontario Company and Ontario Income taxes is deducted from my cheques bi-weekly. I also have a small side software business.

    Do I file income tax for Ontario or British Columnbia?

  184. Hi Christy,

    For your self employment income, you use schedule T-2125. It provides you with the information of what needs to be reported.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  185. Hi James,

    You file your tax return based on your province of residence.

    In your case, BC.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  186. Javed 03/30/2012 at 12:47 pm

    Hi,

    I recently relocated from UK to Alberta. In UK my postdoctoral income was not taxed. Will it be taxed in Canada and if yes what fraction? What possible expences can I claim to reduce taxes in Canada? I am married and a permanent resident here.

    Thank you

  187. syd 03/31/2012 at 1:38 am

    I have accepted a postdoc offer in one of the universities in Ottawa. I want to know how close my income will be AFTER TAX INCOME formula above. Is there any there hidden fees I have to take into account? Is there anything like CITY tax, etc?
    Basically I want to get an idea of how much my paycheck will be. I don't want to be surprise by the high cost of life in Ottawa.

  188. Greg 03/31/2012 at 12:59 pm

    Hi there,

    I am thinking of buying a condo in Quebec as a weekend retreat. I live in Ontario with my commonlaw spouse(the house is in her name). I receive monthly alimony payments from my ex spouse on which I pay income tax. I do not work.

    My question is will I be paying income tax to Quebec or can I still pay to Ontario?

    Thanks for your help, great website

  189. Hi Javed,

    Yes, all income earned in Canada is taxed in Canada.

    Entering your income into the calculator above will provide you with an idea of your tax liability.

    There are deductions available, but this is considered when you file your tax return annually.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  190. Hi Syd,

    No, there are no hidden fees in employment income. Using the calculator above will provide your after tax pay; deducting another 7% of gross will provide you with your net pay before any non-standard (benefits, etc.) deductions by your employer.

    No, there is no city tax. Any local taxes are paid via your rent, etc.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  191. Hi Greg,

    You file your tax return based on your province of residence.

    If the QC condo is a weekend retreat, it is not a principal residence. If you live in Ontario, it's your principal residence for tax reporting.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  192. Dave 04/02/2012 at 6:05 pm

    Hello,
    I currently reside in Nova Scotia and earn around $80,000/year. I am going to recieve a taxable bonus of 30,000 in one lump sum. Is it wise to take this as cash to pay down bills or will the taxs be too high. I have the option to roll this into RRSP or anything else I like, however I would like to pay bills?? Not sure of the best way to proceed. Any advice would be appreciated. Thank you

  193. Raymond 04/02/2012 at 10:37 pm

    Is provencial tax included in the calculator above or is it just the federal tax?

  194. LSM Insurance 04/03/2012 at 8:13 am

    Hi Raymond,

    Yes the provincial tax is included in the Calculator.

  195. Hi Barb,

    Depending on the type of residence you maintain in Quebec will partially determine your tax residence.

    If, for example you will reside in a hotel or other similar accommodation, it would not be considered permanent so your tax residency would be Ontario. If you consider such different residence type, your status would need to be determined based on several factors.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  196. Hi Dave,

    Your question is beyond the scope of this forum... it you would like to utilise the funds for paying bills, but also retirement, why not have the bonus rolled over into the RSP to avoid the tax consequences and then withdraw from the RSP in amounts less than $5000 to avoid higher withholding tax so you can pay your bills.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  197. Rory 04/03/2012 at 5:13 pm

    Hi,

    I'm moving to Canada and have an autistic daughter who requires intensive therapy. Can you let me know what deductions if any are available? My base salary is going to be $110,000 and I think my daughters therapy will be about $40,000 per annum.

    Thanks in advance.

    Rory

  198. Barb 04/03/2012 at 6:07 pm

    Hello,
    As a follow up to my question pertaining to residency and working in Quebec, I would like to address specifically:
    What other factors are considered?
    And who determines this?

    According to other feedback received, given that my license plate, health card etc are in Ontario, I will not have to pay the taxes in Quebec. Is this what you mean by other factors?

  199. Hi Rory,

    There is a disability tax credit, medical and caregiver tax credits that are available, if you qualify.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  200. Hi Barb,

    The CRA is the determining factor. There is a residency test which determines your tax residency. The factors you mention confirm Canadian residency for tax purposes, not provincially.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  201. Beverley 04/03/2012 at 8:04 pm

    You are really great! keep the good work up.

    My husband is retired and gets a company pension of 2044.40 and pays tax of 234.44 also gets cpp of 648. Would he owe tax and if so, how much?

    Thanks

    Bev

  202. Barb 04/03/2012 at 10:21 pm

    This is excellent information. Thank You
    I assume I can contact the CRA and they can provide the residency test for me?

    Your comment "The factors you mention confirm Canadian residency for tax purposes, not provincially"

    I am not sure what this means. To determine if I will need to pay the taxes in Quebec or not, I assume that I simply need to contact CRA about this residency test. Do I need the contact the province as well. My feedback from others is that based on the fact that you are renting property in Ontario, you are not changing the license etc. that this will suffice to insure that you do not pay taxes to Quebec.
    I would appreciate it alot if this can be clarified.
    Thanks so much for all your support

  203. Hi Bev,

    Based on the limited information you provided, a conclusive answer cannot be provided.

    Assumptions have been made as to your province of residence and ages of you and your husband as well as you not having any income. Based on this your husband would be in a tax refundable position of approximately $50.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  204. Sam 04/05/2012 at 1:59 am

    This is really a great website!

    I found many comments very helpful to avoid some troubles in the future.

    I'm newcomer to Canada, came on a study permit (Graduate student, PhD level) along with my wife (visitor visa) on September 1st, 2011. Just had my first baby 2 months ago.

    I had ZERO income for 2011 (not eligible for child's benefit), however, paid about $6000 for tuition & fees.

    I'm paying my bill from the money that I saved during my previous working years (outside Canada) by transferring money to my Canadian bank account from my bank account in my home-country. Should I file these amounts in the tax form? I know that I don't have to file one, however I just got a job offer to work full-time during the breaks (May-August) and part-time during scheduled semesters (September-April). I'll be paid around 50,000 - 60,000, so, I need to report the 2011 tax year.

    Note: my wife does not work.

    Best Regards,
    Sam Al Baik

  205. Sam 04/05/2012 at 2:03 am

    BTW .. I'm in Alberta ..

    Best Regards,
    Sam

  206. Hi Sam,

    Thank you for your comments.

    Yes, even though you are not required to file a tax return, it would be in your best interest to do so so that the tuition can be recorded as a credit and used in future periods.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  207. Hi Barb,

    Contact the CRA for further clarification, your prior sources of information are not accurate.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  208. Joanna 04/05/2012 at 12:31 pm

    Hi, my ex husband left Canada several years ago and has been working overseas for various companies, none Canadian, during that time. He's worked mostly in the Middle East in Mine and Bomb clearance. He's not lived in Canada at all during that time, and has come here only for vacation to see our kids.
    He's just been offered a job with a Canadian company, which will allow him more leave time, which he'd like to spend in Canada with our kids. I assume that he would then need to start paying Canadian taxes, is that right? And would the last five or so years that he's not been in Canada, and not earned Canadian income, require any kind of tax payment?
    Thanks!
    Joanna

  209. Jay 04/05/2012 at 9:47 pm

    You have an AMAZING website, and I hope to work with your firm when I am in Canada.

