Canadian Income Tax Calculator 2011

There are big savings for filing on time even if you can't pay all your taxes right away.
Find out how much 2010 income tax you owe in Canada in one easy step.

If you would like to know the income tax for 2015, 2014, 2013, 2012, 2010 or 2009 see our 2015 income tax calculator, 2014 income tax calculator, 2013 income tax calculator, 2012 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 2011 maximum contribution limits. This actual contribution limit may be higher if there are unusued RRSP contributions from prior years.

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800 Comments

  1. Dee 10/01/2010 at 7:53 am

    Hi, Thanks for the great calculator! I do have a question.
    Im a single mother who runs her own business from home with little expenses to write off. When making sure i set enough aside each month for personal taxes how do I factor in my child as a dependent? If regular people can make 8K in ontario and not be taxed how much should I be taking off in total for one dependant?
    any help would be great!

  2. rob 10/04/2010 at 9:21 am

    great calculator!

    I'm a contactor and worked overseas for 11 weeks this year and was paid directly to my Canadian bank account from an employer in Cyprus. How will i be taxed on my overseas earnings once I file a tax return?

  3. Richard Parkinson 10/04/2010 at 11:34 am

    For tax purposes it is treated the same as Canadian income. The CRA has some information at: link to cra-arc.gc.ca

    You will want to keep track of how much income you received from Cyprus, as they will not likely be sending you a T4 slip. Also if they withheld any tax you will need to try and recover that as well. Just keep track of all deposit slips so that you can report it for your 2010 tax year, and add it to your income just like any other domestic income. If they paid you in foreign currency, you may want to obtain the exchange rate at each payment date to prove to the CRA why you are showing a particular Cdn. dollar amount for the foreign currency received.

  4. Cathay 10/06/2010 at 12:46 am

    Great site! I do have a question. If I have $32 000 of unused tuition credit ( i graduated a year ago), and If my salary is $80 000 for this year, what portion of the tution credit goes toward my income when i'm doing taxes? Is there a limit to the amount that can be deducted via tution credits per year? And is this amount different depending on which province I live in (BC)? Thanks!

  5. DAVID tully 10/09/2010 at 11:44 am

    hi
    if i make $6000 in self employment income a year and i give the money away or have it paid to other people for jobs that they do for me or for there own expenses then is that considered a business loss or expense.

    david tully

  6. Richard Parkinson 10/09/2010 at 7:53 pm

    If this is your only income, then it is of no consequence as it is below the minimum income that would be taxable, so tax to pay, no deduction to claim.

    If you are a salaried employee making enough to pay tax, and this a side income, then this income would considered to be taxable income, as unless you have set up a limited company, any self employment income is just added to your total income.

    If you give it away to a registered charity, there is a prescribed deduction that you find out about on the CRA website. If you give it to a friend, there is no deduction. If you pay someone to do work for you, e.g. an office assistant to help you earn the income, then the amount you pay that person would be a tax deduction. If you need your car for work, and you pay it to a mechanic to fix your car, the portion of your car expense you claim for business could include the deductible portion from your tax. If you used the money for bath fitters to replace your bathroom at home, there would be no deduction.

    You asked a simple question, however there are no simple answers when it comes to income tax. There to many "ifs".

  7. Raj 10/14/2010 at 5:47 am

    Hi,

    It's really a very good tool.

    I am New to Canad and planning start work in canada(Ontario) from the Month of Dec'2010 and my monthly salary would be $6,333.33

    Can you advise what would be my take home after tax deductions.. ?

    thanks

  8. Richard Parkinson 10/14/2010 at 11:47 pm

    This question is impossible to answer, as it will depend on several dozen factors such as CPP deductions until the YMPE (Yearly Maximum Pensionable Earnings)is met, company group plan benefits, union dues, company pension plan, etc. that are also deducted.

    Our calculator shows for an annual income of $76,000, your net income would be $58,488, which only takes into account your basic personal exemption. Your payroll department should be able to advise your take home pay which is the lowest in the first few months until your CPP deductions are finished, after which you will see a 4.95% increase in take home pay.

  9. Pat 10/24/2010 at 12:25 pm

    I am planning to sell a vacation property which I have owned for 12 years. The appreciated value will be subject to capital gains. I plan to sell the property furnished and wonder if I can include the cost of the furniture in the adjusted cost base in order to reduce the capital gain.

  10. Richard Parkinson 10/24/2010 at 2:41 pm

    The ACB can include capital improvements made to the cottage or the property since you acquired it. This would include new docks or additions, roof or windows replacement, a new well or pump installation, etc. You can't include simple repairs, maintenance, e.g. a replacement hot water heater, or the value of your personal labour for improvements, rather only the amount actually paid to others. I cannot find any specific reference that furniture can, or cannot be included, so it might be worth a call to the CRA customer service line. My guess is that would not be.
    Typically most people are less than diligent about keeping receipts, so you may have to document any items you feel are qualified from memory. Just remember the CRA may ask you to prove the costs you claim, and can reassess if they think you have overstated the amount. Did you really put $15,000 granite countertops in the cottage?
    There is also the “One Plus rule” that might save you some tax. This is described in a CRA bulletin. It is complicated, so you will want to have an accountant do the math for you, but it can save you some money provided all of the variables cooperate.
    Do some Google searches for ACB components, cottage ACB, etc. and you find a lot of useful information from a variety of sources included several law firms and accountancies.

  11. Gary 11/05/2010 at 8:04 pm

    I have about 20,000.00 in back pay coming to me.I make around 60,000.Am I better to dump it all in an RSP and if so how much of a credit would I get or am I better paying off my line of credit.Thanks,Gary.

  12. Richard Parkinson 11/06/2010 at 9:55 am

    You don’t say which province you are in, so I have used the BC tax tables as I have them available in an Excel spreadsheet. You can use our calculator to duplicate the numbers for your province. The table below is a place to start.

    Income before back pay $60,000
    avg. tax rate 19.82%
    marg. Tax rate 29.70%
    Tax payable $11,892

    Income after back pay $80,000
    avg. tax rate 22.58%
    marg. Tax rate 32.50%
    Tax payable $18,063

    Income Difference $20,000
    Tax Refund $6,172

    If you put the entire amount into an RRSP, you should get back over 30% of the $20,000 as a refund. So I would suggest you have the following options to consider:

    1. Put all of the $20,000 into an RRSP, and when you get your refund, put that amount towards your line of credit.

    Tax refund $6,172
    Credit Line $20,000
    tax payable $0
    Net to credit Line $6,172
    Credit Line Balance $13,828

    2.Decide to put the full $20,000 to your line of credit, realizing you will be paying $6,000 in tax, so in effect you are only putting $13,828 to your credit line.

    Back pay amount $20,000
    Credit Line $20,000
    tax payable $6,172
    Net to credit Line $13,828
    Credit Line Balance $6,172

    In general when deciding on whether to invest a lump sum or pay off debt, I always recommend paying off debt, as in effect you are receiving a guaranteed return on the money, given the interest rate you are paying is fixed, and more likely to go up than down. This is especially true for credit card debt.

    If your debt is costing you 18% interest, paying it off is the equivalent of getting an 18% return on an investment. Other argue if you can borrow at a lower rate than you can get as a return, i.e. borrow to invest, you should.

    Remember however you have to pay tax on the gain, so to keep it simple, to break even after tax, you would want to make at least 6% return if your borrowing cost is 4%.

    I hope this has given you some ideas to start your own calculations and analysis.

  13. Larry 11/09/2010 at 2:42 am

    Great estimator - thank you. A question. I intend to retire and live several months per year outside of Canada. What tax implications (if any) might there be to being a non resident for several months of the year?

  14. Akash 11/12/2010 at 4:17 pm

    Hi,

    This is a great tool. I have a doubt though. Will enumerate the scenario thus -

    I've recently been sent to Canada by my company. I am going to be here for a year, I started here on Nov-1, 2010 and will be here till Oct-31, 2011. During that time I will be paid a salary of $53000. I was wondering will that be treated as one lump-sum taxable income, or will be split into two parts considering that my stay here has 5 months in this financial year and 7 months in the next? If I'm taxed on the entire amount, the tax is a lot more, while if I'm taxed separately on $ X (for Nov 2010 to Mar 2011) and $ 53000-X (for Apr-Oct 2011), it seems the tax will be considerable lesser. So will this amount be split as per the financial year, or will it be considered as one?

  15. Frank 11/12/2010 at 6:55 pm

    Great Estimator Works Well.

  16. Blake 11/14/2010 at 8:22 pm

    My gross income for 2010 will be $72,000. I paid out $11,000. in medical expenses in 2010. How much will I receive in tax credits in spring 2011 as a result? i.e. tax I will not have to pay.

    Thanks,
    Blake

  17. Bo 11/15/2010 at 2:30 pm

    Hello,

    I would appreciate it if anyone could help me out. A company would like to hire me but would like me to incorporate myself first. I have some understanding what this means but I would not want this to cost me too much. I would me making in the $40000 range and will work as a recruiter for this company. Hence, will not really have much deductions. I hear that this might be a great hassle. Could anyone tell me if this is worth it or how much taxes (double taxation) am i looking at.

    Many thanks

  18. Kelven Tan 11/16/2010 at 12:48 am

    I am new to BC. For 2010, I am earning only $5k. I have wife and two kids still in school. I suppose I do need to pay any taxes.

    One company wanted me to $33,000 starting Jan 2011 till Aug 2011. And there are not other benefits. Just straight cash.

    to work two jobs, another company wants to hire me but I have to be independent contractor and is prepared to pay me starting Jan 2010 $5,000 per month for one year as independent vendor/contractor.

    What should I do? My questions are:
    1. Should I be self employed or should I start a business and do the necessary claims. My work is consultancy services and advice.

    2. What can I deduct if it is part1 and what will it be for part 2 for my family, health insurance, unemployment insurance, enhanced health insurance?

    3. What kind of deductibles can I claim for as an individual and how much if I were a small business owner.? I am likely to work from home.

    4. Should I put all the income together as a vendor supplying advice to other companies?

    I would like to start paying for CPP, Insurance, Uneployment insurance etc?

    Thank you for taking my questions

  19. Robert 11/17/2010 at 9:57 pm

    Hi, This is a great tool. I would appreciate it if anyone could help me out.
    I am Canadian working overseas. I expect to be making 61500.00 $CAN by the end of the year. I will be taxed at flat rate of 31% in the host country. I will have to declare my world wide income and pay Canadian federal and Quebec provincial tax. I don't know how the income tax will be calculated in this situation. There is no double taxation agreement between Canada and the host country. Thanks

  20. Peter Vandeweg 11/19/2010 at 8:46 am

    Hello:

    This is a very useful reference tool for basic, personal financial planning. Thanks very much for your effort in providing this site.

    Will yoy be providing an updated model for subsequent tax years?

    Best Regards,
    Peter Vandeweg

  21. LSM Insurance 11/19/2010 at 9:28 am

    Thanks. Yes - we should be doing an updated version in the coming months. Regards

  22. amy 11/21/2010 at 7:16 pm

    how much tax do i have to pay on $47,000 am self employed if i take $20,000 or $15000 RRSP after that how much do i have to pay???? can anyone help me with this

  23. Steve 11/25/2010 at 8:54 am

    Great website, i live in Ontario and commute a total of 220km's each day to get to and from work, i just went through a divorce and had to move and take up residency halfway between my daughter and work, can i claim anything for mileage for deductions
    Thanks

  24. Richard Parkinson 11/25/2010 at 12:07 pm

    The basic rule is:

    Your new home is at least 40 kilometres closer to your new work place or school than your previous home. Use the "shortest normal route" available to
    the public to calculate distance.

    The key word here is closer. So as unfair as it may be, if you moved further away, my interpretation is that expenses would not be dedutible.

    Also unless you are self employed and your home is your official office, mileage deductions are not available either.

    They have also published an Interpretive Bulletin at:
    link to cra-arc.gc.ca

    I hope it works out for you.

  25. ameer 11/29/2010 at 2:12 pm

    I will be immigrating to Canada (BC) from the US.
    I was wondering, what happens if I live in Washington state and commute to BC daily for work. Will I be resident of Washington or BC, from Canadian tax standpoint?

  26. robyn 11/29/2010 at 7:57 pm

    just a quick question, as a home based business owners do i have to pay into the CPP. Im quite young and would rather not if i dont have to as it will be gone before i retire anyways. i just cant find any where that says it is manditory or not

  27. Richard Parkinson 11/29/2010 at 9:17 pm

    The quick answer is yes. The reference is link to fin.gc.ca
    and says:
    The CPP is financed through mandatory contributions from virtually all workers and their employers, including the self-employed. The contribution rate is 9.9% of earnings between $3,500, which is the Year’s Basic Exemption and the Year’s Maximum Pensionable Earnings ($46,300 in 2009). The contribution rate is split equally between employees and employers so that the maximum amount paid by employees and employers per year is $2,118.60 (2009) each. The self-employed pay both the employee and employer share of the contributions (maximum contribution of $4,237.20 in 2009).

    The good news is the CPP plan is well managed and is actuarily sound for at least the next 75 years. Also they have recently announced changes to make it even more sustainable, so personally I think you should be happy that it is available. You would not believe the number of people I see as a financial advisor who have CPP accounting for 30-50% of their retirement income.

  28. Nada 12/07/2010 at 3:39 am

    I''m from alberta and i just paid $27,201.00 Dental expences. It is new proceder.Dentures are skrewed into implants that was the only one option I have . How much will I get back on tax return ? anually income approx 68.0000,00.
    I borrow money from line of credit . I have some TFS money should I transfer from TFS asap and rest pay as I go montly . Idon't like any dept Please advise thanks

  29. robert 12/07/2010 at 9:44 pm

    im curious as to what tax benefits there is if any. I work strictly on commission and not a traveling salesmen. I sell furniture and appliances. Can i claim anything at the end of year? such as particular uniforms not supplied. And any others...

  30. shawny 12/08/2010 at 2:31 pm

    I am trying to figure out a plan for my mom's retirement years. She is a widow and earns approximately $17000/yr through a spousal pension and survivor benefits. She turns 60 next year. She has approx $55,000 in RRSPs that were invested originally for the benefit of tax sheltering not necessarily for income in retirement. Since other benefits can potentially start for her in the next several years (i.e., CPP, Old Age), I think that she is best to remove the lump sum of RRSPs now (when her income is the lowest). Given the assumption that she does not need this money as income in the future, do you think that removing it now has the most tax benefit? I assume the money is taxed as normal income, but that her income is so low that the marginal rate will end up being around 25%. Not sure what to do for her that will give her the most money in her pocket.

  31. Richard Parkinson 12/09/2010 at 12:13 am

    You don't identify the province your mother resides in, which as you know makes some difference in the numbers. Also I am unclear whether she will be eligible for CPP at age 60, how much if yes, and when, as the rules are changing, so when she can apply will be important.
    That said, the problem with providing an definitie answer is mired in a myriad of assumptions, e.g.

    - what will the inflation rate be over the next 10-20 years?
    - how many of her existing pensions are indexed?
    - If you wait 5-7 years before RRIF'ing her RRSP, what will the return rate be during that period?
    - How will tax changes over the next 10-20 years affect the result?
    - Will the extra income now, negatively impact any government benefits qualification, e.g. the allowance, GIS, Pharmacare, etc.

    I tried creating a quick spreadsheet to answer your question but got bogged down in the number of calculations to arrive at an answer.

    What I did determine is that taking the RRSP money out during low income years and depositing the income into a TFSA will make sense, and potentially in the long run, we are taling about approx. $1,000 to $2,000 per year more income in the early years, to reduce the tax payable in the later years.

    It likely comes down to whether she needs the extra income now or not. Given it appears she is on low income already, if inflation gets ugly 6-10 years from now, she will want to maximize her income then.

    So the math tells one story, personal situation another. As someone who regularly deals with low income seniors, having enough later in retirement is always of key concern, where having the extra income after 70 is more important than having it now.

    If she were to invest the $55,000 in one of the GLWB plans, e.g. Manulife Income Plus, at age 60, and RRIF it at age 70, she would be guaranteed a 5% income for life based on a guaranteed $82,500 or $4,125 per year.

    Some food for thought.

  32. Marco Jotic 12/15/2010 at 2:47 pm

    Hi Nada,

    To deduct expenses paid to earn commission income or when acting as a non-commission paid employee, the CRA requires several conditions to be met. The most important is to have a T2200 “Declaration of Employment Conditions” filled out by your employer.

    Earning commission as an employee will enable you to have more expenses qualify for deduction. Unfortunately the deductibility of these expenses is limited to the amount of commission earned except interest expenses for auto and capital cost allowance for auto (these are not limited to commission earned).

    Another benefit of earning commission as an employee is that you can choose to apply either the provisions for commission employees or the provisions for salaried employees (but you can’t mix and match, it’s one or the other). So if you do not have much commission and your expenses are more than the amount you have earned, you can choose to deduct employment expenses as a regular non commission receiving employee (obviously do so if this allows you to make more deductions).

    Highlight of differences:

    Commission employees can claim the following expenses which a regular employee cannot:

    Accounting fees for preparation of tax return (*regular employee can claim this as carrying charge)
    Advertising & Promo
    Entertainment for customers (limited to 50% of expense)
    Computer and/or fax lease
    Cell phone lease (*neither kind of employee can claim the cost of the cell phone if it is purchased)
    Internet
    Licenses (i.e. real estate license)

    Commission employees can claim the following additional home office expenses:
    Home insurance
    Property Tax

    *Uniforms are deductible for both kinds of employees
    *It is important to have a T2200 “Declaration of Conditions of Employment” filled out by your employer
    http://www.cra-arc.gc.ca/E/pbg/tf/t2200/t2200-09e.pdf

    Marco Jotic

  33. spencer 12/16/2010 at 11:51 am

    I was really surprised to see that Alberta taxes at $40k per year are actually slightly higher than Ontario taxes. I always heard that Albertans pay less income tax. Does this tool take into account the Ontario health tax that we pay on top of the income taxes? Could that be the difference? or is the "less tax in AB" a myth?
    Thanks for the tool -- very interesting!

  34. Richard Parkinson 12/16/2010 at 1:43 pm

    The calculator is based on the tax rates published by the CRA at link to cra-arc.gc.ca for federal and provincial rates for 2010. The only deduction that is included is the Basic Personal Amount (BPA) which we mortals know as our personal exemption.

    The federal taxes are the same, however the provincial rates are quite different. for Ontario, the rates are:
    Ontario 5.05% on the first $37,106 of taxable income, +
    9.15% on the next $37,108, +
    11.16% on the amount over $74,214
    For Alberta it is:

    Alberta 10% of taxable income

    So you can see that until you are making over $74,214, the marginal rate is less in Ontario than Alberta.

    Hope this helps.

  35. spencer 12/16/2010 at 3:59 pm

    Thank you! Interesting. So less tax in AB... but only if you make over $74K.

  36. KC 12/16/2010 at 6:58 pm

    I am planning to married soon, very soon (read as elope). Currently I am a single parent, and my source deductions reflect an adjusted claim code due to my marital situation. If we got married before the end of this year, am I considered married for all of 2010 and therefore required to pay full taxes on that income? Should we wait and marry in early 2011 instead?

    Thank you

  37. Rob 12/18/2010 at 4:43 am

    If I work for the month of December 2010 but don't recieve my pay for that month untill sometime in January 2011 is that regarded as 2010 or 2011 income for tax purposes?

  38. Marco Jotic 12/19/2010 at 12:38 pm

    Hi KC,

    If you were to marry in 2010 there is definitely an impact on your taxes given the situation you’ve described.

    Since you said you are a single parent I am assuming that the additional claim you selected when filling out your TD1 was for “eligible dependent”. Ultimately this claim in included in the calculation of your source deduction for 2010 causing you to pay less tax per paycheck.

    In order to claim the eligible dependant amount, you must have been unmarried or separated (not receiving any support) at any time during the year. This is important because it means you can claim the eligible dependent amount in the year you get married.

    Unfortunately if you are supporting your new spouse, you cannot claim the spousal support amount if claiming the eligible dependent amount. It is important to note that both the spousal support claim and the eligible dependent amount are reduced by $1 for every $1 of income earned by your spouse or dependent.

    Consequently, my opinion would be to wait to get married until next year in order to take advantage of the eligible dependent deduction this year and next.

    *Please note that if you have lived together for at least 12 months in a common-law relationship, you would be considered married for tax purposes starting on the day after 12 months has elapsed.

    I also suggest you tell your employer that you would like to fill out a new TD1 in which you would not include the claim for eligible dependent. Ultimately this is important because if you stay married you will not qualify for an eligible dependent claim and therefore you may have to pay tax at the end of the year because your source deductions were insufficient.

    *Please note that even if your TD1 does not claim an amount for eligible dependent, you can still claim it when preparing your year end tax return.

    Hope this helps.

    I also wish you a happy holiday season.

    All the best,

    Marco Jotic

  39. Marco Jotic 12/19/2010 at 3:07 pm

    Hi Rob,

    Since you earned the amount in December 2010, the income relates to the 2010 taxation year even if you were paid in January 2011.

    There are very specific exceptions but since this situation only relates to salary or wages being paid in 2011 for work done in 2010 then the above mentioned applies.

    Have a happy holidays,

    Marco Jotic

  40. Elizabeth 12/22/2010 at 6:30 pm

    Hello, I've been working the whole year at walmart in Alberta, My earning are 22314, my tax 3339 and my net pay 18917. So how much will I receive as refund for tax?
    I am married, my husband works at the same place, no children, we are temporally workers at Canada, no illness.
    Thanks a lot in advance,
    Merry Christmas,

    Elizabeth

  41. David 12/23/2010 at 2:57 pm

    Marco:

    For wages, income is taxable in the year received, not the year earned. Note that a T4 is a Statement of Remuneration Paid, not Remuneration Earned.

    While a corporation is deemed to realize income when it's earned, individuals who are employees recognize it and claim it when it's paid.

  42. David 12/23/2010 at 3:00 pm

    The exact quote, from the Income Tax Act:

    5. (1) Subject to this Part, a taxpayer’s income for a taxation year from an office or employment is the salary, wages and other remuneration, including gratuities, received by the taxpayer in the year.

    Thus, income for a taxation year for employment requires that the money be received in that year.

  43. Marco Jotic 12/24/2010 at 1:30 am

    Hi Dave,

    Sorry about that you are definitely right about that.

    All the best,

    Marco

  44. Marco Jotic 12/24/2010 at 1:56 am

    Hi Elizabeth,

    Assuming your husband made more then 10,000 in 2010, you should get around 1,100 as a refund.

    Hope this helps,

    Marco

  45. J Callison 12/24/2010 at 4:43 am

    Great Website, two questions. 1)Whats the difference between average tax rate and marginal tax rate?
    2)If I work overseas for the entire year and not work while home in Beautiful British Columbia and it is my only source of income, do I pay the same tax rates?

  46. Amitabh 12/24/2010 at 6:45 pm

    Hi,
    This is a really handy tool. I have an interesting tax situation, but should be simple for those in the know! I hope you can help me on this:
    I was in BC for 5 months on a work visa from May 2010, and worked at UVic, making around 12K CD, a decent amount of which is deducted on source. Before that, I was a student in the US, and had another around 8K USD in income. I am not a citizen of either country (I am from India). How should I file my taxes here (to get my deducted tax back), and what income do I need to show and in which country?

    thanks in advance.

  47. Tara 12/26/2010 at 10:08 pm

    How much income tax is your employer suppose to take out of your pay cheques? Is there a set percentage they are to take out? As sometimes my employer does not take out any income tax.

  48. Jeet 12/28/2010 at 11:42 pm

    I am new to Canada. I came here last year. Now I am working in a company from April 2010 which is my first job in Canada. My income so far is $27000 including taxes.My parents are living in India and they are dependent on me and I use to send them money, Is this money that is Send India can be claimed in the Income tax. and How much do I have to pay with this much of income or will I be able to get some money back when I will file my Income Tax.

  49. Jane 12/29/2010 at 2:54 am

    Hi I am a student and I have never filed taxes before. I live in BC so I believe that if I make under 10k from tutoring I don't have to pay taxes. Is it difficult to file taxes online or otherwise? Are there places I can go to get my taxes filed for very cheap?

  50. Tris 12/29/2010 at 12:04 pm

    Very interesting and helpful tool but I have one more question about the CPP, personal Exemption.

    If I make C$35,000 in Ontario and wife is not working and will be putting in C$10,000 RRSP. Am I right to say that I only pay CPP and Taxes on C5,000?

    (2x Exemptions=C$20,000)+RRSP C$10,000 = C$30,000

  51. Richard Parkinson 12/29/2010 at 3:26 pm

    To Jeet, re money sent to India.

    The quick and unfavourable answer is you cannot deduct this money you send to your parents from your income

  52. Tara 12/29/2010 at 4:25 pm

    Hi,
    Great website.
    I work full time at the same place for 2 years. I get paid every week...my question is there a set amount your employeer should be taking out for income tax on your pay stub?? I have had to pay out twice 'big time' and would like to know if my employeer is taking out the correct amount for income tax.
    Thanks

  53. Suzanne 12/31/2010 at 12:36 am

    Hi,

    Just wondering, can't seem to get an information on this. If you get married through the year, but have never lived together and still don't, do you have to pay the married rate on your income tax? I just don't see how you would if you are paying for two completely separate households.

    Thanks in advance!

  54. Gavin 12/31/2010 at 7:49 pm

    Suzanne, there is no separate rate for married couples. Income tax is still calculated on individual incomes. Review the CRA website online. Their online guides are very descriptive and helpful.

  55. Bernice 01/01/2011 at 2:37 am

    In this scenario
    Person 1 works full time and pays required taxes on that income.
    The same person has a part time job (paid cash) where they only claim approx. 25% of that income on taxes.
    This same person has 2 part time staff working for them on the 'part time' job, also for 'cash' that is not being claimed on taxes.
    Person 1 has not claimed the full part time income for 10 years.
    Person 1 is now going through a separation with their common-law spouse including their 5 year old child.
    What are the ramifications on child support for Person 1? Will they need to go back and claim all the part time income made under the table? Are there further penalities for person 1?
    What if person 1 says they didn't claim it, but if can be written off in expenses that have never been recognized over the past 10 years?
    How does it impact the 2 staff that work part time for cash under person 1?

    Thank you for any substantial feedback.

  56. Thomas Lagos 01/02/2011 at 2:33 pm

    Hello, I am a Canadian citizen who worked in Canada from January 2010 to October 2010 but I am now living in Latin America. How can I go about completing my 2010 income tax return from abroad? I imagine I would need both my former Canadian employers to send me my 2010 T4 slips and a blank income tax return form. Also, is there a delay in processing times for foreign income tax returns? Any information would be greatly appreciated...
    Thanks

  57. Michael Storoszko 01/03/2011 at 3:45 pm

    Hi J Callison,

    Answers to your questions:

    1) 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.

    2) If you work overseas and maintain residency or are a member of the Armed Forces while away from Beautiful British Columbia, yes, the tax rates are the same as if you worked in Canada. If you are determined to have cut residency ties to Canada, you are not required to pay taxes in Canada, only for the period of time you are a resident.

    I hope this has answered your question.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  58. Ruzmir 01/03/2011 at 3:57 pm

    This is Great website.

  59. LSM Insurance 01/03/2011 at 4:14 pm

    Thanks for the kind words

  60. Michael Storoszko 01/03/2011 at 4:14 pm

    Hi Amitabh,

    Tax Return reporting in Canada is based on residency, not necessarily citizenship, throughout the year. Any and all world-wide income must be reported to Canada while a resident in Canada.

    Since in this scenario you lived and worked in Canada starting May, then you are required to report your Canadian income as well as any world-wide income earned during the same time you were resident in Canada.

    The income you earned while in the US must be reported to the IRS for you to obtain any potential refund or tax credits.

    My firm specialises in dealing in international tax situation and would available to assist you in not only your Canadian tax filing, but also your US tax filing needs.

    I hope this has answered your question.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  61. Michael Storoszko 01/03/2011 at 4:16 pm

    Hi Jane,

    Yes, you are correct in that if you earn less than $10k you are not required to pay taxes.

    BUT filing a tax return is not only done to determine your tax liability.

    By filing a tax return starting with the first year you earn ANY income, you are eligible to file for refundable tax credits and build up your RSP Contribution Limit for future years’ deduction. If you are over 18, filing a tax return will allow you to claim the GST Rebate every year.

    It is not difficult to file your taxes online or otherwise and you can find a tax prepare than can do this for a reasonable rate.

    My firm specialises in preparing tax returns for individuals ‘virtually’ meaning if you are not conveniently located to our offices tax returns can be completed and filed via email or fax.

    I hope this has answered your question.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  62. Michael Storoszko 01/03/2011 at 4:17 pm

    Hi Tris,

    Simple answer: No and Yes

    CPP is based on your gross income and deducted at source by your employer it does not consider any tax credits for which you may take advantage.

    Assuming you wife has no income of her own, you cannot simply assume to claim her personal exemption of $10,382. Your tax liability is determined by your taxable income which is net of any deductions.

    In this scenario, if you make $35k your taxable income would be $25k ($35k minus $10k), assuming you are able to take advantage of a $10k RSP Contribution amount.

    You tax payable is them determined after taking into consideration any and all non-refundable tax credits. At the time your tax returns are prepared (for BOTH you and your wife), if your wife does not use all or a portion of her personal exemptions and tax credits they are transferred to you to reduce your tax liability. The tax payable or refundable is based on the difference between the tax you paid during the year and the total non-refundable tax credits calculated on your tax return.

    I hope this has answered your question.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  63. Michael Storoszko 01/03/2011 at 4:18 pm

    Hi Tara,

    An easy answer to your question is ‘no’ there is no set amount an employer should be deducting from your pay on your pay stub, BUT there are minimum amounts the employer should deducting according to your pay and based on the tax credit requirement you report on the TD1 form.

    If you believe your employer is not deducting tax, or other deductions, sufficiently, you can easily check by entering your pay information into CRA’s Payroll Calculator which you can find using this link:
    link to apps.cra-arc.gc.ca

    I hope this has answered your question.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  64. Michael Storoszko 01/03/2011 at 4:19 pm

    Hi Suzanne,

    Your scenario presents a unique situation. Based on the information you have provided, the cohabitation portion of the question is the root. I cannot comment on the legalities of this situation, but from a tax view the two persons can be considered separated if they are living apart on Dec 31st. Even though persons may marry during the year, it’s the living arrangements that determine the tax reporting and the respective tax credits.

    I hope this has answered your question.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  65. Michael Storoszko 01/03/2011 at 4:21 pm

    Hi Bernice,

    Separating the legal liability (child support), which I cannot comment on (a family legal counsel is best to refer to), from the tax liability (income tax) in your answer, here goes: assuming the scenario you presented, the amount of revenue can also present an issue in this situation.

    Assuming the scenario you presented, yes, Person 1 can try to claim he had a net income of the 25% of the total revenue, but Person 1 would be required to substantiate the expenses through records and receipts. CRA can very likely go back 10 years requesting the records. Without expense records, CRA can easily make the assumption and extrapolate the total revenue from the 25% reported and make the total amount taxable for Person 1. Person 1 would be responsible for all taxes due, interest and penalties for the entire 10 years and payment would be required immediately.

    As for impact to the two staff persons, the staff persons were obligated to report the income they received on their annual tax returns, but if they didn’t report it it’s another problem for Person 1. Since they were paid in cash, they could very well deny receiving the cash and that would create problems for Person 1 as they could not claim the wages paid as an expense. If Person 1 has records of the payments to support the expense all is good to obtain the deduction.

    CRA will allow the wage expense, but will also require back payments of the Employer Source Deductions and Contributions (CPP and EI contributions) that are also required in an employer/employee relationship. Not only would Person 1 need to remit the CPP and EI required Employer Contributions but would also be required to remit the Employees’ portions and face penalties for not reporting and remitting.

    Bottom line is Person 1 should be ready to present all records to the CRA, if investigated and be prepared to pay the tax liability and penalties.

    I hope this has answered your question.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  66. Michael Storoszko 01/03/2011 at 4:22 pm

    Hi Thomas,

    Yes, you simply do obtain from your former employer the T4 Slip and any other T Slips that may be issued to you as well as obtain a blank T1 Form.

    However, because you moved from Canada you should be aware of the tax implications. Depending on your residency status, you may be required to report to Canada any income you earned while out of the country.

    Canadian residents/citizens are required to report all world-wide income whilst a resident of Canada. Under the tax laws, residency is determined by several factors including property, bank accounts, credit cards, etc.

    My suggestion to you is for you to should check with a tax specialist to determine your actual tax reporting requirements.

    My firm has expertise in dealing with Canadians and international tax situations.

    I hope this has answered your question

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  67. Kevin 01/04/2011 at 4:13 pm

    Hi, I made 70159.60$ gross this year , plus I cashed 10000$ from my RRSP...and I asked the bank clerk to be taxed at 35%. Am I ok?? or I will stil lhave to pay !!!!!

  68. Richard Parkinson 01/04/2011 at 5:25 pm

    To find out, we need to know which province you are in, in Alberta, whether your taxable income is $70,159 or $80,159 the marginal tax rate is 32%, but in Ontario it changes from 33% at $70,159 and 39% at $80,159.

    Other deductions will affect the net tax you have to pay. So if you are out by 5% on $10,000 you could be looking at having to pay an additional $500 as a worst case scenario in Ontario, or more if you are in the highest marginal tax rate province for your income which is Quebec at 42%.

  69. Michael Storoszko 01/04/2011 at 5:46 pm

    Hi Kevin,

    Without your full details (family situation, other credits, etc.) and based on the assumption the bank clerk did deduct $3500 from your RSP withdrawal and the tax deducted from your pay totalled $16,000, I can only guess to say that you shouldn't be in a tax payable position for Apr 30.

    I hope this has answered your question

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  70. Joanna 01/04/2011 at 8:35 pm

    I live in Ontario but work in Quebec. Am I paying more in taxes than if I just worked in Ontario?

  71. Juliette 01/05/2011 at 7:38 am

    Does your calculator take into account the personal exemption? The reason I ask is it is mentioned in one comment above it does, though when I put in my income and subtract the taxes it does not reflect the after tax amount including personal exemption

  72. Michael Storoszko 01/05/2011 at 9:40 am

    Hi Joanna,

    The 'actual' income tax you pay is based on where you live Dec 31. If you've worked in PQ and had the PQ taxes deducted from your pay you are refunded any taxes (when you file your tax return) in excess of what the taxes would have been had you worked in Ontario.

    I hope this has answered your question

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  73. Roberto 01/05/2011 at 12:15 pm

    How do I use this calculator for married couples filing jointly?....Wouldn't the personal exemptions get doubled for the calculations?

  74. Andrea 01/05/2011 at 2:18 pm

    Hi. Great website and thank you for posting questions and answers.
    I live in Quebec since Jan 2010.
    In 2010 I worked 5 months in Quebec at a higher salary and I worked 5 months in Ontario at a lower salary level. How will this benefit/affect me at tax time?
    Thanks in advance!

  75. Pam S 01/05/2011 at 3:22 pm

    Great calculator to assist with decisions.

    My husband and I are considering renting out a property instead of selling it. Is rental income treated the same as employment income? As a couple, could the lowest income earner record the rental income? We reside in Saskatchewan.

  76. Richard Parkinson 01/05/2011 at 5:35 pm

    Answer to Juliette:

    This calculator does deduct the basic personal exemption, so we chose to keep it simple, i.e. only one data entry number, your taxable income. The tax rates in BC, where I also happen to live, are detailed on the CRA website link to cra-arc.gc.ca. Our calculator uses these rates to calculate your average and marginal tax rates based on your input number for taxable income. The only thing we subtract is your basic personal exemption, which for 2011 is $11,088 in BC and $10,527 federally. You can test this with the calculator.

    Enter a taxable income of less than $10,527 and it will show $0 tax payable, and 0% marginal tax rate.

    Now enter $10,600, and you will see the marginal tax rate is 15%, the Federal rate.
    Now enter $11,100 and the marginal tax rate jumps to 20.06%, based on the 15% federal and 5.06% provincial.

    Given there are 13 provinces and territories, each with their own tax rates, and levels, you can hopefully appreciate how much coding would be involved to make this calculator more complex than it already is.

  77. Michael Storoszko 01/06/2011 at 9:31 am

    Hi Andrea,

    I'm not certain of what you are asking... how will working in two provinces at two different salary level during one year benefit/affect you...

    Whether you worked in one province or more than one province, the only province that counts is the one you resided in at Dec 31... it is the province in which you report your income and file your tax return. You would benefit if that province had a lower tax rate that the other.

    I hope this has answered your question

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  78. Michael Storoszko 01/06/2011 at 9:32 am

    Hi Pam S,

    Net rental income (gross rent less rental expenses) is taxed like employment income with the exception that rental income does not apply in the determination of your Annual RSP Contribution Limit.

    Technically, the rental income should be reported by the owner of the property... so if the property is jointly owned, the rental income should be jointly reported (according to the ownership proration), but if the lower income earner wished to report all the rental income there would be nothing to stop it.

    I hope this has answered your question

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  79. Michael Storoszko 01/06/2011 at 11:30 am

    Hi Roberto,

    Couples do not file jointly in Canada. Each tax return is filed individually. If one partner has excess unused tax credits, they are transferred to the spouse.

    Using this method, the tax calculators above fairly represent the outcome for individuals and families.

    I hope this has answered your question

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists

  80. Roberto 01/06/2011 at 11:55 am

    Thanks for your reply Michael. Would I claim my spouse as an exemption on my taxes?....while my spouse would only claim herself as a personal exemption on her taxes?

  81. Mike Storoszko 01/06/2011 at 3:53 pm

    Hi Mike,

    Yes, as the single income earner in the family, you can most definitely make use of any of your wife's unused tax credits.

    Be sure you and your wife both file tax returns at the same time to accurately calculate the credits and allow for the transfers.

    I hope this has answered your question

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  82. Michael Storoszko 01/06/2011 at 5:53 pm

    Hi Roberto,

    Your wife would claim the basic exemption for self and any unused credit is transferred to you via the spousal exemption on your return.

    This is done seamlessly when the tax returns are prepared together.

    I hope this has answered your question

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  83. jodi 01/06/2011 at 7:55 pm

    hey there, I am a bit worried that I might have to pay a big hunk of income tax to the govt. I live in BC my gross earnings are about 63000. Income tax deducted is 10600, union dues 1100,
    my municiple pension 4200. i have about 5500 in child care to deduct in addition a little home buisiness which i only made about $300 but I can write off about 1500 of expenses. RRSP contributions $600 Am I in better shape than i think or should i expect to pay big. Any insight is appreciated

  84. Michael Storoszko 01/07/2011 at 9:44 am

    Hi Jodi,

    Based on the limited information you provided, an assumption was made that you weren't married and had no additional credits... you would be in a refund position of $121.

    I hope this has answered your question

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  85. Ogie 01/07/2011 at 12:21 pm

    Hi,

    We moved here in the US, together with my son, from Canada to be closer to my work last year(been commuting to work from Canada before). I got an opinion from CRA that I have 'severed my Canadian residency' effective June of last year. Do I have to make a full year (2010) tax payment to CRA even if I only resided there in Canada for less that 6 months last year?
    Thanks.

  86. paul 01/07/2011 at 12:57 pm

    Hello

    I am looking at moving to Ontario, my salary is 90,000 and married with one child. What would be the income tax paid? I am the only person working

    Thanks a bunch

  87. Trevor 01/07/2011 at 3:03 pm

    I'm getting a little worried that I will owe taxes this year which has never happened before, so for general purposes, my numbers are as follows:

    60 228.30 = Gross Income
    Paid 10471.82 in taxes
    Deductions
    2163.15 = CPP
    747.36 = EI
    3277.00 = Union pension deductions
    855.24 = Union dues
    No other credits or deductions that I'm aware of, other then my Long term disability plan deduction which was 996.58 but I'm not sure if that is able to be deducted from my income or not.

    Thanks for your valued insight

  88. Michael Storoszko 01/07/2011 at 6:49 pm

    Hi Ogie,

    You are required to file a tax return declaring your world-wide income for the period of your residency during 2010. So if the opinion states June 15, you must report your world-wide income for the period January 1 to June 15, 2010.

    I hope this has answered your question
    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  89. Michael Storoszko 01/07/2011 at 6:50 pm

    Hi Paul,

    Based on the limited information provided, assuming your wife doesn’t work and the child is under 16, and without knowing all your available credits, your net income after taxes would be $66,320.
    I hope this has answered your question.
    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  90. vijay 01/07/2011 at 11:21 pm

    i have commission sales income 34800 for year 2010, wife is not working and haye 3 children 4 yr, 9 yr and 14 yr.tax deducted app 6000.how much refund can i expect . will my expences around 2000 $ on studingfor upgrading my backhome degree will help

  91. Michael Storoszko 01/08/2011 at 2:06 pm

    Hi Trevor,

    Based on the limited information provided, not knowing your age and family status or the province you reside in, I based this answer on you being in Ontario.

    After calculation, you would be in a tax payable situation in the amount of $463.