    I am a resident of India, currently on work visa in the US. I am planning to move to Canada on an Intra Company transfer and need your help to know how much taxes would I owe in total (approximation) given my situation.

    My base in the US is $100k + Commissions $350k = $450k total and will be the same in Canada.

    I am married, no kids and we are planning to live in Vancouver, BC.

    Since I will be working from home, can I write off part of my rent, phone bills, computer, internet, etc in taxes?

    Because of the high taxes and cost of living, I am weighing the options of moving to Canada or staying back in the US. Thank you so much in advance!!

  210. Hi Joanna,

    Depending on the employment agreement your ex-husband has with the employer with determine his tax responsibilities.

    If your ex-husband had no Canadian source income (no interest, investment, rental, etc.), he has no obligation to file 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

  211. Hi Jay,

    When examining the taxation levels between Canada and the US, you can actually see that the bottomline is the same for the two countries. The different taxes that apply to each country when summed up, equal.

    Depending on the employment agreement with the employer and your employment responsibilities, you may be eligible to utilise home office deductions against your income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  212. Jeannie 04/07/2012 at 10:33 am

    I am an independant worker - massagetherpist and filmmaker. I am confused on my tax returns. Is gross what I made before I deduct all my outgoings, or is it what I had in hand at end of year.
    I made 34,000 in 2010, and the same this year. and do not know if I have to pay GTS - My income tax report it puts my gross income as 24,000. Could you clarify this for me

  213. Hi Jeannie,

    Your GROSS income is what you billed and received from your clients... it does not include ANY deductions or any sort.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  214. Harry Richarz 04/07/2012 at 11:19 pm

    Hello,
    I am currently employed in the erection and commissioning of a steel processing plant in China. My employer is a Canadian company, employing more than 5 people. I have been out of Canada for 334 days and will be out 365 in 2012.
    I have used the T626 form for calculating taxes etc, but I also have expenses and I am not able to see if these can be claimed.
    I have apartment rent (cheaper than staying in a hotel) as well as living expenses. These are taxis to the airport for return flights, shopping and visa renewals. There is also the standard gas for cooking and heating, power, cleaning lady and water for the apartment. Also, if I did stay in the hotel, then I would have 2 meals a day I would have to pay, but being in an apartment I can cook here. This means I only have food & beverage purchase costs. Are any of these claimable. The OETC and form T626 is only clear on how to calculate the OETC, but not about any deductions. If I am allowed to claim expenses, does it go on the T777 form? Also, most of my food expenses are paid out at fresh markets, so no receipts are supplied. Rent, power, water, cleaning, supplies, etc I have receipts for.
    Your assistance would be appreciated.

  215. Harry Richarz 04/07/2012 at 11:29 pm

    I am currently employed by a Canadian company that is eligible to provide the OETC to it's employees. I was out of Canada for 334 days in 2011 and will be 365 days in 2012.
    My question is, am I eligible to claim living expenses as well as the OETC reduction claim?
    I currently rent an apartment, as it is about 33% the cost of the hotel. Also, if I was in the hotel I would have 2 meals a day to pay in the restaurant. Living in an apartment, I can purchase my own food and cook here. I have expenses for power, gas, water, cleaning, rent, supplies, internet etc with the apartment. I also have expenses for taxis for going to the airport, traveling to another city for visa renewal etc.
    I have receipts for most, but shopping for food I usually do in the fresh food markets that do not provide a receipt. This amount is around $7,200 for 2011. I am not sure if food would be covered and any other expenses.
    Any help you could provide about which expenses can or can't be used, would be appreciated.

  216. Will C. 04/08/2012 at 10:47 am

    I might be receiving a $78,000.00 buy out at work and do not have any RRSP/RRIF's I have a prety good pension if I where to retire, too avoid paying a lot in taxes is there a way of dropping the whole amount into RRSP/RRIFs

  217. Hi Harry,

    If you are eligible to claim the OETC, that is your only available deduction, you cannot claim any living expenses. If you claim the OETC, you are not eligible to claim expenses using T777.

    If you are not eligible to claim the OETC, you still cannot claim living expenses, the Income Tax Act does not allow deductions for living expenses.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  218. Hi Will,

    Yes, you can request your employer to deposit or transfer the payment to your RSP to defer paying the chunk of tax if you received the buyout in cash.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  219. Harry Richarz 04/09/2012 at 7:36 am

    Thank you for your answer, not what I wanted to hear, but nonetheless thanks for your information.
    I know what will be in my next contract though.

    Are flight tickets allowable though? Just a thought.

    Thanks again,
    Harry Richarz

  220. Dave 04/09/2012 at 5:39 pm

    Hello,

    I made $59,500 in 2011, and moved from NS to SK in mid december. According to the CRA, the difference in provincial taxes between NS and SK is 6.5% (NS=17.5, and SK=11%). When using a reputable online tax filing service, the refund it calculated for my (not including RRSP contributions) was about $900.

    My question is this: A 6.5% difference in provincial taxes is significant. 6.5% of $59,500 is $3,867.50. Why is this tax software only giving me a refund of $900, when a quick calculation estimates my refund closer to $4,000? Are there other variables I am missing? $900 seems very low.

    Do you suggest filing through a specialist instead of using tax software from home?

    Thank you very much for your time and help!

    D

  221. Kari 04/09/2012 at 7:29 pm

    Hi,

    I live in ontario, and am a full time student, i receive an incomplete grant for my tuition which is around 7000 plus textbooks, the grant is aroung 5000, i also was eligible for a metropass tax credit, i worked a pert time job that netted under 2000 by the end of the year, the t5xxx from my school was claimable for around 5500. my family has an accountant do our taxes, and i just found out i'm getting $50. did i miss something when i gave in my information?

  222. Jennifer 04/09/2012 at 7:38 pm

    Hello,
    I'm a freelancer in media/communications living and working in Alberta. My home is my office. I've earned about $65,000 on various contracts (including one that deducted about $4000 in income tax, CPP and EI contributions, and union dues). My work is varied from producing, writing and directing, to voice work and appearing on camera from time to time. I don't really fit into one "category." I'm trying to maximize my deductions. Are there any tips or little known media/communications deductions that you know of, or alternatively, can point me in the direction of.
    Thanks!
    Jennifer

  223. Hi Dave,

    The result you provide based on your income is accurate. You are looking at the tax bracket, not the average tax rate for your income.

    Entering your information into the calculator above produces similar results to the results you have.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  224. Patricia 04/09/2012 at 9:08 pm

    Hello there, Thanks for the great help you offer!
    I live in Ontario and filed my 2011 taxes for which I owe the amount of $3,166.00
    I am yet to pay that as mentioned and can not pay in full but by installments. I am the person who supports financially my home. My husband lost his job in 2010 so in 2011 he became my full dependent. I have a 17 and 12 year old at home. My income did not change from last year and made approximately $112,600.00. By having my husband as a dependant, I think that might change things for me in terms of having to pay taxes and if paying, I hope it will not be much.
    1) Would you be able to guesstimate if I will be paying or not by knowing that my husband became my dependant?
    2) Does revenue Canada accept installments and how low can they be based on the amount owing? if done on a monthly basis?
    Thanks for your help.

  225. kanth 04/09/2012 at 11:53 pm

    Hi,

    I am 30 years old now..Can I withdraw my CPP & ESI contribution which I made in last 2 years ? I Plan to leave canada..

    thanks,
    kanth

  226. Jon Wang 04/10/2012 at 2:03 pm

    Hi, I am a Permanent Resident of Canada, I got the visa last year in April and come to Canada in August, stay for 5 weeks and then return to China to resume my work there. I got a credit card, a bank account, a car but do not have a house, my friend help me sold the car in 2012. All my salary are paid in China, so do I need to pay income tax for last year?

    Thanks a lot!

  227. David Fisher 04/10/2012 at 10:35 pm

    Great site!

    Am a dual US/CAN citizen ( born in Canada) residing in US, and working for a US firm.
    Have been offered opportunity to perform services for group in Ontario, that has several different divisions; time spent in Canada would definitely be 185+ days per year. There would also still be clients in the US. Is there equivalent to an LLC in Canada, and/or would that be the best option for tax liability? Thanks and regards

  228. Dave 04/11/2012 at 9:20 am

    Hi,

    Great site!
    I am a permanent resident of the US. I am a Canadian citizen. My daughter is in university in Canada and we utilized RESP monies for tuition and school expenses in 2011. My question is, does my daughter have to file a 2011 Canadian tax return?
    Thanks

  229. Brian Tobin 04/11/2012 at 9:50 am

    Just a general question. If I receive a cash gift of 10,000 from an uncle, is there a tax implication for me? I'm over 18. What if my uncle gave money to someone younger than 18. Thanks for your help

  230. Kristi 04/11/2012 at 11:33 am

    Hi,
    Do I pay less taxes if I have a disability that prevents me from working even if I'm not on ODSP?
    My income is about $24,000 per year(living off of a trust fund which my trustee is transferring me $2,000 a month from), but I'm still unable to work and spend a lot of money on meds.
    Does this allow me to pay less taxes, or would I have to pay the same amount as someone who was working for their $24,000?

  231. Hi Kari,

    Unfortunately, the information you provided is insufficient for us to provide you with an answer to your question.

    If you feel your tax return may not have been calculated accurately, take your tax return to a different tax preparer for a no charge review.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  232. Hi Jennifer,

    Because the description of your field is so generalised, potentially anything and everything can be considered when determining a deductible expense.

    Any expenses, however remote, related to your earning of income can be considered when adding up your deductions.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  233. Hi Patricia,

    The effect of your husband becoming a dependant would already be known to you on your 2011 tax return, as you say he was dependant during 2011.

    Using your husband as a dependant has resulted in you being in a tax payable payable for 2011, it should be similar for 2012.

    CRA is very accommodating when taxpayers are unable to pay the tax owing by Apr 30. Contact the CRA office and discuss with them your situation and a payment plan can be devised.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  234. Hi Kanth,

    Unfortunately, you are unable to 'withdraw' these contributions. These contributions are locked in and payable to you once you qualify, or are eligible, at age 67.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  235. Hi Jon,

    You likely are not considered a tax resident for filing a Canadian tax return, unless you had ANY Canadian sourced income (ie. rental income, investment, interest, etc.).

    Your best option to determine your tax residency is to contact CRA and request a ruling to decide your status.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  236. Hi David,

    A LLC in Canada has no beneficial tax options available to you.

    Based on the information provided, you will be a tax resident in Canada and the US and will be required to report your world-wide income to both countries.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  237. Hi Dave,

    Distributions from a RESP are reported via a T4A slip. As a result, your daughter will need to file a tax return to report this income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  238. Hi Brian,

    If you, as an adult, receive a cash gift from a relative, there are no tax implications to you or your uncle.

    If a minor (child under 18) was to a receive a cash gift, any income from this gift would be taxable to your uncle. The gift itself is non taxed, but any income is and attributed to your uncle.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  239. Hi Kristi,

    The money you receive from the trust fund is taxable income and must be reported, the Trustee would issue you the appropriate tax slips so you can file your tax return.

    If you have a qualifying disability, you can apply for the Disability Tax Credit which will be beneficial to you by reducing your taxable income and pay less tax. You can learn more here: link to cra-arc.gc.ca

    You may also be eligible for other deductions related to your situation. You can learn more here: link to canadabenefits.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  240. kanth 04/11/2012 at 3:53 pm

    Dear sir, Madam

    This site is really great and lot of info on this, If I join a company in mid of year say JUNE 2012..will I will taxed on prorate ? Say my gross is 36k from JUNE TO DEC 2012..will i be taxed on prorate ?

    thanks,
    Kanth

  241. Suzanne 04/11/2012 at 4:11 pm

    What is the difference between 'average tax rate' and 'marginal tax rate'? How do I know what applies to me?

  242. Hi Kanth,

    No, income tax is not pro-rated on income earned during the year.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  243. LD 04/11/2012 at 9:57 pm

    Hi, I am a full time employee in Toronoto, ON and earn a gross of about 130000 CAD annually. I have recently found an opportunity to do a part time job for the evening hours as a contractor. Here are my questions:
    1) To be a contractor do I need to have a business number?
    2) IF I make an additional of maybe 5000 to 6000 CAD a month as a contractor how will this be taxed? The company will not issue a T4.
    3) How much of this 5000 CAD would I pay toward taxes? So if we club both my incomes, how much will I get in hand for this contract position?
    4) Is it worth it to take a part time job for such a small amount annually? The job is cyclic and is at the highest peaks only couple of months a year.

  244. LD 04/12/2012 at 12:33 pm

    Samll edit to my previous query. the annual income from the contractor position will be about 5 to 6K CAD anually not monthly. Hence am keen to understand if it is worth the trouble to take up a part tme job as a contractor for this small amount.

  245. RS 04/13/2012 at 2:35 am

    Hi, this is a nice site and very helpfull.

    I have an offer to work in Toronto start on June 2012 with gross income 75k gross plus provided apartment by company let say 1200/month. I will work there on work visa/permit(non permanent resident nor citizen). I am legally married and our baby will born in September 2012.
    My question is the apartment rental paid by company is included for my tax calculation? If yes, how much tax in total I would have to pay for year 2012?
    Thanks.

  246. Hi Suzanne,

    Good question!