    Unfortunately, the LTD deductions are not tax deductible from your current income, but you should be tracking the amounts deducted every year as they would be deductible from your income if in the event you receive LTD benefits (see your plan administrator to confirm).
    I hope this has answered your question.
    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  92. Alexander 01/08/2011 at 5:21 pm

    Hi. Im employed by an US company outside Canada and share my time between the US, Russia, the UK, Canada spending 183+ days/year nowhere. I wasnt considered a Canadian tax resident. My American employer told me I should now choose a tax jurisdiction other than the US as it doesnt want to be my tax agent in States. I have chosen Canada (Ontario) effective 01 01 2011. How should I pay my income tax in Ontario - monthly, quarterly. annually?

  93. Bal 01/09/2011 at 2:37 am

    Hi there,

    I have a unique situation and can't seem to find an answer as to what my tax implications will be.

    I am a Canadian resident, but I am moving to Panama to work as an "Independent Contractor". I am not sure how long I will be there, it may be a year or forever, but I don't know yet. For that reason I am keeping some "ties" in Canada.

    I have read that if you cut all "residency ties" with Canada you do not need to pay tax here, but having a bank account, divers licence and passport, states that I would still be considered a resident.

    But it also says that you only pay tax on foreign income if it is earned while you are living in Canada. Does this mean that if I spend a full tax year and the only income I earn is outside of Canada, while I am living abroad that I would not claim any taxable income for that year?

  94. Michael Storoszko 01/09/2011 at 12:46 pm

    Hi Vijay,

    Based on the limited information provided and assuming you are resident in Ontario, you would be in a tax refundable position of $3,463.

    The study expenses are not considered here as only approved educational (Canada and specific foreign) institutions are eligible.

    I hope this has answered your question.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  95. Michael Storoszko 01/09/2011 at 1:08 pm

    Hi Alexander,

    Based on the limited information you provided, assuming you have a permanent Social Insurance Number, Canada Revenue Agency requires quarterly remitting of income tax installments.

    If you have filed a Canadian Tax Return previously, and had more than $2000 payable in more than two consecutive years, your tax preparer AND the CRA will provide you with the installment amounts and the due dates for the payments.

    I hope this has answered your question.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net

  96. Hi Bal,

    Canadian residents are required to pay tax in Canada on ALL world-wide income earned while a resident of Canada.

    Based on the information you have provided, Canadian residency cannot be confirmed. In your situation, I suggest you contact CRA for an official opinion on your residency status (no cost for this). It can save you much tax dollars.

    I hope this has answered your question.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates

  97. Michael Storoszko 01/10/2011 at 2:42 pm

    Hi Alexander,

    I'm concerned you've been advised you have no tax jurisdiction. I cannot comment on your tax preparer's comment that 'it's alright'. By your US employer indicating they do not want to be your tax agent means they do not wish to be responsible for your tax return reporting and that they do not process the necessary experience to deal with cross border taxation issues.

    The answer to your question depends on more than residency only, it's based on 'deemed residency'. The 183 day rule is not the only confirmation of residency and whomever advised you of this has not done so accurately.

    The way and tax jurisdiction where you pay tax is based on the forms issued by your employer... W-2, 1099, etc. Have you ever completed a W-4 or W-4V? Have you ever gotten an official opinion on your residency?

    Some questions you may need to ask... does your tax preparer understand the cross border impact of reporting your income? Am I required to file back tax returns to the multiple jurisdictions?

    I strongly recommend you contact an accounting firm versed in cross border taxation filing to ensure you avoid tax liability and potential working issues.

    My firm specialises in cross border taxation filing for clients that are residents of Canada, USA and other countries. We would be available to assist in your tax reporting needs.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates

    Regards,
    M H Storoszko CHRP, CGA
    http://www.storoszko.net
    Tel: 647 367-3477

  98. david 01/10/2011 at 6:16 pm

    My wife and I have two young children (2 and 5). She went back to work Sept 1, and we hired a nanny at cost of $2000/mo. 2010 Child care expenses are $8000 for 2010. My wife is making $42,000 per year; I am earning $190,000.

    I know the lower income spouse is supposed to get the child care expense deduction, but she will be paying near zero income tax. Can I claim the deduction on my tax return?
    many thanks

  99. Kylie 01/13/2011 at 12:28 am

    Hi,
    I am an Australian resident who worked in BC on a working holiday visa for 7 months during 2010- from March-Oct. I am now back in Australia and I have NO IDEA how to go about filing a tax return. Any help as to where to start would be greatly appreciated..can I do it online? As a non-resident and a working holiday maker, will I be eligible for any tax returned to me do you think?
    Thanks!
    Kylie

  100. M H Storoszko 01/13/2011 at 11:48 am

    Hi Kylie,

    To answer your question, I need more details as to your legal residency during the period in Canada.

    If you are considered a resident of Canada during the working period, yes, you can file your tax return to claim any refund.

    My firm specialises in preparing tax returns for international or cross border tax returns. Best to contact me directly for details.

    I hope this has answered your question.

    Regards,

    M H Storoszko CHRP, CGA
    http://www.storoszko.net
    Tel: 647 367-3477

  101. Sandy 01/13/2011 at 3:02 pm

    Hi,

    I own a small home based business and am currently thinking of starting an at home daycare. My income from the current home based business is under $8000 (increasing all the time). The income generated from the daycare I would hope to bring in $36000 per year gross. How much would I pay in CPP for both businesses? Is it the full amount of $4237.20 or would it be less since my income is less? Any help would be greatly appreciated! Thanks!

  102. Hi David,

    If there is a two parent union, the person with the lower net income (including zero income) must claim the child care expenses unless one of the situations in Part C or in Part D of the Form T778, Child Care Expenses Deduction, applies.

    Regards,
    M H Storoszko, CGA
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  103. John 01/14/2011 at 1:19 am

    Hello,
    Thank you so much for providing such a great tax calculation tool.
    I would appreciate if you can answer my query. Here are my income details:
    Total income $ 95,719.51 (Salary $ 67,364.51, Commission 20,354.00, Bonus $8,000.00)
    Tax deduction $ 26, 924.95
    EI deduction $ 747.36
    CPP deduction $ 2163.15
    There were some small amounts for medical co-pay also.

    We live in Ontario. My wife did not have any income for 2010 and she is a full time university student. I can utilize all of her tuition credits, public transportation credit and books credits.

    Considering the above scenario, how much tax return should I expect to get back?
    Also if I buy $ 5,000.00 RRSP, what will be the increase in my tax return?
    Thank you so much for your advice!
    Also, do you have an office in Toronto?

  104. Shawna 01/14/2011 at 3:37 pm

    We received an insurance payout on our hail damaged business trailer this year. Do I have to claim this as income when we file taxes for 2010? We live in Alberta and the payout was $2000.00.
    Thanks

  105. Carole 01/14/2011 at 3:54 pm

    Hi,

    I was wondering the following. I make $59610 before taxes and I withdrew $12000($2000 straight to tax and only got $10000) from my RRSP's due to some financial issues I had in the past. What will I be taxed(or have to pay back?) What should I contribute in my RRSP's? And would it be smart to take out a loan for my RRSPs contribution? PLease help.

    Thanks!

  106. peter 01/15/2011 at 2:53 am

    Hi I have been working in Asia for the last 12 years, and now would like to go back to Canada withing this year. Currently I have some money, some would say a lot, its over 300K in overseas accounts, how do I get back to Canada without tax problems ?

  107. Angela 01/16/2011 at 2:06 am

    So I have my first full time job in 2010.
    I think I made around 31,248 dollars for 2010. I had roughly 7,105 taken out in taxes for the year.

    I have 930 dollars in tution towards my taxes. I just bought a home in 2010. Other than that nothing else to claim.

    I'm trying to figure out will I have to pay into taxes? I'm lost!

  108. Steven 01/16/2011 at 10:14 pm

    Hello,

    I have a question for you that I am hoping you can help me with. I started a new job on January 10, 2011 and they have sent a couple of Tax Forms that I am having some trouble with. I live in Montreal, Quebec, Canada.

    For the form titled “2011 Source Deductions Return” ( link to revenuquebec.ca ), I am required to complete Work chart 2 in the back (page 4) so that I can fill line 9 in the front (page 1). On line 90, it is asking me for my estimated Net Income on December 31, 2011. It will be hard for me to estimate this as my first day was January 10, 2011 and I have not yet received a paycheck. My Gross Salary is $60,000.00. Can you let me know what to estimate for this section?

    The Form titled "2011 Personal Tax Credits Return" seems to be straightforward. I filled the box on page 1 but, am not sure if I need to fill the section at the bottom of page 2 called "Additional tax to be deducted". What does that mean or what that include? Other than that, all I need to do is sign and date the form at the bottom of page 2.

    I would greatly appreciate your guidance in helping me fill these forms. Thank you for your help.

    Thanks,

    Steven

  109. Michele 01/17/2011 at 11:54 am

    Good day,
    I have questions regarding my 2008/09 return. I lived in ontario, worked in ontario - however, the company i worked for was in Quebec. Therefore, i received to types of T4s. The book keeper i had doing my taxes, didn't quite understand what to do with this and how to file. I was under the assumption I would have received more money but was re-assessed by cra and that money was taken away. Now my question is, should there be another document filled out? Since nobody, including cra knows what i am speaking about? Also, would I re-submit my taxes if I find someone who does understand how to do this?
    thanks so much in advance

  110. Jay 01/17/2011 at 3:12 pm

    Hello, I currently live in Alberta. I started work at my company in may of 2010. I made 31,748 in 2010. My question is will i be getting a refund, or end up owing. Thanks

  111. Carola 01/17/2011 at 5:46 pm

    Hi, I am a Canadian who lived and worked in NYC from 2002 to 2008. While there I married an American who has a daughter. He retired in 2007 and in 2008 I returned to work in Canada while he stayed with his daughter while she completed high school. In September 2009, they joined me in Canada and applied for residency here. They were approved for stage 1 residency in September 2010 but are still not Canadian residents. My husband gets a pension from his former work in US. He will have to file a US tax return for his pension. When I do my Canada tax return this year, do I include his income from the US? Will we have to pay tax on his US income in Canada too?
    If my stepdaughter starts working in Canada, will she have to file a US tax return for her Canadian income? Will she have to file a Canadian tax return for her Canadian income?
    Thanks

  112. Cody 01/17/2011 at 8:32 pm

    I'm a student and worked part time the entire year. I only made 9,200 this year so I know I'm not paying in on my T4. What would my return percentage be on the tax I payed? How much am I looking at for a return.

    Thanks, Cody

  113. Tara 01/17/2011 at 9:06 pm

    Hi - I live and work in Ontario but my employers only office is in BC. I just noticed that his payroll person has been deducting my provincial taxes at the BC amount which is lower than the Ontario amount. I only noticed this today while preparing my 2010 taxes. Since I 've only worked for them since mid august and I'm paid twice a month - I've only received 9 checks

    The Provincial Tax portion in BC is $36.20 but in Ontario it's $52.95. Difference per pay check is $16.75 x 9 checks received = $150.75. I have not budgeted for this & I m on a very tight budget!! This was their error! Am I forced to pay this? Can I ask the company to pay this out of their pocket since it was their error? Also as we move into 2011 - I don't want this to continue. What is the correct amount that she should be deducting from me - the BC Prov Tax Amount or the Ontario Prov Tax Amount? If she erred - can I hold her liable for this amount?

  114. Hi John,

    Based on the information provided (you did not indicate the amount of your wife's tuition or if there are previous unused credits, transit costs, etc.; additionally you did not mention any deductions against your commission and salary), assuming your wife attended university 9 months full-time, before any RSP deduction, you would be in a receivable position of approximately $3,357.

    With the RSP deduction, the refund would grow to approximately $5,527.

    These figures are approximate with no guarantee as certain tax credit assumptions have been made.

    Yes, we are based in Toronto and provide the ability for your convenience to process your tax returns virtually.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  115. Hi Shawna,

    You're in luck... proceeds from property insurance claims are not taxable. You are not required to report this on your tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  116. Hi Carole,

    Based on the limited information provided, not knowing the amount of taxes withheld from your paycheque and assuming you live in Ontario, your tax payable BEFORE your tax withheld is $13,853.

    Subtract from this number, $13,853, your income tax deducted on your pay during 2010 to determine your tax refund or payable position.

    As for your RSP Contribution, you may contribute up to your RSP Limit which is noted on your 2009 Tax Assessment.

    I am not in favour of borrowing for a RSP contribution unless you are totally debt free and are in a large tax payable position. Given that, for every $1000 your contribute to your RSP, you would realise $330 in tax savings.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  117. Hi Peter,

    Assuming you are a Canadian citizen and will become a deemed resident when you return to Canada, to avoid tax issues, transfer anything over $95k cash to Canadian bank accounts. Liquidate any other property (house, etc.) and transfer proceeds to Canadian bank account.

    Any foreign assets (offshore holdings, etc.) over $100k held by Canadians can be subject to taxation.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  118. Hi Angela,

    Congratulations on joining the full time work force!

    Based on the limited information provided, assuming you live in Ontario with only the credits you specify (provincial tax credits require knowing your rent/property tax expenses; not knowing how many months you attended school full or part time), you would be in a tax refund position of approximately $3,276.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  119. Hello Steven,

    Based on Gross Pay of $60k, your Net Pay would be approximately $49.6k.

    As for your TD1, the Additional Tax to be Deducted is EXTRA TAX you want taken off your paycheque. I suggest just sign it and be done unless you want additional tax taken.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  120. Hi Michele,

    Based on the limited information you provided, it sounds like your bookkeeper disregarded reporting the Ontario and Quebec slips accurately.

    Some tax advice to you and others that may be in a similar situation... always ask your tax preparer if they know what they are doing - if they show the slightest confusion find a knowledgeable accountant. Doing your taxes on the cheap will most definitely cost you more in the long run. Knowledgeable tax preparers may cost more, but they also are worth it in the real tax savings they can find for you.

    If you filed your tax return and subsequently CRA reassessed your return based on additional information (in this case tax slips reported inaccurately), there are no additional forms you need to complete.

    All T4s and other tax slips are filed with CRA before you even file your tax return. After you file your tax return, the CRA computer matches the tax slips it has on file with the information you reported. If there is a discrepancy (tax owing to CRA) a reassessment is created and you get the tax bill. On the other hand, if you have an error that you neglected to claim a deduction, CRA's computer will not report this and it will go unnoticed until you realise it and request an adjustment.

    If you believe your tax return has not been prepared accurately, many accountants will do a review at no cost and if they discover missed credits, they will file a request for adjustment for a finders fee of a percentage of the credits... a win-win for you.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  121. Hi Jay,

    Based on the very limited information provided (you did not provide the amount of tax deducted from your pay, if there was other income during the year, or the tax credits you are able to claim), the tax payable is $4,053. Subtract from this amount the tax withheld on your paycheque to determine if you are in a tax payable or refund position.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  122. Martin 01/18/2011 at 4:41 am

    Hi, is the calculation included the federal tax, or just the province tax?

  123. Hi Carola,

    First thing I must ask, are you a US citizen or Green Card Holder? These impact your tax reporting requirements.

    Until your husband and his daughter officially become residents of Canada, they are not required to file Canadian tax returns. Yes, your husband and daughter are required to file a US Tax Return for their income, just as you are required to file a US Tax Return ALSO for your Canadian income. This may be something you are not aware of and it could impact your ability to travel and work in the US in the future.

    When you file your Canadian Tax return, you must include his income when you are determining your tax credits - not that you include his income as yours. You each file separately unlike as in the US where joint returns are done.

    When your husband and daughter become official residents, they will be required to file Canadian Tax Returns as well as US Tax Returns. Their income will be taxed in Canada, but not necessarily taxed in the US.

    This can be very confusing, especially in know which tax returns and how and where to file them. Our firm specialises in helping individuals in your situation. You can call upon us for assistance in preparing your cross border tax returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  124. Hi Cody,

    I am unsure why you mean by you are "not paying in on your T4". Income tax, EI and CPP are deducted from your paycheque.

    Since your income is under $10k, you would be entitled to receive back all tax deducted from your paycheque. You may also me entitled to receive some EI and CPP contributions as well.

    By filing your tax return, you would also be entitled to other tax credit refunds: HST, etc.

    Tax returns can be prepared at different rates depending on whom you go to to get it prepared.

    Our firm works with budget conscious individuals and businesses.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  125. Hi Tara,

    First, I believe you need to confirm your employment agreement with your BC employer.

    It sounds that the payroll person sees you as a BC employee not an Ontario employee... are you the only employee working in Ontario?

    Depending on your employment agreement, you may actually be a BC employee.

    Unfortunately, there is not a real error here (unless you can provide details of your employment agreement to me). The employer is required to deduct taxes based on the reporting for which they are set up. Perhaps the payroll person is not knowledgeable in this.

    You may consult a lawyer regarding this, but from a tax view, you are responsible for your taxes and if the employer does not deduct enough, you are required to pay the difference upon filing your tax return.

    If your employment agreement indicates you are a BC employee living in Ontario, the payroll person is correct is deduct tax as they have done so. Going forward, if this creates a shortfall for you, you can request (via a TD1 form) to have additional tax deducted so you would not have a large tax payable when you file your tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  126. Hi Sandy,

    In calculating your CPP contribution, it would be based on your NET income.

    As a self employed individual non incorporated business, you are required to contribute the regular employee portion of 4.95% of your income PLUS the 4.95% employer portion for a total of 9.90% of your net income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  127. marlene 01/18/2011 at 2:47 pm

    hi,
    i am wondering what is "marginal tax" from the column called marginal tax rate"? what does that mean and how is it related to the column beside it, called "average tax rate"?
    thanks, i am in ontario if that helps.
    sincerely.

  128. Angela 01/18/2011 at 3:39 pm

    I got a reply to my question but I;m from Newfoundland not Ontartio.

    I'm worried because someone at work said she think I'm going to have to pay in a big chunk on taxes.

    I don't have anything but my tution to claim which is 930 dollars (Just Sept-Dec 2010)...

    I've made roughly 25,000. I had 4,687 in taxes taken out, and 546 in E.I and 1,397 in CPP.

    I'm not 100% sure what my property tax is I'm thinking somewhere around 1900 a year.

  129. LSM Insurance 01/18/2011 at 4:55 pm

    Hi Marlene, The marginal tax rate is the amount of tax you would owe on the last dollar earned and the average tax rate is the average amount of tax you would pay on your income as a whole

  130. Hi Marlene,

    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
    Tel: 647 367-3477

  131. Hi Angela,

    Based on the revised information you provided, you should be in a tax refund position of approximately $2,000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  132. reena 01/18/2011 at 6:16 pm

    I want to know if it makes sense to fill out the tax credit information on the TD1 form. If I dont and I have tax credits to claim, don't I just get the 'excess' tax anyway...does it affect me whether i claim the tax credits or not? I work part time and i am in school full time but never filled out the portion for my tuition and education amounts.

  133. Sandy 01/18/2011 at 6:23 pm

    Thank you for answering my CPP question. I have one last one for you. I own a small business and if I start an at-home daycare, would the 2 businesses be taxed separately or together? I was told previously that they would be taxed separately but want to make sure. If you can please let me know. Thanks so much and I LOVE this tool!

  134. Hi Reena,

    The purpose of completing the TD1 form is to match the tax to be deducted from your pay to that of your personal deductions.

    Everyone has different tax situations... some have dependents, some go to school, some contribute to RSPs, etc. The TD1 asks several questions to calculate if you should have LESS than regular tax deductions from your paycheque.

    If you do have tax situations in your life that would reduce the amount of tax payable on your tax return, the TD1 is the way to have that money in your pocket NOW rather than wait for a tax refund.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  135. Hi Sandy,

    All small businesses, if they are not INCORPORATED, are all reported on your personal tax return.

    Each is reported on a separate schedule, but in the end the net profit and/or loss of each business you have is combined together to calculate your personal income tax payable.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  136. Jessie 01/19/2011 at 4:16 am

    Hello,

    Quick question regarding RRSP contribution:
    2010 income 68000
    Plus withdrew 10000 from RRSP
    Total income would be around 78000

    Income tax deducted 14200
    1000 withheld during RRSP withdrawal
    Total taxes 15200

    Purchased 15500 in RRSP (took out loan for portion of it)

    What would my tax refund be for BC resident and should I claim all on the 2010 return or save some for 2011?

    2011 income should be around 65000.

    Thanks,

  137. Hi Jessie,

    Based on the information you provided and assuming your 2010 RSP Limit is $15,500 (same as your contribution), you would be in a tax refund position of approximately $2,100.

    If you decide you want a smaller refund, simply claim less than $15,500 for your RSP deduction.

    For ever $1,000 of RSP deduction, you receive a tax credit of $310.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  138. John 01/19/2011 at 2:15 pm

    Hello, Thank you for your answer.

    My total tax deductions for 2010 were $ 26,924.95 on my entire package (salary, commission and bonus). I also paid in EI and CPP as stated earlier.

    My wife has $ 1,528.00 unused tuition credits from 2009. Her tuition was $ 5,554.00 last year and she is full time (9 months a year) student with no income. There is no transit cost as she bought 10 ride passes instead of monthly passes last year. I believe you can calculate the book purchase credit from tuition fee and duration of the course.

    Hope this helps to recalculate my tax return. Also please recalculate tax return with $ 10,000.00 RRSP.

    What do you mean by virtual tax filing? My office is very close to your and I would love to come and file taxes for my wife and myself once I have T4 and other documents ready.

    Once again, many thanks.

    John

  139. Hi Martin,

    If by your question you are asking if the Income Tax Calculator on this page calculates federal as well as provincial tax, yes. The calculated tax payable amount reflects the total federal and provincial tax.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  140. Hi John,

    Based on the revised information provided, you would be in a tax refundable position of approximately $7,700.

    As you are a commissioned employee, you are also eligible for deductions related to your employment; these were not considered in this calculation.

    What is a virtual tax service?
    With our virtual tax service, you don’t need to visit an office. You don’t need to purchase software. Basically, you just send us your tax documents via fax, mail or email and our team has a brief phone consultation with you and then they prepare your tax return remotely.

    Although tax preparation is done completely via telephone and online, personal customer service is not compromised using this business model and clients are rewarded with immediate savings and quick turnaround time.

    The economy has changed the way this tax firm does business. By eliminating some costly services but not sacrificing customer service, clients will keep more of their hard-earned money.

    We would be more than happy to assist you in your tax filing needs. Call or email (below) directly for more information.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  141. John 01/19/2011 at 4:20 pm

    Thank you once again for your answer. I will be getting in touch with your firm shortly.

    Have a good day!

  142. Melissa Sweet 01/19/2011 at 9:16 pm

    I am an Australian writer who will be doing some work for a Canadian organisation. I am based in Australia and will be paying tax on the earnings here. I want to know how much tax Canada will take out of my payment so I know how much allowance to make for this in my charging. Any advice you could provide would be much appreciated. Thanks Melissa

  143. Hi Melissa,

    The answer to your question depends on your employment agreement.

    According to Canada Tax Law, you would be an 'independent contractor' so there should not be any deductions for Canadian Employment Insurance or Pension.

    I suggest you contact the Canadian organisation to determine how they intend to class you - as a contractor or as a vendor. As a contractor, they may withhold 15% of your earnings. As a vendor, no tax should be withheld.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  144. Raf 01/21/2011 at 6:21 pm

    Hi,

    I worked as a subcontractor for a recruitment agency for one of their clients. I was traveling to the customer location daily using my car. I have a sole proprietorship registered but I have not done any business through it and that contract was with my name as individual not a business, in other words, the recruitment agency advertised a job, I applied, interviewed and got the contract. The agency did not withhold any taxes on my fees.

    My question is: Can I use form T2125 for Professional Income (or any other form) to get tax credits for using my car and the cost associated with it (lease, kilometers driven daily, oil, gas, insurance, maintenance, etc)?

    Can you please advice?

    Thanks much!
    Raf

  145. Hi Raf,

    Based on the information provided.... it is not clear of your actual employment status.

    The answer depends on whether you are an employee for tax purposes or an independent contractor... who exactly paid you? the client or the agency? What does your employment agreement indicate?

    Being on 'contract' doesn't necessarily mean you are a contractor. The CRA advises through a detailed checklist to determine if you are an employee or a contractor. Based on the details provided you would be considered an employee and source deductions should have been deducted from your paycheque.

    If you were an employee, you should receive a T4 slip, and your employment agreement needs to indicate use of your car was a requirement and you took the burden of all travel costs with or without reimbursement, you would be able to claim the travel expenses against any reimbursement (you would need to report the reimbursement as income) and your wages, but you need to have the employer provide you with a completed T2200 Declaration of Conditions of Employment form. With the T2200 you would complete T777 Employment Expenses form to claim the deduction - YOU MUST HAVE RECEIPTS and travel logs as your back up.

    If you were an independent contractor, you should receive a T4A slip recording your income. This would be entered to the T2125 Business and Professional Income form, and, yes, you would be able to claim the associated travel expenses - YOU MUST HAVE RECEIPTS and travel logs as your back up.

    Whether it is for work under your registered sole proprietorship or not, separate T2125 forms are required for each business activity.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  146. Ravi 01/23/2011 at 7:11 am

    Hi
    I am traveling to Calgary on work permit from India. My salary is going to be 75k. I am single and will be living alone. Using the above calculator, it shows that my net take home would be around 57k. My question is.. are there any additional taxes that i will have to pay there and what ways do I have to save my tax?

    Thanks
    Ravi

  147. Franklyn 01/23/2011 at 12:22 pm

    Great website! Still trying to file for my 2009 tax year. I am a Canadian citizen living in Ontario; got married in August of 2009. My spouse is a citizen of, and still living in, Trinidad - immigration process ongoing. Am i supposed to submit his income earnings? Is it considered as "net federal income"? What else am i supposed to be aware of?

  148. Hi Ravi,

    Based on the information you provided (you did not include details of your employment, family status, etc.), there will not be any additional income taxes you will needing to pay.

    As a resident of Alberta, you will pay 5% GST (Goods & Services Tax - Canada's consumption tax) on items and services you purchase.

    Without knowing your actual residency status, etc. I'm not able to suggest tax savings opportunities to you.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  149. Hi Franklyn,

    In Canada tax payers file their tax returns individually.... unlike as in the US where couples file jointly, in Canada each person files individually.

    Saying that, you would not include your partner's income in your tax return. You may be eligible for tax credits, but I suggest you contact a tax specialist to determine if you qualify.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  150. Raf 01/23/2011 at 3:38 pm

    Dear Storoszko & Associates

    Thank you so much for the valuable information. I was paid by the agency as a subcontractor and they did not withhold any taxes from the source. I am not sure if they will send me a T4 or a T4A yet but you covered both scenarios. Much appreciated.

  151. Raf 01/23/2011 at 3:41 pm

    Forgot to say, definitely, a GREAT website and an awesome source of information. THANK YOU!

  152. Darcie M. 01/23/2011 at 8:38 pm

    Hello,

    Thank you for having a such a valuale resource!

    My father was recently approved for the Disability Tax Credit and was back dated a couple of years.

    He is separated and living in a seniors complex. I am his daughter (only child) and caretaker and have Power of Attorney.

    Can I claim the caretaker credit or something similar? He doesn't live with me, but I am taking care of his banking, taxes, buying groceries, taking him to doctor's appointments, etc.

    Can his unused Disability Tax Credit be transferred to me? If so how do I find out what his unused portion would be for previous years?

    Thank you,
    Darcie M.

  153. Hi Darcie,

    This is a great question - thank you for sending it in. The answers rely on how the Tax Act defines dependants and support.

    The Caregiver Tax Credit specifically stipulates that you and your dependant must live under the same roof. Since your father is in a separate home, you are not eligible to claim this credit.

    The Disability Tax Credit does allow the unused portion to be transferred to a family member that provides support. The Power of Attorney gives you the ability to conduct business on your father's behalf but this is not considered support for tax purposes.

    Support is not defined in the Income Tax Act, but is ordinarily taken to mean the provision of food, lodging, clothing, medical and dental care. If you are funding these needs for you father then you would be entitled to claim the unused portion of the Disability Tax Credit.

    Contact the Canada Revenue Agency and ask them to provide you with the unused Disability Credit amounts or ask a tax professional to calculate the amount from your father's previous tax returns.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  154. Dominic 01/24/2011 at 10:35 pm

    Hello ! thanks for working so hard on this site. I found it searching for an income tax calculator. I gave it a try but I'm not sure if I should put in my individual revenu our both my wife and mine together !?? I calculated we would pay 10K$ less if done separately. Does this make sense ? thanks in advance.

  155. Hi Dominic,

    Yes, you are correct you would pay less.... in Canada each partner files a separate tax return; so, to estimate your tax payable using the above income tax calculator you would need to follow the same rule and enter your income separately from your wife's income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  156. Vicki 01/25/2011 at 10:32 am

    I live in Ontario. My mother passed away on Oct. 30,2010. Tax question.? Help?

    My brother and sister have power of attorney. My sister has done everything regarding my mothers’ estate, funeral, etc. Now she is begging everyone in the family for money. She said that Mom’s bank account was emptied by disability. So that money is gone. Disability paid for the funeral but she says the urn still needs to be paid and the funeral home for the reception room and obituary. Now she says that she cannot do mom’s taxes because she died before Jan.1,2011. IS THIS TRUE? So far she has provided everyone with no proof and is talking bad of her brother and our mother’s boyfriend. Telling people they all owe her money and are avoiding her. She has not been trustworthy in the past and my brother’s girlfriend called H & R Block and they told her that it was not true. Again. Please help.

    This sister has always lied in the past to get money from people. We don’t mind helping but not if she’s scamming us again. We need the truth but can’t get it from her so any professional opinions would be greatly appreciated.

  157. indira 01/25/2011 at 12:20 pm

    hi, thank you for this site.

    i rent my basement out for extra money. do i need to report this?

  158. First, I am sorry for your loss, the death of a family member is bad enough by itself without having financial problems as well.

    The responsibility to file returns and settle any/all debt matters of the Estate for a deceased person rests with the individual identified as the “Executor" or "Trustee” in the Will. If there is no Will, the responsibility rests with any or all beneficiaries who received a bequest from the Estate, usually the next of kin.

    The return for the year of death is required to be filed by April 30 of the year following the death or 6 months after the date of death, whichever is later. In your situation the return would be due by April 30, 2011. In most situations the return would be a normal terminal return declaring income, claiming expenses, etc. up to the date of death. Personal credits and deductions are allowed as in a full year. Any refund goes to the estate and any debt is the responsibility of the estate as outlined in the preceding paragraph.

    You mention your sister and brother held the Powers of Attorney for your mother. Was your sister and brother also named Executors as well? If so, your brother should be able to obtain the same information to which your sister has access. He could check with the funeral home and the bank. If the funeral home is still owed money, then you can find out what agreements were made with respect to repayment of that.

    You mention your sister indicated "She said that Mom’s bank account was emptied by disability. So that money is gone." Ontario Disability Support doesn't empty bank accounts. I would request proof of any/all transactions that occurred in your mother's bank account prior and subsequent to her death. The Executor/Trustee has the legal responsibility to maintain the assets and transact in the best interest of the Estate for the beneficiaries.

    Some Estates simply don’t have any money, and it is not uncommon for family members to have to pay funeral expenses in that case, but the funeral home would likely have wanted to know how it was getting paid up front. Regardless, if you are considering paying for the urn, etc, then I’d suggest asking for an accounting of the Estate, complete with supporting documentation, so you can make your own decision based on facts.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  159. Embarrased 01/25/2011 at 1:52 pm

    Hi, I hope you can help.

    I’ve neglected to file my Canadian taxes for the last 5 years (please no lecture thanks... I know I’ve been bad).

    I’m self employed and I’m finally caught up with all my bookkeeping records. I’ll be taxable in 2007 to 2009 and not taxable in prior years. To top it off I’ve just incorporated my business (yoga instructor) and I need to file for 2010 corporate year end.

    How should I handle the past due returns? A colleague of mine suggested that I file the returns with a voluntary disclosure to avoid possible penalties. I’m not quite sure how to proceed.

    Any thought or advice?

    Thanks for having this site!

  160. Gloria 01/25/2011 at 9:03 pm

    Hello,

    My sister passed away suddenly in Nov 2009.

    In April 2010 a life insurance benefit was paid to her estate ($100k) and then in May 2010 a payout of her pension contributions ($75k = $90k less $15k tax withheld).

    I completed her final return and filed it in Mar 2010 with the T4 slip I received.

    Now I have T4A and TRSP slips.... what do I do now? The money has not been distributed from the estate yet.

    Please help.

  161. Hi Indira,

    Short answer: yes!

    As Tax Specialists, we are frequently asked to provide some pointers that would be helpful to landlords when preparing their income tax returns. In general, many smaller landlords do not consider themselves business owners and, perhaps, miss out on claiming some of the available deductions, such as claiming the costs related to earning the income on their rental property/space.

    Not that this would exactly apply to you, but the option is available, for instance, if the landlord’s office is located in their home, a portion of the household expenses can be claimed; however, the home office area must be used exclusively for that purpose. The portion of the expenses allowed is based on the square footage of the office, relative to the square footage of rest of the house. Expenses that can be claimed include maintenance, utilities, mortgage interest, and property taxes. Capital cost allowance (i.e., depreciation for tax purposes) should not be claimed, since this would impact the landlord’s ability to use their principal residence exemption when they sell their house.

    In some instances, reporting rental income from your space in your home can result in a tax loss allowing for a bigger tax refund for the family.

    Generally, we would suggest that landlords receive some professional advice before preparing their income tax returns. After all,
    fees for professional advice are deductible!

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  162. Hi Embarrased,

    You are actually not alone!

    You need to start with getting your arrears tax returns prepared.

    The advice you received is accurate... once the arrears tax returns are ready for filing, a Voluntary Disclosure application needs to be prepared so to avoid the late filing penalties.

    A valid disclosure must meet four conditions. These conditions require that the disclosure be voluntary, complete, involve the application or potential application of a penalty, and generally include information that is more than one year overdue. If the CRA accepts the disclosure, the taxpayer will have to pay the taxes or charges owing, plus interest. However, the taxpayer will not be subject to penalty or prosecution for those amounts accepted as a valid disclosure.

    Complete Form RC199, Taxpayer Agreement – Voluntary Disclosures Program, and attach it to your disclosure submission and any supporting documentation. You can complete and submit the form yourself, or you can have an authorized representative do so on your behalf. A submission must be in writing and mailed or faxed to the tax services office (TSO) that has jurisdiction over the area where the taxpayer resides. For businesses, this would be based on their operating address.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  163. Hi Gloria,

    First off, I am sorry for your loss.

    Thank you for sending in this very good question.

    You've done well so far by filing your sister's terminal return. Most people don't realise the importance to file this tax return.

    As for the additional slips you've received subsequent to filing the return, they need to be filed as well, but not using the regular T1 (personal) tax return.

    Filing an income tax return for a deceased person's estate requires status as the estate's legal representative, as well as knowledge of the deceased's tax information from previous years. The tax information can be obtained from the Canada Revenue Agency when the correct documentation is provided. A return can then be filed for the estate, and is a separate return from the deceased's final return.

    Things You'll Need:

    * Death certificate
    * Proof of legal representative
    * Photo ID with signature
    * Social insurance number of the deceased

    1. Establish that you are the legal representative of the deceased person. You are the legal representative if you are named as executor in the will, the court appoints you as administrator of the estate or you are the liquidator of the estate in Quebec.

    2. Establish if the estate earned any income after the deceased person's death. If it did not, or if the estate was dispersed immediately following the deceased person's death, the Canada Revenue Agency (CRA) does not require that you file an income tax return for the estate. In this case, give each beneficiary a statement of his share of the estate.

    3. Obtain the deceased person's tax information from the Canada Revenue Agency. Make an appointment to see a Canada Revenue Agency agent to do this or mail for the information, including the person's death certificate, social insurance number, and a copy of the legal paperwork that confirms you are the legal representative of the estate. If you write for the information, include the words "The Estate of the Late" in front of the deceased person's name. If you meet with an agent, you will be asked to produce personal identification in addition to the deceased person's paperwork.

    4. Complete the T3 Trust Income Tax and Information Return following the guide on the Canada Revenue Agency website. Contact the CRA with any questions you have about completion and submit the return to the agency.

    Many people do not realise that Estates with considerable assets benefit in tax savings by utilising and setting up a trust for the beneficiaries.

    Based on the information provided, your sister's beneficiaries will realise the additional benefit of a tax refund by filing the T3 Trust Tax Return.

    I suggest you consult with a tax professional to ensure the filing of the T3 Trust Tax Return is completed accurately for maximum benefit and tax savings.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  164. Jay 01/26/2011 at 5:28 pm

    Hey I asked a question earlier this month about my taxes. I have more info if it would help. I made 31,478 in Alberta. Income tax deducted was 4400. I contributed 1320 in rsps. CPP was 1526. EI was 565. My legal status has gone from married to separated. Quick question. What reduces our taxes, is it taxable income, or non taxable income. May seem like a obvious question, just don't know the answer to it. Thank you.

  165. Hi Jay,

    There is no non-taxable income.

    Taxable income would increase tax payable (taxes deducted from your pay go up as your pay goes higher), but tax credits are actually what reduce your tax payable on your tax return... the more tax credits, the bigger your refund.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  166. Helen 01/26/2011 at 10:10 pm

    Hello,

    Thank you for this wonderful resource.

    My mother moved into a nursing home late last year, but still owns her home and pays property taxes.

    Can she still claim the Ontario tax credit even though she doesn't live there?

    Also, are the monthly payments to the nursing home a tax deduction?

    Thank you!

  167. Hackett 01/27/2011 at 11:43 am

    Hey, thatnks for this web site.

    I worked for the first six months in 2010 but was laid off in July. I am now collecting EI while I look for a job. Will I get a refund?

  168. June 01/27/2011 at 12:59 pm

    Hi,

    My 12 year old daughter had a regular babysitting job for a neighbour after school. Now they are asking for a receipt for the babysitting. My daughter does not have a SIN. Is there any problem with giving them a receipt?

  169. Farhad 01/27/2011 at 1:30 pm

    My husband started working for a Quebec company just last year and we live in Ontario. His annual income is $90,000 and is expecting to get a bonus of close to $18,000 next month. He has been contributing to his pension through work in the amount of $200 bi-weekly. And we also put an additional $5000 into his pension plan through work during the year. Should we consider putting some of his bonus towards an RSP although we could probably use it to pay down some debts and keep some aside in savings for when I leave work on maternity leave? What we want to do is aviod paying any taxes back if possible.

  170. Webb 01/27/2011 at 1:31 pm

    Hi,

    Wow, this site is great!

    I am thinking of selling my house; will this affect my taxes?

    Thanks!

  171. Hi Helen,

    Your mother can still claim the Ontario Property Tax Credit as long as she is not renting out the property, she is not claiming any portion of the nursing home expenses as rent paid on form ON479 and no one else is claiming the property tax credit on the property. Depending on the amount of the nursing home fees, your mother might benefit more from claiming the nursing home expenses, rather than the property tax credit.

    If your mother is paying for her nursing home costs, she may be able to claim some of the expenses on her tax return. If she qualifies for the disability amount, she can either claim the full nursing home expenses or the disability amount but not both. Or she can claim up to $10,000 of attendant care expenses plus the disability amount. In both cases, she will need a T2201 Disability Tax Credit Certificate (link to cra-arc.gc.ca). For the second option, she will also need a receipt from the nursing home with a detailed breakdown of the expenses she paid for attendant care.

    If she does not qualify for the disability amount but she lacks the normal mental capacity and will continue to be dependent on others for her personal care for the foreseeable future, she may be able to claim full nursing home expenses. She will need a certificate from a medical practitioner in order to claim this amount.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  172. Hi Hackett,

    I am sorry to hear about your job loss. Whether you get a refund will depend on if you had more than enough taxes withheld from income. The maximum rate of withholding on EI benefits is 10 per cent. However, the minimum federal tax rate is 15 per cent and you will also be subject to provincial tax. Unfortunately, you will probably find that you are not getting much of a refund. If your net income from all sources is more than $54,000, you may also have to repay up to 30 per cent of your benefits.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  173. Hi June,

    Taxpayers who want to claim child care expenses can only do so if the child care provider provides them with a receipt. Where the child care provider is an individual, the receipt must contain his or her social insurance number.

    Your daughter is not legally obliged to get a SIN unless she’s earning more than the basic personal amount, in which case she would have to file an income tax return. However, there is no reason why she would not want to apply for one in order to keep her clients happy. It would also make sense for her to file a tax return since it would build up her RRSP contribution room for future years. The basic personal exemption is $10,382 for 2010 and $10,527 for 2011, so as long as she made less than this she wouldn’t have to pay any tax.

    This web site explains how she can go about getting a SIN number quickly and easily: link to servicecanada.gc.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  174. Hi Farhad,

    Congratulations on the new-to-be-born baby!

    Without having details of the tax deducted from your husband's pay during the year and what his actual for 2010 RSP Contribution Limit is, I'm not able to estimate how much, if any, an RSP contribution can be made to reduce his tax liability if any.