    The marginal tax rate is the highest tax rate used to calculate your income tax payable. It is also known as your ‘tax bracket’.

    The average tax rate is the average of all the tax brackets from the lowest to the one your income is within.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  247. Hi LD,

    Answers to your questions:
    1) No
    2) As self-employment income
    3) The least amount possible if you are eligible to and take advantage of the deductions available.
    4) This is your choice, but in our opinion any additional income is beneficial and utilising good tax planning will allow you to keep the most of it.

    To see the tax implications, plug the numbers into the calculator above to determine the marginal tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  248. Hi RS,

    Yes, any benefits provided by your employer, including non-cash benefits, are taxable to you.

    To see the tax implications, plug the numbers (gross pay plus total rent benefit) into the calculator above to determine the marginal tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  249. DK 04/14/2012 at 2:10 pm

    I'm 72 and reside in California. This past year I received a payout from ACTRA FRATERNAL in the gross amount of $1524 minus Non-Resident withholding of $381.

    I'd like to file a Canadian return but I cannot find a return that deals with my NR4 Statement. Can you tell me which form to use and where I can download it.

    Thanks very much.

  250. Mark 04/14/2012 at 4:57 pm

    So if I make $9,409, and I live in Ontario, I don't have to pay ANY taxes? Why is that?

  251. Hi Mark,

    Yes, every tax payer is eligible for a personal exemption (tax exempt earnings) of $10,527 for 2011.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  252. Liz 04/15/2012 at 4:21 pm

    I have been working in Ontario on the Working Holiday Visa, and have received conflicting information as to whether I do my tax return as a resident or non-resident. I seem to fit the description of a resdient, but are you aware of any special guidelines for people in Canada on the Working Holiday Program?
    Thanks for your help!

  253. Hi Liz,

    If you are on a Working Holiday VISA in Canada, you are a non-resident for tax purposes are are required to file a non-resident tax return for your Canada sourced income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  254. J Tan 04/15/2012 at 9:45 pm

    A great site.
    I'll be transferred to work in Calgary. My company will provide housing & allowances for one month to help settle-down in a new city.

    Are these temporary allowances taxable?

  255. Tan 04/16/2012 at 6:22 am

    I'll be transferred to work in Calgary. My company provide a one month housing plus living allowance to help us to settle down. Please advise are these temporary allowances subjected to tax?

  256. Anca 04/16/2012 at 1:06 pm

    Hello,
    My parents received the permanent resident visas, and arrived in Canada in Oct 05, 2011. They are both living in our home (not paying rent or any other expenses). They received in their old country for these 3 months a combined pension of $2,300.
    Should they file taxes for 2011 if they lived here only 3 months in 2011?
    If yes, can we claim them as dependants in our tax return, or should they file separate taxes because they have an income (even if very low)?
    Thank you.

  257. DK 04/16/2012 at 3:19 pm

    A follow up question to my previous:
    "I’m 72 and reside in California. This past year I received a payout from ACTRA FRATERNAL in the gross amount of $1524 minus Non-Resident withholding of $381."

    There are several "free" software packages that are offered on the govt. website but all the ones I checked say that if this is the "first time" I've filed returns in Canada I can't use them. Since I haven't filed in Canada since the mid 60's -- a long time before so much of this new technology was known -- if I file this year would it be considered my first time or would those ancient filings count?

    It may seem like a goofy question but I'd rather know for sure up front.

    Thanks, you folk are doing a great job.

  258. Melanie 04/16/2012 at 4:02 pm

    I have to pay to park at work through Impark. It comes directly off my pay. Should I be getting a recepit for those charges for tax purposes?

  259. Greg 04/16/2012 at 5:16 pm

    Hi, my wife was issued a T5 for dividend income from a joint account (since only 1 SIN can be attached to the account). Box 23 does contain a "2" indicating a joint account, but I'm not sure how we both claim portions of the income.
    1) Do we attach the T5 to her return even though she's only claiming 40% of the income?
    2) Do I need to attach a copy of her T5 to my return when claiming the other 60%?

    P.S. We file paper returns.

    Thanks.

  260. Matthew 04/16/2012 at 5:55 pm

    Good day,

    I work in Ontario and am in the $42000 - $85000 tax bracket which shows a Federal income tax rate of around 22%. I noticed a separate provincial tax rate of about 9% for my income range as well. Does this mean I should be paying a combined tax rate of over 30%? My employer has taxed me sufficiently to account for the federal portion but not the provincial. Just wanted to clarify before I ran into an unpleasant surprise.
    Thanks.

  261. Hi Tan,

    Yes, any cash or non-cash benefits received from your employer is taxable to you.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  262. Hi Anca,

    Your parents are not considered tax residents for 2011 and therefore are not required to file tax returns.

    Unfortunately, since they are not tax residents, you are unable to claim they as dependants 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

  263. Hi DK,

    The term the software producers using as 'first time filer' is not accurate as it should state 'resident'.

    Even though you may have filed tax returns several years ago, you are not a resident of Canada and therefore are unable to use the software because it is designed for E-Filing... only residents of Canada may file tax returns via E-File.

    Your option would be to purchase the software and print the tax return for filing via postal mail.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  264. Hi Melanie,

    No, there is no need as parking is not deductible by you on your tax return unless your vehicle is required via your employment agreement with your employer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  265. Hi Greg,

    When preparing the tax returns, the reporting of investment income earned on a joint account is entered to each tax return with each taxpayer reporting their proportionate income.

    If filing by paper, a photocopy of the original T5 can be filed with the secondary taxpayer's tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  266. Hi Matthew,

    Your tax liability is not based on your tax bracket, but your marginal tax rate. Yes, this is a combined rate of both federal and provincial tax rates.

    Regardless, your employer has taxed you correctly as the marginal tax rate is the combine rated applied.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  267. J Tan 04/17/2012 at 8:00 am

    A question on tax holiday: What is a 5-years tax holiday for new immigrant? Who is eligible to apply?

  268. Tom 04/17/2012 at 2:06 pm

    Me and my girlfriend moved to newfoundland from ireland to work, is there any special tax rates for new immigrant? We are also common in law would that mean we`re under one tax rate for our total income?

  269. Tom 04/17/2012 at 2:09 pm

    Also is all my pay taxable? i make $55,328 a year how much will go to the government?

  270. Hi J Tan,

    The "5 years tax Holiday" is a tax avoidance scheme available to high net worth immigrants to Canada in which the individuals place their assets in a trust.

    This scheme is not suggested to be undertaken by the writer or LSM Insurance.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  271. Hi Tom,

    No, there are no special tax rates for new immigrants.

    Being common law provides you with additional tax credits to reduce your tax liability, not the same tax rate.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  272. Ajay 04/18/2012 at 1:05 am

    Hi,
    It's a great site.

    I am a Canadian PR resident in Alberta. I have been working overseas in Egypt during 2011, but have my family and home back in Canada.
    I pay income tax in Egypt, which has a tax treaty with Canada.

    Will I be treated as a resident or deemed non-resident for tax purposes in Canada?

    Should I file a return?

    Would I receive any credit for maintaining a separate residence overseas on rent?

    Would I receive credit for my travel expenses?

    Is there any other tax credit that I may be entitled for?

    Being overseas I am not making any CPP / EI contributions. Does it have any consequences?

    Many Thanks,

  273. mayank 04/18/2012 at 6:16 am

    Hello,

    I am in talk with a prospective employer in Canada who has quoted a ball park salary of 200k Annual Canadian dollars.

    I am an Indian by nationality, but would be moving to Canada on a work permit.

    Can you please help me understand the rough tax and take home salary I can expect given my situation.

    Regards,
    Mayank

  274. Hi Tom,

    Yes, all your pay is taxable.

    To get an estimate of your after tax pay, enter your wage information into the calculator above and the result will be your after tax pay as well as your estimated tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  275. Hi Ajay,

    As you have residential ties to Canada, you are deemed a tax resident of Canada and therefore required to file a Canadian tax return reporting your world-wide income.

    Unless specifically stated in your employment agreement, living expenses are not deductible for tax purposes.

    Even though you may be working overseas, you may still be required to contribute to EI and CPP, your best option is to discuss your tax situation with your tax advisor to ensure you are reporting and filing correctly.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  276. Hi Mayank,

    To get an estimate of your after tax pay, enter your wage information into the calculator above and the result will be your after tax pay as well as your estimated tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  277. Erin 04/18/2012 at 6:17 pm

    Hi there, I have been working full-time this year in BC at a salary of $48,000 a year. I recently started a part-time job in addition to my full-time job that I gross about $25,368 per year (although I will only be working this job April through September). Do I need to ask one of the employers to deduct more tax? When I use the calculator above, I see I should have $8,038 of tax payable on the $48,000, and $2,838 tax payable on the $25,368, for a total of $10,876 tax payable. However, if I input the combined salaries of $73,368 into the calculator, it shows $15,572 tax payable. Am I going to be short $4,696 on tax payable this year?

  278. Laura 04/18/2012 at 7:36 pm

    Hello! I love your site, and am hoping you can clarify my upcoming tax scenario for me.

    In 2012, I was a student in Ontario for 4 months (income: $2600, taxable tuition $3,820). I have subsequently moved to California on a J-1 research scholar visa (not student), and will be making an annual salary of $47,500 gross, annual starting mid-April. I have tens of thousands of dollars of unused tuition credits for Canadian tax purposes (provincial and federal).
    Will I file taxes in both countries? Which tax rate will ultimately determine my total tax paid (and what would that be?)? Am I risking losing my tuition credits based on living in the US (I am considered a non-resident alien).
    I would appreciate any light you might shed on this deeply!
    thanks,
    Laura

  279. Lisa 04/19/2012 at 8:24 am

    Hi!
    First I got to say I enjoyed your website! Im a fulltime student in BC and have saved up close to 41,000 in education credits to carry forward. By the time I am finished this year I will have close to 52,000. My question is how much of a refund would I get if I was making 70,000 a year in my first year of employment paying the normal tax rate? Ive been so confused on this. I also claim an dependent and have about 2400 in daycare fees I can write off.

    Thanks in advance,
    Cheers Lisa

  280. Anthony 04/19/2012 at 1:44 pm

    Hi,

    I recently started at a car dealership. What are the taxs basied on for commissions sales and are there any write off's allowed? They also give me $350 for car allowence.

    Anthony

  281. VISHAL 04/19/2012 at 7:20 pm

    hi
    i am confused with T5008 trading summary,can i show day trading self managed using stock trading platform as business income.
    if yes then is there anyway i can understand to show the sales and purchases,closing stock also.

  282. Hi Erin,

    Tax liability is not based per job, but on the total income. Yes, the higher tax rate would apply.

    Part time positions generally do not consider the 'full time' tax liability. Requesting your employer to deduct additional tax would be a suggestion, if you wish not to have a tax liability come 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

  283. Hi Laura,

    As you will be a NRA in the US, you will be a tax resident in Canada will be required to file a Canadian federal tax return reporting your world-wide income. You will also be required to file a US tax return as you will have US source income and be subject to deductions on this income.

    Your unused tuition and education credits will be able to be used on your Canadian tax return, but not on your US tax return.

    Your Canadian tax rate will be based on your total world-wide income and the US rate will be based on your US income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  284. Hi Lisa,

    Advising you how much of a refund you could get is not possible, as the tax calculated would depend on the information you provide your employer through the TD-1 form.

    Based on the information you provided, your tax liability, after consideration of the tuition and education credits and if you have filed past years' tax returns to report the carry forward, would be approximately $5,600.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  285. Hi Anthony,

    Commission income is taxed just like regular wages income, there is no difference in the rates or calculation.

    As a commission salesperson, you should obtain from your employer a signed T2200 to determine what expenses you can check out to be deductible against your income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  286. abraham 04/20/2012 at 12:05 am

    Hi, I just arrived to canada with my wife as a permanent residents (with my savings) and I would like to know if I have to pay taxes or fill a form whereas I find a job. Another question is, if I found a job in the range of 50k to 80k, the estimated amount of taxes (federal + provincial) is already calculated by your tool above? My wife is not working so I would like to know if I receive any tax deduction by her.
    Sorry for making so many questions but I do not know much about this subject. Thank you in advance for your orientation.

  287. Hi Vishal,

    The T5008 Trading Summary provides you with your purchase and sales transactions.

    Day trading income is considered self-employment business income, not investment income. You must report your trading Proceeds (Sales minus Purchases less fees) as the gross income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  288. Hi Abraham,

    Filing of tax returns is done annually for the calendar year with the tax returns due Apr 30 of the year following the year reported.

    You are only required to file a tax return for 2011 if you have Canadian sourced income or you had income outside of Canada effective the date you became a resident.

    If you wife is a dependant, yes you are eligible to claim her and obtain credit against 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

  289. Ibrahim 04/21/2012 at 1:17 pm

    Hi,
    When I filed my income tax for 2010 last year, I was married but recently (jan/12) been separated but not divorced. How should I file my taxes for this year, as single or married? I believe my wife already filed her taxes and she did it as single.
    Thanks in advance for your response.

  290. Hi Ibrahim,

    When filing your tax return, you answer the questions as posed: What was your marital status as of Dec 31, 2011? If you were married and did not separate until January 2012, you obvious would file as Married at Dec 31, 2012.

    If you wife filed as Single, she has filed her tax return inaccurately and may be subject to reassessment as a result of this error.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  291. Gabriela 04/22/2012 at 6:51 pm

    Hi,
    I lived in BC for a interchange work-study program in 2011. I was there for 10 months. I am already on my home country. And I'm trying to apply for taxes refund. I got my T4. But I'm not sure if I am a deemed resident or non-resident. So should I file the schedule 1? Should I pay the net federal tax?
    Thanks

  292. Brenda 04/22/2012 at 7:53 pm

    As part of my divorce,, I owe my ex-husband half of my stock options and Restricted Stock Units. I have to net out value of these options/RSUs (their value as of date of separation) less taxes that I will pay when I cash them in). Can you help me determine how to value both my RSUs and my Stock Options as of date of separation (September 1, 2009).