    Another item in this uncertainty is whether the pension plan your husband contributes to is an RPP or a Group RSP. I'm suspecting he belong s to a Group RSP as there are complex calculations required to determine the RPP deduction. If it is a Group RSP, these contributions go against his 2010 RSP Contribution Limit.

    My recommendation is to use the bonus pay to reduce your debts and the remainder you have left to be invested in a Tax Free Savings Account which would allow the money to earn income tax free and is easily accessible when withdrawals are made when you are on maternity leave.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  175. Hi Webb,

    As long as this is your principal residence, you are exempt from paying capital gains on your home sale.

    However, if this was a secondary property (i.e. income property, vacation property) you would have to pay tax on the capital gain. Capital gains are taxed at 50%. So for example, if you sold your cottage for $20,000 more than you paid, you would pay tax on $10,000 (50% of the $20,000 capital gain). The amount of tax would depend on your income for the tax year.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  176. Dan 01/27/2011 at 4:01 pm

    Hey there,

    I moved from the UK in June 2010, started work in Ontario in October and this will be my first ever tax return in Canada!

    Firstly, are my ON + Federal personal allowances pro-rated from the time I arrived to 31st Dec or do I receive full allowances for 2010?

    I also own a house in the UK that I rent with income of £292 (rent = £870 per month minus interest payments of £478). I believe I have to declare this income but I am wondering, what can I deduct as expenses to offset against the income (I had repairs done recently, insurance, new appliances, etc.)?

    I also finished my UK job in March paying full UK tax until the end of the UK tax year (Apr 2010), but as I have been in Canada for over 183 days in 2010 and have residential ties since arriving in June, must I declare all my income from January 2010 to December 2010, including my UK job income for this period as well as rental income from January-June, even if it has been taxed already in the UK?

    Lastly, the house after mortgage loan for the house is under $100k but the total house value is over, do I still declare this as an over $100k asset with that special form?

    Your wise and thoughtful words are much appreciated.

    Many thanks,

    Dan

  177. Steve 01/27/2011 at 4:32 pm

    I recently started my own consulting/contracting company and I want to know the following:
    I have a truck and am thinking of selling it to my company, it is work approx $24K. I owe about $10K to GMAC.
    It better to sell the truck to my company for the $24K and pay off the loan or give myself a car allowance instead. As I understand it I am not taxed on the sale except for HST when I change the ownership name to my company and I can write off the $24K as a deduction on my company tax at the end of the year.
    your comments please.
    Thanks.

  178. Hi Dan,

    Very good questions!

    Based on the information provided, here goes:

    1) Yes, the tax credits are prorated for the period of your tax residency.
    2) Yes, (rental) you are required to report any and all world income on your Canadian tax return effective the date of your permanent residency in Canada; in your case, June 2010 through Dec 2010. The good news is that you are only taxed on the net income (rental less all expenses). Rental expenses allowable include, but not limited to, mortgage interest, property taxes, utilities, travel, repairs, insurance, etc.
    3) No, (employment) you are not required to report on your Canadian tax return any income earned AND received prior to your official residency date in Canada.

    4) No, if you have documentation to confirm your total foreign assets (total assets less liabilities on those assets), then you do not need to declare you have foreign assets over $100k, but if your liabilities decrease, as they do as you pay down the mortgage, you must declare once the foreign net assets exceed $100k.

    If you require assistance in filing your first Canadian tax return, my firm would be happy to ourselves available to you.

    I hope this has answered your questions.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  179. Jay 01/27/2011 at 5:39 pm

    Thanks for your prompt response. I was still wondering based on the additional information i provided, whether or not i would be owing or refunded. I will reapply the information I provided.

    Income - 31,728
    Income tax deducted - 4400
    RSP contributions - 1320
    CPP - 1526
    EI - 565
    Marital Status change from Married to Separated
    Province - Alberta

    Thanks in Advance

  180. Hi Steve,

    Very good question!

    Here are your options, but first keep in mind these are based on your company being INCORPORATED, not a sole proprietorship.

    Sell to company:

    If you sell the truck to the company, the registration papers must be changed to reflect this as well. You may result in higher insurance costs - check this out.

    If you sell it to the company,you must sell it at Fair Market Value. The truck may be worth $24k, but how much would you get for it if you sold it to a stranger? That is how much you would also sell it to the company.

    If you sell it to the company, you cannot write off $24k (if that is what the FMV is) in the first year... the capital cost allowance (amortisation/depreciation) allowed the first year is $3,600.

    If you sell it to the company all maintenance and operating expenses go through the company.

    You are correct about HST, the company would need to self assess and report the transaction. IF the $24k is above the actual amount for which YOU originally purchased the truck (i.e. you paid $20k), then you would need to report $4k ($24k-$20k = $4k) as personal capital gain and pay tax on this amount.

    You retain ownership and take a car allowance:

    The car allowance is taxable to you, you must report on your income tax return. Even if the allowance goes to paying off the loan, it is still taxable in your hands. Although you can write off the car expenses against the car allowance to reduce, you CANNOT write off the car loan against your car allowance.

    Recommendation:
    I would recommend you sell the truck to the company so it would have a minimal tax effect on you personally.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  181. Hi Jay,

    Based on the revised information, you would be in a tax refund position of $740.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  182. Kay 01/28/2011 at 5:22 am

    Hello,

    I'm concerned that I might have to pay during tax time.

    This is the break down. I reside in Alberta

    Income gross- 108, 700
    Taxes paid 22k ( I did receive 12950$ in per diem pay which I believe is tax deductible) so does that get subtracted from my income?
    I put 40 k in rrsp's

    I have a rental property which ill be claiming a loss for I've
    spent about 20k on maintenance, interest etc and received 16920 in rent.

    That's my situation in a nut shell. Will I receive a refund? I'm afraid I didnt pay enough taxs

  183. denny 01/28/2011 at 3:30 pm

    I live in nova scotia and made with bonuses 3131$ with 1000ish in an employee share program I paid 7034 in taxes. should i expect a refuund and what can i claim to get my income down to 29500 where the bracket changes?

  184. Hi Kay,

    Based on the information provided, you should be in a tax refundable position of approximately $7,000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  185. Hi Denny,
    From the information provided, yes, you should be in a tax refundable position of approximately $2,000.

    You can reduce your taxable income by contributing to an RSP.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  186. Debbie 01/28/2011 at 6:41 pm

    Hi,

    My question is related to earning additional income while being a stay at home mom. I am about to quit my job to stay at home with my little ones. I’d like to continue to make a little money on the side (buying and selling used toys) but am concerned about the tax implications.

    First of all, how much money can I earn before I have to declare that income? Secondly, how will any income I earn affect my husband’s ability to declare me as a dependant?

    Please advise.. thanks,

    Debbie

  187. Hi Debbie,

    The first dollar of income you make in your used toy business must be declared. If you live in Canada you don’t have to register for a GST number until you are no longer a small provider (once sales reach or over $30k).

    Your husband’s ability to declare you as a dependant will shrink as your income grows. That being said, even if you’re paying more taxes, remember that your HOUSEHOLD will be earning more money! There’s no reason to avoid income because a part of it will be paid in taxes. With progressive tax systems, the situation never occurs where you earn more money, resulting in higher taxes that LOWERS your take home pay.

    As well, since you’ll have a low income, you’ll pay a very low tax rate on any earnings (potentially nothing). Your take home cash will be far more than any reduction in his tax deduction for you as a dependant.

    Good luck with your business!

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  188. Lunna 01/29/2011 at 2:39 am

    Hi,
    I am having an eye operation soon. Of course I dont have a lump sum of money to pay for it right away. But I am in the process of taking a loan for the bank and to pay for it.The total cost is $4000. What my question is that, can i claim that amount as my medical expenses?
    Please advice.
    Thank you!

    Peace,

    Lunna

  189. Hi Lunna,

    As long as the procedure is done by an Authorised Medical Practitioner, the expense can be claimed.

    You can confirm whether your Practitioner is authorised by checking this listing: link to cra-arc.gc.ca

    The fact you are taking out a loan for the cost of the procedure is not a concern, except that you can only claim the cost of the procedure not the additional cost of the loan (fees, interest, etc.).

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  190. Jack 01/29/2011 at 5:58 pm

    Hi,

    I am a United States citizen who has been a permanent resident of Canada since December 2004. All of my earned income is from the United States and I pay U.S. federal and Maine state income taxes. Do I have to pay on this income again in Canada?

  191. Michelle 01/29/2011 at 8:11 pm

    Hi, I am wondering if I will end up paying at tax time?
    I earned a gross of $68072 with $15041 in taxes coming off. I also cashed out some RRSP's. I cashed out $16096, with $2573 held back for taxes. I have also purchased $5547 in RRSP's this year. I have some money put aside in my TFSA to buy more RRSP's if I need to to at least break even. But I am hoping to not use it as we are currently having contract talks at work and may need those funds if we go on strike.
    Realisticly, whicj would be more prudent, buy more RRSP's to offset or pay at tax time if I have to?
    Thank you.

  192. Hi Jack,

    The U.S. tax system is based on citizenship. In Canada, the tax system is based on residency. If you have been a resident of Canada since 2004, you should be filing annual Canadian tax returns. You are allowed to claim foreign tax credits on your Canadian return for any taxes paid for U.S. Federal, State or local income taxes. This should prevent double taxation on your return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  193. Hi Michelle,

    Based on the limited information you provided, an assumption is based on you residing in Ontario, you would be in a tax payable position of approximately $800.

    Depending on your contribution limit, you could contribute to your RSP to get additional tax credit, for every $1000 contributed you realise $410 in tax savings.

    If you potentially see a need for cash upcoming, I suggest you putting it aside in a TFSA to hold for your tax bill... you come out $1200 in cash by doing so.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  194. Michelle 01/31/2011 at 8:32 am

    Thank you for the prompt reply. Yu gave me exactly the answers i needed. I will keep my money in my TFSA untill tax time so it is available if I need it. The RRSP contributions that come off my pay from January till March should be just enough to almost have me come out even.
    Thanks again, yu really helped relieve a lot of stress.

  195. Keith 02/01/2011 at 1:31 pm

    Hi,

    My wife started working late Dec 2010. Do I declare here income even its less than $400? Do I still get the spousal/common law partner deduction?

    thanks.

  196. Hi Keith,

    In Canada spouses file their income tax returns separately; so, no, you don't declare her income... she does on her tax return... and, yes, even if it is less than $400.

    The spousal tax credit would be calculated on your tax return using the results of her tax return. In all likelihood, you would receive the full tax credit.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  197. Kim 02/02/2011 at 1:50 am

    Hi there, I am wondering if you can give me an advice. I live in Saskatchewan. I made around $51,000 last year. My income tax was about $10,000. I contributed $3600 to RRSP. I am thinking of putting more into RRSP so I can receive more tax refund. How much more RRSP should I buy? I still have some unused RRSP during my school years. Thank you so much for your help.

  198. Hi Kim,

    Based on the information you provided, you would be in a tax refund position of approximately $1,000.

    To increase your tax refund, contributing to an RSP would help... for every $1,000 you contribute, you would increase your tax refund by $350.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  199. Rich 02/02/2011 at 8:49 pm

    Hello, my income is $50,000. my income tax was about $9000 would you be able to tell me what my tax return would be if i did not contribute anything to my rrsp's? thank you!

  200. Hi Rich,

    Based on the limited information provided (residency, family status, etc.), assumptions were made... you would be in a tax refund position of approximately $250.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  201. Confused 02/04/2011 at 4:30 pm

    Hey there,

    I am a 24 year old male Canadian citizen living in Ontario. I made around $23,000 in gross employment income in the year 2010. On this, I have paid around $3,000 in income tax that has been deducted over the year from pay checks by my employer, so I netted around $20,000 in income.

    The only things I think I might have for deduction is rent of $720 paid per month for 12 months, so total paid of $8,640 and transport cost of $1,452 for the year(subway metro passes for the City of Toronto). I also have some unclaimed tuition credits from when I was a university student from 2004 to 2008.

    I just needed to know what my tax refund would be, if any, even if I just use the rent and transport deduction and not the unused tuition.

    Thanks so much!
    Confused.

  202. unsure 02/04/2011 at 10:02 pm

    Hello I am unsure of what I am going to be paying in taxes. My annual income is 54000 and I paid:
    Employee Total Tax: 9477
    CPP: 2163
    EI: 747
    Union Dues: 964
    Pension: 2411
    How much do you think I will need to pay? Thank you!

  203. unsure 02/04/2011 at 10:02 pm

    Sorry I work in Ontario

  204. Jill 02/04/2011 at 11:57 pm

    I have a question. I am a stay at home to our 2 children under the age of 4. We are currently living in Alberta. My husband is the one working. He made just under 80,000 last year. He had almost $18,000 deducted from him. We are kind of worried that we are going to have to pay this year. We have some things we know are write offs. Such as, $400 RRSP, Student loan interest, and we aren't sure if our son's preschool that we pay for is deductable or not. Based on the limited info do you think we might get a bit of a refund??

  205. Hi Confused,

    Based on the limited information provided (actual tax deducted, EI, CPP, etc.), assumptions were made... you would be in a tax refund position of approximately $650.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  206. Hi unsure,

    Based on the limited information provided, assumptions were made... you would be in a tax payable position of approximately $500.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  207. Hi Jill,

    Based on the limited information provided, assumptions were made... you would 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
    Tel: 647 367-3477

  208. Todd 02/06/2011 at 4:12 am

    Want to say., great site! Thanks for all the tips and info, very helpful

    Question:

    I have a small business (general partnership in BC) I started in 2009 and started to make the majority of profit in 2010 (claimed and paid income earned in 2009) but now for 2010 I have calculated a total business income of around $30,000.00 for myself, and around $35,000.00 for my partner.

    It gets really confusing for me knowing what my actual taxable income will come out to come tax time, is it on the total amount earned after deducting all business income and any person expenses incured (like depreciation on my newly purchased truck for the portion I used for business). I have only earned income from being self employed in 2010.

    My last question is come 2011 I have decided to start a new private incorporated business. How do I go about taking "draws" to my personal bank account from the corporate bank account the usual or proper way? Do I pay tax on the desired withdraw amount everytime I take out money?

    Really appreciate the time, and thanks for your service!!!!!!

  209. Curious 02/06/2011 at 8:35 am

    Hi there,

    Any input would be greatly appreciated here..
    I am 24 years old, Canadian citizen, resident of Ontario.

    Total GROSS income before taxes in 2010: $19,172.93
    Total NET income after taxes deducted by employer in 2010: $16,252.08
    Canadian income tax deducted by employer: $1,797.31 for 2010
    EI deducted from paychecks: $331.71 for 2010
    CPP deducted from paychecks: $791.83 for 2010
    I paid around $8,500 in rent for the year 2010 and paid around $1,600 in transit passes for 2010

    I just need to know what my refund will be when I file my income tax return for 2010.

    Thanks so much!
    Curious

  210. Al 02/06/2011 at 1:02 pm

    does this calculation take into account CPP and EI payments before tax is calculated?

  211. Hi Todd,

    Very good questions!

    Based on the limited information provided (partnership structure, expense sharing, etc.), taxable income is calculated from your gross income net of all eligible expenses. I hope you do have a formal Partnership Agreement to ensure there are no misunderstanding between the partners when it comes to division of revenue and expenses.

    I'm not certain of what you mean by 'personal expenses' as technically none exist for tax purposes, but if you mean your individual business expenses separated from your partner's, yes they are eligible for deduction from income. Please note that all this is reported on your personal tax return along with the gross partnership revenue and the partnership details.

    As for your incorporated business, taking 'draws' is as simple as writing a cheque or bank transfer.

    Without knowing the expected revenue, you may choose to a speak with tax specialist to determine your best option of taking income from the company. You have several options including: taking a salary, loan or dividend.

    If you take a salary, yes, source deductions including income tax and CPP should be remitted when paid out.

    I hope this has answered your questions.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  212. Hi Curious,

    Based on the limited information provided, it's estimated you would be in a tax refund position of approximately $600.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http//www.storoszko.net
    Tel: 647 367-3477

  213. Hi Al,

    Good question!

    I'm not certain of what you mean by CPP and EI payments.

    If you mean the amounts for CPP and EI deducted from your paycheque, income tax payable is calculated on your income, not deductions, so the answer is no. If you mean CPP and EI benefits received, the answer is yes.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  214. Richard Parkinson 02/06/2011 at 6:54 pm

    Re question, "does this calculation take into account CPP and EI payments before tax is calculated?"

    No it does not. The only deduction it considers is the basic personal exemption, so it shows the worst case scenario. There are so many variables that influence what deductions are claimed, the calculator would end up being as complex as tax software such as Turbo Tax, which is clearly beyond the scope of this basica calculator.

  215. Elie Bouchrouche 02/09/2011 at 2:50 pm

    Thank you for this website.
    Just to get things right, I am being offered a job that pays 52,000 $. Can you help me calculate what will I receive as net and tax excluded amount?

  216. Hi Elie,

    Based on the limited information you provided, your residency is assumed to be in Ontario.

    Your pay breakdown is as follows:
    Gross $52,000
    Tax 9,541
    CPP 2,218
    EI 787
    Net Pay $39,454

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  217. Luke P 02/10/2011 at 1:43 am

    Wow, nice you to answer all of these questions!

    I am a BC Canadian living abroad in Korea (for the past 2.5 years) There is a double taxation treaty with Korea. If I live in a country with a double taxation treaty does it automatically qualify me as a non resident thus relieving me of my Canadian income tax, in that I am paying taxes in Korea?

    I've looked at the CRA Website and read various articles on the subject but still haven't come to a definite conclusion. Thanks for your help!!!

  218. Luke P 02/10/2011 at 1:54 am

    Sorry, I hate to send in another question. But I should mention. I did not file my taxes for the 2008 season. I worked part time in Canada in 2008 and attended university. In Aug of 2008 I moved to Korea and have lived there till now (Feb, 10, 2011). I should receive a refund as I didn't make very much and I have tuition credits. SO was I a non resident when I moved to Korea, or would I have to file my world income for the last few months of 2008.

    In addition, is it possible to receive tax credits on rent while attending university? Can I claim it after the fact with the signatures of my previous landlords?

    Thanks a lot!

  219. Kristy C 02/10/2011 at 2:08 pm

    In some school districts, parents have to pay $200 per student per year for bus privileges. On what line do I report that fee? I also forgot to claim it last year, can I claim them both at the same time this year?

  220. Hi Luke P,

    I have never heard of a double taxation treaty. Canadian Tax Treaties with other nations are set up to avoid double taxation.

    The Tax Convention between Canada and the Republic of Korea has been negotiated for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income for residents of the two countries.

    Under Canadian tax laws, and tax treaties with other countries, residency is the determination in reporting and filing of taxes.

    That being said, if you terminate your PERMANENT residency ties with Canada, you are not obligated to report your non-Canadian income as of that date.

    So to answer your first question, you are not required to file a Canadian tax return for the income earned outside Canada once you terminated residency.

    As for your second question, you are required to file your Canadian Tax Return for 2008.... you were a resident of Canada up to the date you terminated residency and must report all income earned in Canada (as well as well as foreign) up to that date. Any tax credits will be prorated for the period of your Canadian residency.

    As long as you have valid receipts (signed letters by your landlords is sufficient), you are eligible to claim the rental tax credits.

    Our firm would be available to assist you in filing your Canadian residency tax returns and any other tax concerns you have.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  221. Hi Kristy C,

    From the details provided, I am not certain of which province you live in and cannot be more specific because of this.

    Based on Ontario residency, student school bus fees are not deductible.

    Public transportation costs can be deducted if they fall under the specifics:
    These passes must permit unlimited travel within Canada on:
    * local buses;
    * streetcars;
    * subways;
    * commuter trains or buses; or
    * local ferries.

    You can also claim the cost of:
    * Shorter duration passes if:
    o each pass entitles you to unlimited travel for an uninterrupted period of at least 5 days; and
    o you purchase enough of these passes so that you are entitled to unlimited travel for at least 20 days in any 28-day period.

    * Electronic payment cards if:
    o the card is used to make at least 32 one-way trips during an uninterrupted period not exceeding 31 days; and
    o the card is issued by a public transit authority that records and provides a receipt for the cost and usage of the card.

    Note
    Ride/trip passes are not eligible for this credit as they do not provide for unlimited travel.

    Based on the above, the federal transportation amount credit would not be available to you since the school bus transportation would not be 'unlimited' in service.

    Your province may allow a credit for this cost, but not in Ontario.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  222. Nathan 02/10/2011 at 11:01 pm

    Hi there,

    It says the top-end marginal tax rate for Ontario (on $1,000,000 for example) is 46.41%

    How is this possible? I thought the top marginal rates would be 29% (federal) + 11.16% (Ontario). That doesn't equal 46.41% - am I missing something?

    Thanks.

  223. Barry Whelan 02/11/2011 at 1:08 am

    I am working in Singapore paying taxes to the Singapore Government and my employer in Canada is also paying my taxes to the Canadian Government. Is it possible to pay taxes to two different countries on the same money and if so what type of exemption am I intitled to on the money paid to the Canadian Government. I am a resident of Newfoundland.

  224. Hi Barry,

    Good question!

    But I'm concerned you are paying taxes to both countries. Under the tax convention with Singapore, income is taxed based on residency. Therefore, if you are a resident of Singapore you remit taxes to Singapore and, conversely, if you are resident of Canada you remit taxes to Canada. You should not be (directly or through your employer) paying Canadian taxes if you are a resident of Singapore. Are you?

    You would need to provide much more explicit details regarding your employment agreement/arrangement and actual residency status for us to accurately respond to your question and to confirm your tax reporting requirements.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  225. Kristy C 02/11/2011 at 12:48 pm

    Earlier I asked: "In some school districts, parents have to pay $200 per student per year for bus privileges. On what line do I report that fee? I also forgot to claim it last year, can I claim them both at the same time this year?"

    I am in the province of BC,and bus service to schools in our District comes at an annual cost of $200/student in addition to the $100 school fees payable

    Thank you.

  226. Manvir 02/11/2011 at 4:43 pm

    Hello,
    If you live in B.C. and make total income of $30,047 net income comes to $29,698 how much will i get taxed?
    thanks

  227. Hi Kristy,

    From my investigation, school bus expenses are not eligible for deduction.

    But if you feel this is incorrect, you can try to include them under child care expenses.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  228. Hi Manvir,

    Based on the limited information provided, you would be taxed approximately $3,900.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  229. Teresa G 02/12/2011 at 1:24 pm

    Hi there,

    My question is: I have a full-time job and in May of 2010 started cleaning the office where my husband worked because they couldn`t find a good cleaner. I do this with my 15 year old son once per week. We bill out $500 monthly to the employer.

    When doing my taxes, should I claim this all as self-employment so I can get some tax benefits. I pay my son half and do I need to provide him a T4 and if so, how do I do that? Over a 1 year period, it will be about $3000 each. Last year I made about $40,000. Thank-you

  230. Amitabh 02/12/2011 at 4:10 pm

    Thanks again for this terrific site. I have the most basic of questions:

    - What are the Canadian tax documents I have to look out for i.e. the equivalent of the US W-2 etc? Also, at my employer's web site I had mentioned something about receiving documents online, would I be getting those online or are the tax documents only sent by regular mail. I dont live in Canada anymore.

  231. JG 02/12/2011 at 5:00 pm

    Just wondering if the taxable income field requires me to deduct the base exemption of $8000 or so everyone gets?

  232. Hi Teresa,

    Very good question.

    You have several tax saving opportunities here.

    Firstly, a T4 would not be necessary, as you would need to register your cleaning business and obtain a business number for employer remittances, etc.

    Next, for the tax savings... you are right to be reporting this as self-employment income so you can take advantage of the deductions available to you, but rather than split the income with your son 50/50 giving him a larger share will provide you with a better after-tax return overall.

    I suggest you contact a tax professional when preparing your taxes to take advantage of tax planning opportunities.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  233. Hi Amitabh,

    Tax documents issued for reporting include:
    T3, T4, and T5 slips. There are many other tax documents as well, but these are the most generated.

    Some employers issue tax documents online, best to enquire with your employer what distribution method is available to you.

    Since you don't live in Canada any longer, I suggest you contact a Canadian Tax professional to assist you in your Canadian and foreign tax filings requirements. Our firm provide expertise in cross border and international tax reporting and with our Virtual Tax Service can assist you whether you live in Canada (any province), the USA (and state) or internationally.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  234. Hi JG,

    Good question... no, for the above calculator the taxable income field is basically your gross income. Do not deduct the personal exemption.

    The calculator takes into consideration the applicable personal exemption for the province of your residence.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  235. Hi Nathan,

    At first glance logic your view is accurate, but the calculator above takes into consideration FEDERAL and ONTARIO SURTAX which you don't.

    Once the taxable income exceeds $66,514 surtax is added to the marginal rate.

    The calculator above does not get into the complex calculations involved in the actual calculation of tax payable in precise detail, but provides a true estimate based on the legislated tax rates.

    For a more accurate view on the actual tax rates, including surtax, please visit this site:
    link to taxtips.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  236. Mike the student 02/14/2011 at 2:15 am

    Hi
    I have been an international student in montreal for a couple of years now, and by paying international student fees I have accumulated over 60000 dollars in tuition credits.
    I am wondering if there is a limit to how much tuition credit I can apply/use per year when i start working in 2012? Can I simply deduct it all in one shot from my taxable income? Or is there a smarter strategy I have not thought of yet?
    Thanks for the advice
    Mike the student

  237. Hi Mike the Student,

    Good question! Yes, there is a maximum you can deduct and it is based on your income.

    In addition to tuition costs, you are also eligible to claim credits for books and attendance.

    Sounds like you may not have filed a tax return for 2009; I suggest you look into doing so to take advantage of the refundable tax credits available to you.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  238. danilo 02/14/2011 at 10:50 pm

    Nice calculator!

    I am an italian guy that will come to Canada to work for the Canadian branch of my Company under canadian contract.

    I 'll be based in Ontario starting from July this year for a couple of year. They proposed my 85000 CDollars per year payable in 13 payment periods.

    How much would be the net salary per each period? Is the CPP compulsory since I am Italian and I 'll leave after 2 years?

  239. Mike the student 02/14/2011 at 11:23 pm

    Thanks Storoszko,

    I have actually filed my taxes for the last couple of years, but I have never had to use any bigger amount of those credits.

    Thanks to my shiny new degree, I have a job offer that will pay me 80k next year. When the time comes, how much will I be able to deduct from that in tuition credits?

    Also, I will be going for a paid internship in Australia this autumn, and I am wondering if I will have to pay taxes on that here in Canada? (If it helps, I am a resident of neither of these countries.)

    Thanks again,
    Mike the student

  240. Hi Danilo,

    Welcome to Canada!

    13 pay periods per year is not common in Canada so this will be a rough estimate; generally pay periods are bi-weekly or semi-monthly.

    For 13 pay periods, your estimated net pay would be C$4,700.

    CPP is compulsory for all employees/workers in Canada. Even though you may leave Canada, these contributions would be available to you when you reach retirement.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  241. Hi Mike the student,

    Not knowing all the details regarding your employment and income, the maximum you could deduct may be $5000, but this would be confirmed or noted on your tax returns, as you indicate you have filed.

    I'm puzzled by your comment that you wouldn't be a resident of Canada or Australia.

    Income tax laws in Canada and Australia are based on residency. In Canada, all world-wide income earned while resident in Canada is reportable in Canada. The same goes for Australia.

    Other tax jurisdictions base tax reporting on citizenship, regardless of residency. If you are a citizen of one of these countries, you likely would be required to report income and pay tax in all countries.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    Tel: 647 367-3477

  242. Andy 02/16/2011 at 10:24 pm

    Hi,

    Interesting website.

    I made 72K last year in the province of QC. I have about 40K of deductions for tuition fees deferrable indefinitely (I think).

    1 - How much return should I receive this year (If any)?

    If I move to another province, is it going to change anything about the remaining amount (Tuition fees deductions) ?

    Thank you so much.

  243. Russ Fromm 02/17/2011 at 8:13 am

    Hi, Very helpful calculator. I was hoping you could assist. I am in my late forties, retired with a high 7 figure RSP. I am seeking advice on the best way to get the $ out with minimal tax of course. It looks like the magic number according to your calculator is $66000 per year in Ontario but obviously it would take a few lifetimes to get it all out taking into consideration the funds are earning 5% as well. If you have any suggestions it would be appreciated. I would really like an income of $150,000 per year but do not want to pay 45% tax

    Thanks, Russ

  244. Hi Russ,

    Because you are withdrawing from an RSP, you are taxed on every dollar withdrawn.

    Based on this, the decision on the amount to withdraw before you reach 71(when the RSP is converted to a RIF), would be based on your needs and retirement lifestyle.

    Obviously the more you withdraw will increase the marginal amount of tax payable. There are no deductions that can be claimed against the RSP income, unlike RIF income where the pension deduction can be claimed.

    One thing to keep in mind is that you would not want to withdraw money from the RSP when you have any employment income as you do not want to add taxable income to taxable income.

    One other thing to keep in mind is that you actually received the tax benefit by contributing to the RSP so the increase in marginally tax is basically a payback of the tax credits you received while contributing.

    What your decision of the amount to withdraw comes down to is the retirement lifestyle you want to enjoy with your family and if you wish to leave a legacy through your estate.

    I hope this has answered your question.

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

  245. Hi Andy,

    Unfortunately you have provided insufficient information to answer you first question (i.e. tax deducted, family status, deductions available, etc).

    By our best estimates, you would be in a tax refund position of $1,000.

    As for your second question, yes, the unused tuition credits are transferable to be used if you move from Quebec.

    I hope this has answered your question.

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

  246. Ann 02/18/2011 at 3:41 am

    Hi,
    I am a danish citizen working as an intern in Canada 2010/2011 (1 year). I moved to Canada in June 2010. Do I need to inform about my income in Denmark from January to June 2010 on my canadian tax documents?
    I am married and my husband resides in Denmark (has visisted me for a few months but not worked here). Hence, he does not have a SIN number and on the form it says I have to write his SIN number. Do I just leave it blank? Also do I need to inform about his income (he is a recent graduate currently unemployed and therefore barely had any income in this tax year). I covered his expenses while he came to visit me - is that tax deductible?
    Up front thanks for your help and this very informative homepage!

  247. BILAL KHAN 02/18/2011 at 10:18 am

    If an employee is working for company that is registered in Ontario while the employee is residing and working form BC. Which province's income tax rates on salary will be used? If BC rates are used how company is going to deposit and report the salary deductions? ( The company is already registered as extrprovincial corporation in BC.)

  248. Hi Ann,

    As a resident of Canada, you are required to report on your Canadian tax return all world-wide income earned while a resident of Canada. If you moved to Canada in June 2010, you only report income from the day you arrived. So only if you had Danish income AFTER you moved would it need to be reported.

    I am not aware of Danish tax laws, so you should consult with a tax specialist in Denmark as to if you are required to report your Canadian income to the Danish tax authority.

    You are not required to report your husband's income on your tax return as it is not related to Canadian residency. Since he is not a resident of Canada, I suggest you report your marital status as 'separated'. This would change if he were to move to Canada.

    As for expenses while he visited, unfortunately these are not deductible.

    I hope this has answered your question.

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

  249. Hi Bilal,

    The payroll tax rate used by the employer is generally based on operations and the Employment Agreement with the employee. This is a question that should be posed to the employer for clarification.

    The employer is legally required to deduct and remit accurate source deductions for it's employees. As an employee, this is beyond your scope of concern. All employers are subject to review and audit if any inaccuracies are noted.

    I hope this has answered your question.

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

  250. Dave 02/18/2011 at 7:02 pm

    Hi,

    If close my corporation and transfer the funds to myself, how much will I be taxes? In Ontario.

    Thanks

  251. Ann 02/19/2011 at 9:29 am

    Thank you! I talked to a lady from the tax answering service today (before I saw your answer). She said that I can just write an explanation on the form i.e. that my husband is not a canadian citizen and that he has never lived in Canada. Another question: Am I eligible to receive Working Income Tax Benefit when I have only lived in Canada part of 2010?
    Again, thanks!
    Ann

  252. Hi Dave,

    The amount of tax you would pay would be based on the company's profit up to the last day of business.

    I hope this has answered your question.

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

  253. Hi Ann,

    If you are manually filing your tax return (paper/mail), yes you can include a note detailing your marital status, but if you file electronically you cannot include a note.

    Additionally, if you file electronically and check 'married' as your marital status, the calculation of tax credits would be incorrect.

    Your best option is to check 'separated' as you are separated from your husband by residency.

    Without details of your income and other qualification requirements, I cannot answer as to if you qualify for the Working Income Tax Benefit.

    I hope this has answered your question.

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

  254. Rao 02/20/2011 at 10:34 am

    Hi,
    Thank you for a very nice calculater. I have a question regarding my tax calculations, can you please help it out.
    I am working from Ontario on a assignment for 6 months and my annual pay check is 66k. But company deducting tax calculating tax on yearly basis, since i know i will be here only for 6 months can the tax be calculated on 33k and deducted accordingly? Also they are deducitng CPP and Health benefits is it mandatory or can i come out voulentry as i am here on short trip?

    Regards,

  255. Hi Rao,

    Your employer is calculating the income tax deduction correctly. The payroll deduction calculation is not based on short term employment, but on an annual basis or gross pay per pay period.

    As the for the CPP and other benefit deductions, no the CPP is compulsory for all people employed in Canada whether for short or long term basis. The health benefit deductions are also likely mandatory under income tax law, but you should consult with your employer to determine if the Insurer allows opting out of certain areas (i.e. dental, medical, etc).

    I hope this has answered your question.

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

  256. Dan 02/20/2011 at 12:33 pm

    Hi,

    My girlfriend and I closed up our house in Ontario last summer and worked in Whitehorse for 5 months. We would like to know if we can claim our travel expenses as we both went there for work purposes. I had been hired before we left and she found a job once we arrived. Can we also claim rental expenses for the house we rented up there ? Do we fill out a Yukon form as well as an Ontario form ?? Also, the money she made in the Yukon, does that have to be claimed for Ontario revenue - as it will put her over the $20k mark and then she has to pay the OHIP premium even though her Ontario income was not over $20k.

    Thanks for your help.

    Dan and Bev

  257. Hi Dan and Bev,

    The tax return you are required to complete is determined by your residency at Dec 31. So if you lived in Whitehorse, YK on Dec 31, then you are required to complete the Yukon tax return along with your Federal return. This will ensure you receive the benefit of the different tax rate and tax credits available to you as a resident of Yukon.

    It doesn't matter where you earn the income (whether in any province in Canada or abroad), it's Canadian income and it's reported based on your residency at Dec 31.

    The travel expenses you both incurred to move to Yukon can most definitely be claimed against the income you earned in Yukon... you must have detailed records and receipts for the expenses.

    Rental of the house is not an eligible expense, but you may be able to claim it within the territorial tax credit similar to Ontario.

    I suggest you contact a professional tax preparer to file your tax return as you wish to ensure you take advantage of the proper tax credits available to you.

    I hope this has answered your question.

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

  258. Sean 02/22/2011 at 9:02 am

    If I mad $42000 this year and I paid $4100 in taxes, will I get a return, or will i owe?

  259. Hi Sean,

    Based n the limited information provided, you would be in a tax payable position of approximately $2,500.

    I hope this has answered your question.

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

  260. Manjit 02/23/2011 at 7:31 pm

    Hi, my income is $40K and husband is self employed. He set up his company July 2010. When I do my return It asks me for my spouses SIN and Income. What income do i enter, company net income/profit or zero as he is self employed.

    Your answer would greatly be appreciated.

  261. julie 02/23/2011 at 11:32 pm

    i hired a student to care for my children and i have paid out 5500.00 for child care expense and \i want to claim this expense. Do either of us need any sort of license/hst or do the student file a normal tax return

  262. Hi Manjit,

    For this you must enter your spouse's NET INCOME... this amount will be found on Line 236 of his tax return.

    I hope this has answered your question.

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

  263. Al 02/24/2011 at 12:58 am

    I would like to know what I can actually claim regarding my income tax . I currently live and worked in the NWT , Canada . I am wobering about , automobile gas , heating fuel , etc...

  264. Hi Julie,

    Good question!

    No, you do not require anything special like a licence or HST registration.

    But YOU do need the person's SIN in order to claim the child care expense on your tax return.

    Obviously, the student would need to report the income on their tax return as well.

    I hope this has answered your question.

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

  265. Hi Al,

    Without more detail in your question, I can only answer your question by saying any eligible deductions would be totally based on the Employment Agreement with your employer and your employment status.

    I hope this has answered your question.

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

  266. les 02/24/2011 at 1:53 pm

    worked in mexico for alberta company for3.5 years,i'm canadian resident,30days on 30daysoff,this company has been aquired last year by a worldwide company.nothing has changed in my pay or how i pay my canadian taxes,always issued the t626,they sayfor2010 they won't issue this for me to file oversea employment tax benifits

  267. Natacha Doucet 02/24/2011 at 3:38 pm

    I was single in 2010 and is now common law since February 2011 and I wanted to know what do I put as my marital status wen filling my 2010 tax return?

    Thank you,
    Natacha

  268. Les,

    I'm not sure what your question is... but perhaps you should discuss with your employer why the T626 will not be issued.

    I hope this has answered your question.

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

  269. B 02/24/2011 at 5:26 pm

    Hello,
    I work in Ontario. My T4 states the following:

    Gross: $54664.71
    Income Tax Deducted: 9477.14
    CPP: $2163.15
    EI: $747.36
    RPP Contributions: 2411.49
    Pension Adjustment: 6031.00
    Union Dues: 964.80

    Is this going to be a payable or refund?

    Thanks!
    B

  270. Hi Natacha,

    When completing the tax return, everything is related to 2010.

    So to answer the question, you would input your marital status as at December 31, 2010.

    I hope this has answered your question.

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

  271. Hi B,

    Based on the limited information provided, it's estimated you would be in a tax refund position of approximately $50.

    I hope this has answered your question.

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

  272. Gini 02/24/2011 at 7:56 pm

    Hi,
    I help my mother in Ontario with her finances. She receives $17,500 in CPP&OAS and $17,000 RIF/LIF payouts per year. I hear about dividend income of $60,000 being taxed at 0%, but it always has a disclaimer about "no other income". Given her current income, would dividend investment in addition to the above affect her average tax rate substantially?

  273. Lonnie 02/25/2011 at 1:40 am

    Hey there

    I'm just curious if I'm going to be in a tax payable or refund position for this year?

    Here's my info:

    Resident of AB
    Single
    Total Gross Earnings: 38,477.56
    CIT Taxable Gross: 38,564.84
    CIT: 6,196.28
    CPP: 1,735.72
    EI: 665.66

    Please let me know

    Thanks :)

  274. Mohammad 02/25/2011 at 1:11 pm

    Hi
    I worked for three months in Montreal in 2010.
    I got T4 for three months of my employer.
    Now On DEC 31 2010 , I was resident in Toronto.
    I paid rent for 3 months in Months in Montreal.
    I have to prepare a T1 for Onatrio and declaer all my income inculding Montreal income.
    I can calim the portion of rent paid in Toronto?
    How can I calim about the portion of Rent I paid in Montreal?
    Can I prepare a Qubec T1 and put the income 0
    and attached the Ontario T1.
    Can I claim the portion of rent that I paid in Montreal?

    Can I prepare

  275. Dave 02/25/2011 at 8:00 pm

    i live in ontario. When my mother died i recieved nearly $45,000 from her rsp. It was paid to me in a lump sum without any tax withheld. She passed in january of 2010 and the rsp is pretty much the only income for her estate for 2010. How much tax will I have to pay on the $45,000 on behalf of the estate.?

  276. Hi Gini,

    I do not understand the comment 'dividend income of $60,000 being taxed at 0%, but it always has a disclaimer about “no other income”'.

    All income is taxed at the marginal rates. Dividends are 'grossed up' when reported within the tax return and then the dividend tax credit (the credit equivalent for the incomes taxes paid by the corporation issuing the dividends) is applied to reduce the tax liability, this occurs after taxable income has been determined including the grossed up dividends received.

    In determining the how it will affect your mother's average tax rate, simply add the dividend income to be received to her CPP/OAS and RIF/LIF payments for her taxable income and plug into the calculator above.

    I hope this has answered your question.

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

  277. Hi Lonnie,

    Based on the limited information provided, it's estimated that your would be in a tax refund position of approximately $550.

    I hope this has answered your question.

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

  278. Hi Mohammad,

    Yes, you can claim the rent paid in Montreal on your Federal/Ontario tax return.

    I hope this has answered your question.

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

  279. Hi Dave,

    Good question! But the information you have provided is limited so I will try to provide a general answer.

    Please double check when you receive the T4RSP slip as tax is usually withheld upon pay out.

    The income reporting can be done different ways and it depends on how/when the payment from the RSP was made.

    Amounts paid from the RSP that represent the income earned in the RSP after the date the annuitant died have to be reported by the beneficiaries named in the RSP contract or by the annuitant's estate (if no beneficiary is named). These payments have to be included in the income of the beneficiaries or the estate for the year they are received.