    My RSUs have a 3-year vesting period. They were issued to me as follows:

    Grant Details:
    96 RSU @ $6731.62 USD total - granted May 8, 2007
    178 RSU @ $12,481.36 USD total - granted May 13 2008
    171 RSU @ $11,990.52 USD total - granted Feb 9, 2009

    As of Vesting Date, values were:
    96 RSU @3,781.35 USD total
    178 RSU @$7,872.82 USD total
    171 RSU @ $6,953.58 USD total

    How do I calculate what I owe my ex-husband for the Net Family Property split? I also need to net out taxes payable...how do I do that? My gross income for year of separation was $139,000 and I am an Ontario resident.
    Also you can see that the RSUs were worth significantly less as of date they vested thann what they were on the date of issue. How do I factor this in?

    Re: Stock Options
    What tax rate do I use to get a net value for Net Family Property Splits? If I have sold some of these options since the date of separation, is my ex-husband entitled to the gain on those OR is he only entitled to the value of the Options as of the date of separation (based on the value of the stock as of the date of separation)?

    Thanks for your help....I really appreciate it.

    Brenda

  293. Will C. 04/23/2012 at 3:22 pm

    Is there any age restrictions on withdrawing funds from a RRIF.

    Also thanks for the answer on my last question. Great website

  294. james 04/23/2012 at 4:17 pm

    Hi, I had a quick question about the calculator. It is great to get an idea, however, is the amount listed (per province) for both canada and respective province combines, or just your province? Reason I ask is my quebec return (at the net income on my 2011 form) came to just about the same amount, however, the mentioned $ on the form was JUST what my quebec taxes were. Canadian was another big chunk. Asking because I am trying to get an idea of my taxes for net year with an estimated net income (after all write offs) and I don't want to find out it was 5k more because the calculator only does one when I thought both. Thanks!

  295. Hi Gabriela,

    You would be considered a deemed resident because you were resident more than 183 days during 2011.

    When did you return (leave) from Canada? If after Dec 31, 2011, you must enter your province of residency as BC. If prior to Dec 31, 2011, you would be a non-resident taxpayer (still a deemed resident for tax purposes).

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  296. Hi Brenda,

    Your question is beyond the scope of this forum, it is best suggested you seek professional assistance in the calculations you require.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  297. Hi Will,

    The only age restriction with a RIF is that you must be older than 71 to withdraw. Any excess withdrawals (over the minimum amounts required) are subject to withholding tax.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  298. Hi James,

    The calculator above calculates all the income taxes for both the federal and provincial jurisdictions.

    When entering information to the calculator, you enter your TOTAL income NOT net income for the estimate tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  299. Will C. 04/24/2012 at 11:44 am

    Part 2 Of our earlier question, so if we are to young to withdraw money from RIF we should invest in RRSPs instead, I am 56 and my wife 52 we are in Ontario

  300. Steve J. 04/24/2012 at 9:19 pm

    Hello, this seems to good to be true. I'm single and living in BC, and if I make $25K this year, I will pay only a little over 11% federal AND provincial tax? Assuming that my EI/CPP contributions are in the 4-5% range, I'd be losing only 15-16% total?

  301. Hi Will,

    You cannot contribute to a RIF at any age.

    Usually a RIF is comprised of the funds that roll over from an RSP, as an RSP cannot be kept after the age of 71. The capital and interest in a RIF accumulates tax-free, but is subject to tax upon withdrawal. Persons with an RIF can withdraw any amount of money from the fund at any time, but any amount over the minimum will be subject to various degrees of withholding tax. The funds in a RIF can only be sourced from another RIF, an RSP or another pension plan.

    An RIF can be started as early as 55. Starting at age 65, the beneficiary can withdraw $2,000 tax-free dollars each year until age 71 if they are not receiving any pension income.

    The question posed to you is: why are you considering contributing to a RSP if you are going to withdraw from it before retirement?

    Perhaps a TFSA is a better option.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  302. Amer 04/25/2012 at 3:55 am

    I am a PR and Had landed in toronto in 15 April 2010, i stay 2 Month was not able to find a job then decided to do back to dubai. Am planing to go back permenant before April 2013 to maintaine my PR. I have two kids and married. We all have PR but younder sond bourn in May 2010 in Canada. All of famil came back also with me. I didnt apply for the child tax benefite but i applied for the health card only when i landed.
    Do i have to file tax for my income in UAE after my landing to canada ? also in case i send my family there for shcool do i need to file income tax for my job in UAE ?

    Many thanks.

  303. Hi Steve,

    Based on $25k income, yes, your average tax rate would be 11.06 dedcut an additional 7% to cover CPP and EI to arrive at your net pay.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  304. Hi Amer,

    Your are not a tax resdident of Cnada and not required to file a tax return until you are deemed a tax resident.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  305. Libby Henderson 04/25/2012 at 7:21 pm

    I recently filed mt income tax. My husband has OAS and Canada Pension amounting to 11650. I have pension, and other income (severance, RRSP) amounting to about 29000. I wanted to split a pension in the amount of 6500 but found it complicated. Would it have been of much benefit to me to split pension income with my spouse (it does qualify)

  306. SHASHI 04/26/2012 at 4:22 am

    Hi,

    Thanks team and you guys are really doing great job here.

    I will be relocating to Canada from India, May I know more about relocation allowance.

    What all expenses I can claim as part of relocation allowance ?

    I read any more on cra web (Does this apply for Foreigners as well ?)

    link to cra-arc.gc.ca

    thanks
    S

  307. Floyde Hart 04/26/2012 at 8:17 pm

    I am a single man with no children. My salary is approx $30 000 per year. I live in St. John's, NL I have no dependents so my deductions are limited to my personal exemption and charitable giving. What should I do to reduce my tax burden? My employer deducted only approx $1800 in taxes...so every year I end up having to pay in taxes in a lump sum. This year I owe, according to my calculations, approx $1500. Should I get my employer to take out more tax at source? I used one of the certified software packages to Netfile my return...is it possible that I calculated incorrectly?? Thanks,
    Floyd

  308. Gianna 04/27/2012 at 12:24 pm

    Hi I receive 7000 dollars a month in alimony income. This was based on a attributed income of 20,000 a year which I presently do not earn . I was a stay at home mom. When calculating my taxable income, do I need to add the attributed income as well to my gross salary? I want to know so as I can figure out how much money to put away for taxes. Thank you.

  309. Hi Floyd,

    Using the Income Tax Calculator link to lsminsurance.ca
    Your tax liability would be $4,741.

    If your employer only deducted $1,800, then yes, you should request your employer to deduct more tax to avoid having to pay when filing 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

  310. Hi Libby,

    Yes, there would be a benefit to splitting pension income between spouses. The aim is to proportion income to both spouses to minimise the total tax payable as a family.