    In this situation, if your mother named a beneficiary in the RSP that person would be required to report the income on their tax return. If your mother did not name a beneficiary in the RSP, the estate is required to report the income on the final tax return for the year the funds were received. The tax liability would be based on your mother's marginal tax rate on all income received up to death (not including the CPP Death Benefit, if any, which should be reported separately).

    Depending on when the payment from the RSP was done after death and if it was distributed to the beneficiary, it can be reported in a T3 Trust Return and perhaps at a tax savings. Income tax for T3 Return income is taxed at 15% for income up to $40,970 and 22% on income over $40,970 to $81,941; plus the Ontario tax is 5.05% for income up to $37,106 and 9.15% on income over $37,106 to $74,214.

    The CPP Death Benefit should be reported on a T3 Tax Return.

    Utilising a T3 Tax Return may provide tax savings depending on the size and income of the estate.

    You may find this will be of assistance:
    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

  280. Nick 02/25/2011 at 10:58 pm

    Hi. I am a little confused with the tax rates. My girlfriend makes 73000/yr and only takes home just 4000/mth. My cousin is a teacher and makes 85000/year and takes home maybe just over 4000/mth. Why are the real world numbers so far off? even with cpp and union and whatever.

  281. Hi Nick,

    Without a great deal more details of specific payroll amounts from your girlfriend's and cousin's pay stubs, a general answer to your question would be that the amount of taxable benefits received and other deductions and the related tax would be what impact on the amount of net pay.

    I hope this has answered your question.

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

  282. Megan B 02/27/2011 at 1:31 pm

    Hi,

    I moved in January 2010 to England where I now work as a supply teacher. I did not work at all in 2010 in Canada before I left the country. I have still been receiving my GST cheques in the mail, and have not filled in any paperwork because of my leaving the country. I still think of my permanent residence as Canada, as I will be back in August and my home is still my mother's home.

    I was wondering if I have to file a tax return this year as I haven't worked in Canada all year?

  283. Hi Megan,

    Under Canada's tax system, your liability for income tax in Canada is based on your status as a resident or non-resident of Canada. Residency must be established before your tax liability to Canada can be determined.

    A determination of residency can only be made after all the factors have been considered. Your circumstances have to be reviewed in their entirety to get an accurate picture of your residency.

    The residential ties you have or establish in Canada are a major factor in determining residency. Residential ties to Canada can include:

    * a home in Canada;
    * a spouse or common-law partner (see the definition in the General Income Tax and Benefit Guide) or dependants in Canada;
    * personal property in Canada, such as a car or furniture;
    * social ties in Canada;
    * economic ties in Canada.

    Other ties that may be relevant include:

    * a Canadian driver's licence;
    * Canadian bank accounts or credit cards;
    * health insurance with a Canadian province or territory.

    Residential ties that you maintain or establish in another country may also be relevant to residency.

    Special rules may apply in the following circumstances:

    * If you severed residential ties and ceased to be a resident of Canada, see Leaving Canada link to cra-arc.gc.ca (emigrants).
    * If you do not have residential ties in Canada, you may be a deemed resident link to cra-arc.gc.ca if you stayed in Canada for 183 days or more.
    * If you are a resident of another country and do not have residential ties in Canada, see Non-residents of Canada. link to cra-arc.gc.ca

    The above information is of a general nature only. For more information on residency, see Interpretation Bulletin IT221, Determination of an Individual's Residence Status.

    Your residency status affects your Canadian tax liability and filing obligations. The Canada Revenue Agency can provide you with an opinion on your residency status. To request CRA's assistance, complete Form NR74, Determination of Residency Status (Entering Canada) or Form NR73, Determination of Residency Status (Leaving Canada) link to cra-arc.gc.ca Send your completed form to the International Tax Services Office link to cra-arc.gc.ca

    Complete these forms with as much detail as possible to enable the CRA to provide you with an accurate opinion.

    After your residence status has been established, you can get information on your Canadian tax liability and filing requirements on our International and non-resident pages 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

  284. S. E. 02/28/2011 at 2:01 am

    Hi, I have a question about tax exemptions... On my husband's pay stubs it would always say his provincial tax exemption and federal tax exemption as being double what it is now. On his last pay stub it stated that his exemptions have changed, and are now half what they used to be. I do not work, and when filing the tax paperwork that his work has him do once a year, we always fill it in the same way, so he claims both me and our two daughters, and I know it was all filled in right, so why would his exemptions be cut in half... does this mean that he is claiming single now and not claiming me and the kids? Or has something changed this tax year whereas the tax exemptions are not as high? Would this be a bad thing. I don't understand if it is good or bad. We live in Alberta and he makes about 75000/year. Will the lower exemptions ultimately mean he will get a lower tax refund or end up having to pay money in? Thank you for any help...

  285. Hello S.E.,

    From my interpretation of your question, you mention the your husband claims you and your children on the TD1 Tax Credit form and this year year the exemption amount dramatically changed.

    This change will result in more tax being withheld from his paycheque resulting in less take home pay. When he files his tax return in April 2012 he would get a bigger refund.

    I'm a firm believer in having larger take home pay rather than getting a big tax refund so I would suggest your husband discuss this situation with the payroll department of his employer.

    If the exemptions have dramatically changed this year, it seems that perhaps the TD1 form information was not updated accurately by the payroll department. Checking with the payroll department to ensure the correct TD1 exemptions are recorded in your husband's file will ensure the correct amount of tax will be withheld from his paycheque.

    I hope this has answered your question.

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

  286. Stan 02/28/2011 at 12:10 pm

    Hi,

    Very helpful website. I recently started a new job and my annual salary is $135,000. I got my first paycheck and my net salary for2 weeks was $3,200. I believe I am being overtaxed, I was calculating something more like $3,600. Am right or wrong?

    Thanks

  287. Hi Stan,

    Based on the information provided, your net pay would be approximately $3,207.

    If you believe you are eligible for additional tax exemption and credit, you should complete a TD1 Tax Exemption form available from your payroll department.

    I hope this has answered your question.

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

  288. SEAN 03/02/2011 at 8:45 am

    HELLO I am on permanent disablity,how much taxes doI have to pay on 42000 gross per year,would disabilty tax credit help if I were entitled.What if any deductions can I use that you would know of?iam permanently disabled,thankyou for your help

  289. SEAN 03/02/2011 at 8:49 am

    Ilive in ontario thanks sean

  290. Steve 03/02/2011 at 10:18 am

    Hi,

    My question is, I have recently incorparated a consulting company and I am wondering if I join a golf club thru my company what costs am I allowed to write off. I understand that I am not allowed to deduct green fees as such, however if the club bills me on a monthly bases and they only identify the charges as monthly costs for services, is that an allowed deduction. Do I have to show that I take clients to the club and if so is there a min. amount of clients that are required for this type of deduction.

    Thank you for your assistance, it really helps to get this type of information.

    Thanks Steve

  291. Hi Sean,

    Based on the limited information provided, assumptions were made i.e. some disability income is tax free - best to confirm with your benefit administrator.

    Without the Disability Tax Credit you are estimated to be in a tax payable position of approximately $7,150.

    With the Disability Tax Credit you are estimated to be in a tax payable position of approximately $5,685.

    Other deductions available to you would include the medical deduction exemption, if you qualify.

    I hope this has answered your question.

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

  292. Hi Steve,

    Good question.

    Unfortunately golf membership and greens fees are not an eligible deduction for tax purposes.

    Only if the club identified business entertainment expenses (food and beverage) explicitly and you maintained records of the clients entertained would you be able to deduct these specific expenses.

    I hope this has answered your question.

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

  293. Marek BK 03/02/2011 at 1:30 pm

    Hi, I would like to know if I'll be getting any tax return money back this year. I earned 12 000$ at my job, then got around 5000$ in unemployment. Is it possible that I will have to owe the government money, or will I for sure receive some sort of money?
    Thanks

  294. Hi Marek,

    With the limited information your provided i.e. how much tax deducted, residency, etc., an estimate of any tax payable or refund is not possible without knowing what you've paid.

    But based on the details you have provided, your tax liability would be $1,100.

    I hope this has answered your question.

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

  295. Veronica 03/03/2011 at 1:40 am

    Hello,

    I have a question. I am a student in Canada without any kind of a work permit. I have been selling staff at Ebay to my home country and just found out I am supposed to have some kind of permit. I would really like to file my taxes in Canada and pay taxes for that however I am stuck now. Is there some way to do it without getting in serious troubles? Is there going to be some kind of penalty, is it going to be a reason to refuse my PR application? I do not want to avoid taxes for sure, I just need any advise what to do.

    Thank you very much for your answer.

    Veronica

  296. Hi Veronica,

    I'm not aware of the permit you are mentioning.

    Regardless, residents of Canada are required to report all world-wide income on their Canadian tax return.

    As long as you report your income and file your tax return by the due date there will not be any penalties.

    As for any implications to your PR application, you should consult with an immigration lawyer for verification.

    I hope this has answered your question.

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

  297. Carla 03/03/2011 at 1:16 pm

    Hello,

    I moved to Canada (Ontario) last September with my husband and daughter. Both of us had income in our home country but here I didn't have any income for 2010.

    Should we both declare the income we got in Europe before September, in Canada?
    Tax authorities from our country of origin are asking us to declare the amount earned and tax paid in Canada, once that we lived there for more than 183 days.
    Can you provide your view about what is typically the process to follow on these situations?

    Thanks,
    Carla

  298. Hi Carla,

    Without you specifying from which country you emigrated, I'm not able to discuss the tax treaty with Canada of that country.

    Regardless, when you (and your husband and daughter, as applicable) file your Canadian tax returns, you are only required to report all world-wide income earned while resident in Canada (so then as of when you moved to Canada, not before September).

    Our firm assists newcomers to Canada in correctly preparing the tax returns for immigrants and others needing specialised tax services.

    I hope this has answered your question.

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

  299. Pheng 03/03/2011 at 11:42 pm

    I was a foreign worker from the Philippines. My employer from the Philippines sent me per diem monthly which they deposit to my Canadian bank account to cover my board and lodging, transportation and communication expenses in Canada while I continue to receive my salary in the Philippines. I worked for less than 183 days and now Canadian Revenue agency is asking me to file my return. My salary was taxed in the Philippines, but my per diem was not. Should I file return for my per diem and Philippine salary?

  300. Omar 03/04/2011 at 1:47 am

    Dear professionals!
    I have a simple question for you guys!
    I have recently moved to Canada as a new immigrant and i have started working on a 50k/annual income. I am married and my wife does not work. How much Tax am i paying annualy because i have heard that if your married and your partner is not working, your tax pay rate goes down a little bit. Please help me.
    Thanks

  301. victor 03/04/2011 at 10:53 am

    Hello,
    I work in Alberta. My T4 states the following:

    Gross: $45.999
    Income Tax Deducted: 7.708
    CPP: $2103
    EI: $747.36

    I got an addicional t4 :

    Gross: $4.300
    CPP: $3960
    EI: 74 40

    Is this going to be a payable or refund?

    Thanks!

  302. Hi Pheng,

    I'm not certain by how CRA can be requesting you to file a tax return if you were not lawfully resident at less than 183 days, unless you qualified for other reasons.

    I suggest you get a ruling to determine your actual residency. Your residency status affects your Canadian tax liability and filing obligations. The Canada Revenue Agency can provide you with an opinion on your residency status. To request assistance, complete Form NR74, Determination of Residency Status (Entering Canada) link to cra-arc.gc.ca

    If you are required to file once to get an official opinion of residency, then yes you will need to report all your world-wide income while you were resident in Canada including the per diem payments.

    I hope this has answered your question.

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

  303. Hi Omar,

    Based on the limited information provided, i.e. family status, residency, etc., assumptions were made.

    Without knowing the amount of tax deducted from your pay an estimation of your actual tax liability or refund is not possible. But a broad estimation would put you in an approximate tax liability of $10,000.

    I hope this has answered your question.

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

  304. Hi Victor,

    Based on the limited information provided, it is estimated you would be in a tax payable position of approximately $1,400.

    I hope this has answered your question.

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

  305. Vlad 03/05/2011 at 5:08 am

    Hello,
    I’m just curious if I’m going to be in a tax payable or refund position for this year?
    Here’s my info:
    Resident of BC

    62 228.03 = Gross Income
    10285.11 - Paid in taxes
    2163.15 = CPP
    747.36 = EI
    3411.01 = RPP
    6988.00 = Pension Adj.
    My wife doesn’t work so I believe I can use her tax credits.
    Please let me know
    Thanks

  306. Hi Vlad,

    Based on the limited information provided, it is estimated that you would be in a tax refund position of approximately $1,500.

    I hope this has answered your question.

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

  307. Astatin 03/06/2011 at 3:32 am

    Hi there,

    I'm from Southeast Asia and I've recently gotten a job offer in Calgary, Canada - how much TOTAL tax would an expat in Canada have to pay if his annual salary is say, $140,000 ?

    - are there any form of tax deductions for foreigners working in Canada ?

    - will it make any difference if one was married and his wife doesn't work ?

    - as a foreigner, will I be subjected to the 401k plan ? - can I get any 'refund' from this ?

    Would really appreciate the advise

    Cheers

  308. Hi Astatin,

    Based on the limited information provided, it would be estimated the your total tax liability would be approximately $43,450.

    There are no additional or special deductions for foreigners, as you would not be a foreigner if you resided in Canada.

    If you have a non-working spouse, most certainly you would benefit from transference of her basic exemption of the non-refundable tax credit.

    The 401k does not exist in Canada as it is an US retirement vehicle. In Canada a Registered Retirement Savings Plan is not compulsory but indeed voluntary.

    I hope this has answered your question.

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

  309. ann 03/06/2011 at 1:52 pm

    Hello!

    i have 2 T4 slips. one is from my previous employer in alberta(Jan to Aug 2010) and the other one is from my present employer here in saskatchewan. how will i file my income tax having 2 T4's? thank you.

    Ann

  310. David 03/06/2011 at 4:40 pm

    Great tool,

    I have not been doing taxes for too long. This year, my wife will be working as a nanny and make about 11,000. I make about 30,000.

    She is not being taxed by her employers, but I am. How much should we be putting away? The calculator says the taxes for ontario would be 166, but I'm wondering about the federal as well.

    We really don't want to be in a situation where we have to go into dept just to pay back the government what we should have put aside, things are tight as is.

  311. Hi Ann,

    It makes no difference whether you have 1 or 101 T4 slips, you file your tax return the same way.

    In everyone's case, the tax return is prepared based on your residency at Dec 31. The tax return you are required to file would be based on where you lived Dec 31 (Saskatchewan).

    I hope this has answered your question.

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

  312. Hi David,

    If your wife is not having tax withheld from her paycheque, it would be advisable that she put aside 15% to cover the taxes payable at the end of the year.

    If you are employed and having taxes withheld, there is not reason for you to put aside additional as the withholdings will most likely suffice your tax liability.

    I hope this has answered your question.

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

  313. Jaime 03/07/2011 at 1:44 am

    I'm working on a company as employee and also earning online surveys, PTC and gigs or services Then I did a freelance doing Cad work , I was not able to file last 2009 my earnings can I file it 2010 taxation? Do I need also apply for Licensed to work as Freelance Cad Tech.? Means applying like a business in City Hall. What are deductions that I can deduct in order for me not to pay CRA also can you specify how many % I can deduct. I calculated my total earnings including online and freelance about $29,000 plus and my employers deducted my taxes was only 2000 plus but when I check your calculator I'm short of $1000 plus so I'm gonna pay taxes is that right? But if I gonna deduct some credit to my freelance expenses is there any chances of going away with paying the Govt.?

  314. Vic 03/07/2011 at 1:53 am

    Hello,
    I work in Alberta. My T4 states the following:

    Gross: $45.999
    Income Tax Deducted: 7.708
    CPP: $2103
    EI: $747.36
    RRSP: 400

    I got an addicional t4 :

    Gross: $4.300
    CPP: $3960
    EI: 74 40

    My wife (common in law) had this numbers:

    Gross: $34615
    Income Tax Deducted: 4613
    CPP: $1540
    EI insurable: $34609
    EI premium: 598
    RRSP: 400

    but last year our file was separated, i wold like to know your advise,
    Thanks!

  315. Gale 03/07/2011 at 6:08 pm

    I am an American who had held a permanent resident's card. I am currently separated from my husband with divorce pending. I have lived off my savings for the past year and have had no income. My question is as do I have to pay income taxes on my savings money. I have used all the money now, including investment monies with penalties of $7,200.00 in 2010. I physically lived in Ontario until May 26, 2010, when I moved back to Illinois

  316. Jodi 03/07/2011 at 6:27 pm

    Hi,

    I recently have started in a new job within the last 2 years and do not have medical coverage as of yet. Can you tell me how much in dollars can I claim in out of pocket medical expenses including dental. My gross monthly earning are approx. $2800.00

    Thank you

  317. Hi Jaime,

    If you did not file your 2009 earnings last year, you cannot combine them with 2010.... you must file separate tax returns for each year reporting all your earnings for the respective year.

    If you register as a self employed individual you would be eligible to deduct all expenses you incurred to earn the income.

    I hope this has answered your question.

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

  318. Hi Vic,

    Based on the limited information provided, it is estimated that you would be in a tax payable position of approximately $1,300 and your wife in a tax payable position of approximately $10.

    I hope this has answered your question.

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

  319. julie 03/07/2011 at 10:14 pm

    what is the maximum deduction amount i can claim in ontario for childcare - i pay 7500 for one child under 7 . i know i can claim 7500.. which i will, however, what is the maximum that i will be able to deduct? is it still 7000 or has it risen for this tax year?

  320. Ramesh 03/08/2011 at 8:40 am

    On Work-Permit i worked in canada for nearly 3 months, JULY,AUGUST,SEPTEMBER
    From July-10-2010 to Sep-28-2010.

    I am not Married.

    My T4 Details :
    Employment Income : $12527.01
    CPP Contributions : $562.33
    EI Premiums : $216.72
    Income Tax Deducted : $2123.91

    Based on the above details Can you please tell me,
    How much amount of money will be refunded to me?

  321. Al 03/08/2011 at 9:55 am

    I have 2 questions:

    1.I am self employed. I pay CPP X 2. Am I entitled to deduct the full amount as a business expense? My accountant appears to have deducted only one-half.

    2. I paid extra contributions to increase my pension income from an overseas pension. Am I entitled to deduct the contributions as a business expenses since it is made for the purpose of earning income?

    Thanks very much for this great site.

    Al

  322. Astatin 03/08/2011 at 12:33 pm

    Hi there,

    Thanks for the previous advise

    However, you mentioned that my information is limited - what else would you need to know in order to calculate accurately the exact amount of tax I would have to pay ?

    Also, does that mean that as a foreigner, I dont have to contribute to RRSP in Canada should I chose to ? and I can keep the extra cash ?

    Cheers

  323. Juliette 03/08/2011 at 1:52 pm

    Hi

    I love your calculator. Is the CPP and EI amounts included in the tax caculation of tax payable?

  324. Hi Juliette,

    Technically, CPP and EI contributions are not taxes.

    Regardless, no, CPP and EI are not included in the above calculator results.

    I hope this has answered your question.

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

  325. Hi Astatin,

    For us to give you a response with the exact bottomline result for your tax return, you would need to visit our office and provide your tax documents and personal information for review.

    An RRSP is a voluntary investment, so, no, you would not be required to contribute to one. BUT if your employer has a Registered Retirement Pension Plan (RPP), that is a different story and may be mandatory if part of your employment agreement.

    I hope this has answered your question.

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

  326. Hi Al,

    Answers:

    1) No, the business expense portion is only the part the business pays out, but this only applies to incorporated businesses. If you are a proprietorship, the full amount is recorded and considered when calculating your taxable income and nonrefundable tax credits.

    2) No, this voluntary foreign pension contribution is not a business expense because it is not business income related.

    I hope this has answered your question.

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

  327. Hi Julie,

    Yes, the maximum allowable deduction again for 2010 is $7,000 for each child born in 2004 or later, regardless of the actual amount of child care expenses.

    I hope this has answered your question.

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

  328. Hi Gale,

    Without knowing what you mean to be 'your savings' I can only provide an estimated response.

    If you mean your savings to be cash in a regular non-registered savings account, you would only be required to report the interest you earned on this money, not the principal funds.

    There are no penalties on savings withdrawals in Canada... unless you mean withdrawals from a Registered Retirement Savings account and even then there are no penalties, only income tax withheld. If this is your case, yes, you would be required to report this money withdrawn from the RSP on your tax return and especially to claim the potential tax refund due to you.

    Additionally, since you are an American citizen, you are required to report this income on your US Tax Return for 2010.

    I hope this has answered your question.

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

  329. Hi Ramesh,

    Based on the limited information provided, assumptions were made, an estimation of your tax refund is approximately $2,760.

    I hope this has answered your question.

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

  330. Hi Jodi,

    There is no limit to the amount you can claim in eligible medical expenses up to your tax income.

    I hope this has answered your question.

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

  331. Sue 03/08/2011 at 11:12 pm

    Hi,

    My common-law husband and I separated in August 2010 and continue to be separated. We have 2 young children, no support is being paid either way. We live in Ontario and I wonder can we each make a claim for "equivalent dependant" when filing our 2010 returns? One for him for one child and one for me for the other child?

  332. Jaime 03/08/2011 at 11:34 pm

    Oh I mislead you sorry I did filed my tax for year of 2009 but the freelance work that I did I was not able to file it , So you saying I need to register first before I can deduct any expenses that I can deduct? I do Cad Freelance but not able to register as business?

  333. borche 03/09/2011 at 7:33 am

    hi

    Can you tell me how much i should get back. My income is 22222.23, my common law partner is 16484.00
    No RSP contribution.
    I know that we can claim Rent and public transportation. Rent is 855 and public transportation is 121 per each per month.
    We live in Ontario.

    Thanks for the help,

  334. Borche 03/09/2011 at 7:35 am

    Hi all

    I wonder how much i should get back from taxes.
    We live in Ontario.
    My income is 22222.23, my common law partner 16484
    No RSP contribution.
    We rent appartment and use the public transportation.

    Thanks for the help.

  335. Wang Ya 03/09/2011 at 12:55 pm

    Hi,
    I will to go Canada to work for a Non profit organisation at HQ from about 3 years.
    I have husband who has not got a job and we will rent a Condo and paying for public transport. The annual gross is about 83'000, how much tax I would pay and what can be exclude in taxable amount (ex, rental, school fee, etc.)

    If later have a child can we exclude more other cost?

    We will be based in Toronto, Ontario.

    Thanks
    Wang Ya

  336. Hi Borche,

    Based on the limited information provided, I am unable to determine if you are eligible for a tax refund, but your tax liability would be approximately $1,950 and your partner's tax liability would be approximately $660.

    From this information you would be able to determine if you are refundable or payable.

    I hope this has answered your question.

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

  337. Hi Jaime,

    If you did not report your freelance income for 2009, you must do so by filing an adjustment request.

    You do not need to register before filing your income tax return reporting self employment income.

    I hope this has answered your question.

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

  338. Hi Sue,

    You and your husband can share the childrens' equivalent to spouse deduction (one spouse to claim one child as the other souse claims the second child) if the custody is shared as equally.

    I hope this has answered your question.

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

  339. Hi Wang Ya,

    Based on the limited information provided, it is estimated your tax liability would be approximately $21,000 providing you with a net pay of approximately $62,000.

    Any potential tax deductions have been included on the above calculation.

    I hope this has answered your question.

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

  340. borche 03/09/2011 at 5:56 pm

    Ok

    maybe i didnt provide the correct information, and here they are:
    Year Income 2010, 22222.00
    Taxes: 2950.00
    CPP: 950.00
    EI: 384.15

    My partner:
    Year Income 2010. 16484.00
    Taxes: 980.15
    EI: 170.00
    CPP: I dont know.

    Is this enough information or u need more?

  341. Lu 03/09/2011 at 8:43 pm

    I recently moved back to MB last May with my kids with the intent of sponsoring my spouse. However, we've decided to move back to the US. My spouse has been living in the US this whole time.
    I haven't been employed since I've been here, so I don't have any income to claim. I've been receiving all the child tax benefits and received a statement for UCCB.
    Do I still need to file a return? I know that I need to file if I want to continue receiving the child tax benefits and can prove enough ties to still be considered a resident for next year. But what should I do now?

  342. Hi Borche,

    Based on the limited information provided, it is estimated you and your partner would be in a tax refundable position of approximately $2,900.

    I hope this has answered your question.

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

  343. Hi Lu,

    Yes, you are required to file a tax return for 2010, as well as a US Tax Return to report your income (UCCB).

    I hope this has answered your question.

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

  344. Merv 03/10/2011 at 10:44 am

    Hi:

    I have the option to receive part of my overseas pension as a lump sum. Will this be taxable in Canada. (I am a resident of Canada).

  345. Hi Merv,

    With the limited information (i.e. country or origin, pension type, etc.) provided a conclusive response cannot be provided.

    A good rule of thumb to consider: if pension is taxed in home country it must be reported in Canada with the foreign pension credit claimed. If pension is not taxed in home country, it is taxed in Canada.

    I hope this has answered your question.

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

  346. Mike 03/10/2011 at 6:36 pm

    I worked in Tanzania for 6 months last year and the other 6 in Canada. For purposes of working there I became a permanent resident of Tanzania.I highly doubt I will receive some sort of "T4" from my employer in Tanzania. Now when I go to file my Canadian income tax return, should I enter my overseas income as my past employer took off Tanzanian tax from my cheques.33% to be exact. I cant help but think Canada will want some sort of income tax from my overseas income??Thanks.

  347. Sam 03/10/2011 at 8:34 pm

    Here's my T4 info
    my yearly Employment total income is 22015,
    Income tax deducted - $1753.24
    CPP contribution is $916.52
    EI premium is $380.87

    Can someone please tell me do I need to extra money while I file my tax.

    Thanks

  348. Hi Mike,

    Since you ere are permanent resident of Tanzania for six months of 2010, you are not required to report any income earned while resident in Tanzania on your Canadian 2010 tax return.

    I would recommend you file a Tanzanian tax return so you can claim any potential refund due to you for that income.

    Only once you are a legal resident of Canada are you required to report your world-wide 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

  349. Hi Sam,

    Based on the limited information provided, assumptions were made, it is estimated that you are in a tax payable position of approximately $355.

    I hope this has answered your question.

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

  350. Mike 03/10/2011 at 10:30 pm

    Hello again, I get what you are saying except the part on "once I am a legal resident of Canada",I guess I didnt explain my situation well enough. I am a Canadian citizen, born and raised. I am a contract worker and was over in Tanzania for 6 months working.Thanks for your help.

  351. Merv 03/11/2011 at 10:23 am

    Thanks. The pension lump sum is coming from England. I do not know whether it will be taxed in England. Does this information make a difference to your response? Thanks a million.

    Merv

  352. Hi Mike,

    Canada's income tax is based on residency, not citizenship. If you are resident in Canada, you are required to report world-wide income earned while resident in Canada. If you resided in Tanzania, you did not reside in Canada.

    I hope this has answered your question.

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

  353. Hi Merv,

    Yes, the lump sum payment will be taxable in Canada.

    I hope this has answered your question.

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

  354. Allan 03/12/2011 at 2:16 pm

    Question:

    I am working as an English Assistant in France since October. We do not get paid a whole lot, our net pay is usually 780 Euros. I got how much I earned as a NET Pay, 2471.83 Euros, (since we do not make a lot, we are not taxed, but we pa pensions, medical, etc)

    My question is, I am using TurboTax, when I entered the amount for Foreign Income, my Refund reduced dramatically. Am I paying for taxes on my Foreign Income? Is there a way to pay less?

    Thanks.

  355. Hi Allan,

    According to Canadian tax law, you are required to report any/all world-wide income while resident in Canada.

    If you left Canada in October, you only are required to report the income you earned up to the day you left Canada.

    I hope this has answered your question.

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

  356. Amitabh Trehan 03/12/2011 at 3:11 pm

    Hi,
    Your site, and you, are immensely helpful.
    I had one question:
    I am a citizen of India but was a PhD student in USA from 2004 to May 2010. So, I paid 6 tax returns there and will file the 7th this year. After that I spent approximately 140 days till 10th October on a work permit in Canada. The CRA determination of residency form under the heading 'Statement of Residency' asks 'Are you, under tax treaty with another country, considered resident in the other country and not resident in Canada?' etc. I am not sure what is the correct response here. Can you help me out on this?

    Many thanks.

  357. Hi Amitabh,

    Unfortunately your question is not able to be answered within a few sentences in this forum.

    Your best way to obtain the correct information and legal opinion of the residency status is to contact the CRA's International tax Office 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

  358. Steve 03/14/2011 at 6:33 pm

    Hi, I work and pay rent in Alberta. But due to lack of work, my wife lives in NS. I travel back every 2-5 weeks for 7-10 days. I have a mortgage in NS, but spend 3/4's or more of the year in Alberta. What are my options? Can I claim Alberta income tax? Can I use my flights as an expense?(I purchase those out of my pocket)Also as a substitute teacher my wife has a limited income, is she considered a dependant?

  359. Hi Steve,

    Good question!

    Since you work in Alberta and rent an apartment there as of Dec 31, Alberta is your residence for tax purposes and your should file your tax return accordingly.

    For tax purposes, your wife lives in Nova Scotia.

    Unfortunately, your travel expenses cannot be claimed on your tax return as they are not related to your earning income.

    If your wife's income is limited enough, yes, you can claim her as a dependent by reporting her information from her tax return on your tax return in the appropriate schedules.

    I hope this has answered your question.

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

  360. Elizabeth 03/15/2011 at 1:40 pm

    I went to graduate school in New York for 1.5 years. I then worked last year in New York and earned about $25000. Do I have to pay taxes in both the United States and Canada?

  361. Hi Elizabeth,

    For the time period you were resident in New York, you are required to report and file an U.S. tax return.

    You are only required to report and file a Canadian tax return for the same income IF you were resident in Canada when you earned the income.

    I hope this has answered your question.

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

  362. Josh 03/15/2011 at 3:36 pm

    I have a question. I am living in the united states and commuting to saskatchewan (800 USD flight once a month). Are the travel expenses I incur subtracted from my total salary to calculate my taxable income?

  363. Elizabeth 03/15/2011 at 4:23 pm

    Am I considered a resident of Canada (for tax purposes) if I lived in New York for all of 2010, and earned an income in New York? It seems as if I have to pay taxes in both countries. Is that true?

  364. Hi Josh,

    Good question!

    It depends on the purpose of the travel expenses... what do you mean by commuting once a month? If you live in USA, are you working in Canada? When you commute, how long is your stay in both countries at a time?

    Basically travel expenses are only deductible for business purposes... if you live in USA and travel to SK to work, this is not considered business related.

    I hope this has answered your question.

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

  365. Hi Elizabeth,

    Residency is based on several things but especially where you lived.... if you lived and worked in New York, you likely wee not resident in Canada.

    The residential ties you have or establish in Canada are a major factor in determining residency. Residential ties to Canada can include:
    * a home in Canada;
    * a spouse or common-law partner (see the definition in the General Income Tax and Benefit Guide) or dependants in Canada;
    * personal property in Canada, such as a car or furniture;
    * social ties in Canada;
    * economic ties in Canada.

    Other ties that may be relevant include:
    * a Canadian driver's licence;
    * Canadian bank accounts or credit cards;
    * health insurance with a Canadian province or territory.

    Residential ties that you maintain or establish in another country may also be relevant to residency.

    I hope this has answered your question.

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

  366. Ryan 03/15/2011 at 11:48 pm

    I have been paying about 35 percent total deductions for years. Now this last month I'm up to 45 percent boss tells me that their tax program takes into account what they expect me to make that year? Is it monthly or yearly when determining what taxes I pay?

  367. Elizabeth 03/16/2011 at 9:58 am

    I previously told you that I lived in New York for all of 2010, and earned an income in New York. But I am a Canadian and I have strong Canadian residency ties and I live in Toronto now. You said "Residency is based on several things but especially where you lived…. if you lived and worked in New York, you likely wee not resident in Canada." I still don't know if I must pay taxes in both countries. Can you help me with that problem?

  368. Jordan 03/16/2011 at 10:28 am

    Hi,
    I am a student who is on work term. I made 4500 while living in Nova Scotia and 8500 while living in Quebec. Is it better to file for taxes in Quebec, or Nova Scotia. I have a permanent address in both provinces. On Dec. 31st, I was in Africa and won't be filing there. Also, I made no additional income.

  369. Hi Ryan,

    The tax tables your employer uses is based on annual calculation.

    I hope this has answered your question.

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

  370. Hi Elizabeth,

    According to Canadian tax law you cannot be resident in Canada an another country for the same time period.

    I suggest you contact the International Tax Office for clarification of your residency: 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

  371. Hi Jordan,

    If you were out of the country on Dec 31, you would file based on where you lived on the last day you were in Canada.

    I hope this has answered your question.

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

  372. Nazarati 03/16/2011 at 5:50 pm

    Can anyone please tell me , how much do I have to pay tax if I earn 50,000 Canadian Dollar . Ontario region. Married with 2 very young children.thanks a lot

  373. Hi Nazarati,

    Based on the limited information provided, a determination if you are eligible for a tax refund is not possible, but your tax liability would be approximately $6,450.

    From this information you would be able to determine if you are refundable or payable.

    I hope this has answered your question.

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

  374. Nazarati 03/17/2011 at 12:21 pm

    Thanks Storoszko&Associates
    Just to clarify my question. I am thinking of moving to Ontario for a job which pays 50,000 CAD/year, I have a wife(not working)and 2 little children(under 2), I am going to apply for higher degree during my work and have study expensis of nearly 9,000-10,000CAD/yr. would I be entitled for more refund.will it be the same(6450CAD). Thanks a million

  375. Hi Nazarati,

    It would be the same.

    I hope this has answered your question.

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

  376. Tany 03/18/2011 at 11:10 am

    I have a question too. I work full time at a company and recently I got a part time job. My employer from the part time job pays me with a cheque and does not withdraw taxes. I use my car to commute to work and sometimes I use the car for differnt work tasks. He told me that even if I do not have a sole propietarship ,I can deduct car expenses for tax purposes .Should I open a sole proprietarship for my part time income? How do I remit taxes for this income? Monthly or when I file the taxes? If I do not open a sole -proprietarship- how do I remit taxes, am I alowed to deduct car expenses?
    Thanks.

  377. Hi Tany,

    If you have an employer, you cannot be a sole proprietor... sole proprietor means you have several customers, not an employer.

    The only way for you to deduct automobile expenses as an employee is to have the part time employer and you complete the form T2200 ( link to cra-arc.gc.ca ) and for you to complete the form T777 ( link to cra-arc.gc.ca )

    Commuting to work is not a deductible expense.

    If you part time employer is not deducting EI and CPP as well as tax from your pay, they can be violating the law.

    If you wish to be a sole proprietor, you would report this on your annual tax return. As a sole proprietor, you would be eligible to deduct business expenses, but you would also be required to pay additional self employment source deductions.

    I hope this has answered your question.

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

  378. Tany 03/18/2011 at 3:19 pm

    Thank you for your reply. I know that if I work full time I can't be a sole proprietor. I do not know how to do with my parttime income. Can I be a sole proprietor only for my part time job?My part time employer has many freelancers and he pays me the same way as them. If he does not withdraw taxes- what is the best way for me to remit?
    Thanks again.

  379. Hi Tany,

    You can be a sole proprietor at any time regardless if you work full time or part time, but you must have several customers not just your employer... do you have more than one customer?

    As in the previous response, if you are an employee, you must have the forms aforementioned completed for you to be eligible to claim any related deductions.

    If you wish to be a sole proprietor, you would report this income on your annual tax return. As a sole proprietor, you would be eligible to deduct business expenses, but you would also be required to pay additional self employment source deductions.

    I hope this has answered your question.

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

  380. Ruben 03/18/2011 at 5:20 pm

    I think my question is simple. My wife began to work last year, and she is self-employed. She made about $3500, total, and I am trying to figure out if we have to report this income and/or pay taxes on it, since it is less than $10K. I am pretty sure that the answer is no, but since she received two T4A forms, I am not sure if that means she has to declare her income, even if its less than 10K.

    But also, I am wondering whether it is advisable to do so anyways (because of future RRSP, etc). Is it worth the hassle of filing a T2125 form to get all the self-employment deductions, given that the income is so low? Or is it just easier (but legal, of course) not to report her income?

    We are setting things up so that it will be easier to claim expenses next year, since she will likely be making quite a bit more.

    Thanks for the advice!

    -r

  381. vishal 03/18/2011 at 6:35 pm

    does the dental plan costs my employer comes into effect when we calculate earned income for RRSP.

    and also does the child support payments plays role for earned income calculation for RRSP.

  382. Hi Ruben,

    Regardless of the amount $10k, $100k, or even $1, yes, your wife must report all income. This is especially true if you received any tax slips.

    Yes, income below $10k may not result in a tax liability for your wife, but filing a tax return declaring all income will ensure the accurate information is filed and she can benefit from any and all tax credits and benefits.

    I hope this has answered your question.

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

  383. Hi Vishal,

    Your RSP contribution limit is based on Box 14 of your T4 slip, you should check with your employer to determine what is included in Box 14.

    Child support payments are non-taxable and have no effect on RSP contribution limit determination.

    I hope this has answered your question.

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

  384. Ruben 03/19/2011 at 9:09 am

    Yes. This makes perfect sense. Thank you very much for the prompt response! -rubén

  385. Kyla 03/19/2011 at 11:22 am

    Hello, 3 years ago my husband went to Montana for aprox. 95 days for a Canadian Company. We received the Canadian T4 and the American W2 and filed our Canadian income tax. On the W2 it stated he paid $1700.00 for Montana state tax. After all was done someone said to us that he should file an American income tax as he is entitled to get that state tax back he paid to Montana. Wondering is this is true?

  386. Hi Kyla,

    Yes, it is true... your husband should file to determine if there is a tax refund due to him from Montana and US Federal.

    I hope this has answered your question.

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

  387. W. Roberts 03/19/2011 at 4:44 pm

    Is a portion of the fees paid to a senior residential care facility an allowable deduction?

  388. Hi W. Roberts,

    Good question!

    Yes, a portion of the fees paid to a senior residential care facility or any long term care facility is an allowable deduction either as medical or rent, but not both.

    I hope this has answered your question.

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

  389. donna smith 03/21/2011 at 11:23 am

    would like to know if a person can claim the interest they pay on a car loan.

  390. Tanya 03/21/2011 at 1:43 pm

    2010 Tax ( refund inquiry )

    my t4 says 29,148.08
    My rent all year was 11,550.00

    i have nothing else to claim.

    will i get a refund or have to pay what is my esitmaed refund . when i use the calculator is says Tax Payable $ 3,804.00 is that a refund or money owed to CRA

  391. david tully 03/21/2011 at 2:29 pm

    hi
    say i do a personal service and make $3500 a year and thats the only taxable income i have and i give all the money away and never spend it. is this considered a loss or deduction.

  392. Peter 03/21/2011 at 4:21 pm

    Hi
    I calculated that,at my pension,I will get 3000$ gross per month from my employer pension plan,plus about 550$ gross for CPP at age 63. That gives me a gross income of 42600$/per year. So,when I put that amount in the calculator,I would get approx. 35827$ net per year,or 2985$/per month. I find that hard to believe that I would net almost 3000$ per month. I am a new resident to Ontario with my wife right now. Can you explain that to us please.
    Thanks

  393. Hi Donna,

    If the car is used for personal use, no, the auto loan interest cannot be deducted.

    If the car is used for business use, only the portion of the loan interest prorated can be deducted.

    If the car is your personal vehicle used for employment use, best to have your employer complete and sign a T2200 form ( link to cra-arc.gc.ca ) to allow you to claim the eligible deduction.

    I hope this has answered your question.

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

  394. Hi Tanya,

    Based on the limited information provided, a determination if you are eligible for a tax refund is not possible, but your tax liability would be approximately $3,500.

    From this information you would be able to determine if you are refundable or payable.

    I hope this has answered your question.

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

  395. Hi David,

    If you give the money away, it is neither a loss nor deduction.

    I hope this has answered your question.

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

  396. Hi Peter,

    Your calculation is accurate, you would roughly net $2,900 per month.

    All income is taxable, regardless of source.

    I hope this has answered your question.

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

  397. Astrid 03/21/2011 at 10:58 pm

    As a self employment I made 42000 in 2010, i am a new comer living in Ontario, this is my first time dealing with taxes, I just received the money through the year but I never paid pension plans, EI, etc, In February 2010 I helped a friend changing a check for 3000 USD (I deposited the check in US currency and after 5 days I gave him Canadian Dollars) I would like to know how much I have to pay for the 42.000 (professional services) and if the 3000 will affect my taxes.
    thanks in advance for your help.

  398. Astrid 03/22/2011 at 7:44 pm

    Also, Am I responsible for GHT, if so what will be the process?
    Thanks again

  399. Hi Danilo,

    Based on the information provided, your semi-monthly net paycheque would be approximately $2,620.

    I hope this has answered your question.

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

  400. Hi Astris,

    Based on the limited information provided, your tax liability would be approximately $10,032 including $3,812 in CPP contributions.

    As long as you did not gain from the money exchange transaction for your friend, there are no tax implications. If you did gain (make a fee for the transaction), the amount of fee would be taxable and is required to be reported as income.

    I hope this has answered your question.

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

  401. Thomas Alexander 03/23/2011 at 11:43 am

    Hello, I am a Canadian citizen who worked in the province of Ontario from January 2010 to September 2010. In October I left Canada due to a employment opportuniy abroad where I am still currently working. I have just recieved my 2010 T4 slips in the mail from my 2 former Canadian employers. I would like to know how I can complete my 2010 income tax return from abroad. Is there an online site where I can do this? My other question is in regards to a possible refund that I may recieve. What happens if I do not indicate a Canadian banking institution where a deposit can be made? Does Revenue Canada send out personal cheques if I am living abroad? If not, then how can I recover a posible refund in my name? Any information would be of great assistance.

  402. Hi Astrid,

    Once you have earnings over $30,000, you are required to register your business with CRA and apply for GST registration. See 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

  403. Hi Thomas,

    There is no online method to complete your tax return from abroad.

    I suggest you use a tax professional to assist you in your tax preparation needs to ensure you maximise your eligible deductions for the maximum tax refund.

    Our firm specialises in assisting individuals in Canada and abroad in their tax preparation needs.

    I hope this has answered your question.

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

  404. Astrid 03/23/2011 at 4:22 pm

    Many thanks for your time and for the useful information

  405. Thomas Alexander 03/23/2011 at 4:34 pm

    Sorry, I forgot to add to the above inquiry that I am NOT working abroad as a Canadian citizen. I hold dual nationality, therefore does Revenue Canada still require information regarding my foreign income???

  406. Hi Thomas,

    Taxation in Canada is based on residency not citizenship as it is so in other countries.

    For your Canadian tax return, you are required to report all world-wide income earned while resident in Canada. Any foreign income earned while resident outside of Canada is not required to be reported on your Canadian tax return.

    I hope this has answered your question.

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

  407. H. G. 03/24/2011 at 3:01 am

    Greetings!
    I am a permanent resident of Canada working full time in South Korea. My family live in Canada, and I stay with them about four months a year when I am on my vacation. My questions are the following:
    1. Am I a Canadian resident for tax purpose? The article IV of the tax convention between the two countries seem to state that I am not. That is, I have residential ties in both countries, and am a Korean national.
    2. If my fiscal domicile is indeed Korea, do I have to report and have to pay tax on my Korean income?
    Thank you in advance.

  408. Hi H.G.,

    Based on the limited information provided, you are living and working in South Korea so you are a resident of South Korea.

    For tax purposes, you only report on your Canadian tax return, the total world-wide income earned while resident in Canada. Based on your residency information provided, you are not required to report your South Korean income in Canada.

    I hope this has answered your question.

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

  409. Ida 03/27/2011 at 5:29 pm

    my only income is 11,228.00 dollars per year (disability pension), how do I figure out what to put aside for income tax purposes, federal and provincial. I am in Quebec Canada

  410. Hi Ida,

    Entering your disability pension amount into the above calculator results in a total tax liability of less than $200.

    If you have not already, be sure to determine if you qualify for and apply for the Disability Tax Credit. This will reduce your tax liability to zero.

    I hope this has answered your question.

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

  411. J Ramon 03/29/2011 at 2:41 am

    Is income from student renting a room in a house taxable or does it have to be reported?

    If the student is from a home-stay program from school, is the payment taxable or does it have to be reported?

    Thanks.

  412. Hi J Ramon,

    Yes, rental income must be reported. But, please note that rental income less eligible expenses is taxable rather than the gross rent.

    I hope this has answered your question.

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

  413. Kim W 03/30/2011 at 3:40 am

    Hi there. I have been living and working in Australia for 9 months on a working/holiday visa. I have an apartment here as well as a bank account where my paychecks are deposited. I am set to return to Canada next week and will be in a crunch to complete my tax forms. When I return home I will be living with family while I determine in which city I will be able to find employment (I'm a teacher in Alberta - enough said). I was wondering if I have to report my earnings in Australia? I know that I can't be taxed on the same income twice but I'm not sure where to report the Australian income.

  414. Hi Kim,

    Because you were on a working/holiday visa, you must start first by contacting the Australian Revenue Agency to determine the status of your residency and filing requirements in Australia for the income earned there.

    Most definitely, any income you earned for 2010 prior to moving to Australia must be reported on your Canadian tax return. Depending on the response you get from the Australian Revenue Agency, it would then lead you to how you would be required to report the Australian income.

    If they consider you to be a resident for tax purposes, you would be required to file an Australian tax return for the Australian income and not be required to report this on your Canadian tax return.

    If they do not consider you to be a resident for tax purposes, you would be required to report this Australian income on your Canadian tax return along with your Canadian income for 2010.

    I hope this has answered your question.

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

  415. Merv 03/30/2011 at 10:41 am

    Hi. I am an artist but only started selling paintings in 2010. However, I have used materials which I had bought in previous years. I can estimate the cost but I do not have receipts. Am I able to deduct this from my income as an expense. If I can and I have not earned sufficient income to deduct the full amount can I carry over the balance to future years income?

  416. Hi Merv,

    Good question!

    The amount you can claim is limited to the lesser of:
    a) the expenses you actually paid in 2010; and
    b) the lesser of:
    * $1,000; and
    * 20% of your employment income from artistic activities;
    minus the following amounts you deducted from your income from an artistic activity:
    * interest for your motor vehicle; and
    * capital cost allowance for your motor vehicle.

    If you have expenses you cannot claim because of the 20% or $1,000 limit, you can deduct them from artistic income you earn in a future year. Also, you can deduct amounts you carry forward from previous years from your artistic income earned in 2010, as long as the total expenses are within the above-noted limits for 2010.

    I hope this has answered your question.

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

  417. Gary 03/31/2011 at 3:46 pm

    Hi i am home Owner Surrey BC i have really stupid que. as i am paying interest on my monthly mortgage installments my question is as our total house hold income before taxes is about $90000 and i just paid $28,000 as interest for last year will i be able to submit that i my tax rebate to get some sort of refund or will that be just useless ..

    Thanks
    Gary

  418. Hi Gary,

    Good question!

    Unlike in the USA, in Canada home mortgage interest is not deductible against your personal income on your tax return.

    But, if you use your home for business purposes, a portion of the mortgage interest can be deductible.

    I hope this has answered your question.

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

  419. Steve 04/01/2011 at 12:06 pm

    I have been offered a position from an U.S. company that does not have an office in Ontario. I will be travelling quite a bit as part of this job and would only be required to be at their office maybe once a month. My question can i be based out of Ontario and how would i get taxed. I pay child support here that is an allowable claim against my taxes. I want to keep my principal residence as Ontario. Also can they pay me as a Canadian employee?
    Thank you

  420. Hi Steve,

    For tax purposes in Canada, when you reside determines your tax filing requirements. If you reside in Ontario, you would be required to file a Canadian Tax Return.

    Whether your company will pay you as a Canadian employee is between you and the company and you should discuss and determine this in advance. Since they do not have a presence in Canada, they likely would treat you as an American employee and you would be required to file a US Tax Return in addition to a Canadian Tax Return (US Tax Laws are not based on residency like Canada).

    If you are an American employee, you must also keep in mind the company may apply American payroll deductions (US tax, US social security, etc.) and then when you file your Canadian return you will be required to pay your contributions for CPP and EI.

    I hope this has answered your question.

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

  421. garyR 04/03/2011 at 4:05 pm

    Hi,

    I have been offered a position in Montreal , family of 4 (Couple and 2 kids) will be moving there soon as soon as temp work permit arrives. Am I allowed to contribute RRSP right away? If yes and If contribute 10 % of annual sal of 110K , how much money I will get in hand per pay period?

    Thank you in advance
    Gary

  422. ryan 04/03/2011 at 9:58 pm

    Hi there
    if I have an online business ion Ontario, and I manufacturer a product for $925, and sell it for $3000 to a customer in the US, at the end of the year what tax % on that $3000 sale would I have remit at the end of the year?
    thanks

  423. ryan 04/03/2011 at 10:14 pm

    Also, I should note, lets say I do 1 sale a day of a $3000 retail product, and it costs $925 to make that product.
    So that would be $2075 after the product cost, but before any year end taxes.

    Like if I sold 1 product a week, after product cost, that would be $755,300 a year in profit before tax.

    What does a business in Ont. have to pay at the end of the year? personal tax? business tax? or are they combined? thanks

  424. ryan 04/03/2011 at 10:15 pm

    I mean, for the above, if I sold 1 product a day, 7 days a week, for 52 weeks.
    sorry

  425. william 04/04/2011 at 9:05 am

    Can my son Lucas's dental expenses for 2010 be claimed be either myself or my wife and if so where do these appear on the tax forms

    Thank You

    PLEASE PROVIDE A RESPONSE AS SOON AS POSSIBLE

  426. Hi Ryan,

    Based on the information provided, a personal taxable net income of $755,300 would result in a tax liability of approximately $334,700.

    If the business is incorporated, a lower tax rate to business taxable net profit would apply, but the personal tax rate would apply to any personal earnings you take.

    I hope this has answered your question.

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

  427. Hi William,

    Yes, your son's dental expenses can be claimed by either parent.

    The tax benefit would be greater if claimed by the spouse with the lower income.

    The medical expense credit is claimed on Schedule 1 of the tax return.

    I hope this has answered your question.

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

  428. Kourtney 04/04/2011 at 3:19 pm

    Good afternoon, I was wondering if would be able to tell me if it looks like I would be getting a tax refund at all. I highly doubt I will, but I am just curious.
    I have 2 T4's.
    (Newfoundland T4)
    income: 6562.30
    cpp: 218.48
    EI: 113.52
    Income Tax deducted: 188.39

    (Ontario T4)
    Income: 4546.13
    Cpp: 185.05
    income tax deducted: 437.63
    EI: 77.63
    other taxable Allowences: 60.00

    I really don't think I paid enough at all. So, that is why I am wondering...
    I also have to take a cab to work every morning. Is there any way to claim that? Thanks for taking time out of your day to help me out. Have a great day. :)

  429. ryan 04/04/2011 at 4:52 pm

    Hi there, thanks for the reply. Yes I figured that the $755,300 would result in a tax liability of approximately $334,700 from the calculator.

    But since my business is incorporated, what is the different between incorpated biz. tax vs. personal income tax?

    I was told that the corporation's income is taxed a certain % every year (which I forget what the amount is), and then if I take out income form the business I guess it would be taxed at 45% (which is crazy, thats almost half!)

    what do u think?
    thanks

  430. Hi Kourtney,

    Without know in which province you lived on Dec 31, 2010, here are some estimates for you.

    If you were resident in Ontario Dec 31, you would be in a tax refund position of approximately $1,750.

    If you were resident in Newfoundland Dec 31, you would be in a tax refund position of approximately $1,780.

    I hope this has answered your question.

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

  431. Hi Gary,

    You can only contribute to an RSP if you have an Eligible Contribution Limit Amount room. The Contribution Limit is based on the previous year's income.

    If you are new to Canada, you must earn Contribution Limit before you can contribute to an RSP.

    I hope this has answered your question.

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

  432. Hi Ryan,

    Since your business is incorporated, the corporate tax rate would be approximately 19.5% combined federal and provincial.

    Any earnings you take from the business will be taxed at your personal rate on your tax return.

    I hope this has answered your question.

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

  433. garyR 04/04/2011 at 10:40 pm

    Hi,

    I have been offered a position in Montreal , family of 4 (Couple and 2 kids) will be moving there soon as soon as temp work permit arrives. Am I allowed to contribute RRSP right away? If yes and If contribute 10 % of annual sal of 110K , how much money I will get in hand per pay period?

    Thank you in advance
    Gary

  434. ryan 04/05/2011 at 9:37 am

    Hi there,
    when so if I take $100,000 of earnings out a year (from my incorporated business) it says Im taxed $27,400 on it.
    And $18,000 of that goes to RRSP Contribution. What does that mean? Is that a investment fund for me?

    Also, since Im taking 100,000 out of an incorporated business, would I have to pay the 19.5% combined federal and provincial on it AS WELL as the 27.40% personal tax on it? so when I wanna take out 100,000 from a business, it would actually be a tax cut of 46.9% ?

  435. Hi Gary,

    You can only contribute to an RSP if you have an Eligible Contribution Limit Amount room. The Contribution Limit is based on the previous year’s income.

    If you are new to Canada, you must earn Contribution Limit before you can contribute to an RSP.

    I hope this has answered your question.

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

  436. Hi Ryan,

    The RSP is a retirement savings plan. The money you contribute belongs to you and is available to you towards your retirement. In some situations the funds can also be used to fund first time home ownership.

    If you take out $100k as a salary, your tax liability would be $27,400 and the amount is an expense to the corporation. If you take $100k as dividend, your tax liability would be $12,700, but this is after tax for the corporation so the 19.5% corporate tax is applied and this income to you would not provide RSP contribution room.

    I hope this has answered your question.

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

  437. ryan 04/05/2011 at 2:58 pm

    what is an expensence to the corporation?
    and what is a dividend?

    Im confused, asas I never went to business school.

  438. ryan 04/05/2011 at 6:09 pm

    Since my corporation is a 1 man show, its not a dividend, right?

    So every time I take money out, X amount goes right to my RRSP, so really when I pay $27,400 in taxes I only really pay $9400 cuz $18,000 of the that goes to RRSP, right?

  439. Hi Ryan,

    Your required response is beyond discussion within this personal income tax forum and cannot be answered within a few sentences.

    Your best alternative is to discuss your corporate tax planning options with your business financial consultant so you can explore all options available to you.

    I hope this has answered your question.

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

  440. Hi Ryan,

    Unfortunately you are incorrect. Dividends are not included when calculating eligible RSP contribution limit.

    I hope this has answered your question.

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

  441. ryan 04/06/2011 at 9:43 am

    I think I understand, but which answer is right?
    1. So if the corporation makes $500,000 BUT I want to take out $100,000 as a salary, that means I would have to pay $27,400 in personal income tax AND then I would pay an additional $78,000 in corporate tax, right?

    OR...

    1. So if the corporation makes $500,000 I still pay $97,500 in corporation tax regardless if I take out any personal income. Like for example, if I took out $100,000 in personal income would I be taxed the $27,400 (in personal income tax) on top on the $97,500 in corporation taxs?

  442. Hi Ryan,

    Your required response is beyond discussion within this personal income tax forum and cannot be answered within a few sentences.

    Your best alternative is to discuss your personal and corporate tax planning with your business financial consultant so you can explore all options available to you.

    I hope this has answered your question.

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

  443. Lada 04/08/2011 at 5:26 pm

    Hello,
    I was in Canada under working holiday visa last year. In one of my jobs I earned 3489 CAN, with an Contractor Agreement. I suppose i should be paying taxes and CPP contribution from it. How should I do it and how to file it?
    My total income for 2010 was gross 10294 CAN

    Thank you very much for your advise.

    L

  444. Hi Lada,

    Yes, you should file a tax return for 2010 as you are not only required to file but also, more importantly, it will entitle you to claim the refundable tax credits available to you.

    For assistance in filing you tax return, a tax specialist can assist you.

    I hope this has answered your question.

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

  445. danilo 04/08/2011 at 9:56 pm

    Hi,

    I am an Italian Engineer that will move to Toronto for a couple of years under Canadian Contract. There could be the possibility to get, apart from the basic salary, a reimbursment of the renting of the flat on a monthly basis, is to say every month I will submit to the Company the receipt of the payment of the monthly renting and I will get the money back. And this for 2 years. Is this money subject to taxation (both for me and the employer) or not?

    Awaiting for your kind reply.

    Cheers

  446. Hi Danilo,

    Yes, any reimbursement of living expenses are considered a taxable benefit to you.

    I hope this has answered your question.

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

  447. Cody 04/12/2011 at 10:20 am

    Hi
    I am starting a incorporated business in Ont, with an employee, and wanted to know what what tax needs to be paid when paying.

    If the business brings in $100,000 of income a year, and I pay the person $12.50 an hour = $26,000 a year, what yearly taxes do I need to pay to keep the corporation going and the employee's tax wages?
    thanks

  448. Hi Cody,

    Your question is in far more detail than that can be responded to within this forum within a few sentences. Beside the employer remittances you question above, there are also Employer Health Tax, Workers Compensation, etc.

    When incorporating your business, the agent should be providing you with a complete listing of all reporting requirements for your business.

    Another source for federal reporting is located here: link to cra-arc.gc.ca

    I strongly suggest you obtain the services of an accountant professional to save you money and headaches to ensure your business is set up correctly.

    I hope this has answered your question.

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

  449. Claudine Padmore 04/13/2011 at 9:49 pm

    Is there anywhere that I can find Filing Taxes 101 or Filing Taxes for Dummies. This is my first time filing taxes by myself and I need some instructional advise.

  450. Doeraymee 04/14/2011 at 2:46 pm

    Hi,
    I have a full-time day job and do freelance writing on the side, only making a small amount (last year $5,000). Much of this is travel writing. Up to now I have never claimed any of the expenses from my trips, but someone told me that if I sell articles based on the trips, I can claim the costs. Is this true? Even if the cost is more than what I've earned? for example, the trip may cost $2000 but I only earned $350 for the article. Are there some kind of guidelines for this?
    I am thinking of taking a trip this summer partly to attend a conf for writers. How much, if any, of the costs of the trip can I claim as a deduction? Conf fee? accommodation? flight? And would this go under training/educational expenses?
    Thank you!

  451. Hi Doeraymee,

    Yes, the information is correct you can deduct eligible expenses against income earned for freelance work.

    There are no specific guidelines other than losses must be eligible and the business would need to be sustainable over the long term.

    I hope this has answered your question.

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

  452. Hi Claudine,

    The 2010 Income Tax and Benefit Package would be your source for information.

    You can obtain it online at: link to cra-arc.gc.ca

    You can obtain this in paper form from postal outlets.

    I hope this has answered your question.

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

  453. toma dege 04/15/2011 at 6:11 pm

    I am an construction estimator ,working at home and my employer will give me a T2200 for this purpose . I work at home and I will work on a remote connection with the companys office computor. I will be required to purchase a computor , office furniture, printer, fax,office supplies incl. paper,cell phone, home phone, answer machine and long distance charges, supply my own vehicle to go to projects anywhere locally or anywhere in B.C. as necessary.and many other expenses.

    Is the capital cost of this equipment that I have at home tax deductible ? Is there a list somewhere so I know what receipts to give my accountant ? my employer will not provide these things, only my salary of about $80k
    pls adv , thank you very much
    toma dege

  454. Hi Toma,

    Good question!

    Employees are not able to claim capital cost allowance on computers, furniture, equipment, etc.

    For employees, capital cost allowance is permitted to be claimed on musical instruments and automobiles.

    You can refer to form T777 Statement of Employment Expenses here: link to cra-arc.gc.ca for what an employee is eligible to deduct with the signed T2200.

    I hope this has answered your question.

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

  455. Michael 04/16/2011 at 2:45 pm

    Hi,

    I am a Canadian engineer and I live temporary with my family, in Europe. I will come soon to Canada, alone, to work for an employer in Toronto and on top of the base salary they are offering me 18,000 CAD a year as an annual living allowance (on a monthly cheque). Is this living allowance tax free?

    Thank you for your answer, please send also send me an answer to my email

  456. Christina 04/17/2011 at 3:05 am

    Hello,
    My self-employment income this year is lower than previous years, at around 10,800. My taxable (net) income is only slightly higher.
    Normally, my business expenses (office expenses + CCA) range anywhere from 20 to 30 % of my gross, which has in recent years ranged from 14,000 to 25,000.
    But with the lower earnings this year, I'm concerned about CPP. So in order to maximize my CCP contributions (by paying CPP on my gross earnings rather than net earnings) I would like to NOT claim any expenses so that I can contribute as much to CPP as I can. It makes no sense to me to reduce my income further and pay less CPP. As well, with the higher self-employment earnings figure (gross amount of 10,800), my Working Income Tax Benefit would provide sufficient credit that would cover the cost of my CPP contributions with just a small refund left over. Am I allowed to do this? i.e. refrain from deducting actual business expenses in order to pay a higher CPP contribution?
    Thanks very much for your thoughts on this.

  457. Leanne Simon 04/17/2011 at 10:04 am

    Hi, I live in Ontario and grossed about $24,000 in 2010 and paid tax of roughly $2,700 and have nothing additional to claim. Would
    I be getting money back or owe money? Thanks

  458. Jim B 04/17/2011 at 4:32 pm

    I had US tax withheld on some investments and so I'm claiming federal and Ontario foreign tax credit. On form T2036 I just question if I'm doing the calculation correctly. On the form, regarding tax otherwise payable, it says...

    "If you were a resident of Ontario, calculate this amount by adding the amounts from lines 43 and 44 of Form ON428 to the amount
    from line 49 and continue the calculation. The amount from line 61 is your provincial or territorial tax otherwise payable."

    Now line 43 is Ont. dividend tax credit- so as a side calculation, this gets added back in to the amount on line 49? Then I redo the surtax calculation on this higher amount, add them all up and this new side calculation of line 61 is the "provincial or territorial tax otherwise payable"? (in the original calculation, line 43 is subtracted to give line 49 and then go on and determine surtax)

    Does this seem right?

    Thanks

  459. Hi Michael,

    Based on the limited information provided, the living allowance to be paid to you would be taxable. Even if the amount is not included on a T4 slip, you are required to report this income.

    I hope this has answered your question.

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

  460. Hi Christina,

    Good question!

    Yes, you are totally able to choose what/when or if you wish to deduct eligible business expenses on your tax return.

    I hope this has answered your question.

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

  461. Hi Leanne,

    Based on the limited information provided, you would be in a tax refund position of approximately $100.

    I hope this has answered your question.

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

  462. Hi Jim,

    Without more information regarding the source of investment income, assuming this is a foreign tax slip, not a T5 or T3, ignore line 43 as you wouldn't have any dividend tax credit.

    I hope this has answered your question.

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

  463. ryan 04/19/2011 at 6:10 pm

    Hi
    so as a incorpotated biz in Ont. with a yearly tax rate of 19.5%, instead of just handing it over to the government what % of that money can I spend on charity?
    like how does tax write off work for people in my situation?
    thanks

  464. Herb 04/19/2011 at 9:40 pm

    You wrote: Hi Amitabh,

    Tax Return reporting in Canada is based on residency, not necessarily citizenship, throughout the year. Any and all world-wide income must be reported to Canada while a resident in Canada.

    Q: Wife is landed immigrant of long standing, with a SIN, etc. I've always answered the Q on the tax form: Canadian Citizen.

    Am I in trouble?

  465. herry jones 04/19/2011 at 9:48 pm

    Dear Sir,

    I live in London Ontario Canada . I have a question if someone is getting 4500 $ from the government for his child and does not have any other source of income so what income he should show in the annual tax returns. I mean when he will go for filling annual tax returns so the person who will be for example from h&r block(tax company) will not ask him how he is paying his house rent or morgauge or the government will not ask him how he is surviving with 4500$ per year.

    Thanks,
    Jones

  466. Jeff 04/20/2011 at 9:46 am

    Good day,

    Now that I am living common law as of December 31, 2010, I must insert our net incomes in each tax return, could you give me some insight as to why this creates a combined $4000 balance owing. And why CRA doesn't pro rate to the officail day we become common law (i.e 12 months date)? Is it because we were actually living together the whole year anyway? Maybe I'm doing something wrong. Just doesn't seem right.

    Thanks in advance.

  467. Hi Ryan,

    Your required response is beyond discussion within this personal income tax forum, involves your personal input and cannot be answered within a few sentences.

    Your best alternative is to discuss your personal and corporate tax planning with your business financial consultant so you can explore all options available to you.

    I hope this has answered your question.

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

  468. Hi Herb,

    Stating that your wife is a Canadian Citizen when she actually isn't isn't a concern to Canada Revenue, but Elections Canada (the actual seeker of the information) may have concerns.

    Best to accurately answer the questions going forward than worry about past responses.

    I hope this has answered your question.

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

  469. Hi Herry,

    If the $4500 is taxable, the person must file a tax return to report this. Regardless of the amount whether it be $10 or $100,000 a tax return must be filed.

    I hope this has answered your question.

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

  470. Hi Jeff,

    The reason why the tax owing increases when you enter your common-law partner's net income on Schedule 2, is because the tax credits available for a common-law partner with nil net income are reduced when you report that eliminates the tax credit.

    Your question regarding why the tax credits and deduction isn't prorated does not only apply to common-law partnerships, but also marriages and births and also provincial residency.

    The magic date for tax record and reporting is always Dec 31. Traditionally, December is the tax planned month for marriages and births to get in on any/all tax deductions for the past year.

    I hope this has answered your question.

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

  471. Marie Taylor 04/20/2011 at 8:51 pm

    I am employed full time. I also have a home based business. When I begin to draw from my business can I put the entire draw into my RSP and not have to claim tax on the income? I receive a bonus at work and I always direct it into my RSP and therefore it is not taxable and am wondering if I can do the same thing with my self employment income

  472. Hi Marie,

    Unless your home based business has been legally incorporated, technically you don't 'draw' from the business.

    Assuming your home based business is not incorporated as most are not, the income is reported on your tax return when you earn it. The term 'draw' implies you are withdrawing from the business, but if the business is not incorporated you cannot draw from your own pocket.

    Relating to your RSP query, yes your tax liabilities can be reduced, the taxable income and profit from your home based business can be reduced by contributing to a RSP. Keep in mind the limits by reviewing your Notice if Assessment to determine what you can contribute without penalty.

    I hope this has answered your question.

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

  473. tony dege 04/21/2011 at 4:33 pm

    I could not find your answer to Nada about his dental cost ? Tony Dege

    His question was .......
    I”m from alberta and i just paid $27,201.00 Dental expences. It is new proceder.Dentures are skrewed into implants that was the only one option I have . How much will I get back on tax return ? anually income approx 68.0000,00.
    I borrow money from line of credit . I have some TFS money should I transfer from TFS asap and rest pay as I go montly . Idon’t like any dept Please advise thanks
    Nada thought on December 7th, 2010 3:39 am

  474. Hi Tony,

    According to the Tax Act, there is a lengthy listing of what medical expenses are eligible for the medical expense deduction.

    In this specific situation, dentures would be eligible for the medical deduction. For Nada, her medical deduction would be the difference of $27,201 less 3% of her or her spouse's net income (whichever is lower gets the larger deduction benefit).

    I hope this has answered your question.

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

  475. patti Crew 04/22/2011 at 2:31 pm

    What does average tax rate column and marginal tax rate column mean? which one do you look at. Thanks.

  476. Hi Patti,

    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.

    Depending on what you wish to know, either column can assist you.

    I hope this has answered your question.

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

  477. Narda 04/26/2011 at 3:32 pm

    I currently work a full time job, but also work as a freelance writer/photographer for two newspapers. I am paid monthly and there are no income tax deductions taken off my pay.
    Is there some way I can take the deduction off myself and submit it to the government each pay? I have no idea what to do...so any help is appreciated!

  478. Hi Narda,

    You have a couple of options:

    If the tax payable is over $2,000 per year, Canada Revenue would automatically send you a letter advising installment payments are required, how much and on what due dates.

    If the tax payable is less than $2,000 per year, you could easily make deposits to your income tax installment account via your bank's online banking web site. The payee would be CRA or Income Tax Installments.

    I hope this has answered your question.

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

  479. Lisa 04/29/2011 at 1:30 pm

    My husband worked in Alberta last year. He job was for 14 days on and 7 off, since we live in Nova Scotia he would fly home for his 7 days. Can we claim his travel in income tax

  480. Hi Lisa,

    Unfortunately, your husband cannot claim the travel expense for his 'off time'.

    He is, although, able to claim the initial expense of moving himself out to Alberta from Nova Scotia.

    I hope this has answered your question.

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

  481. Derek 05/01/2011 at 4:48 am

    Hi,

    I am a Canadian resident (according to 183 day rules) but have been living, while on paternity leave from my work in Canada, in Manila, Philippines with my wife and our newborn child. I left Canada on August 23rd (2010) and will return in early June (2011). Between EI and my employer's Supplemental Unemployment Benefit plan 'top-up' payments, I have been collecting 93% of my regular salary while on parental leave.

    My question is about the deductability (or tax credit eligibility) of payments that I have made to my wife here in the Philippines while I was living in Canada and she and our baby here in the Philippines. Can I claim/deduct the payments I have been making to support my family overseas?

    Also, since arriving in the Philippines, we've been drawing on my Canadian parental leave benefits (being deposited into my Canadian bank account) to support ourselves (including me, with these funds). My second and I suppose related question, is whether, when I file my 2010 return, I can in any way claim my wife and child as dependants whom I have in fact been supporting while living with them here in the Philippines. Please note that neither my wife nor our baby is yet a Canadian citizen or Permanent Resident and has never been to Canada. My wife's income is negligible. I am the sole breadwinner for our family.

    My regular Canadian residence, and the place to which I will return in June is Ontario.

    Thank you so much, in advance, for any guidance you can provide in our complicated situation.

    Best wishes,

    Derek

  482. Hi Derek,

    Good question!

    Firstly, unfortunately, the support payments you made to support your family overseas are not deductible for tax purposes.

    Secondly, yes, you can claim your wife and child as dependents on your 2010 tax return.

    I hope this has answered your question.

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

  483. Seongil 05/01/2011 at 4:53 pm

    Hi there,

    I was transferred to Canada since January 2010. I have been contributing Group RRSP ever since. However, I found out the contribution limit, which I don't since I didn't have any Canadian income. What do I do? I have been contributing 401(k) and I understand there is some treaty between Canada and USA regarding the qualified retirement plan. Does it matter whether I have been contributing to 401(k)?

    Thank you for your help in advance.

    from Toronto

  484. Hi Seongil,

    If you have been contributing to a RSP since January 2010 and without an contribution limit as you have no income for 2009, you will not be able to get the deduction for this contribution on your 2010 tax return.

    In fact, if you contributed more than $2000 during 2010, you will be penalised and taxed on the contribution portion over $2000.

    You will be able to use the 2010 contributions on your 2011 tax return.

    If you are deemed a Canadian resident, contributions to your 401(k) have no deduction eligibility in Canada.

    I hope this has answered your question.

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

  485. Laura 05/01/2011 at 8:48 pm

    I was a student in 2009 in Nova Scotia, and my total earnings was only $3000 which came solely from babysitting. I didn't receive a T4, but I do have a receipt indicating the name of the person to whom I provided the services for. I did not file an income tax return for 2009, but now realize that I could have transferred all my unused education credits to my parents which amounted to well over $5000. Can I still file a return for 2009, and will my credits still be transferrable? Will my receipt be accepted as a T4? Thanks for your help.
    Laura

  486. Hi Laura,

    Yes, on all counts...

    Yes, you can still file your 2009 tax return to report your babysitting income. Yes, the credit will be transferrable to your parent; they would be able to have their 2009 tax return adjusted, if desired.

    The receipt would be sufficient for your records, it would not equate a T4 as you would record the income as business income.

    I hope this has answered your question.

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

  487. tony dege 05/02/2011 at 1:46 pm

    Hello
    I just received the canada revenue agency notice of assessment for my 2010 incoome tax. it states that my RRSP deduction limit for 2011 is $22,450.00. May I now get my RRSP for this amount
    or must I wait until 2012 ?
    thank you
    Tony

  488. Hi Tony,

    Yes, you can contribute to an RSP with this information anytime after Jan 1, 2011... you are not required to wait until 2012.

    I hope this has answered your question.

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

  489. tara 05/02/2011 at 5:28 pm

    wonderful calculator! thank you!

  490. LSM Insurance 05/02/2011 at 5:47 pm

    Thanks Tara!

  491. eric m 05/04/2011 at 5:06 pm

    Love this site ... every canadian should look at it.
    I do have one question. I have just been given a severence by my company of a few months. Is this taxed at the rate my yearly salary is or the amount paid.

    thanks

  492. Hi Eric,

    If the severance was paid to you in a lump sum, your payroll office likely used rate for the severance amount.

    I hope this has answered your question.

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

  493. Tom 05/06/2011 at 10:17 am

    Question about using the calculator. The part at the top where it states "Taxable Income ($)." Does this figure include or exclude the personal exemption (approx $9000)?

  494. eric m 05/06/2011 at 10:32 am

    Just want to thank you again for such a great site!!!! Will forward link to all my contacts.

  495. LSM Insurance 05/06/2011 at 11:13 am

    Tom - Taxable should be your total taxable income including personal exemption. Regards,

  496. LSM Insurance 05/06/2011 at 11:14 am

    Thanks for the kind words Eric.

  497. Raj 05/10/2011 at 6:13 am

    I moved from canada to india permanently in april 23rd 2011, last financial year 2010 my income was only 1200 from UCTB and no other income from any source.
    Already cancelled uctb and cctb from may 2011( last payment was in april 2011) and not expecting any income from any source in canada. Do i need to file the tax return now or shall i just stop filing taxes permanently.am i eligible for any benefits. what are the implications for not filing the tax return.
    Thanks
    Raj

  498. Hi Raj,

    Since you received UCTB in 2010 and 2011, you are required to file a tax return for 2010 and then next year for 2011 UCTB.

    You are eligible for some tax rebates up to the date you left Canada and these will be lost if you do not file tax returns.

    As for not filing tax returns, if you return to Canada you would not be able to claim benefits until all tax returns for your residency have been filed.

    I hope this has answered your question.

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

  499. verlie 05/13/2011 at 6:27 am

    I am really impressed with this great forum you've created. The government site has all the facts (although not the calculator) but your one on one assistance is amazing. I have a question about medical expenses. (I live in BC) Are these a universal credit? or can you only claim them if you have expenses over a certain limit? If you don't send in receipts is there still a calculation for a medical credit based on taxable income or some other criteria? thanks dudes. ps. Suzie Orman move over!

  500. Majik 05/13/2011 at 7:39 am

    If I'm giving money to my daughter every 2 weeks (no longer with the mother and she has custody) can I claim some of that? It's not court-ordered child support but she my girl so of course I make sure she has... I deposit 500$ every month not to mention buy her all her school supplies clothes etc.... Is there something i can claim there? I'm in qc btw (in case it matters)

    Thanks, and great site btw!

  501. Hi Verlie,

    Thanks for your compliments... we try to fill the void for taxpayers in Canada.

    As for your question... a good one too! Medical expenses are unfortunately not an universal credit. The medical expenses deduction is based on a minimum amount and it varies from person to person as the medical expense deduction amount is any portion of the medical receipts over 3% of your calculated net income.

    I hope this has answered your question.

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

  502. Hi Majik,

    Unfortunately, the support you pay for your daughter is not deductible to you.

    Child support payments are only deductible in some rare instances where the child support payments are court ordered.

    I hope this has answered your question.

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

  503. verlie 05/13/2011 at 1:57 pm

    thanks for quick response to my question, you guys are awesome!

  504. LSM Insurance 05/13/2011 at 2:49 pm

    Thanks for the kind words.

  505. Terri 05/13/2011 at 5:07 pm

    Hello,

    I work a regular, 9-5 job, making a salary of 55,000 per year. I'm thinking of becoming part of a "direct selling" company as an Independent Consultant, which I've heard one of the perks is tax write offs. I'm curious, if my monthly income from the independent consulting were to be less than all of my business expenses, at the end of the year, would my "negative" income be able to be deducted from my normal salary of 55,000? Let's say I earn 2,000 from my consulting work, but my expenses are 12,000. Could my taxable income be lessened to 45,000?

    Thanks!

  506. Hi Terri,

    Hypothetically, yes, you are correct. Any losses from self-employment would go against any employment income.

    I hope this has answered your question.

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

  507. eric 05/14/2011 at 2:05 pm

    I am looking at taking a job that pays me less than the 80,000 I make now ..its going to be 68,000. Would I make about the same net due to the tax rate.
    Im in Nova Scotia ,

    Thanks

  508. Hi Eric,

    Without knowing the province you are moving from it is difficult to provide you with a complete answer.

    Based on the information you provided, living in Nova Scotia earning $68,000 would net you $47,600.

    I hope this has answered your question.

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

  509. eric 05/14/2011 at 6:23 pm

    love this site !

    Question. If I am a sales man and need a car for my job to make calls ,(the company pays my gas) can I write of the % business use on month car payments ?

  510. Hi Eric,

    Yes, but there are conditions: you must obtain a signed T2200 from your employer.

    As for your vehicle, if you lease, you are able to deduct the business use portion of the leasing cost.

    If you purchased your vehicle, you are able to deduct the business use portion of the interest in your car payment as well as capital Cost Allowance (Depreciation).

    I hope this has answered your question.

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

  511. Dave Nolan 05/16/2011 at 7:00 pm

    I work and live in Ontario but the company I work for is located in Quebec. They sent me a T4 and RL-1. Do I need to pay Quebec provincial taxes as well as Quebec employment insurance, Quebec RQAP and Impot du Quebec. Thanks

  512. Hi Dave,

    Good question!

    If you live and work in the same province, the payroll office should be calculating your taxes and source deductions based on the province in which you work unless there is something different quoted in your employment agreement.

    Many Quebec companies with employees in Quebec and Ontario issue T4s (for the Ontario resident employees) and RL-1s (for the Quebec resident employees), but for convenience issue a T4 and a RL-1 (so everyone gets both and they will contain the identical information).

    When completing your Tax Return, it is automatically calculated based on your province of residency at Dec 31. You have no worry of paying taxes to the wrong jurisdiction.

    I hope this has answered your question.

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

  513. ashley 05/16/2011 at 8:57 pm

    Hello,

    I am from Australia and currently in Quebec, staying on a working holiday visa, I start a job tomorrow which i will be at for around 2 months at $12.50 an hour, 40 hours a week, I will earn between $5000 - $5500 for the year, will I be able to get my tax back when I leave the country like working holiday makers can when leaving Australia, or will I have to wait until the end of the financial year to make the claim when I get back to Australia.

  514. Hi Ashley,

    Documents for tax return preparation and filing are issued during January and February of each year for the preceding year.

    You will be able to file your Canadian tax return for 2011 in early 2012 and at the time receive a refund of the taxes you paid.

    To ensure you receive the tax documents, please advise your employer to forward the T4 and other slips to your Australian address.

    I hope this has answered your question.

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

  515. Paige 05/17/2011 at 2:56 pm

    Hi,

    Hopefully you can help shed some light on my dilemma. I have been given a job offer in Singapore (local hire) and am trying to figure out how taxes would be calculated for my personal situation. I am an American citizen currently living in Canada under Permanent Resident status. In this scenario, I understand that I am responsible to pay taxes to all 3 countries (Singapore, USA and Canada) as I do not want to declare non residence for Canada. Hypothetically speaking, if the compensation was 300k CAD, what would I be responsible for in terms of global taxes factoring in tax treaties. Your advice would be greatly appreciated as I do not want to accept the job and be surprised later with my final take home pay!

    Cheers.

  516. Paula 05/17/2011 at 9:22 pm

    If I work 8 months out of year in Alberta and still employeed there by Dec. 2010 can I file my taxes in Alberta, I live in Nova Scotia for 4 months?

  517. Hi Paige,

    Tax reporting rules different between Canada, US, and Singapore. For Canada and Singapore, tax reporting of income is based on deemed or physical residency. For the US, it is based on citizenship.

    The piece of missing information in your question is how long of a duration will you be working in Singapore.

    Under tax treaty, you cannot be resident in more than one jurisdiction.

    Under tax treaty between Canada and Singapore, if you are deemed resident or physically resident in the country for more than 183 days, you are a resident of that country.

    Since you will be leaving Canada, let's assume you move July 1 and do not return in 2011.

    These are the tax reporting requirements you have:
    - All world-wide income earned while in Canadian up to July 1 is reported on your Canadian tax return for 2011.
    - All world-wide income earned while in Singapore in 2011 is reported on the Singapore tax return for 2011.
    - All your world-wide income for 2011 regardless of country is reported on your US tax return for 2011.
    - As a US citizen, you are eligible for an exemption of foreign income earned abroad of $90k.

    Our firm specialised in cross border taxation services. You can contact us directly for any tax preparation services you may require.

    I hope this has answered your question.

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

  518. Hi Paula,

    The province in which you are required to pay taxes on your tax return is the one you are physically living in as of Dec 31.

    For example, if you maintain an apartment in Alberta while working there and you visit Nova Scotia for the Christmas holidays and return to Alberta Jan 2, you are resident of Alberta and your tax return is prepared as such.

    I hope this has answered your question.

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

  519. grant 05/18/2011 at 5:13 pm

    I received a payment from ICBC as the result of an automobile accident. Do I have to report that on my tax return?

  520. Hi Grant,

    If the automobile is used for business (either employment, self employment, commission, etc.) purposes, the proportion calculated of the business use to the total use should also apply to the insurance payout and this amount 'business' portion should be reported as income on your tax return.

    If the automobile is only for personal use, the insurance payout is not taxable and does not require to be reported on your tax return.