    The pension splitting option only applies to eligible pension income (not CPP or OAS, but certainly private pension, RIF, etc.).

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  311. Hi Sashi,

    There is no such thing as a 'relocation allowance'; what you are referring to is the moving expense deduction credit.

    The moving expense deduction allows you to claim moving expenses when you move 40 kms or more closer to your existing or new workplace within Canada.

    As you are moving from abroad, you would not qualify for this deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  312. Hi Gianna,

    We have never heard of 'attributed unearned income'.

    When determining your tax liability you sum up income from all sources: salary, attributed income, alimony (spousal support) and everything else.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  313. Sunny 04/28/2012 at 11:11 pm

    How kind of you to help folks with their tax questions!
    I am converting my RRSP holdings to a RIF at the end of 2012 and will be withdrawing monthly income from the RIF. I will continue working part time (self employed) and will likely have extra income left at the end of some months (estimate $3000/yr).
    I also have $40,000 in unused RRSP contributions. Once I start the RIF should I open an RRSP account and deposit my surplus earnings to benefit from the tax credit? Or should extra earnings perhaps go into a TFSA? Are you allowed to have an RRSP account in addition to a RIF? Thank you so much for your reply!

  314. Hi Sunny,

    Once you turn 71, you must convert/close all RSPs.

    If you have RSP contribution room, you can either deposit the money into an RSP until you are 71 or lose the contribution ability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  315. mike 04/30/2012 at 7:41 pm

    Hi i had the slowest work year of my life and am worried about what i saw when i filed my tax online. I made $8260 cash + took out $3290.90 in rrsp out which i paid $329 of tax on. The refund it said i was getting was around $1060. Not sure how this could be right when i only paid $329 in tax total for the year.I filed using Turbotax.ca. Thanks

  316. Hi Mike,

    Without more details about your tax return information, all we can suggest is that you review your tax return for the credits given to you.

    Each province, as well as Federal, has several tax credits low income earners receive for just filing their tax returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  317. Sandra D 05/01/2012 at 1:03 am

    My 20 year old daughter enrolled in college in BC in September. She went regularly for the first month, then went less and less. By the end of October she did not attend at all but never formally withdrew from the college. Is she eligible to claim the working income tax benefit? Although she paid tuition and was enrolled for 4 months, by the end of the eighth or ninth week she did not attend at all anymore. A requirement for claiming the WITB is that one cannot be enrolled in college for more than 13 weeks. If one informally drops out is one still considered to be enrolled? My daughter never got any credits for the time she spent in college.

  318. Hi Sandra,

    Unless your daughter formally notified the college that she dropped out, they would not know the reason for the change in attendance and would maintain records that indicate she was enrolled.

    The T2201 form issued by the college would indicate her enrolment and thus make her ineligible for the WITB.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  319. Lorraine 05/02/2012 at 11:46 am

    Hi, Im am thinking of retiring to Mexico, but would keep a permanent address in Canada for health insurance etc. Is there any tax credit? Or would I still be paying the same amount of canadian income tax even though I am living in mexico?

    thanks

    Lorraine

  320. James 05/03/2012 at 7:51 am

    Hi,

    Im travelling to Saskatchewan, Canada from Ireland on a 12 month open employment permit for Canada, and will then will be hoping to apply for residency after the initial 12 months, I have a job offer and the salary works out at around 41,600, I notice that there is both federal and provincial tax, do i havbe to pay both of these? and how much tax approx should i be expecting to pay in total?

    Thanks
    S

  321. Marie 05/03/2012 at 11:07 pm

    Hi I need some help proactively for the 2012 tax year:

    I make app 34K/ yr and pay the regular taxes in Ontario
    I withdrew 15000.00 of RRSP and only paid the 10% taxes
    I need to know how much I will have to pay in taxes and how much i should contribute to RRSP to get a refund ( my rrsp room is 14510 for 2012.

    Your help and advise is greatly appreciated.

    Thanks,Marie

  322. Hi Lorraine,

    As long as you retain a Canadian address and receive Canadian sourced income, you will be subject to Canadian tax rates.

    Moving to Mexico will require you to file a Mexican tax return and you may be able to claim credits for your Canadian tax paid.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  323. Hi James,

    Yes, as a resident of Canada you are required to pay provincial and federal income taxes. The calculator above calculates the tax liability by province so the amount calculated above would be your total tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  324. Hi Marie,

    Without knowing the tax withheld from your pay an precise answer cannot be provided.

    Enter the total of the income you will receive, ($34k+$15k=$49k) into the calculator above to determine your tax liability. Subtract from the calculated amount your tax withheld from your pay and RSP withdrawal to obtain the actual tax liability. Take the resulting tax liability and divide by 15% to determine the amount of cash you should contribute to your RSP.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  325. JT 05/06/2012 at 12:29 am

    Dear sir,
    I am a PR & will be moving to Canada soon. I've a property in my home country. My question are:
    1. Do I have to pay tax if I sell it after moving to Canada?
    2. If the answer is yes, how does property gained tax being calculated?
    3. Will I be taxed if I begin the sales now (received a deposit) and the full settlement can only be transacted when I moved to Canada?

    Your kind advise is most appreciated.
    JT

  326. Hi JT,

    Any sale of property outside of Canada once you to move Canada is taxable.

    The taxable portion is calculated as any gain on the property you have since you acquired it. The gain is considered a capital gain and only half of the capital gain is taxable.

    The sale of any property must be competed and settled prior to you moving to Canada to avoid taxation in Canada.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  327. J 05/07/2012 at 6:25 am

    Hello I am the sole single living parent of 2 children and receive the maximum child tax credit amount of around 744 a month for them do to my low income in 2010. I live in Ontario.

    I also receive PST and GST payments for my children and I. I have no T4 income or any other income for 2011.

    My children and I receive no widowers cpp pension for me or my children. I have been filling out the T2125 business form for my proprietorship self employment income form along with the T1 for 2011.

    I qualify for the fitness and art credit for both children. I have both kids in registered sports and art classes.

    We all live with my parents and they will not accept any rent payment for us and I pay no rent. They have been very helpful to us.

    In 2011 I made $ 9,500 dollars in self employment income as a proprietorship in cash sales. I have no expenses to claim I think other then about 400 in meals ? I took the bus but have no receipts. Can I claim meals ? I have the receipts. I was working selling door to door as independent contractor.

    I have not had any taxes deducted from me and I was paid cash. I have been using a online computer program called Turbotax.

    It says I will get a refund of 1131 dollars back. Question number 1) How can this be ? I can see me getting the art and fitness credits. But I did not pay any tax or have any tax deducted or have any rent receipts.

    How can I be getting that amount back ? I am told this is probably because I qualify for the working tax benefit but I paid no tax ? QUESTION NUMBER 2)Is this correct and do I qualify ?

    I do not want any problems with the CRA and I have delayed filing my taxes because of this.