    I hope this has answered your question.

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

  521. Rose G. 05/23/2011 at 9:26 am

    I have dual nationality, Canadian and Spanish.
    Me and my family are missionaries and factual residents of Canada, and non residents of Spain.
    Now we are living in Taiwan and we just got ARC )alien residence certificate) temporal because of studying chinese.
    We usually file our income tax to Canada as factual residents and low income family. But in 2010, my ex husband in Spain sold a property that was given to him when we got divorced, although the title deed has my name too. He gave me half the benefits, and i payed half of the expenses, including "plusvalia" tax to Spain. I sent the check to my canadian bank, and then transferred some of the money to Taiwan where we live.
    My income tax package just arrived by mail 15 days late, because my son forgot to send it on time. I dont know if i have to declare the selling of the house in Spain, put it as a gift, or ommit it.
    As we got the Taiwanese alien resident certificat in November 2010, i am not sure if we are factual residents anymore,in which case we dont have to file an income tax, but then will have to pay taxes in TAiwan. I am so confused. Please help us! Thanks. Rose

  522. Hi Rose,

    The reporting of the house sale depends on your residency at the date the Spanish house was sold.

    Canada tax reporting is based on residency. You are required to report on your Canadian tax return all of your world-wide income up to the date you ceased to be a resident of Canada.

    If you became a deemed resident of Taiwan during November 2010 (when you received your ARC) and the house was sold before the ARC date, you are required to report the house sale on your Canadian tax return for 2010. You are required to report the Capital Gain from the house sale as income in Canada. The capital gain is calculated as the difference between the cost of the property and the sale proceeds received. If the property was given as a gift, you will need to determine the value of the gift at the date it was received to avoid paying unnecessary tax.

    If the house was sold after the ARC date, you are required to report the sale on your Taiwanese tax return.

    I hope this has answered your question.

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

  523. Will C. 05/28/2011 at 5:48 pm

    My wife is expecting a severance package of $29130.10 her curent salary is $50,755 we live in Onatrio and it is part of a new contract they have signed at work they have to give up thier severance benifit, we owe $45,000 on our loc which is at %4, we are debating whether putting it all on LOC or RRSP or half and half, we have a good pension plan at work, what would you suggest

    Thanks
    PS Great site

  524. Hi Will,

    Pay down your LOC.

    At the same time put the monthly payments you would make to the LOC into a Tax Free Savings Account.

    I hope this has answered your question.

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

  525. Will C. 05/29/2011 at 9:55 am

    Thank you, never thought about the savings plan

  526. Jessica 06/01/2011 at 5:39 pm

    I didn't 'work' in 2010. Every other year that I didn't 'work' I received a cheque for my Income Tax Return. But this year I don't? They said that the amount (that I've received before) is now being added to the HST/GST return? I don't get it. It's NOT sales tax! I don't know if many the lady I talked to was wrong? Because I found my assessment open at my parent's house (as in my mom opened the envelop and took it out, which she shouldn't have done). I'm just worried I MIGHT have a cheque somewhere!

  527. Hi Jessica,

    I am not certain what you mean by "didn't 'work'". You have not provided any details of your tax return information so I am unable to comment on that.

    By the information you provided, if you had received the GST Rebate in the past, it appears that CRA has discovered information that does not make you eligible for the rebate amounts paid to you in the past so they are now collecting this amount from you.

    I suggest you contact CRA and ask why the GST rebate paid to you has been reversed.

    I hope this has answered your question.

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

  528. luc 06/01/2011 at 9:39 pm

    I'm a subcontractor whose net income was 48,000. However, I purchased a truck and made all payments of $670 with insurance of $315 as well as buying a $6000 trailor for work. Would these count as 100% deductions?

  529. Hi Luc,

    Good question! No and yes is the answer.

    CRA does not allow the write off of Capital Assets over $200. Which means your truck and trailer are not written off the year you make the purchase, but actually they are 'depreciated' and a portion of the cost is written off every year you own them.

    The interest on the loan to purchase the truck is fully deductible as is the insurance and operating expenses.

    I hope this has answered your question.

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

  530. Ferhan Sensoy 06/02/2011 at 8:46 pm

    Hi,

    Thanks so much for this great site and for your coaching.

    I moved to Vancouver, BC with my spouse in January 2011 and this is my very first year in Canada. I filled out two forms while being hired by my new employer; 1) TD1 (ie 2011 Personal Tax Credit Return) and 2) TD1BC (ie 2011 BC Personal Tax Credits Return)

    As I have an unemployed dependant; I claimed a total of $41,872 on these forms (ie TD1: $21,054 and TD1BC: $20,818)

    My gross salary is $57,000 and this is our only household income.

    The amount written on the 'EARNINGS' section of my biweekly paycheck is 57,000/26 = $2,192.31

    Other numbers on my paycheck are as follows;
    'TAXES'
    CIT = 307.26
    CPP = 103.35
    EI = 39.02

    'BEFORE-TAX DEDUCTIONS'
    Pension = 43.84

    'AFTER-TAX DEDUCTIONS'
    Two items = 53.42

    'EMPLOYER PAID BENEFITS'
    Taxable items = 30.31
    Pension = 131.54

    'NET PAY' = 2,192.31 less 449.63 less 97.26 = $1,645.42

    I have two questions;

    1- I want to make sure that my 'NET PAY' (ie $1,645.42) is being calculated correctly. Given the numbers stated above, how can I exactly calculate the same amount by my own ?

    2- In 2012, what would be the maximum amount that I can deposit to my RRSP ? I heard from my colleagues that they are maximizing their RRSP contributions and minimizing their tax payables by calculating the break-even point. Strictly speaking, I don't know what steps are to be taken in the beginning of 2012 (ie when I know the exact amount of my 2011 earnings)

    Thanks in advance for your kind advise.
    Best regards,
    Ferhan

  531. TNN 06/02/2011 at 10:41 pm

    Hi, we are moving to Ottawa, wondering where we would pay less tax between Quebec and Ontario, say three scenarios:

    1- 1 income $80,000
    2- 2 incomes each $80,000
    3- 2 incomes $80,000 and $40,000

    Thanks

  532. Hi Ferhan,

    For you to be able to calculate the net pay yourself, you would need to understand the complexities of the calculation.

    For your second question, you are able to contribute to an RSP up to a limit of 18% of your earned income.

    I hope this has answered your question.

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

  533. Hi TNN,

    The answer to your question depends largely on where you will be living vs where you will be working.

    The Ontario taxes are lower then Quebec.

    But, if you live in a province different from your employment province, your paycheque will be subject to the taxes of the working province. This will then be reconciled at tax filing when the tax payable on your income tax return will be based on your residency, not employment province. In this case, if you work in Quebec and live in Ontario, youll receive the excess tax deducted on your pay back as a refund. Whereas the opposite would happen if you live in Quebec and work in Ontario.

    I hope this has answered your question.

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

  534. eric 06/07/2011 at 1:12 pm

    Hi

    great site.
    1 question. If I wanted to use this to get idea of net pay , do I also need to add in CPP and UI

    thanks

  535. Hi Eric,

    The above calculator only calculates net income after income taxes, so, yes, for you to calculate your actual net pay you would need to also include CPP, EI and any other applicable deductions by your employer in your calculation.

    I hope this has answered your question.

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

  536. gloria 06/08/2011 at 4:22 pm

    Hello
    Writing from Montreal Quebec.
    I took a personal eave of absence from my work almost 4 years ago due to a burnout.6 months into my leave my dad got cancer and i had to help him out. 1 year after his cancer my dad passed away. My mom who is still living is disabled and has been diagnosed with a mild case of alzheimers. Needless to say i have not returned back to work. MY mom had services with the CLSC (federal govt assistance) here in Quebec. My dilemma is that due to the fact that i am off work and since my dad's passing had to move upstairs in an apartment in mom mom's home the CLSC is claiming that i am responsible for my mom and therefore cut 1 day from the services she was getting which was companionship. IS this legal? How can the assume
    or make me a permanent caregiver due to the fact that i am off work. The reason i haven't gone back to work is because she isn't getting any services. What are my legal rights? I would love to care for my mom but need to work. And from what i understand the govt does not allocate to caregivers which are immediate family members.

    I appreciate the reply

  537. Hi Gloria,

    Unfortunately, your questions is beyond the scope of this forum as it is a employment/benefit legal question rather than an income tax question.

    I suggest it would be best for you to contact legal assistance of your province for a no fee referral and legal aid.

    I hope this has answered your question.

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

  538. Anderson 06/16/2011 at 10:11 am

    Hi,

    My wife was on employment insurance in 2010 and received $23,000 from EI. She was able to have an ocasinal job that paid $7,000 no tax deducted.
    The "employer" issued a T4A to her. CRA is telling us she has a balance owing of $1600. Is that right?

  539. Hi Anderson,

    Based on the limited information provided, an exact answer cannot be provided to you.

    But if the part time income had no deductions made, it's highly likely the assessment is accurate.

    How does CRA's assessment compare to the results your wife filed in her tax return?

    Generally, EI payments only include a taxdeuction of 10%, your wife's income would be taxed a rate higher than 10% therey resulting in a tax payable balance. Additionally, since the part time income is considered self employment income, CPP contributions would also be applicable and would be included in the tax payable amount.

    I hope this has answered your question.

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

  540. Shripad 06/17/2011 at 11:33 am

    Hi,

    Recently I have moved from UK (UK Citizen) as I got a job with a Canadian employer. I am on 3 year work permit and my annual gross income is 81000 CAD$. I have two dependents (wife - not working and one child -14 months old). I have filled in TD1 and TD1ON forms which was given by my employer. The total entered TD1 is CAD$ 23185 (including personal 10527 + 10527 and 2131 for wife and child respectively) and TD10N form is CAD$ 16834 (including personal 9104 +wife 7730). I would like to know what will be my net income per year or per month. I understand there would be deduction of around CAD$ 3000 for CPP and EI. Please advice.
    Many thanks,

    Kind regards,
    Shripad

  541. Hi Shripad,

    Based on the limited information provided, assumptions were made (i.e. residence, no other deductions at source, taxable benefits, etc.)... your estimated net income would be $61,000 annually.

    I hope this has answered your question.

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

  542. Elle 06/22/2011 at 11:32 pm

    I'm a Canadian residing in the USA. I am considering working for a Canadian company in B.C. during the weekdays and communing back to my home in Washington state daily.

    If my annual base salary was $57,000 what would my estimated net income be?

    Thanks!
    Elle

  543. Yang Zhang 06/23/2011 at 4:42 am

    Hi,

    I would like to know that for a foreigner (with work permit for 2 years) who will work in a Ontario's university as postdoctor fellow with scholarship of $50,000 per year, how much will I pay for the tax? Is there any different for the tax rate between a non-resident and a Canada resident?

    Best regards!
    Yang Zhang

  544. Hi Elle,

    Based on the limited information provided, your estimated net income would be approximatelt $43,800.

    Due to your residency, you may be subject to additional taxes.

    I hope this has answered your question.

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

  545. Hi Yang,

    Based on the information you provided, you would be deducted approximately $9,000 in tax.

    There is no difference in the tax rate applied to Canadian citiziens vs foreigners... tax payable is based on residency not nationality.

    I hope this has answered your question.

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

  546. Susan 06/24/2011 at 1:09 am

    I have owned a cottage in Ontario for 12 years. The deed is in my name even though both my husband and I bought it. If we were to sell would any capital gain be taxed in my name or can it be shared with my husband?

  547. Hi Susan,

    In Canada, the capital gain can be shared between you and your husband.

    If you are ever questioned by CRA, it is best to have on file documents confirming both of you contributed to the purchase of the property.

    I hope this has answered your question.

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

  548. Haidie Ramos-Umangay 06/25/2011 at 11:41 am

    Hi,
    My husband is working as a Lecturer with one of the International Schools here in Ontario since January of this year. The school is paying him CAD $5325.32/month. He is on a contract basis, the school do not deduct his tax, CPP and EI from his pay. My question is, how much does he need to pay?How will he going to pay it?Do we need to phone the CRA about this?
    Thank you very much,
    Haidie

  549. Hi Haidie,

    From the information provided, it seems your husband is in a contractor position with the school. This means the school does not withhold taxes and your husband is responsible for payment.

    The total tax payable on the income would be approximately $13,450 plus CPP contribution of approximately $4,000. This would be reportable and payable at tax filing via his tax return at the beginning of the year.

    I hope this has answered your question.

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

  550. Paul 06/28/2011 at 10:47 pm

    Hey,

    Just to clarify so I understand this correctly, if I made 6,000 dollars this year, than I would not owe anything in taxes, yes? The calculator is stating I wouldn't owe anything until I made about 11k or more (I live in Quebec).

    Does this apply for Federal taxes too?

    Thanks.

  551. Hi Paul,

    Basically, your assumption is correct.

    Earnings under $10k would be income tax exempt due to the personal non-refundable tax credits.

    This would only apply to income tax, not CPP, EI or other applicable deductions.

    I hope this has answered your question.

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

  552. Dee Thomas 06/29/2011 at 11:47 am

    Great site. I am in such a dilema. I have been working for this company for 3+ years now. I was hired at a salary of $30,000, but I just recieve $1800 per month, with the following breakdown per month: CPP 109.31, EI 44.50, Tax 312.20, Salary Adjus (don't know what this is) 533.99. So in all, they withhold $1,000.00 every month.

    Can you please help me and tell me if they are deducting the correct amount of Tax, because every year I have been paying about $260 from my pocket.

    We are a couple, both earning the same amount, working with the same company, and file tax together. We have not yet filed for this year because I think I will need a lawyer to tell me if these are correction deduction OR are we being cheated? We have also not been given any raise in the past 3 years.

    Thanks for your help in advance,
    Dee Thomas

  553. Hi Dee,

    Unfortunately, the information you have provided doesn't add up...

    Based on a gross monthly pay of $2,500 ($30,000 annually), you should have an approximate net pay of $2,032.

    All source deductions (tax withheld from your paycheque) are monitored by Canada Revenue for accuracy. This is where you must verify your last paycheque stub of the year matches your T4 to ensure the amounts reported are accurate. If there is a discrepancy, it is your responsibility to report this to your employer.

    Above all, and more seriously, it's recommended that you find out what the Salary Adj amount is all about in your pay. If you are being cheated, this is where is may be happening.

    Regardless, if you arebeing cheated, not filing your tax return promptly is the wrong thing to do... Only by proving your T4 is wrong can you take any legal action, but this must be done BEFORE Feb 28, 2011.

    My reccommendtions to you:
    1) Find out what the Salary Adjust is and how it affects your tax and deductions.
    2) File your tax returns... if the tax and deductions have been incorrectly calculated, this will show up when the tax return is done.
    3) If you feel the tax withheld at source from your paycheque is incorrect, contact Canada Revenue Agency to file an equiry.

    I hope this has answered your question.

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

  554. khusro khan 06/30/2011 at 11:22 am

    Hi storoszko
    This is khan with you.Kindly give me a brief summary of my taxes break down with an annual income of 36k+6k payable towards gasoline allowance.Is gasoline allowance is part of annual income or is it exempted from annual income? Explain about RRSP Procedures also in my case.
    Thank you
    Regards
    KHAN

  555. Hi Khan,

    Yes, a gasoline/auto allowance is a taxable benefit and therefore included in income.

    Based on a gross pay of $42,000, your net pay will be approximately $32,900 after tax and mandatory deductions.

    As for your RSP, the contribution limit amount is calculated as 18% of your previous year's income.

    I hope this has answered your question.

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

  556. Beth 07/01/2011 at 7:55 pm

    I have been offered a job by a small company but was told that I will have to be paid as self-employed. I asked if I could be on payroll but they told me that they will not. I know that I will not meet the requirement as self-employed but I really need the job. What can I do to pay taxes and take care of required deductions such as EI and CPP? Can I do this on my way? How will this affect the company?

  557. Hi Beth,

    There are actually two issues here to ponder.

    1) Companies cannot arbitrarily choose to class an individual as an employee or as an independent contractor. There are specific rules by Canada Revenue which determine the difference.

    If you are hired as a contractor and the position is one of an employee relationship, the company is responsible for payment of CPP, EI, etc.

    2) If you on the position as an independent contractor, yes, you can contribute on your own to EI, for certain EI benefits, as a self-employed person as well as CPP. See here for EI details: link to servicecanada.gc.ca

    I hope this has answered your question.

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

  558. Mark 07/05/2011 at 5:44 pm

    Insurance question: How I can calculate the cash value on a Term 20 Life I? Also, I do have group life insurance at work...do I need to add as an asset in my NW statement the full amount? Thank you

  559. Barbara 07/05/2011 at 7:39 pm

    Hello Storoszko &Assoc.

    I live and work in ON but report to a company based in QUE. When I am taxed on income will I be subject to Que. taxes or ON taxes? It is my understanding that I am taxed in Que. If so, am I entitled to receive any of these taxes back because ON income taxes are lower?
    I maintain a home office in ON but am an employee to the Quebec company.

    -Barb

  560. Jodee 07/05/2011 at 10:28 pm

    Hi,

    Just a question for anyone who can help. I am getting a day care provider and she doesn't want to provide receipts. My husband and I each make about $80,000 a year and we will only require about $4000-5000 worth of care for the year. Is it worth it to us to be able to claim this amount and if so how much is she allowed to earn in ON, Can before paying tax on it?

  561. LSM Insurance 07/06/2011 at 8:21 am

    Hi Mark,

    Thanks for the note - almost all Term policies do not have a cash valie. If there is a cash value you can verify the amount with insurance company or your agaent.

    You would only put life insurance cash values on a Net Worth statement - your group life policy is unlikely to have a cash value. Thanks, LSM

  562. Hi Barb,

    Good question!

    Unless you have an employment agreement the indciates something different or the payroll office has coded as an out of province employee, yes you are subject to the employment province's tax and mandatory deductions.

    You are entitled to a refund of any overpayment of tax in excess of the tax rates of your home province. This refund is claimed when you file your annual tax return.

    I hope this has answered your question.

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

  563. Robert Latreille 07/09/2011 at 3:34 pm

    For the very first time I have started a small home business. I am semi retired and very unsure of how to go about it. Have looked up all the deductions I can take and I think I'm pretty clear on them but I have 2 questions I can't seem to find the answers to.

    1. If I purchase a vehicle for the business can a part of the price be written off?

    2. Is is wiser to pay my wife as an employee to do the books a couple of hours a week, or claim her as a dependant on my taxes?

    thank you so much for any help you can offer.

  564. Hi Robert,

    Unfortunately, you cannot write off the price of the vehicle, but you can claim a portion of the capital cost allowance or depreciation expense for the vehicle.

    Depending on how your business is set up (i.e. proprietorship, partnership, corporation, etc.), would also affect the decision in which to pay your wife. Generally, it is best to pay your wife and have her claim the deductions available to her.

    I hope this has answered your question.

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

  565. Jim 07/10/2011 at 8:52 am

    I am a Filipino and currently working here in Indonesia for an Australian company. The Indonesia phase of the project is almost complete and it will be continued in Australia for the hook-up phase which I will be joining too under 457 visa. Just recently, my family's application for Canada Permanent Resident has been approved and we should enter Canada before the visa expires in September 2011. We are planning to stay there in my brother’s house just for about 2 weeks. Then my family will go back to Manila to complete the kids’ school year while I will go to Australia to work until September 2012.
    What would be my Residence Status? Do I have to pay tax in Canada when I come back even if my income in Australia is already taxed? Please advice. Thanks.

  566. Hi Jim,

    Your status for tax reporting will be non-resident. To be a resident of Canada, you must be residing in Canada for at least 181 days and/or fulfill the deemed resident status requirements.

    I hope this has answered your question.

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

  567. Sami 07/12/2011 at 5:46 am

    Is there any different tariff for overseas income Commission coming from some other country and how do they charge, at the incoming bank or at the closing of the year.
    If the rate of Tax is different then please let us know the percentage of it

  568. Hi Sami,

    There is no different tariffs for foreign income in Canada. All Canadian taxation reporting is done annually in April.

    Please note though, depending on the country of origin, that country may apply a withholding tariff upon transferring the funds to Canada.

    I hope this has answered your question.

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

  569. Vanessa 07/13/2011 at 6:32 pm

    Hello, I just started a new job. I live in Alberta. My previous job salary was 35k / year. I ended up receiving roughly $1100 in my bank account per paycheck (twice a month.) My new job is 42k/ year, leaving me to assume my paycecks should be about 1400 after tax.

    However, I was surprised after receiving my first paycheck to find it was only ~1200. How is it that I am making 7000 more a year but only see 100 more per paycheck? My paychecks are biweekly, so there are 26 pay periods as opposed to the 24 at my previous job, but this still does not account for the missing $$$.

    I calculated everything carefully and they are taking exactly 15% in tax, so there is no problem there. Perhaps the old job was not taking enough tax? But this wouldn't make sense either as I always receive money back.

    Also, I always put money in my RRSP, probably 75% of the allowed amount (can never afford the top-up.)

    Please help!

  570. Hi Vanessa,

    From your question, I am not totally certain of what it is you are asking... I would be assuming you want to know why your net pay is only $100.

    Without seeing your pay stubs for your previous job and current job, a comparison cannot be made or assumed.

    Perhaps you have additional deductions or different taxable benefits with your new job that you did not have with your previous job?

    I hope this has answered your question.

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

  571. Sam 07/15/2011 at 3:35 am

    Hi,
    Is it right! that if i earn $20,000 and out of it i invest 15000 $ of my income in the same year in real estate or in any financial investment, my 15000$ income would be tax exempted, since i have spend money in the same year of my income

    Please explain

    Sam

  572. Hi Sam,

    Putting your earnings into an investment is not a tax deductible transaction, unless the investment is an RSP or a flow-through share partnership, but then you would only receive a tax credit and not exempt income.

    So, unfortunately, the answer to your question is 'no'.

    I hope this has answered your question.

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

  573. Glenn 07/16/2011 at 12:24 am

    Hi,
    I am being offered 90000 Annual salary in Toronto, ON.
    The salary will be paid bi-weekly. I got totally un-matched results from many web salary calculators. Need to understand my tentative take home salary for 26 pay periods (bi-weekly).
    Appreciate your help.

    -Glenn

  574. Hi Glenn,

    Based on the limited information provided, certain assumptions were made in the calculation.

    Your estimated average net pay would be approximately $2456.

    I hope this has answered your question.

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

  575. DJ Hale 07/19/2011 at 3:05 pm

    hey what a great site,

    I will be retiring in 2012 and will recieve two seperate pensions at 23,500 each. My wife has no pension and does not work so we can split the pension which according to your tabke saves us over 300 in taxes a year. each pension is paid to me by a different employer so i will have them tax me as singlr no dependants. I am getting a severence of approx 44,000 dollars also in Jan of 2012 can I request that this betaxed at 30% as my total earnings for 2012 will be 23,500 after pension splitting.

    I love to read the answers to some of the questions asked here as it demonstartes your knowledge and skill level congrats!

  576. Hi DJ,

    Thank you for the kind words!

    Unfortunately, the tax rate is not subject to negotiation when it comes to severance payouts, unless you wish to have a higher amount withheld.

    A suggestion would be to have the severance payout transferred to a RSP and then you'd be able to withdraw it as you require and pay the percentage of tax you wish (over the minimum required 10%).

    I hope this has answered your question.

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

  577. SM 07/20/2011 at 5:34 am

    Hi,
    To Glen July 16th,2011. Who is earning $ 90,000 you estimated Tax for him $2456 but when i calculate his earnings from your calculator it shows tax would be 25% and it comes $23059, why calculator is showing different amount or percentage then your calculation
    Calculator percentage or Tax amount is coming higher then your recommendation where is the problem or mistake

    Thank you

  578. Hi SM,

    Glenn asked to know what his NET pay would be based on a salary of $90k. The amount calculated of $2456 is NOT tax, but his NET pay per pay period.

    My calculation included tax, CPP, EI and other applicable deductions to determine the NET pay.

    I hope this has answered your question.

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

  579. DJ Hale 07/20/2011 at 2:06 pm

    Wow thanks for the quick answer.

    I am using the severance money $44,000 to pay off a debt is there anyway you would know the rate of tax deduction for the province of New Brunswick on severance pay. I had read some earlier posts where the advice you gave on paying off debt explains how is like earming a large return on an investment as you are no longer paying interest so I am going that route!

  580. danilo 07/20/2011 at 3:25 pm

    Hi,
    To Glen July 16th,2011 and SM July 20th. I got a bit lost, what is the difference between NET pay per pay period and after tax.

    Just wanted to know how much is the real amount (that is the important part) Glen will have biweekly (26 pays):2456 CAD or 2305?.

    I will have a similar situation.

    Thanks

    Danilo

  581. Jessica 07/20/2011 at 6:14 pm

    Hi!

    My husband worked 'freelance' for 4 months. He was going to this place of work 9-5, 5 days a week, etc., but he had to submit invoices. They didn't take off taxes or anything. I think he made around $16,000 (again, before tax). He doesn't have a business set up or anything. How would he claim this on his taxes and is there some sort of calculator to figure out how much he'll owe?

    Thanks!!

  582. Hi DJ,

    The exact tax rate I cannot provide for you as it may depend on different factors. I would estimate that it may be 25% (don't forget to also factor in CPP and EI contributions).

    I hope this has answered your question.

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

  583. Hi Danilo,

    The NET pay is the cash received. Pay after tax would not include other deductions and benefits. Taking into consideration all deductions i.e. (tax, contributions, deductions, etc.) would provide the NET pay amount.

    I hope this has answered your question.

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

  584. Ellen 07/21/2011 at 12:41 pm

    My husband and I file income tax jointly. I am presently unemployed but my husband earns over $100,000/year. Can I earn up to $10,527 this year (2011) without affecting his income tax return? At one time I earned just enough salary to take us up to the next tax bracket which ultimately resulted in me earning a negative income. I do not want to risk that again. Thanks.

  585. Hi Jessica,

    Your husband can use the income tax calculator above to determine the estimated tax payable.

    Your husband would report this income as Self Employment. He is entitled to utilise any appropriate and applicable deductions against this income to reduce his liability.

    In addition to income taxes, your husband would also be required to pay CPP contributions which amount to 10% of the taxable income.

    I hope this has answered your question.

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

  586. Hi Ellen,

    Pardon me, but I must correct you... in Canada all taxpayers file their own tax return if they have earned income or wish to claim the benefits available. So filing joint tax returns is not a possibility in Canada, unless there are certain specific conditions.

    I believe, through your question, you are asking what amount of income would affect your husband's ability to claim you as a dependent thereby reducing his tax payable.

    The Basic Personal Amount for 2011 is $10,527. There are other deduction amounts available to you, but you have not provided specifics to determine this. Without applying other deductions which may be available, yes, the maximum amount of earnings you can have for your husband to claim the minimum dependent spousal amount is $10,527. Income above $10,527 will reduce, but not necessarily eliminate the dependent deduction for your husband.

    I hope this has answered your question.

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

  587. Kay Hooley 07/22/2011 at 4:18 am

    Hello
    My husband started work in Montreal in May.
    I still live and earn in France. We were told by the french authorities that we would have to choose a "residence fiscal'. Which as our children are still studying and we own a house in France, we decided we will choose France to pay our income tax as we want to avoid double taxation.
    Since my husband has been working, he has had income tax already deducted from his salary.
    Can you please advise on the steps we should take to find out exactly what we should be paying and where and also if we can claim back the tax already paid in Canada as we will be paying it in France too.
    I hope that was clear?!
    Thank you very much.

  588. Hi Kay,

    Under the France-Canada Tax Treaty, for your husband not to be double taxed, he will need to apply on her French Tax Return for a credit of the taxes paid in Canada.

    On an aside, will your husband be working in Canada for more than six months? If so, he should claim his residency as Canada and therefore would only pay taxes in Canada. You and your children, since not living in Canada would remain French residents.

    Any income your husband earned in France before moving to Canada would be reported only on the French Return, not on the Canadian Return.

    I hope this has answered your question.

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

  589. Rita 07/22/2011 at 9:54 pm

    Hi!

    I have a question. I currently live in BC and if I earn between $36,000 - $38000 annually, how much should I contribute to my RRSP to get a refund of $7,000?

    Thanks for your help

  590. Karen 07/23/2011 at 9:55 am

    Hello
    I am a permanent resident of BC and may want to buy a home in QC for summer home/rental income. Will I still need to pay capital gains upon sale of this home even if it is in another province?
    Thank you in advance for any help.
    Karen

  591. Hi Rita,

    Based on an income of $37,000, you'd have $5,300 in tax deducted at source.

    The maximum RSP deduction depends on your personal contribution limit. You can find your RSP Contribution Limit for 2011 on your 2010 Tax Assessment notice.

    To get the maximum amount of tax refund, you would need to contribute $37,000 to an RSP.

    I hope this has answered your question.

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

  592. Hi Karen,

    Property purchased anywhere in the world, including BC and QC, which is not used as your principal residence is subject to capital gains tax upon sale of the property.

    I hope this has answered your question.

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

  593. Rita 07/23/2011 at 11:05 pm

    Hello,

    Thank you for answering my question. Does this mean if I contribute $7,000 to RRSP I will get that full amount back? Or, I will get the difference between $7,000 & $5,300 tax deducted?

    Thanks for your help.

    Rita

  594. Hi Rita,

    Unfortunately, you cannot get back more than you had withheld... if you contribute $27,000, you will get a tax refund of $5,300.

    I hope this has answered your question.

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

  595. Deborah 07/27/2011 at 6:25 pm

    Hello,
    This site is really helpful. Thanks so much.

    I have been employed since 2008 by a small not-for-profit human rights organization that is a registered charity in USA but is headquartered in London, UK.

    I am an employee, working mainly out of Canada (my home) 3/4 of the time and the rest overseas. My employment agreement stipulates that I am an employee, not a contractor, and that my org will pay into CPP and EI on my behalf. For a variety of reasons, this was not done from 2008-2010. In those years, I claimed by income under line 104 as foreign employment income and paid the income tax on it at the end of the year. My employer has recently got a non-resident employer account with CRA, and is now making monthly tax, CPP and EI remittances on my behalf.

    Because they did not have this account from 2008-2010, they did not pay into CPP and EI. Can they now compensate me directly for what they would have paid into CPP and EI? I could potentially just throw that money into my RRSP, which might mitigate my lost CPP eligibility years. My worry is that CRA might come back to either me or my employer in future and say that this income DID attract CPP and EI obligations, and make us pay the remittances plus interest and penalties.

    If my employer is not a resident corporation of Canada, can CRA do this?

    Just looking to resolve this expeditiously without attracting liability to me or them.

    Thanks!
    ds

  596. Hi Deborah,

    Unfortunately, your employer cannot compensate you for the employer's missed CPP and EI contributions because you never contributed or paid into CPP and EI.

    You did report the income accurately as foreign income as your employer did not have a CRA registration nor were you issued a T4.

    If your tax return preparer reported this income accurately as employment income, your tax return would have included a calculation for CPP contribution. If it does, your employer can reimburse you for the employer's portion of this contribution; you can find this amount reported on your tax return.

    Unless you contributed to CPP through your tax return, you cannot make up for the lost years.

    Because your employer was not registered with CRA, there will be no obligation on their part for the missed employer source deduction contributions. The onus was upon you to report this as employment income and contribute to CPP, but if CPP was not calculated on your tax returns, the opportunity to contribute is lost.

    Going forward, ensure your paystubs reflect the proper calculation of your tax and deductions and that you receive a T4 which includes CPP and EI contributions.
     
    I hope this has answered your question.
    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477

  597. Ellen 07/28/2011 at 8:19 pm

    Hi
    Great site.
    We also have a question. We operate a small federally incorporated business and have our end of year at March 30. We moved from Quebec to BC (including the business of course) in September. Do we just file in BC now, or are there things we have to do with respect to Quebec

    Thank you

  598. Hi Ellen,

    Since you've conducted business in two provinces you'll need to apportion the income to the two provinces on your T2 corporate return.

    Simply inform your tax return preparer of the situation so they can use the proper schedule to report the apportion.

    I hope this has answered your question.

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

  599. Kiwi in Oz 08/01/2011 at 2:17 am

    G'day,
    Great forum, keep it up!

    I was wondering if you can help clarify my potential tax obligations.

    I am currently residing in Australia (in my wife's house with 2 kids) but regarded as a tax resident by both NZ & Australia tax offices.

    I have been contracting through an umbrella contractor management company in Australia for various agencies over 3 years to various end-clients in Australia.

    I am being presented with a 6-month contract (software consultant) role in Montreal (Aug/Sept'11 to Feb/Mar'12). This offer was made by a Montreal IT consulting firm to assist with one of their end-clients' project. On top of an hourly rate, $60 per diem is offered, along with reimbursements of hotel/apartment, flights & airport transfers.

    I have also been given the option of either:
    a) return home to Australia every 6 weeks (i.e. work 6 weeks on & 1 week off); or
    b) bring my family over to join me in Montreal for a 6-month extended vacation while I slave away. :)

    The expenses of either options will be paid/reimbursed by the Montreal IT consulting firm.

    An officer at the Aussie umbrella company I currently work for, seems confident that this 6-month opportunity in Montreal will not require me to file any tax returns in Canada. I quote his statement:

    "Firstly, under the proposed arrangement, your legal employer is ABC Global Umbrella Coy and NOT the Canadian company. So, in theory you're rendering services to ABC Global which deputes you to Canada for this assignment.
    We invoice your client in Canada and they pay us, so the question of payroll tax doesn't arise.

    Hence, I don't think you need to worry about the Canadian Tax Implication. Secondly, our payments to you (part of your salary) will be technically an allowance and not a salary."

    However, having been through both the CRA website & this forum, I get the opposite impression, that I would actually be required to file income tax returns perhaps especially if my family was joining me in Montreal for 6 months.

    Grateful for your thoughts.

    Kind regards,
    Confused Kiwi in Oz

  600. Hi Confused Kiwi,

    This is not a simple situation to which I can say yes or no to your tax liability status in Canada.

    Most certainly, the reasons your employer has provided you are incorrect. The location of the employer does not determine tax liability. Nor does the difference between an allowance and salary, which are both taxable in Canada.

    To determine your legal tax liability, I recommend you get an official determination from the Canada Revenue Agency prior to you taking on the assignment. You can obtain the paperwork 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

  601. Kazee 08/13/2011 at 3:45 am

    Hi I am a new immigrant and finding a job nowadays. I wanted to know if i am offered a Sal of $70K, how much would i get as net income/take home sal. Based on the calculator above, is anything else deductible from the gross sal apart from Income Tax. Some ppl told us that you should calculate 40-45% deductible from the gross 70k . Is it true?

    Regards
    Kazee

  602. Bill 08/13/2011 at 11:29 am

    Great forum.... appreciate the valueable information. I was hoping you could provide some suggestions for my up coming situation. I live in Ontario and annually gross $67,000 per year in salary ($54k) and commission ($13k). I will be receiving a 1 time bonus in Feb. 2012 for hitting 2011 targets in the amount of $62,000 (gross). My wife and I have $25,000 in Line of Credit debt from house renovations. Any suggestions how to reduce lump sum tax incurred or how to allocate the funds effectively against debt? tks!

  603. Hi Kazee,

    Based on the limited information provided, the mandatory deductions in addition to the income taxes calculated with the calculator above would include CPP and EI. These contributions would amount to $2218 and $787 annually respectively.

    Other deductions to your pay may apply based on benefits and other options from your employer.

    I hope this has answered your question.

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

  604. Hi Bill,

    Based on the limited information provided, the most direct method for you to reduce tax at source is to have your employer transfer the bonus payment to an RSP, if you have the contribution room available.

    In your case, it would be suggested for you to contribute the maximum to your RSP and/or a spousal RSP; with the remaining balance, pay down your line of credit debt and with the remainder, contribute the maximum to tax-free savings accounts.

    I hope this has answered your question.

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

  605. Mustafa 08/21/2011 at 2:50 am

    Hi,

    I started work after graduating in June this year. My gross annual salary is 75000 (I also got a relocation payment of 10000) and I get a net biweekly pay check of just over 2000. I am a little confused as to how taxes work if one doesn't work for the full year. For 2011 I will only be working for 7 months (June onwards) so my gross income for 2011 will be 43750 (and the relocation). Does the employer take that into account when deducting taxes at source or are they taxing me at the rate applicable to 75000 for this year (while I am making a whole lot less for the year)? In that case will I be eligible for any refunds/tax credits when I file for 2011?

  606. Norah 08/21/2011 at 11:29 am

    Hi, this is a great resource site.

    Why do we have to file a tax return, the tax owed has already been taken through my employer. Why go through the extra step pf paying someone to do the same thing?

  607. Hi Mustafa,

    Taxes deducted at source by the employer are calculated based on the annualised gross amount of the paycheque. This process is set by Canada Revenue.

    Even if you worked and got paid just one pay period during the tax year, the paycheque would be calculated on the annualised gross amount divided by the frequency of pay periods.

    To determine if you qualify for tax credits or refunds, a reconciliation of your income is made at the time of filing your income tax return.

    I hope this has answered your question.

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

  608. Hi Norah,

    A good question!

    We have passed the peak of the personal income tax season and many taxpayers have not filed a return for the current year -- some have not ever filed. Along with the obligation to file a tax return set out by CRA, Individuals need to be aware of the many benefits in filing.

    Am I obligated to file a tax return?
    An individual has to file a tax return for 2010 if any of the following applies:

    You have to pay tax for 2010
    As a sole proprietor you cannot afford to take a chance. If CRA assesses your return they will not give you the deductions you are entitled to. You can save time and money by filing a return.

    CRA request
    Revenue Canada has sent you a request to file a tax return. Hurry if you expect to pay and prevent further interest and penalties.

    Sale of property
    You disposed of or realized a gain in property in 2010 or you are reporting a capital gain reserve you claimed in 2008.

    Repayment of benefits
    You have to pay back any of your old age security or employment insurance benefits (frequently referred to as claw back.)

    Also, if you have not repaid all of the amounts you withdrew from your registered savings plan (RRSP) under the Home Buyers Plan or the Lifelong Learning Plan.

    CPP contribution
    You have to contribute to the Canada Pension Plan (CPP.) This will apply if your total net self-employment income and CPP pensionable income is more than $3,500.

    Benefits of filing a tax return
    Along with the requirements to file a tax return as set out above, below are a few reasons you may want to file a tax return (There are a few new benefits this year):

    Claiming a refund
    You want to claim a refund because, of course, you earn more if it’s sitting in your bank account rather than CRA’s (Canada Revenue Agency.)

    GST credit
    You want to apply for the GST/HST credit.

    To receive family benefits
    You or your spouse or common-law partner want to begin or continue receiving Canada Child Tax Benefits payments.

    As a senior, you'd want to ensure to apply for the Senior's Property Tax and Energy Credit as well as other provincial and federal tax credits available to you.

    New for 2009-First-Time Home Buyers' Tax Credit (HBTC) link to cra-arc.gc.ca - $750 value.

    Non-capital losses
    You have incurred a non-capital loss in 2010 that you want to be able to apply in other years. As addressed in the previous issue, non-capital losses can now be carried forward 10 years. You don’t want to miss out on this one.

    RRSP contribution limit
    You want to report income that you can use to increase your RRSP deduction limit.

    Loan requirement
    For some individuals seeking a loan, the creditor may require previously filed income tax records as part of your financial data submission.

    More reasons to file your tax return this year. link to news.ontario.ca

    Note: The above list is non-exhaustive. As an individual, there may be other benefits to filing that are not listed above. Please contact a tax specialist for more information and answers to your specific questions.

    In finishing up, yes, you may have to pay to file your income tax return, by think of it as an investment with a return... the knowledgeable tax preparer will not just file your tax return, but also discuss with you your tax situations to see if you qualify for available tax credit opportunities to result in paying the least amount of income tax required... in many cases it pays You to file your tax return!

    I hope this has answered your question.

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

  609. Carmen 08/21/2011 at 4:02 pm

    We live in Que. and after pensions we need to draw from RRSP a net amount of $18,000, ie. after the deductions at source which is 20% every $5,000. Total annual income is close to $60K. what % of taxes are we supposed to pay over an above the age dedn`s and DDS. I am 61 my husband 70.
    Thank you!

  610. Hello,

    Your question is not a simple one! Due to the insufficient details provided in your question, more details are required to provide you with an accurate response.

    Examples of needed information:
    types (QPP. employer, etc.) and amounts (of each) of pensions of each spouse?
    does each spouse have an RSP?
    will the older spouse convert to RIF or annuity? what is the conversion date, if so?
    what is DDS?

    With the missing information, we would be in a better position to answer your question.

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

  611. Luke 08/24/2011 at 6:40 am

    Hello, I've been living abroad in South Korea for 3 years now and am planning to stay next year as well. I have not filed my taxes in Canada while I have been living here, but I have paid in Korea. I went to university and have tax credits from that, however I graduated in 2008, so next year will my tax credits from university vanish, after that point or will I still be able to use my credit on my years that I did not file.
    I am not sure if I qualify for being a non resident, I don't have any property, license or health care in Canada, but I do have a bank account and credit card, as I was paying my student loans. for a few years. If time is running out on my university credit, should I file in Canada? If I pay in Korea and income tax is lower than Canada, is it true that I'd have to pay the remainder to Canada anyway? If so I might as well do my taxes now and receive some credit, so that I won't have to pay as much money, if at all.
    Also, I did not yet file the taxes from the year I left Canada, which was in August of 2008. Your thoughts would be appreciated.

  612. Hi Luke,

    For the period of time you were not resident in Canada (the day you departed until the day you return and reside in Canada) you do not report your world-wide income to Canada. You are not able to utilise any education credits during this time.

    First thing you must do it file your 2008 tax return for all your income up to the date (August) you departed from Canada. You would be able to utilise a part of the education credits by doing this. By completing your 2008 tax return your education credits would be memorialised and available for future use. As long as CRA has a record of your education credit carryforward, you should be able to utilise the credits upon your return to Canada.

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

  613. adil 08/25/2011 at 9:46 pm

    hi, i am actually in a little jam right now, i have dual nationalities, canadian and pakistani, i left university of toronto and went to pakistan i have accumulated around 1.2 m cad. My father mother and brother are canadian citzens but not residents, i am. I have access to all there accounts if it helps. I need to transfer this 1.2 million to canada without getting taxed. I know i can get people to send 13k as gift money but the max i can do is around 15 people to send it. I am still left with about a million dollars, I need to get this money back to Canada without any tax or a tax rate that is under 5%. Please advise me any and all possible ways or options thank you

  614. adil 08/25/2011 at 9:59 pm

    I actually didnt know if my parents gift me lets say a million dollars from pakistan to canada i dont pay any taxes and they pay what canadian law states or pakistani law once again thank you

  615. adil 08/25/2011 at 10:14 pm

    do you know the maximum i can be gifted from pakistan, if 100k per person or 200k like india then oh man im the happiest man on earth

  616. Ana 08/26/2011 at 3:06 am

    Hello - Great tool and very informative site!

    I read through the posts and could get some of the answers already, but was hoping you could assist me with some insight to my tax obligations as a new resident in Canada.

    I received my residency in Ontario in march 2007 (I have had a social security number and valid bank account since march 2007) but have never lived in Canada. I will move to Ontario next month though.
    - Would I need to report my worldwide income after march 2007 although I really never lived in Canada? Is a bank account sufficient to establish residency for tax purposes?
    - Might sound like a strange question, but I have been cautioned from transferring my international savings into a Canadian bank account due to tax. Would any tax apply to previously accumulated savings brought to a bank in Ontario?
    Thank You.

  617. Hi Adi,

    First off, to answer your question, we need to know what you are asking exactly as your question don't appear to be consistent.

    Please confirm if this is what you are asking:
    - you are dual citizenship Canada/Pakistan
    - who accumulated the money where and when?
    - your father, mother and brother are Canadian, but resident in Canada
    - the money belongs to your parents, but you have access to their account

    In Canada there is no gift tax. If you have access to the bank account you just transfer to a Canadian bank without any tax implications.

    I hope this has answered your question.

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

  618. Hi Ana,

    If you have not lived in Canada, how are you a resident? Who informed you of this ststus, was there an official opinion issued by CRA?

    In Canada, income tax is charged on income not savings. Any income, after you become a resident of Canada, that results from holding the savings must reported as income and the amount if income determines the tax payable. This is regardless of where in the world the savings are located... Canada, France, Australia, etc. All foreign savings must be reported in Canada.

    I hope this has answered your question.

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

  619. Joe Minuti 08/30/2011 at 4:44 pm

    Very helpful site. Can I please confirm my figures. I am shortly to start a 4 year placement contract in Toronto from the UK. My Salary will be $75,000 which includes car allowence. Not sure what allowances there are in Canada so would an idea of what my take home pay will be. Thank you Joe.

  620. Hi Joe,

    Based on the limited details you provided and not whether you'd be subject to non-standard deductions, it is estimated your annual net pay after taxes only is approximately $58,000.

    I hope this has answered your question.

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

  621. Anne 08/31/2011 at 7:13 pm

    From January until August of this year I worked as an employee. I am now beginning a contract as an independent consultant and was wondering if there are any tax advantages to registering as a sole proprietorship and remitting HST if my anticipated earnings will be under $30,000. I am being paid a fixed amount and HST is not being charged. Thanks so much for your assistance.

  622. Hi Anne,

    Good question!

    Most persons and organisations engaged in commercial activities in Canada who have worldwide, taxable sales of more than $30,000 over any four or fewer consecutive calendar quarters must register for and collect the Goods and Services Tax (GST) / Harmonised Sales Tax (HST).

    GST/HST Registrants can claim a credit to recover the GST/HST that is paid or payable on purchases used to provide taxable goods and services. This credit is called an input tax credit (ITC) and can be claimed for the GST/HST paid or payable for goods or services acquired or imported for use, consumption or supply in their commercial (taxable) activities.

    GST/HST registrants who provide taxable goods or services have to charge and collect the GST/HST on their sales. If the GST/HST collected is greater than the GST/HST paid or payable, the difference is sent to the CRA. If the GST collected is less than the GST/HST paid or payable, a refund can be claimed.

    Do you need to register for GST/HST (Goods and Services Tax/Harmonized Sales Tax)?
    It is not mandatory for most businesses to register and collect HST until 29 days following the single calendar quarter or four consecutive calendar quarters in which they first exceed worldwide sales of $30,000. Unless you are 100% certain you will exceed sales of $30,000 in your first year, it's best to wait until CRA requires you to register.

    I hope this has answered your question.

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

  623. Jimboy 09/02/2011 at 2:28 am

    Very informative website.

    Just recently we became a Canadian PR. I am currently working with my family here in Indonesia until November 2011. My family then will move and live in Ontario, while I will continue working with my present company in Australia from December 2011 until June 2012 and will be going to Canada during my vacation.

    Please advise me if how am I going to be taxed in Canada if I am already taxed here in Indonesia and would be taxed in Australia as well. Your help is very much appreciated. Thanks.

  624. mahesh 09/02/2011 at 2:53 am

    Can anyone please let me know as how much in hand i will get after all deductions on an income of 60000 CAD / year and state will be Nova Scotia.

  625. Hi Jimboy,

    There is a difference between Residency for Immigration purposes and Residency for Taxation purposes.

    Residency for taxation is not an automatic issue if you are granted Landed Immigrant status.

    To be a taxable resident, you be living in Canada or have residential ties for at least 181 days.

    In your case, when you family moves to Canada, they will be taxable residents, while you will not be as you won't be living in Canada. Once your status changes, you are living in Canada under the requirements, you will also be taxable in Canada on your world-wide income.

    I hope this has answered your question.

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

  626. Hi Mahesh,

    Based on your details provided, without any soecifics related to any standard/non-standard deductions your employer would apply, your after-tax income would be estimated to be $44,800.

    I hope this has answered your question.

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

  627. Sue Simpleton 09/07/2011 at 12:53 am

    My father, a resident of Quebec, died last November. I am the executor and liquidator. I live in the US.

    I paid the RC and RQ taxes for his final return.

    His estate earned $8,000 during 2011, all from bank interest on his estate accounts.

    Am I right that because of a $40,000 estate exemption, that no taxes are owed?

    Do I have to file a T3 and a TP-646?

    Thank you,

    GP

  628. Hi GP,

    Firstly, our condolences for your loss.

    Unfortunately, the estate exemption is not for taxes owed by the estate, but it is for non-residents of Canada (namely, you) when you disperse the estate to non-residents.

    The Estate is responsible for all tax liability; in this case, yes, you are required to file a federal T3 and a QC TP-646 tax return for the income earned subsequent to your father's final tax return up to disbursement of the estate.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  629. GP 09/07/2011 at 3:44 pm

    Thank you for your prompt response.

    I am still confused.

    To be certain we are talking about the same thing, I am calculating tax based solely on investiment income, from schedule 12.

    I am looking at line 28 on the 2010 T3, schedule 12, whcih appears to allow for a basic exemption for everyone.

    I don't see any reference here to residents or non residents.

    By the way, I am the sole liquidator and sole heir.

    Please confirm that I am or am not entitled to this exemption.

    Thanks again for the great calculator and webpage.

    GP

  630. Hi GP,

    Schedule 12 is used to calculate the AMT which is in addition to the federal/provincial income tax.

    If you are the sole beneficiary, has the estate been dispersed (including income) prior to one year after your father's death? If so, when completing the T3, you must issue NR T3 slips to disperse the income to you and remit to CRA the tax withheld from the monies paid to you and thereby finalise the trust.

    If the estate has not been dispersed (including income), this income is reported on the T3 and the related tax calculated is to be remitted to CRA.

    If the only income earned by the Estate during the year after death is approx $8,000, AMT does not apply and only the federal and provincial income taxes are due.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  631. zak 09/08/2011 at 9:36 pm

    Hi there can you please tell me how much tax should i pay if i'm making 40000. I feel like i'm paying too much or my employer put me on a higher tax bracket. I live in Ontario and my understanding is that i should be paying 15% since i'm making less than 41700. Also can you clarify for me the percentage if is the total tax of the Ontario and the Federal?

    Regards
    Zak

  632. Hi Zak,

    Your marginal tax rate, based on your annual income in the calculator above is 24.15%.

    The 15% tax rate is the federal tax portion and the balance is the Ontario tax portion.

    Entering your annual wage into the calculator results in total tax of $6,071. This amount would vary from your actual tax deducted from your pay depending on your personal deductions and how you completed the TD1 form for your employer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  633. Susan Simon 09/09/2011 at 11:32 pm

    My father died 10 months ago in Canada. My brother and I, residents of the U.S., paid the taxes he owed up until the date of his death. Since then, less than $10,000 has accrued in interest in the Canadian estate account. We are the sole heirs and are now ready to disperse the funds to ourselves. Do we need to file a T3, pay tax on the interest, and then disperse the funds? Or can we disperse the funds to ourselves and each pay the tax on separate Canadian T1 income tax forms made out in our own names? The latter option would, I think, avail us to a personal exemption. Thanks, Susan

  634. Hi Susan,

    Since the Estate (Trust) has earned income subsequent to your father's death, it must report any income and disbursements on a T3 Return.

    The Trust is created as of the date of death of your father. The initial T3 Return can choose a year end date anytime up to 365 days after the date of death.

    Since your father passed away November 2010, the year end date would be October 31, 2011. If you disperse the income and assets (or not) of the Trust by Oct 31, you would file a T3 Return for Oct 31. Any income or assets dispersed after Oct 31, 2011 would be required to be reported on a T3 Return Oct 2012.

    When processing the T3 Return, the income is reported and T3 Slips are issued to report the disbursement of the income. If the beneficiaries of the Estate (Trust) are non-residents, as you and your brother are, NR (Non-Resident) Slips are issued to report the disbursement less the withholding tax for the dispersed income.

    Please note, a copy of the Last Will is required at filing of the T3 Return to prove/confirm the named beneficiaries of the Estate/Trust.

    As an American, non-resident in Canada, you have the choice of filing a NR T1 to claim a tax refund of the withholding tax on the NR Slip or you can claim a foreign tax credit for the withholding tax on your US 1040 tax return when you report your inheritance for 2011.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  635. Brenda 09/10/2011 at 9:30 pm

    Hi, I just cashed out an RRSP to pay off an LOC and start a savings account for a new car.
    The bank reserved 20% for Taxes. Can you tell me how to calculate the additional taxes I will need to pay? (I don't want to spend it all and then be caught short at tax time.)
    Thanks, any ideas would be appreciated.
    Brenda

  636. Hi Brenda,

    Without knowing the other income you have for 2011, we wouldn't be able to provide you with any estimated tax liability.

    Your best alternative is to:
    - first enter your gross regular earnings into the calculator above and note the tax payable;
    - then recalculate by adding your RSP (before tax) withdrawal to the gross regular earnings into the calculator to determine the total tax payable;
    - then subtract the first tax payable from the second tax payable for the actual tax difference due to the RSP withdrawal.

    - then compare the 20% withheld with the result above. If the 20% is more than the amount above, no additional tax would be needed at tax filing time; if the 20% is less than the amount above, what ever the difference is will be what you need to put away for tax 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

  637. Farid 09/14/2011 at 2:35 pm

    Hi Sir
    I am a business owner in Egypt. I got an immigration visa as PR. I am planning to come to Canada this month to landing process and get PR cards for me and my family (usually take 60 days) then we will back to Egypt for year or two to dissolution my business. Are these years abroad taxable in Canada although I pay local taxes here in Egypt?
    Thanks Alot

  638. Hi Farid,

    Once you are officially a Canadian resident for tax purposes, you are required to report your world-wide income and pay tax in Canada during your residency.

    Since you will be moving to Canada then leaving to and returning once again, you would require an official ruling on your residency for tax purposes to confirm what is required to be reported on your tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  639. julieth 09/16/2011 at 2:01 pm

    Good morning, I live in Alberta, I just opened a day-home, trought a day home agency, they charge to the parents 10 percent , I charge 850,00 per kid
    so is 935,00 the agency get 10 percent and give me 850,00. I think I will , make around 36.000 per year/
    so ,my question is, how much ,money i need to pay to the government in taxes,
    How much I should save per month 10 or 20 percent?
    sorry I do not have idea about taxes.
    thank you for future information

  640. Woody Wentworth 09/16/2011 at 2:36 pm

    Hello,
    I'm a 54 y/o american citizen (Wash resident) married to a BC ctz/resident with children who are dual citizens. I visit often but have a home in Wash State. All of my income comes from my US military pension, for which I pay federal tax - but no state tax (Washington state gives retired military a break.) If I were to move to BC and establish BC/Canadian residency (and maybe citizenship too) what would my taxes be? Gross pension income is $48,000. I pay about $5000 US income tax. I used the calculator above but what about the tax treaty credit? thanks,

  641. Hi Julieth,

    Without knowing what home based deductions you would have access to, based on the net income of $36,000, your tax liability would be $5,723.

    It's suggested you put aside $750 per month for tax and 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

  642. Hi Woody,

    Based on the limited information provided (i.e. credits available, etc.), using the calculator above results in your tax payable of $8,252 in BC.

    The federal US tax you pay on your pension would be refunded in full to you when you file your US 1040 showing you reported and paid tax 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

  643. Hi Woody,

    Based on the limited information provided (i.e tax credits and other available to you, etc.), based on the calculator above your tax liability would be $8,252 in BC.

    The $5,000 withheld for your US military pension would be refunded to you fully when you file your US 1040 reporting the income on your Canadian income tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  644. Richard 09/19/2011 at 5:42 pm

    I am planning on retiring 54 years old my work pension will be 2750.00 per month or 33,000.00 per year.Live in Ontario.What will be my income tax total and do I pay any other deductions.Worked 34 years same company.

  645. Hi Richard,

    Happy Retirement!

    Based on the details you provided, your net pension pay would be $2,344 monthly or or a total of $4,878 in tax deducted.

    There would be no other deductions applicable UNLESS related to your employer's plan.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  646. Richard 09/20/2011 at 4:31 pm

    Thanks for great answer no only other optional payment is $79.00 premium for Medical/drug/dental plan through employer which I will be taking.They're in contract talks so if I leave by end of 2011 medical cost is as above but company wants to stop paying their share for those retiring at Jan,01,2012 so if I wait till after January I pay $279.00 for same coverage so taking my pension and getting out in December.Oh and my pension is indexed and as you can guess government one like so many companies are trying to get rid of.

    Once again thanks great site.
    Richard

  647. Joseph Thomas 09/26/2011 at 12:45 pm

    I was considering a move to Canada, but it seems the tax rates are very high when compared to the States. Using a base of $200,000. taxable, the calculator showas a tax due of $72,945 for Ontairo Province. Is that amount just the tax due Ontairo, or does it include both National Federal Canadian tax and provincial?

  648. Hi Joseph,

    The tax rates in the calculator above reflect the total income taxes, both federal and provincial levels.

    The income taxes in Canada may seem to be higher at first sight, but when you observe the different taxation practises between Canada and the USA, you will see they are about on par, with Canadians getting more social benefits for their tax 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

  649. David 09/27/2011 at 4:37 am

    I have been working in Africa since May 2009 and would like to claim the T626 for the 2009, 2010 and 2011 (eventually). My company has a policy that they will not sign the T626 form - the reasoning behind this is unknown, and the company does not answer questions other than to say they will not sign the forms. I have records of my flights etc. and the company has claimed the South African taxes to offset my Canadian taxes. Is there any way to claim the Overseas Credit without the employer signing, especially since the records of the foreign tax payments exist?

  650. Hi David,

    Firstly, how long have you been out of Canada? Where is your tax residence? Do you work in Africa and return to Canada frequently? vacation?

    Have you filed a Canadian tax return for 2009, 2010, etc. Has your African paycheque been subject to CPP, EI, Canadian tax? or African local taxes?

    Here's some background:
    As a resident of Canada, you may be entitled to claim the overseas employment tax credit (OETC) for qualifying income (to a maximum income of $100,000 for a full year) from employment outside Canada.

    In general, to qualify for the OETC, you must have performed all or substantially all (at least 90%) of your employment duties outside Canada for a period of more than six consecutive months (all or part of which were during the tax year) with a specified employer.

    Your duties must have been in connection with a contract (or for the purpose of obtaining a contract) under which your employer carried on a business outside Canada conducting one of the following activities:

    - the exploration for or exploitation of petroleum, natural gas, minerals, or other similar resources;
    - any construction, installation, agricultural, or engineering activity;
    - any activity performed under contract with the United Nations (UN); or
    - any activity performed to obtain a contract to undertake any of the above activities.

    Note:
    Work you performed under an international development assistance program of the Canadian International Development Agency (CIDA) does not qualify for the OETC.

    With the limited details you provided an exact answer cannot be provided, perhaps if you provided more details or were to review the 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

  651. Cathy B 09/27/2011 at 2:28 pm

    We remorgaged two properties and invested the money into our corporation. We only have about 5000 of renovations that we can claim, on these two properties. The amount received for the remortgage was 140,000 for my husband and I. Can you give me an approximate $ value how much tax we will be paying, or is there a calculator I can use by plugging in numbers. Thank you

  652. David 09/28/2011 at 3:06 am

    Hello,
    I have been out of Canada from May 2009 fulfilling the 90% rule. I keep a residence, car etc in Canada and have remained a resident of the country. I am also paid in Canada, and continue to contribute to CPP and EI. There is a tax agreement between South Africa and Canada, so I pay tax to both countries - paying South Africa first, and the remainder or top-up amount to Canada.

    I returned to Canada on vacation in December 2009, December 2010, and July 2011. My assignment ends December 31, 2011.

    My employer is a Canadian company working on a construction project here. As far as I understand I should be eligible for the tax break, however, as I mentioned before my employer will not sign the T626 form. I was wondering if there is a way a letter can be written, as the proof is already in my tax record that I have worked and paid tax overseas.

    Thanks,
    David.

  653. Hi David,

    In order for you to qualify for the Exemption, your employer must be qualified to issue the T626 form.

    How does someone qualify for the OETC?

    To qualify there are specific tests that must be met:

    Qualifying Activity

    For OETC purposes, a qualifying activity refers to the activities performed by the specified employer and not that of the employee. THE FACT THAT IT IS THE ACTIVITIES OF THE EMPLOYER, and not that of the employee, is often a misunderstood part of the OETC.

    A qualifying activity includes the exploration for or the exploitation of petroleum, natural gas, minerals or similar resources; a construction, installation, agricultural or engineering activity; or a range of other similar prescribed activities. Support and other individuals assisting in the qualified activities may also qualify. For example, if all of the required conditions are met, the following employees carrying on a qualifying activity would meet the requirements for the OETC: instructors or administrative staff providing supporting services to fellow employees; staff who train the personnel of the foreign customer; and staff providing computer hardware and software services.

    Qualifying Income

    As long as all or substantially all of the duties performed by the employee are in connection with a contract under which the specified employer carries on in a business outside Canada, the employee should qualify for the OETC provided that the other conditions are met. Substantially all is taken to be 90% or more of the time spent working on the project should be outside of Canada. Therefore, individuals working on these projects can come back to Canada for short periods of time to work or vacation and still meet the requirement.

    Specified Employer

    A specified employer, for OETC purposes, generally speaking, is a person, partnership, or corporation resident in Canada.

    Qualifying Period

    A qualifying period, for OETC purposes, means a period of more than six consecutive months that began in the year or a previous year. The qualifying period must include part of the taxation year for which the OETC claim is made.

    The overseas employment tax credit is a complex area of the Income Tax Act. Given the complexities, and the potential tax savings that can be incurred, it is important that individuals or companies that may qualify seek clarification of eligibility and compliance from the CRA International Tax Office: 1-613-952-3741

    In your case, perhaps your employer refuses to provide you with the T626 as they as the employer may not qualify to issue it.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  654. Hi Cathy,

    Based on the information you provided.... there are no tax consequences involved.

    To confirm:
    - you and husband personally own two properties
    - properties were remortgaged and the new funds loaned to your corporation
    - you made $5000 in renos to the properties
    - you still own the properties

    If the above is accurate, no income tax is payable as no taxable transactions occurred.

    If the properties were sold and the funds loaned to the corporation, there would be a capital gain in the amount of the difference between waht you sold the properties for, less any renos and additions, less any outlays, less the original purchase price. 50% of the result would be a taxable gain.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  655. Milko 09/30/2011 at 2:20 pm

    Hello,

    I arrived in Canada 4 months ago and I've worked almost 2 months now (7 weeks). Salary is 47300, and according to the calculator above I should be getting net pay of 3013.00. However I only get 2852. Can you have any guess as to why that is? Will it level out, is the calculator approximate, or am I oversimplifying?

    Thank you very much in advance,
    Milko

  656. Hi Milko,

    Without actually seeing your paystub, I cannot make a determination as to why there is a difference between the calculated net pay and your actual net pay.

    The calculator above is generally accurate to within several dollars for a simple tax payable calculation. Perhaps your employer has you subject to other non-standard deductions (benefit contributions, other deductions, additional tax, etc.).

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  657. rewfarasfvmsdr 10/02/2011 at 7:07 am

    Great website...

    Cool post, I really enjoyed reading it. I will check out your site for some more content on this subject....

  658. marcelo 10/05/2011 at 12:25 pm

    HI,
    I work for a small corporation and the person who owns it put my name in corporations canada as the president of this corporation (just so i could be running the business for him). So i am not the owner but my name is on the federal corporation as a Director. When filling my tax should i put myself as an employee or since my name is on the company info I should put myself as self-employed?
    Also, I am not getting any kind of benefits and unfortunately also still not able to contribute with RRSP. My pay is going to be somewhere between 24k and 32k for the year(is this amount taxable?) and since I get paid all in cash, I am afraid to be falling behind on taxes I maybe should be paying. Should I be paying taxes on my pay that I receive cash around $2500 and $3200 month? If I am not paying now, will I have to pay tax on this when I do my income tax? And should I be keeping receipts of everything I pay tax on, to claim it back?
    Hope you can help me out on this!!

    Thanks!

  659. Hi Marcelo,

    I have concerns for you.

    Firstly, to answer your questions: an employee has tax, CPP, and EI taken off the paycheque and is given a T4 for tax reporting.

    If you are being paid in cash and consider yourself self-employed, you should be setting aside from the cash $650 every month to cover the tax and CPP contributions total$7800 for the year.

    Secondly, get your name off the corporation if you do not own it... being recorded as a director (president) with Corporations Canada makes you liable for any governmental debts owed by the company. For example, if the company goes bankrupt, you are responsible for payment of all taxes owed by the company. If the company does not report payroll details (like you working fir the company and being paid cash), you would be responsible for any income tax and related payroll deductions. If HST is owed by the company to CRA, you are responsible for payment if the owner defaults.

    Only the actual directors which share ownership in the company should be recorded to Corporations Canada.

    My advice to ytou is to find a job where you will be paid by cheque and will not be liable for company debts.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  660. Jessica 10/06/2011 at 4:46 am

    HI

    I am a Singaporean with a Canadian PR. I have been offered a Employment Contract with a Company incorporated in Toronto who will pay me in Canadian dollars to my Canadian account.

    However the phyical work location will remain in Singapore till 1 January 2013. During this period, am I liable for taxes in Singapore or Canada.

    I have called the Singapore Inland Revenue Department, according to the tax officer, because I am working in Singapore, I will be taxed here. However the company in Toronto has informed me that they will be withholding tax meaning my pay montly will be net of Taxes.

    I understand that Canada and Singapore have a tax treaty, so I should be taxed in both countries. What can I do to ensure that my company in Toronto pays me my full gross salary.

    In addition, when I sell my property in Singapore bought 4 years ago (before i became a Canadian PR), am I liable for any capital appreciation taxes in Toronto.

    Look forward to your advise.

    Thanks
    Jessica

  661. Jessica 10/06/2011 at 4:51 am

    Further to my question above, I would like to clarify that since Canada and Singapore have signed a tax treaty to ensure that individuals don't get taxed twice.

    In my case, Singapore has advised that I will be taxed in Singapore. How can I then ensure that my company in Toronto pays me my full salary so as to avoid double taxation?

    Thanks in advance for your reply.

    Rgds
    Jessica

  662. Hi Jessica,

    The tax treaties between Canada and Singapore were established to avoid double taxation of the people of those countries.

    Singapore is correct that you will be liable for taxes while resident there. At the same time, if you are resident in Singapore for tax purposes, you canot be taxable in Canada, unless you have income from Canada.

    I recommend you get an official clarification and decision of your actual status for taxability in Canada from the CRA. Your best place to start would be the International Office link to cra-arc.gc.ca You can confirm with them as to your requirements to contibute to CPP and EI while non resident.

    As for your question about how can you ensure you'll be paid your full salary... that would be up to you to detemine with your employer.

    As you'll be a non-resident, your employer would issue you a NR T4A rather than a T4 slip for tax reporting, if not double taxation is a high possibility.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  663. Jim 10/12/2011 at 12:11 am

    Hi there,

    Great site. I was wondering if someone could help me. I am on a 2 yr working holiday visa. In march I had to incorporate myself in order to get a job that I was offered. Im still unclear as to what amount of tax I will roughly be liable for when filing returns. This is giving me sleepless nights! I earn 800 dollars a week but when that goes to the corporation I just pay myself as an employee hence the company is actually making no money. Thats 42k a year. Given that the company is making no money, how will I be taxed? Im sure Ill have to pay an personal income tax that will come to about 7k but can you give me an idea of how much more tax I will have to pay at the end of year.

    I really appreciate your help!

    Jim

  664. Hi Jim,

    Unfortunately with the very limited information you provided exact answers cannot be returned, but here are some items you need to be considering:

    - you mention you are on a working holiday visa, does that mean you are legally able to work in Canada with the visa? I question this because you say you needed to incorporate to work for the employer.

    - how was the company (you) incorporated? As a corporation or as a PSP (Personal Service Provider)?

    - the payments made to you from the company would have had to be calculated to have the income tax and other source deductions remitted to CRA monthly.... if you are concerned about tax, I'm guessing you haven't remitted any source deductions from the corporation.

    - since your company is a foreign owned corporation, it does not qualify for Canadian Controlled Corporation tax credits.

    - personally, the tax deducted from pay is about 30%, so given your $42k a guestimate would be $15k.

    - corporately, the company will be required to pay payroll 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

  665. Jim 10/12/2011 at 9:45 am

    Hi,
    Thanks for the quick reply!
    Firstly let me say that I am fully legal to work in Canada. I live in Toronto Ontario. I work for a recruiter who have contracted me out to another company but they said that I had to get incorporated before I could be given the job. I was on my first visa at the time. I paid $200 to get the corporate cert and my company name is 7798431 CANADA INC. This is the link that the recruiter sent to me to pay the $200 to get incorporated: link to ic.gc.ca

    I dont see how it can be a foreign owned company as I was legal to work and live in Canada at the time of doing this (and still am). In the document that they gave me to do this, it said the following: Do not select “extra provincial incorporation” - this is not necessary and costs extra instead
    - Choose Proceed to payment for Federal Incorporation

    I have not done any source deductions regarding the corporation because to be honest I have been having a lot of trouble finding out information.

    Thanks for your help again
    Jim

  666. Hi Jim,

    I'm sorry to say that you've created a messy situation.

    Not only have you incorporated, you incorporated Federally (i.e. CANADA INC.) rather than Provincially.

    The reason your company is foreign owned is because you are not a Canadian citizen. Just because a person resides in Canada, doesn't make them a citizen and the nationality of the corporation's owner dictates if the company is Canadian Controlled.

    In addition to this, have you looked into the tax ramifications of incorporating in Canada and how it will affect you in your home country?

    Prior to incorporating, you should have contacted an accountant and a lawyer to determine the proper process.

    What kind of work do you do? Why was is mandatory that you incorporate federally? Generally, only a small number of professions can incorporate i.e. lawyers, doctors, accountants. Other professions cannot incorporate i.e. IT people, writers, etc.

    As for reporting and source deductions, at the time of incorporation you would have received a lot of documentation about corporate reporting in Canada.

    The first thing you would have received was your Canadian Business Number (BN) which links all the tax reporting accounts. One of those accounts, is GST. You would received reminders to file and remit your GST Return.

    By now, the Federal Corporations office will have contacted you to file your first Information Return, if this is not filed, your corporation is dissolved.

    Just to remind you of the situaly, now that you're incorporated, you have additional legal and mandatory reporting that must be following or you can be fined or penalised.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  667. Tamer 10/12/2011 at 1:34 pm

    This is a wonderful helping website, my question is very direct, I arrived 4 months ago after being outside of Canada for 3 years with my family without any returns during and without any bonds like car, house,...etc. So do I have to file 2009 or 2010?

  668. Hi Tamer,

    Based on the information you've provided, did you have any Canadian sourced income? If not, then no you would not be required to file for 2009 and 2010.

    On your 2011 tax return, you would report your re-entry to Canada on the date four months ago.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  669. Adil 10/12/2011 at 9:06 pm

    Hi,

    I have a weird situation and would appreciate any advice. I worked in the US for one of the largest telecom companies for almost 5 years under a work visa (doing IT work). I recently (as of 10 days ago) moved to Montreal as a Permanent Resident and my US employer offered that I keep working for them remotely for a couple of months until I transition my responsibilities to a new hire so now I am working from home in Montreal for my US company but only for a very short period of time. Two days ago, Exec management proposed to me to create a corporation in Canada and they would hire my company to do certain work. I am looking at the tax implications of incorporating myself and whoaa..

    questions:
    1- Can I self incorporate in a state other than Quebec to avoid some of the hefty taxes ( i will be getting a small office in that other state), and still work from home in Montreal, yet pay taxes based on the other state's for both corp and employee
    2- If I self incorporate provincially in Quebec, would I have any problems doing business with a US company?
    3- Is it beneficial in any way to incorporate federally?
    4- If i do incorporate in Quebec, how can I give my company an English name? I understand Quebec is pushing for new companies to have a French name, but i would need to have an English name... Can I have both maybe?

    Thanks and regards,

    Adil

  670. Rick 10/12/2011 at 10:45 pm

    Hi, a Friend recently won a lottery prize of $10,000 in Ontario, he earns $25,000 per year. Approximately; what will he Owe Revenue Canada For the Prize money? .....I suppose this will be considered income ? - Thanks

  671. Maria Vargas 10/13/2011 at 11:12 am

    Hi, we are buying a business in Quebec and it will make net aprox of 70,000/year. What will make me pay less taxes(option 1 or 2?) 1. Pay corporate Income taxes on the $70,000 or 2. Pay myself and to my husband a monthly salary that will get close to the $70,000/year and then pay taxes on our personal Income tax? -Thanks.

  672. Hi Adil,

    As for your questions:
    1) If you are the sole employee of this corporation doing IT work, no, you would not be able to incorporate. Individuals doing IT are considered Personal Service Providers and PSPs are unableto incoroprate.

    If you maintained several employees, you would be able to incorporate anywhere in Canada, but under Canadian tax laws, the income of the corporation is taxed on where the payroll is paid... i.e. the corp office is in Yellowknife, but you are located in Montreal. The corporation would report and pay tax in QC.

    2) There would be no issues in dealing with a US company.

    3) If you incorporate federally, you are able to do business in any province.

    4) It has been law in QC since the 1970s that all businesses must do business in French which includes having a French name. Why not just choose a bilingual name?

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  673. Hi Rick,

    If your friend is a resident of Canada, lottery winnings are tax free.

    If your friend is a resident of the US, no taxes in Canada are applicable, but the winnings are taxable 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

  674. Hi Maria,

    Corporations are taxed less that individuals.

    If the potential business would have a net profit of $70k and you and your husband did not take a salary, the corporation would be taxed on $70k. If you needed money from the corporation you would be paid out dividends which would include a tax credit for the tax the corporation already paid on it`s profit when you file your personal tax return.

    If you took a salary, you would be subject not only to income tax, but also CPP, health, etc. Salary income is subject to a higher income tax rate and be able to contribute to RSP, etc.

    Your best alternative would be a combination of the two to get the advantages of both.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  675. Vinny 10/16/2011 at 2:05 am

    Hi, I am moving in with my babies' momma in November. I will have an income of $47,000.
    Calculator said I will be paying $8200 in taxes. In total I'll probably have $10,000 in deductions(e.i. c.p.p)

    I will have 3 dependents, 2 under 18 years old.

    Do you think i'll be getting all my taxes back?

    thank you for your time. :)

  676. Hi Vinny,

    Based on the info provided, you would be expected to receive a tax refund of approximately $3000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  677. Edwin 10/21/2011 at 6:19 am

    Hi, I plan moving to Canada in Toronto city with my family (wife not work and 3 children under 11 years old). I'ld like to know about how much my annual income after tax if my annual $65,000. is there any tax deduction for family with 3 children ?

    BR//Edwin

  678. Chris 10/21/2011 at 9:39 am

    What is the difference between average tax rate and marginal tax rate. Please explain.

    I am looking at withdrawing RRSP for my kids education and they are SPOUSAL rrsp. I stopped making spousal contributions a few years ago which would allow me to withdraw them. My wife makes approximately $45000 a year. How much tax would she pay on $4999. I know my investment firm will tax 10% under $5000. I would like an approximate amount that she would have to pay over this amount.

    Also, can I claim my kids tuition to offset this tax on mt tax return or should I claim it on hers. My income is approx $110,000.?

    Thanks.

  679. Hi Edwin,

    Your net annual income, after tax and statutory deductions, would be approximately $51,300.

    The above calculation includes deductions for your children and dependent spouse.

    The tax deducted calculated by your employer may differ from the above calculation, but ensure your report your dependents to your employer via a TD-1 form to ensure your eligible dependent deductions are included by your employer.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  680. Hi Chris,

    This is the difference between the marginal tax rate and the average tax rate:

    Suppose your taxable income is $50,000, assuming you live in Ontario.
    On the first $37,774 the marginal tax rate is 20.05%
    Over $37,774 to $41,544 the m.t.r. is 24.15%
    Over $41,544 to $66,514 the m.t.r. is 31.15%

    Using the above marginal tax rates, the average tax rate on $50,000 would be:
    = [(37774 x 20.05%)+((41544-37774)x 24.15%)+((50000-41544)x 31.15%]/50,000
    = 22.24%

    The average tax rate is the rate calculated by averaging the total tax calculated from the marginal tax rates.

    Using the tax calculator above, tax on $49,999 is approx $9,077 and tax on $45,000 is approx $7,520. To answer your quesion, the extra tax over the 10% witholding tax would be approx $1,057.

    As for the tuition deduction, I suggest claiming it on the return that would benefit most, usually the higher income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  681. Alain Saumure 10/26/2011 at 12:59 pm

    Hi,

    I am seperating from my wife who is hadicap. She can't work and she is on a Canada pension plan and receive from them $500 a month. I will be kiving her an financial support of $1300 a month. My question is How much should she put aside or pay in income tax every month?

    Thank you.

  682. Hi Alain,

    If your wife is disabled and qualifies for the Disability Tax Credit (she should apply, if not already), her tax liability will be zero for her Canada Pension income.

    You must check with your lawyer, to determine if the spousal support you will be paying ($1300 monthly) will be taxable to her or not... if taxable to her, then it is a deductible expense for you; if not taxable to her, not deductible for you.

    If the spousal support is taxable to her, her total income would be about $21,600 so her total tax liability at year end would be about $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

  683. AThomson 10/26/2011 at 11:00 pm

    Hi, thanks for this tool.

    I live in Nova Scotia and do freelance work, so I opened an account to put away money each paycheque in anticipation of having to pay into my taxes, as I am not taxed on my work. I make about $22,500 a year. Because I am in a lower income bracket, do you think this calculator is accurate, in that I'll owe about $3,000?

  684. Hi A Thomson,

    Yes, the calculator above is accurate in calculating the taxes owed on your income.

    But, there is more than just taxes reprted on your income tax return. As you are self-employed, you are also responsible to contribute to CPP both the employee portion and employer portion which amounts to approximately 10% of your income.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  685. M. Rahman 10/28/2011 at 10:07 pm

    Hi, I am new immigrant and living in Toronto, Ontario since Jan, 2011. I do not have any Canadian income yet. I have purchased house for $500,000 and have put down $150,000. fm my overseas money and paying mortage of $1500 plus others expensess together approx. $3000 for family of 5. I have to bring money from my overseas income source (I have a business in Bangladesh). In my wife child tax benefit application I have declared 2009 $20000 overseas income (wife has no income). I would like to know when I will file next year income tax in Canada when my overseas income will be around $25000.. do I have to pay tax on this amount ? what impact will be the child tax benefit of my wife (now gets $744 for 2 under 18 child)?

    2ndly, I have just entered in a purchase agreement for a house for $400,000. on my personal name with $300,000 mortgage on it and also down payment from my overseas source. I am planning to re-build the few multi family homes (Town home type) and may sell or rent once built. Do I have to declare this property also in next year income tax file? I will pay the monthly mortgage of aprox. $1200 also from my overseas source. Middle of 2012 probably I will re-develop the property and sale or rent at end of 2012. Btw, this new purchase property has not been closed yet. I need your advise whether I should open a limited company and register the property under company name? or keep on my personal name? once I re-develop the property what will be the impact on my 1st income tax file in Canada on 2012 and and also in 2013?

    Will be helpful if you can advise on my situation..Thanks

  686. M. Rahman 10/28/2011 at 11:47 pm

    In addition, pls let me know what is the income tax rate for sole proprietorship company and limited incorporated company? I already have registered a sole proprietorship business which yet to start activities. do I need to make it incorporated?

  687. Hi M. Rahman,

    The change of overseas income will not affect the Child Tax Benefit to you.

    Effective you becoming a permanent resident in Canada, you must report all your world-wide income on your Canadian tax return. You would be required to attach the financial statements from your overseas business to the tax return as well as all your overseas assets.

    If the property you purchase is not to be used as your principal residence (i.e. rental, resale, etc.) it must be reported on your income tax return.

    Taxation wise, the better option is for you to hold the properties outside of an incorporated business.... the tax advantages are better as a sole proprietorship.

    The income tax rate for an incorporated business is less than the persdonal rate, but if you withdraw the profits from the business, they will be subject to your personal tax rate as well. The only advantage to incorporating is the deferral of taxes until you personally withdraw profits from the company.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  688. d harrington 10/30/2011 at 4:20 am

    I work for a company with offices across canada,I'm based and live in B.C. office, but worked two straight months in alberta and than another 5 weeks straight.
    My question is do I only pay the B.C. taxes and is there any reduction or for working away from home, besides employers compensation.
    Thankyou.

  689. Hi D Harrington,

    Depending on the arrangement you have with your employer, (i.e. were paycheques issued by the same pay office or different offices?), you likely had consistent deductions which would be the BC rates.

    It doesn't matter where you worked during the year, your income tax return calculates tax payable based on where you lived (permanently) on Dec 31.

    Since you moved to work for your employer, you would be eligible for the moving expense deduction, unless your employer compensated you for moving 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

  690. Gayle L 12/04/2011 at 10:20 am

    Hello, I am a widow and receive 15.492.00 a year, but this year I received 10.000. back pay from my pension, could you tell me about how much income tax I would have to pay. I live in Ontario and dont pay any tax deductions through out the year. Thank you.

  691. Hi Gayle,

    With only the information you provided, your tax liability would be approximately $3,000.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: link to twitter.com

  692. Sameer 12/14/2011 at 1:16 am

    I have moved to Canada in July 2011.
    Following is my Salary detail

    Total Earning (July -Dec) : 40299.81
    Following amount has been deducted from my salary (Jul-Dec):

    Govt Pen : 1915.99
    FEDL Tax :9023.09
    EI CONT :717.33 (I am not sure what is this component)

    Will I get tax refund ?
    How much approx. I will get?

  693. Sameer 12/14/2011 at 1:19 am

    Addition to previous information I am married. My wife is house wife & we have 3 year kid.

    Thanks, Soumya

  694. Al in Toronto 12/14/2011 at 2:24 pm

    Hello,

    I have a full time job that has made me over $50,000 this year and I also have a sole proprietorship business in Ontario that has made me $29,635. I've kept a lot of receipts for my expenses and this is my first year doing taxes this way.