    QUESTION NUMBER 3 ) I am stumped by a question. do I want to apply for the opportunities fund? What is this ? Do I Qualify ?

    QUESTION NUMBER 4 ) I did not claim my oldest child or my 2nd child for the eligible dependent amount ( equivalent to spouse for any dependent that lives with me ) Is this a mistake not too claim them ? Do I have to claim them ?

    QUESTION NUMBER 5 ) Do I have to pay any CPP for my income to the CRA as self employed if I have under 10 ,000 income ?

    I want to file my taxes asap but want to make sure they are correct first ! Can you please give me any advice.

    Thank you very much Sir in advance for your time and effort answering my questions. I understand these are a lot of questions and I hope you can answer them.

  328. Ali Benryane 05/07/2012 at 12:26 pm

    Hi,

    First off thanks to Storoszko & Associates
    Tax Specialists for being available to answer my question.

    I have been married for over a year and plan on making a joint tax claim with my wife for 2012. She has no income, and I make $40,000.00 CAD a year. Will we be eligible for some return on the taxes i pay for the both of us? If yes how much can I expect in return?

    Thank you very much for your support,

    Ali

  329. Hi J,

    Answers to your questions:

    No, you cannot claim meals unless the meals were part of the business activity (ie. meetings with client to earn more income)

    Q1: Without seeing your tax return, we are unable to confirm whether it has been completed accurately.

    Q2: Same answer as above.

    Q3: The Opportunities Fund is for disabled persons.

    Q4: Only one child can be claim for the equivalent to spouse credit

    Q5: Yes, you are required to contribute to CPP for any self-employment income

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  330. Hi Ali,

    In Canada, we do not have joint tax returns, each individual must file their own tax return.

    Determining if you will receive a refund is based on the amount of tax you have already paid. Without knowing this, an answer cannot be provided.

    In order to qualify for benefits and tax credits, your wife is required to file a tax return and any excess credits she is unable to use will be transferred to you 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

  331. Julie 05/09/2012 at 4:41 am

    Hi there, hopefully someone can advise. I am from the UK but am moving to Toronto for six months in July of this year. My work will be paying me via canadian payroll when I arrive. I am due a bonus in July from my time working in the UK which is three months in arears. Am I better to get my work to pay me my bonus before I leave the UK. Will I be taxed more in Canada? I will be getting paid approximately $9500 in my july pay but for all the other months $4500. Any advice is much appreciated. Many thanks

  332. Bill 05/11/2012 at 1:25 pm

    Hello,

    I am a Canadian permanent resident. I live in Windsor but work in Detroit. My annual salary is 100,000 USD and I am single and renting. I know I will need to pay tax to the U.S. and to Canada. Can you give me an estimate how much I will need to pay to U.S. and Canada?

    Thanks a lot!

  333. Kandarp 05/15/2012 at 3:06 pm

    Hi guys, you people are doing great job solving lots of questions?. Request if you could help find solution for my concerns. I am an Indian would be shifting to to either Vancouver or Calgary from India. What would be tax liability or any other liability in Canada if i take a pay cheque of 4500CAD/month. I will remain a Indian citizen there.

  334. Christine 05/15/2012 at 10:49 pm

    Hi, I have a poorly paid full time job (40h a week - $11/h) and I was offered second part time job (20h a week - $10/h). How much taxs I will pay? Should I keep both jobs? Or I will pay too much tax and it's not worth it? Thanks!

  335. Vinu 05/16/2012 at 4:37 pm

    Hi,

    Can you claim the
    1) Rent you pay on a house/appartment
    2) Auto insurance
    3) monthly installaments for a car loan
    3) monthly mortgage payments for a home you bought

    as a tax rebate against your salary. I mean can these be used to reduce your tax liability.

  336. Ananth 05/16/2012 at 8:10 pm

    Hi,

    Thanks for providing such an excellent site for providing us the tax related info.

    My situation is:
    Moved to Canada in Apr 2012 as a Temporary Resident with a job and woring since April 2012. I would earn 75000 in the year 2011. I have a wife and 1 kid and wife doesn't work. When I arrived I had filled a form for deductions for my employer to calculate and withheld tax from my pay. I am receiving $3160.00 biweekly and paying 814.00 as tax to receive a net of 2346.00 biweekly. And I stay in a rental apartment (rent: 900)

    Can you please tell me:
    I would want to know whether I already pay more tax biweekly...?
    Would I get any tax return?
    How much tax I suppose to pay in Ontario for 82000.00 per year with 2 dependents?
    Am I applicable for any Child benefits...?

    Please advice.

  337. Maca_Eire 05/17/2012 at 4:15 pm

    Hi, And thank you for providing such a great site.

    I am moving from Ireland to Saskatchewan this year.

    My yearly rate will be $45760, your calculator says I earn $37,008. This is all great. I just need to know if this is all the tax I have to pay. I know their is insurance and so on on top of that, but just for tax purposes, is this correct.

    Also, what is marginal tax, as opposed to average tax. Your system is a lot different than Ireland.

    Also, does my employer withhold my tax every week?

    Thank you in advance for your help

  338. Hi Julie,

    As long as you are in Canada less than 183 days during 2012, any foreign income will not be reportable or taxable in Canada.

    If you are in Canada more than 183 days during 2012, it would be best that the bonus be paid to you prior to you arriving in Canada.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  339. Hi Bill,

    You may be required to file tax returns in both countries, but you will receive offsetting tax credit in Canada for the tax paid in US.

    The answer to your question would be for the US - the total deducted from your pay. And for Canada - use the calculator above and deduct the amount withheld by your US employer. The Canadian amount would be inclusive of the US tax paid.

    BTW, as you do have a US employer, ensure they DO NOT deduct for Social Security as you are required to contribute to CPP. You will need to apply through your employer to request the US SS not be deducted.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  340. Hi Kandarp,

    Use the calculator above to determine your answer, the tax rates differ between BC and Alberta.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  341. Hi Jean,

    Anytime you are offered more pay, the answer is go for it!

    The increased pay will not greatly increase your tax liability... the more you earn will increase faster than the tax payable will increase.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  342. Hi Vinu,

    The answers to your questions... NO.

    As an employee, you are not eligible to claim these expenses as deductions against your income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  343. Hi Anath,

    If you completed the TD-1 form advising your employer of your deductions, your tax withheld will be determined by what you supplied on the form.

    Based on the information you provided, you can use the calculator above to determine your tax liability and compare it to the tax withheld from your pay.

    Filing your tax return will determine your eligibility for benefits.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  344. Hi Maca_Eire,

    The calculator above includes all the taxes and exemptions you are required to pay.

    In addition to the amount calculated above, yes, you are correct that there is an additional 7% of gross pay deducted for contributions to Canada Pension and Employment Insurance.

    The marginal tax rate is the percentage at which your salary is taxed highest (highest tax bracket). The average rate is the average of all the tax brackets that your salary falls within.

    Yes, your employer is required to withhold tax from your paycheque every pay period.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  345. Hi Eli,

    We are assuming you currently live i