    How much % will I be liable for and will the two be taxed separately or all together?

  695. Hi Sameer,

    Providing us with your year to date pay info does not give us a full picture of your deductions and income for the year ending Dec 31 and the tax status as you also failed to mention where you are living.

    Strictly based on the details you provided, assumptions of income, deductions and taxes were extrapolated to determine the following: you will be in tax payable position of approximately $700.

    I hope this has answered your question.

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

  696. Hi Al,

    In your question you do not mention if the $29,635 is before or after expenses.

    As you are a sole proprietor, all income is reported on your personal tax return - both as employee and proprietor. The total income is combined to calculate your taxes payable.

    Assuming the $29,635 is net, you'll have a tax liability of approximately $18,850 which will be offset by any tax withheld by your employer.

    I hope this has answered your question.

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

  697. Khalid 12/30/2011 at 2:44 pm

    I am retired and from time to time have some international students as homestay. I calculate that the expenses involved are about 80-85% of the rent paid by the students. Is the income from homestay students taxable in Canada?

  698. Khalid 12/30/2011 at 2:47 pm

    My sister is a resident of Dubai and wishes to send me cash as a gift. Is there a limit to the amount that can be sent as a gift and if the amount taxable in Canada?

  699. Hi Khalid,

    Yes, rental of rooms in your home is taxable income and must be reported on your tax return.

    In return, the student can file for credits of rent paid.

    I hope this has answered your question.

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

  700. Hi Khalid,

    Gifts between adult family members are not taxable in Canada. There is no limit.

    I hope this has answered your question.

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

  701. JB 01/01/2012 at 9:30 pm

    Living in Ontario, I am hard working women who is married to a man with essentially no income other than a very small pension of $6000. Through bad luck, timing, health issues it has been an up and down battle like this for years. I am now 59 years old and have virtually nothing to show for my hard earned income. My income is $105,000 (at a job over 10 years) and a few years ago consolidated the family debt whichI have been paying off about $12000 annually, since my husband stopped working in 2004 and also have a very small RRSP of $6500. We do not presently own a home, have a $5000 line of credit. It costs about $2200 for our rental home monthly. I do not have available cash to purchase the maximum RRSP annually which falls in the $20,000 range. If I could find a way to do this, perhaps I could purchase a home again or save for my retirement which is not too far away.

    My question is how do you recommend that I can get ahead through income tax or investment.

    Thank you. I have some confidence from reading from this page that you may in fact have some ideas which to date no one has offered to me.

  702. Terence 01/02/2012 at 2:21 am

    I registered a company this year for the first time. I was giving my live in girlfriend money every month to put away for taxes that I would be owing ( mistake 1 ) long story short I need to come up with this money now is this calculator accurate? I've pulled in just about $41,000 this year. Another question is all money to pay bills and every other daily thing has been coming out of the company account (have'nt paid myself anything all year ) How is this going to affect me ???

  703. Terence 01/02/2012 at 2:25 am

    Oh I failed to mention I live in Alberta

  704. Hi JB,

    Sorry to hear of your situation.

    You mention your husband stopped working in 2004 and there were various charges including medical expenses. Did you husband stop working as a result of a disability or health issue? If he did, he may qualify for the Disability Tax Credit which would leave more after tax dollars in your pocket and you could apply retroactively which could mean $1,000s in refunds to you. You can get more details and the application form here: link to cra-arc.gc.ca

    If you have some available money for savings, even if you cannot make the maximum contribution, contribute to your RSP to get a tax break... every dollar counts.

    If you are indifferent to living in the home you are currently renting, you do have the option of moving to a smaller residence to save rent money or looking for a smaller house/condo with mortgage payments significantly less than you are paying currently.

    I hope this has answered your question.

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

  705. Hi Terrance,

    The above calculator is for personal tax calculation. It would not assist you in the determination of the tax liability for your corporation. Corporate tax filing follows slightly different rules and definitely different rates.

    Any company money you used to pay personal bills and expenses is your take home pay, unless there were shareholder loans to the company. You will have to calculate the tax, CPP and EI (both the company's share and your deduction) and remit that amount to CRA by January 15.

    In additinal to the above, you will require to file a corporate tax return for the income the company earned during it's fiscal year.

    I hope this has answered your question.

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

  706. Robert 01/02/2012 at 7:05 pm

    Hi,

    I'm a 22 year old single male, no children. I work a single job as casual. this years gross annual was 15,864. with deductions of Federal tax, 1310.19, EI was 278.68 and CPP was 605.05. Last year i started the job in september till december and got back 1300. Will i have to owe money this year considering i made more money or will i just get a lower tax return? Thanks for your help

  707. Hi Robert,

    Based on the limited information you provided, your anticipated tax refund would be approximately $800.

    I hope this has answered your question.

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

  708. Dhawal Mehta 01/19/2012 at 12:56 am

    Hi,

    I went through the queries asked by some people and found you giving satisfactory answers to them and i really liked it.

    I also have an urgent query and would really appreciate it if you can help me with it on an
    urgent basis.

    I would be shifting to Halifax (NS) and i would be earning 60000/annum. Can you please give me a rough idea about how much would be my net take home.

    Also i goggled through and got basic information about the tax rate for the year 2011 but your tax calculator shows a different tax.

    1st 29590 8.79% 2600.961

    2nd 29590 14.95% 4423.705

    3rd 820 16.67% 136.694

    Total Income 60000 7161.36 Total Tax

    After tax 52838.64

    PLease help me with it.

    Regards,

    Dhawal Mehta

  709. Hi Dhawal,

    Based on the information you provided, $60,000 gross would net you approximately $42,000, exclusive of any other deductions by your employer.

    In your calculation, you neglected to include local and provincial taxes and exemptions.

    I hope this has answered your question.

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

  710. tony dege 01/20/2012 at 10:42 pm

    I plan on renting a condo that I bought but must first spend money to fix it up. Will all the expense to fix it up be tax deductable againt my job gross income or only against the rent that I expect to charge. $ 8000,00 expense but only $4000.00 rent in 2012.
    plsd advise
    thanks
    Tony

  711. Hi Tony,

    You cannot claim expenses for your condo against your employment income.

    When you prepare your tax return, each category of income is determined first.

    Once all the categories are determined, your Net Income is calculated based on your income and losses.

    I hope this has answered your question.

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

  712. Deb 01/22/2012 at 12:01 am

    I am in Saskatchewan and currently employed with 32 years seniority, with an annual income of $52000 and a pension of $327000. I am considering quitting and will be taking a temporary 1 year maternity leave position with another company. My annual salary will be around $40000 with no benefits, however with the potential for full time permanent employment which will include benfits that surpass my current and the salary will be approximately $50000. I have a total debt of $40000 and would like not to have to use any of my pension - just put it aside and let it grow for another 10 years. I need to know if I should take the leap and challenge myself with new beginnings and learning experiences or stay in the current rut I am in for another 5 years...I am 50 years old, and so confused. I appreciate any direction or feedback you may have. Thanks

  713. Richard Parkinson 01/22/2012 at 11:38 am

    The answer to your question requires a dialog rather than a quick answer, for which this forum is designed. The best advice I can give you is to talk to a few people you trust to give you the benefit of their experience, and consider what will be in your best interest.
    Moving on to a new challenge and opportunity is in my experience has been generally a positive step, but there are several dynamics to consider, e.g. do you have a spouse who is earning enough to pay the monthly expenses, do you still have young children at home, when do you want to retire, etc? What if the person whose place you are filling returns to fill her position, and the company lets you go. Do you have a skill set that is in demand, or would finding a new job at the income you are used to be very difficult. I know a few people who work for the federal government who hate their jobs, but stay because of the lucrative pension. Think about how much money you will need in retirement. Will CPP & OAS plus your pension be more than enough or only allow you a marginal existence.
    One last comment; you may be approached by a financial advisor who suggests commuting your pension and giving the money to him or her to invest. Don’t do it, at least not before talking to someone trustworthy, and that you know will take your best interest to heart. I have seen too many cases where people have done this, and found their retirement fund greatly diminished, or lost entirely. Also beware of anyone suggesting you leverage your existing funds, i.e. borrow to invest. While this strategy seems to work for a few, I would be surprised if more than 10% of people who borrow to invest are glad they did so.
    Have a discussion with Lorne Marr, the sponsor of this blog, as he is a person with good ideas and would give you an unbiased, and in your best interest, opinion.

  714. Deb 01/22/2012 at 1:16 pm

    Thank you for your prompt response, I sincerely appreciate your feedback. To answer a few of your questions, our children are grown and on their own, my husband and I also have a small trucking business with an employee - it generates a small amount of income (expenses and maintenance are high) ...and my husband has a very good paying job - however his pension is still a work in progress. We would like to retire between the ages of 60 and 65. I have also been approached to do bookkeeping at home which would/could generate between $10000-$100000 depending on how much work load I wish to take on.

    I can relate to your comment on gov't employees as I work for the provincial gov't and yes the pension benefits are good - however the department I am currently in is down to 2 people and being in a district no opportunity for movement elsewhere...so I fear that I would be declared surplus within the next 2 years.

    I don't fully understand where or how I should invest my money to make it work for me as I don't want to touch it till I am at least 60 and hopefully will be able to add monthly to it and with the compound interest would like to see it at about $550000 by age 60...Is that possible and would I just do that thru a bank??....I prefer not to do RRSP.

    Thanks again for you time and response.

  715. Richard Parkinson 01/22/2012 at 2:02 pm

    Regarding investment options, I personally believe in, have invested myself, and recommended to clients the Guaranteed Lifetime Withdrawal Benefit plans (GLWBs) such as Manulife's IncomePlus, or perhaps their relatively new PensionBuilder. Traditional brokers and mutual fund sales people hate them because you have to be life licensed to sell these plans and they always feel they can do better in terms of return. They also complain about the high fees these plans have.
    These plans are not for all of your money, just that portion of your portfolio that you would earmark for the fixed income, low risk portion. I like the idea of knowing the worst case scenario no matter what the market does, i.e. a net 4% simple interest, after accounting for the higher fees.
    I am sure Lorne would be happy to refer you to one of his brokers to provide you more information on these plans, which also have great tax efficiency when used for non-registered funds.

  716. Deb 01/22/2012 at 7:45 pm

    Thank you so much! I cannot begin to tell you how much benefit you have been to me in the last 24 hours. I am grateful for your insight and will send an email or contact Lorne to discuss further.

    If you have any further thoughts or suggestions please don't hesitate to contact me.

    Thanks

    Sincerely
    Deb

  717. Heather 01/23/2012 at 4:31 pm

    If you have had an income in both the US and Canada, and you file in both the US and Canada on the amounts earned in each respective country, do you have to declare your US income on your Canadian income tax file? If so, why?

  718. Hi Heather,

    Firstly, you would only be required to file income taxes in Canada and the US, if you are a US citizen or have a Green Card.

    If you moved from one country to another, here are your filing requirements:

    Canada to US:(assuming you are a Canadian citizen)
    You file a Canadian return for your Canadian income only, if you lived in Canada less than 180 days and cut all ties to Canada; you would file a US return for your US income only.

    If you lived in Canada more than 180 days or didn't cut your ties to Canada, you must report ALL your world-wide income (both US and Canadian) on your Canadian tax return. You would file a US tax return as a Non-Resident reporting your US income only.

    US to Canada: (assuming you are a US citizen)
    You file a Canadian return for your Canadian income only; you would file a US return reporting your world-wide income (US and Canada).

    The reason why you must declare your foreign income in Canada, is because it is the law. Funds transferred across international borders is tracked by the IRS and CRA to ensure all income is reported.

    If you wish to understand the international taxation process, including filing both US and Canadian tax returns and the new tax laws imposed on cross border citizens, please contact our firm directly.

    I hope this has answered your question.

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

  719. John 01/25/2012 at 1:54 am

    I am in the IT industry and I have been offered a contract position through a HR company. One of their requirements is that I incorporate. Before I venture into this, I am trying to figure what my actual end income will be. I cant find information on what deductions I need to save for (other than holidays/sick days, etc.). I need to know this in order to figure out how much I am actually going to net. Can you help?

  720. Hi John,

    Your best bet for an answer is to speak with the HR company.

    If the HR company states you must incorporate to be hired by them, they basically are saying you will be responsible for all employee/employer remittances. A Personal Service Corporation (you if you incorporate) does not get any tax advantages from CRA and is highly audited/reviewed by CRA.

    The cost difference between you being an employee and a corporation/contractor would be roughly 15%; that is whatever the pay they offer, 15% of it will be for the expenses they would have to pay if you were an employee. For example, if they offer you $11.50/hour, you really would only be getting $10/hour.

    Plus, you would not be eligible to obtain EI as you would be an independent contractor.

    Let the HR company know that CRA does not accept Incorporated individuals as contractors and that the HR company can be subject to audit and penalties.

    I recommend you look for a job elsewhere for your personal well being financially, unless the wage is so good to resist.

    I hope this has answered your question.

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

  721. brendan devine 01/27/2012 at 8:59 am

    Hi,
    Im a retired federal civil servant residing in Ireland.Im considered to be a non resident for Canada Income tax purposes and pay tax at a rate determinerd by way of treaty.
    My question is: Does the Superannuation branch take the required tax prior to distribution of the monthly pension, or am I to make arrangements with Income Tax to have this % retained by Canada?
    Regards
    Brendan

  722. Hi Brendan,

    You would need to confirm the amount of tax withheld by reviewing your superannuation statement. Alternatively, contacting your superannuation branch for information would be best.

    Yes, you can arrange to change the amount of income tax withheld from your superannuation. Your superannuation branch can provide you with the form required.

    I hope this has answered your question.

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

  723. darryll 01/30/2012 at 4:07 pm

    hi there, i'm a single male with no children. i'm wondering roughly how much i would receive back to me after filing for my income tax...
    my Income was $29,425.49 --- my deducted income tax was $4,587.68 --- Employee's CPP contributions was $1,276.65 --- EI premiums was $523.77. Approximate idea of what I should expect for a return? I appreciate you help, thanks

  724. Hi Darryll,

    Without knowing where you reside, we can't give you an exact answer.... but enter your income in the calculator above to determine your tax liability and compare it to the tax deducted from your pay. 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

  725. Norma Danbrook 02/06/2012 at 2:13 pm

    My husband owes approx. 3,000 in income tax. Annual income is approx. 63,000. Is there a calculation to figure out on how much in RSP's he needs to buy to offset this amount owing.

  726. Saima Malik 02/06/2012 at 2:40 pm

    Hi,
    I reside in toronto, Ontario. I made 37000 cdn in 2011, I have a 2 year old daughter whose daycare is Govt subsidized as my husband is a full time student and he does not get any student loan so basically I am paying for his tution and everything and my husband and my daughter both are my dependents.I have no pension plan. What do you think how much would I get back in tax return this year? Thanks
    Saima

  727. Hi Saima,

    Without more specific details, an exact answer is not available to you.

    But based on what you have provided, to get the maximum refund, claim your childcare expenses and transfer the tuition credits from your husband's tax return to yours.

    I hope this has answered your question.

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

  728. Hi Norma,

    At your husband's income level, for every $1,000 contributed to RSP would yield about $300 in tax credit.

    So, to reduce your husband's income tax bill by $3,000, he would to contribute $10,000.

    I hope this has answered your question.

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

  729. John 02/10/2012 at 8:58 am

    Hi There.
    I am self employed, made about 30,000. What is confusing me is regarding HST. From what I understand, I was "collecting" HST from the client I worked for. I am guessing I have to pay that HST back? So when I use the calculator, it shows that I have to pay roughly 5000 in tax, is that PLUS HST? (another 13%?) Thanks.

  730. Hi John,

    Basically, the answer is yes... you would be required to pay income tax of $5,000 plus the GST you collected ($30000 x 13% = $3,900).

    If you incurred any expense in earning your income, any GST you paid would be deducted from the GST you are required to pay.

    I hope this has answered your question.

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

  731. Marco A. Murillo 02/16/2012 at 6:08 pm

    I started a small business two years ago. It is still running slow, and for the year 2011 I have only made $9,602. I also worked as an employee for two companies, and four hours for the Salvation Army in Chistmas, my total income from all 3 jobs was $10,740. Right now, I have $5,000 in debt from credit, and I have an RRSP deduction limit of $18,624 for 2011. Can you help me to make the most out of my income tax return and tax deductions in this precarious situation?

  732. Hi Marco,

    You don't have a precarious situation, it really is not complex at all.

    From a tax view, the debt is not an issue.

    I would direct my response to your small business. If your small business is a sole proprietorship and not incorporated, the reporting is done on your T1 tax return using schedule T2125. You will be needing to remit the CPP contribution required for the profit on your small business income.

    If your small business is incorporated, it is a stand alone tax issue and required it's separate T2 tax return to be prepared and any income paid you from the incorporated business would need to be reported on a T4 from the business.

    Entering your total income from all sources into the calculator above will determine your tax liability. Compare the result of the calculator to the total tax reported on your T4s from your other jobs to determine if you are in a tax refund or payable position.

    I hope this has answered your question.

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

  733. Betty Truong 02/19/2012 at 7:24 pm

    It's Betty again, I reside in Canada, Toronto

  734. Ricky 02/25/2012 at 10:09 pm

    Hi,

    I attend a post-secondary institution full-time in BC. In 2011, I made about 13,000 in income and in paid roughly 3,900 in tuition. Do I stand to pay income tax? I also live independently when I'm in school.

    Thanks,

    Ricky

  735. Hi Ricky,

    Based on the limited information provided, no, you will not be in a tax payable position... you will be refunded.

    I hope this has answered your question.

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

  736. Deb 02/26/2012 at 9:33 pm

    I grossed $21,183 in 2011 and paid $5,081 in tax I also received $5,004 from my CSTP.I paid $2,507 in tuition for University and my parents paid $2,458. What is my net income for 2011? Should I be claiming both semesters of tuition on my income return or should one of my parents claim one semester and I claim the other semester. Also is there any benefit in me contributing to an RRSP for 2011

  737. Hi Deb,

    Your net income for 2011 is $26,187.

    You will receive one receipt for your tuition paid in 2011 and it will also include details for calculation of your education deduction.

    You cannot share your education deduction, either you claim it or your parent claims it.

    Yes, you can benefit by contributing to a RSP, but your contribution limit is based on your 2010 income. If you look up your 2010 tax assessment, you will see your 2011 contribution limit. This is the maximum amount you can contribute by Feb 29 for 2011.

    I hope this has answered your question.

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

  738. Deb 02/28/2012 at 8:26 pm

    Thank you for your reply. I thought a RRSP contribution by February 29th 2012 is based on the income earned in 2011, yet your response said the limit is based on income earned in 2010. Please clarify. As I earned $21,800 would I not be eligible to contribute a maximum of $3,924 based on 2011 income earned?

    I did not mention I live in BC; based on the fact that I have already paid $5004 income tax from my paychecks will I receive a refund even if I don't
    contribute to my RRSP?

    Thanks
    Deb

  739. Hi Deb,

    No, the Feb 29, 2012 deadline is for 2011 contributions based on earned income from 2010.

    Yes, you would be able to, but have you already exhausted your 2011 contribution limit? If you do not have income for 2010, any contribution your make by Feb 29 based on your 2011 earnings will not be deductible in 2011. Check your 2010 tax assessment to determine what you can contribute to your RSP by Feb 29, 2012.

    Based on your total income of $26,187 you would be in a tax refundable position of over $2,000.

    I hope this has answered your question.

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

  740. Angela 03/02/2012 at 3:03 pm

    It's my first year I don't have any tuition to claim on taxes. I worked 2 jobs.

    Job 1-$38,655.94 I had $6,135.52 in Taxes taken out. $675.16 in E.I $1743.39 in CPP and $624.62 in union dues.

    Job2-$1299.50 I had $36.67 in taxes taken out. $49.89 in CPP and $23.14 in E.I.

    I'm from Newfoundland. Do you think I'll have to pay in or get a refund on my 2011 taxes?

  741. Hi Angela,

    Based on the information provided, you are in a tax payable position of approximately $200.

    I hope this has answered your question.

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

  742. andre claveau 03/11/2012 at 5:52 pm

    Hello, I was just wondering why I lose almost a grand on my spousal deduction. They give a base of 10703 and give a maximum deduction of 9730?

  743. andre claveau 03/11/2012 at 5:54 pm

    Sorry, I should have mentioned that that was for the British Columbian tax.

  744. Hi Andre,

    You don't 'lose' anything on the spousal deduction in the non-taxable credit. If you are asking why the spousal deduction is maxed at $9,730 when the personal exemption is $10,703, that question you should pose to the Minister of Finance as this is the tax law.

    I hope this has answered your question.

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

  745. Shaun 03/14/2012 at 1:24 pm

    Hi:

    I work overseas as a management consultant, all my expenses are paid, although my salary is not high I am virtually zero financial burden on our household. 6 weeks away and 2 weeks off. My travel is also paid for. I do not require a home office. Aside from meals while traveling are there any other deductions I can use to minimize my taxes? I am not double taxed and pay in Canada, also am I considered a resident because of the ties because I am away for 70 percent of the year?

    Thanks.

  746. Hi Shaun,

    Based on the limited information you have provided, you are misinformed about taxable income and expenses. Your meals are not deductible unless they are paid as a result of employment conditions.

    Your taxable income not only is your salary, but also includes any financial benefit you receive in the process of your employment. This would include any expenses paid for you by your employer, including your travel.

    Your comment that you are not double taxed is confusing because no one is double taxed, do you mean you are paid in Canada for your work overseas? Do you receive a T4 slip?

    You are a resident of Canada, unless you have a permanent residence and pay income taxes outside of Canada.

    I hope this has answered your question.

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

  747. rhonda 03/15/2012 at 2:13 pm

    HI I was wondering my husband is in the process of heading out west for a new job and we are thinking household income will be about 90000 for the year I pay about 9000 taxes every year and about 2000 in medical and into a work pension of about 1000 and we have one hcild if we wanted to contribute to an rrsp to help in the tax area what would be a sufficient amount approximately thanks

  748. Hi Rhonda,

    Any amount up to your (husband's) Contribution Limit would be sufficient to reduce your tax payable and result in a tax refund.

    I hope this has answered your question.

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

  749. Jen 03/17/2012 at 12:44 pm

    Hi:
    I moved to PEI in May of 2011 because I found a job here. Before that, I had been living in Ontario with my husband. We have a house in Ontario and rent out the basement. So we have some rental income from this until now. Before 2011, all the rental income had been under my name. Now my husband's situation has not changed and I rent an apartment in PEI.
    So how should I file my 2011 tax?
    Do we have to file the tax separately?
    How about the rental income?

  750. Hi Jen,

    Since your husband and yourself are involuntarily separated with him residing in Ontario and you in PEI, this will be how you should file your tax returns to take advantage of the deductions available to you.

    You are required to report the rental income, don't forget to report your expenses as well.

    I hope this has answered your question.

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

  751. kimberly 03/20/2012 at 3:43 am

    I am a stay at home mother in BC, but I started collecting Washington States Survivors benefits from my children's father. We have four children together. What is required in regards to WA States benefits on my BC taxes? Will I have to pay anything?

  752. Crysti 03/20/2012 at 9:12 am

    Thank you for your reply. My parents come to visit us last summer from China and stayed more than 183 days in Canada in 2011. They took care my baby at home and I paid them $600/month for their help. Can I deduct the amount as daycare fees if my parents include the cash payment as part of their international income?

    Thank you,

    Crysti

  753. Karla 03/20/2012 at 12:15 pm

    I am a little confused, and looking for some clarification on the table. If i put in my total earnings for the year, does this caculate what i should have paid for taxes for the whole year? Is this the tax payable column, and what exactly is the second column telling us. I live in Alberta and made aprx 41,000.00 last year and when i look at the table there is a very large differnce in what i paid in taxes and what the table is telling me. So i am wondering if i am reading it wrong.

  754. Hi Kimberly,

    If you are receiving benefits from the US, you are required to report this income on your Canadian tax return. Depending on your income, you may be required to pay some tax, perhaps not.

    You are also required to file a US tax return or the benefits may be terminated.

    I hope this has answered your question.

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

  755. Hi Crysti,

    Are you parents permanent residents of Canada? Do they have a work permit? Most importantly. do they have Social Insurance or Tax Identification Numbers?

    If they do not have SINs or TINs, you cannot claim any care services provided by them.

    I hope this has answered your question.

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

  756. Hi Karla,

    The calculator above determines your tax liability in a general situation.

    The first column is your tax liability, the second column is your after tax (does not include CPP or EI or other deductions) income.

    When you question the amount calculated what are you comparing your T4 or your tax return? The tax calculated on your tax return can vary due to the different personal 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

  757. Lance 04/19/2012 at 9:07 pm

    hi i have couple questions regarding filing the tax return.
    1) % of tax transfer
    I am a university student in Quebec, with a tuition around $4000 for 2011. I also earned around $6000 gross work income (tax/CPP/EI were deducted when i received my paid cheque) i'm filing my tax return electronically and i wonder how much tax transfer i should made for my greatest benefit or just use the auto 45%.
    2) how can i claim textbook amount since i don't see any spot that i can filled up the amount i spent in 2011
    3) i lived by myself in a rent apt and i thought i could claim something for that. what is name of "item" that i can make the claim for the rent i paid
    4) i had some medical expense incurred in Quebec and some part of my expense were already reimbursed by my family health insurance plan in bc. how much can i claim for my medical expense: the total amount or the non-reimburse part
    5)lastly. for public transit expense, is it the case that I would be eligible to claim it only if its a monthly or annual pass? i purchased packs of tickets i wonder whether i could claim that

    I would very appreciate if you can help me to answer the questions above.. thank you

  758. Hi Lance,

    I'm sorry, but your questions seem to convoluted but I will try to answer.

    I do not know what you mean by tax transfer and cannot respond to this.

    Based on your income, there would be no need to choose other than the greatest benefit, it's your only option, so I do not understand why you would have any options.

    The textbook amount is claimed with your tuition automatically.

    Unfortunately, no, in Quebec no credit is provided for rental expense.

    When claiming medical expenses, you can only the claim your out of pocket expenses... so whatever amount you paid, you can claim, not the portion the insurance company covered.

    As you stated, yes, only monthly passes for public transportation can be used as a deduction.

    I believe rather than completing the tax return yourself, you should obtain professional assistance... being that you are a student studying in Quebec, you may not actually be considered a resident so it may allow you to file differently to allow you more beneficial deductions.

    I hope this has answered your question.

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

  759. Zach 04/27/2012 at 7:16 pm

    Hi, I had a question. I made just over 42000 in 2011. the employer I worked for uses the online deductions calculator on the revenue canada website. In addition to the amount it said I needed to pay in income tax, cpp and ei, I had payroll take off an extra $50 in taxes And yet as best I can tell I still owe the government money on my tax return.

    How does that work? shouldn't the governments own calculator be accurate? my salary hasn't changed all year so if the percentage they put in to the calculator on there end is right shouldn't I have paid enough even without the $1100 in extra taxes I had taken off?

  760. Hi Zach,

    The CRA Online Payroll calculator, obviously, is correct, but like all tools, the data entry person may not enter accurately or interpret the results accurately.

    If used correctly, the payroll calculator would produce results which would result in you over paying income tax during the year so there would be a refund at the year of the year.

    I hope this has answered your question.

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

  761. Sebastian 05/01/2012 at 4:06 pm

    Hi I'm not sure if my taxes are done right maybe you can help me out, i live in Saskatchewan. I'm a self employed driver, and in 2011 my gross earnings is a little over 101000, fuel and other deductions 15600$, and RRSP 1200$, according to my accountant I have to pay 22000$ for my tax, it seems I little high! Also my wife is self employed too, she made gross, little over 25000$ and we also got 15monts old baby,

  762. Hi Sebastian,

    Without seeing your completed tax return, an opinion cannot be provided to you.

    Your best option to speak with your accountant and have him explain line by line how your tax return was calculated... you paid him for his work so he owes you an explanation. If your accountant isn't helpful, I suggest you look for someone more helpful.

    I hope this has answered your question.

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

  763. Jean 05/09/2012 at 7:45 pm

    Hi, I am on cpp disability and will have a small rent coming in from my home. When I claim this will cpp lower my monthly payments because of extra income? Also if I started a small home business, more like a hobby, but use it to get a few deductions to help me out, will this also affect my cpp disability? thank you.

  764. Hi Jean,

    When you are on CPP Disability, you are allowed to earn some income before the payments are reduced.

    Best to contact Service Canada 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

  765. Villamor Gatchalian 05/24/2012 at 9:09 am

    Hi There,

    I was selected by one company in Calgary and want me to start by September 2012. the offer is 100,000 Canadian Dollar annually so it means my monthly salary is 8333.33, anyone can reply how much will be my take home pay after tax.

    Thanks,
    VMG

  766. sue 05/25/2012 at 7:57 pm

    hello! i know it's a little late to ask this question because filing of income tax is done. i just want an advice what should i do next. First, don't know if the one who did my income tax return 2011 had a mistake because i have an owing to the government of 2000 plus. my income is not that high though. If i will contact cra for this matter, can i file an reassessment to my income tax return? And how much is the max i need to contribute on my rrsp in such a way i will not have an owing next year?

  767. Hi VGM,

    Enter your salary into the calculator above to determine your after tax pay.

    By doing this, your after tax pay is approximately $73,500.

    I hope this has answered your question.

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

  768. Hi Sue,

    Firstly, if you ever have a concern about your prepared tax return, you should request the tax preparer to explain every detail of your return and, if your taxes were higher than previously, to explain why they are higher... it could be a mistake and easily corrected.

    If you have concerns about the person that did prepare your tax return, get a second opinion by going to a different tax preparer and ask for a free review. This will let you know if the return was prepared accurately.

    Only if you know for certain that your tax return is inaccurate, they yes, you can request an adjustment for the errors.

    Without knowing your total income and what it consists of, there is no way to easily advise you on your RSP contribution... if you are an employee, your employer will deduct the correct amount of tax for your income. If you have other types of income, generally a $1000 RSP contribution will net you a deduction of $150.

    I hope this has answered your question.

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

  769. Marija 06/02/2012 at 10:43 pm

    I really need an advice. I am a newcomer and on my first job in Canada I signed the contract stating that I will not earn more than $8000 this year. Because of that, I am getting my full minimum vage, I don't get tax deductions. I have calculated that by the end of the year I will earn more than $8000. Will I eventually have to pay all that amount that wasn't deducted from my pay check? My 3 months trial contract is about to expire and I don't know if I should ask for a different payment agreement.
    Many thanks at advance,
    Maria

  770. Hi Marja,

    If you signed a contract maximising your income to be no more than $8,000, how can you earn more than the maximum?

    Yes, if you and your employed agreed that no tax deductions would be withheld from your pay, you are required to pay any tax owed on this amount earned. You should not make any agreement to do this as this is not approved by CRA and the employer potential can be fined sand penalised for doing this.

    I hope this has answered your question.

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

  771. David Walker 06/09/2012 at 5:21 pm

    As a BC Resident i made $ 27.000 in 2011 single working 2 casual jobs, after doing taxes, i was informed i would have pay $ 800 to the government........ does this sound right. thank you..

  772. Hi David,

    Unfortunately, without knowing how much tax was deducted from your pay by your employer and the amount of tax CRA states you owe, we can't provide you with an exact answer.

    Your best option is to enter your gross income into the calculator above. The result calculates that your tax liability is $3,276. Compare this amount to the amount you calculated and the amount CRA assessed to determine the difference.

    I hope this has answered your question.

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

  773. Andrew Smith 06/26/2012 at 1:15 pm

    I make about 60,000 a year and I have an at home wife and child. I live in Ontario, Canada and I would like to know how much additional income will I have with a dependant?

  774. Hi Andrew,

    You won't receive any additional income. Your wife will be eligible to claim the Universal Child Care Benefit which would amount to about $200 per month.

    If you are asking about a tax deduction, the child would amount to about $100 off your taxes when the UCCB is taken into consideration.

    I hope this has answered your question.

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

  775. Qazim 08/09/2012 at 11:18 pm

    Hi there,

    I am married and my husband and I make 123K/year (77K and 46K) gross income. We were blessed with twin babies this year (February) and were wandering how these new additions to our family influence the tax payment i.e. does the fact that we are four in our family decreases the yearly amount we pay in taxes and if yes by how much appx.?

    Many thanks in advance!

  776. Hi Qazim,

    Congratulations to you and your family!

    Many variables determine your tax liability as a family unit.

    The new addition would certainly provide you with tax credits, but you would also be receiving taxable benefits as a result of the addition.

    It would be difficult to provide you with an estimation as all the variables would need to be reviewed to provide an exact answer.

    I suggest you speak with a knowledgeable tax preparer in cross border tax reporting to handle getting your tax filings in order and done accurately. Having your partner dependant upon you would also qualify you for a US deduction to reduce your US tax liability.

    Our firm specialises in helping individuals like yourself and your partner in cases similar to yours. For more info, contact Joanne at [email protected]

    I hope this has answered your question.

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

  777. Roy 09/06/2012 at 6:38 pm

    Thanks for taking the time to answer these questions!

    My wife is in the process of starting a small home-based business. I have been paying her start-up costs, which will amount to perhaps $10,000 dollars, and she expects to take in around $2000/month revenue. I have a salary that puts me at a 40% marginal tax rate. We live in BC.

    My question is, since I'm paying the costs for my wife's business and she's providing the labour, can we form a general partnership in which she claims 100% of the revenue as income and I claim 100% of the expenses as a loss? Or are costs and revenue divided at the same percentage?

  778. Hi Roy,

    Unfortunately your idea/suggestion is not possible.

    Partner in business share proportionately both the income and expenses of the business. One partner is not permitted to claim only expenses while the other income, regardless of which partner contributed or paid for the expenses.

    As the additional income would be taxed in your higher marginal rate, I suggest you merely record the money you contributed as a loan so you would get the money back from the business when the cash is available.

    I hope this has answered your question.

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

  779. Rahul 09/12/2012 at 6:09 pm

    Hi,
    I have been working with a Canadian employer full time for last three years. Now, they want me to take care of one of their subsidiary overseas. I will be stationed overseas for three years, full time. I was wondering about if I still have to pay income tax. There is no income tax in this particular overseas country.
    What happens if I get paid in Canada?
    What happens if I get paid by the subsidiary overseas? This subsidiary is entirely different entity and has nothing to do with Canadian company legally.
    Thank you so much in advance for your advise.

  780. Alex 09/13/2012 at 10:41 am

    Hello.
    I have established myself as a Sole Proprietorship overseas (in a country of my citizenship which has a double taxation avoidance agreement with Canada) and this will be my only source of income in 2013. Income tax rate there is 6%. I plan to make US$120k gross. I will stay in Canada 183+ days in 2013. What would be my tax obligations in Ontario?
    Thank You.

  781. Hi Rahul,

    Whether you are required to file and report your world-wide income to Canada Revenue Agency would depend on the Employment Agreement with your employer and the tax residency status determined by CRA. Even though you may be working in a foreign country, you may still have tax residency ties in Canada making you responsible for reporting any/all income to CRA.

    Contact CRA for further clarification.

    I hope this has answered your question.

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

  782. Hi Alex,

    As you are a tax resident of Canada, based on the information you provided, you are required to report your world-wide income on your Canadian tax return.

    As per the tax treaty, double taxation will not apply... any tax paid in the foreign country for the income will be applied as a foreign tax credit in Canada.

    I hope this has answered your question.

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

  783. mariepaule damour 10/05/2012 at 10:53 am

    im canadian cityzien and us cityzien i recive 2 pension 1 american 1 canadian i live 6 m0nth in us and 6 month in canada i do my tax in canada my question is do i report the 6 month of my pension i recive in the us to canada tanks for your help marie

  784. Hello Mariepaule,

    As a dual citizen (US/Canada) you must report ALL your income to both countries.

    Your tax preparation service can assist you in avoiding duplicate tax between the two countries.

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

  785. Andrea 10/11/2012 at 2:20 pm

    Hi, I have a bit of a unique situation. I had a job previously that paid $41,000 gross a year. I quit April 13. In June I started my own business and accepted a project that pays about $40 per hour. With the hours I worked out until the end of the year that would amount up to about $29,000 for the year operating on my own. I don't have any expenses at this point and live in BC.

    Would you be able to calculate a rought estimate of what I will owe in taxes,CPP and HST at the end of this year?

    thanks so much.

  786. Hi Andrea,

    Using the calculator on this page:
    link to lsminsurance.ca
    will permit you to get a rough estimate of your tax liability. CPP is based on a flat percentage of your income: 9.9%. So, to the tax liability calculated, add 9.9% of your self employed income for your total required amount payable at year end.

    As for HST, only if you are registered with CRA are you required to collect and remit.

    I hope this has answered your question.

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

  787. Rene 10/18/2012 at 10:54 pm

    Hi
    Great resource !
    Canada and Switzerland have a tax treaty in place. Form what I understand if you are a resident of one country you will not be subject of double taxation. The treaty says one is resident if "he shall be deemed to be a resident of the State in which he has a permanent home available to him;" So if I rent an apartment in switzerland (no apt in Canada) I will be resident of switzerland and therefore not subject to double taxation. Does this apply even with strong ties to Canada (i.e. a job waiting for me that I could start after 18 months or so )

  788. Hello Rene,

    The tax treaty between Canada and Switzerland prevents double taxation, but can still be payable in both countries.

    Having a rented apartment in Switzerland would not automatically make you a tax resident of Switzerland nor would it make you a non-tax resident of Canada.

    There are specific guidelines to determine tax residency and it is very possible that you can be tax payable in both countries.

    Being tax payable in both countries would mean you would have to file tax returns for your income and receive a foreign tax credit for any foreign tax paid to the lower taxed country.

    I hope this has answered your question.

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

  789. Rene 10/21/2012 at 4:12 pm

    Hello
    Canada and Switzerland have a tax treaty in place. The double taxation can be avoided if ( so the tax tready) 'he shall be deemed to be a resident of the State in which he has a permanent home available to him' If I rent an apartment in switzerland does this override the CRA condition of not having strong ties to Canada when they determine if one is 'Non Resident" for taxes. I am taking a 16 months leave from my job to work back home in switzerland but may job (if desired) will be available in 16 months.

    Thanks for your info

  790. Hello Rene,

    Yes, Canada and Switzerland have a tax treaty in place, just as Canada has a similar tax treaty with the majority of countries of the world.

    The tax treaty prevents double taxation, it does not prevent paying of taxes.

    Even though you may be working in Switzerland and paying taxes, you can very much still be responsible for reporting your foreign income to Canada and paying tax in Canada. The tax treaty ensures you do not pay double taxes, so you will pay taxes, but only to the maximum of the country with the higher tax rate.

    I hope this has answered your question.

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

  791. tony 11/01/2012 at 4:23 pm

    hi
    im an electrician interested to know how much tax ill pay on €132,000 / year
    i work in the oilsands in alberta
    im based in calgary have 4 kids ages 4 - 9 and my wife.
    they are not here at present as they will follow me over.
    Does the tax situation change regardless of them being here or not at present.
    Also is there a tax refund at year end like there is in Australia ?
    Im Irish by the way !

    Thanks

    Tony

  792. Hi Tony,

    Enter the gross amount of your earnings (in $CDN) for 2012 into the calculator on this page:
    link to lsminsurance.ca

    The calculation results will provide you with an idea of your tax obligation for 2012. If the tax calculated is higher than you pay in, you will be required to pay the additional tax at tax filing time... in most cases though, generally people get tax refunds when they file their tax returns in early 2013.

    Once your family joins you in Canada, you would be entitled to additional credits which would increase any tax refund to you.

    Since you are a newcomer to Canada, please ensure you find a professional tax preparer to assist you with you tax return to ensure you do get the maximum deductions available to you.

    Our firm is available to assist you.

    I hope this has answered your question.

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

  793. Giovanni 11/23/2012 at 9:41 am

    I will be a new resident in Canada and would like to better understand the taxation system.
    Do I have to pay both federal and provincial taxes (Quebec)?
    If yes are the provincial taxes calculated on the same income or are they calculated on the remaining difference between (income - federal taxes)? In case of my income as employee is 90K CAD x year what the net income might be only considering basic tax creedits and a family formed by my wife+my son 25 old and me?
    Many Thanks for your attention.
    Giovanni.

  794. Zawiah 11/24/2012 at 6:48 am

    I found this forum very infromative.

    I got permanent residence in Canada in July 2010 and stayed in Toronto for 3 weeks and decided to come back to UAE as I was not sure whether I will be moving permanently to Canada. However, later on I decided to move to Canada and landed in Canada after 2 years in July 2012 with my family. I did not have any residential ties for the period July 2010 until 2012. Do I need to file tax return for 2010 & 2011 as I was in Canada during this period?

  795. Al-Debby 11/24/2012 at 7:10 am

    Hi,

    I resigned from a Saudi based company in November 2012 and as per the Saudi local laws employer has paid me 15 years of end of service benefit (Gratuity). I’m also permanent resident of Canada and established residential status in July 2012 as my family is living in Toronto since July 2012 and I’m working in Saudi. My world-wide income is taxable due to resident status as I do have residential ties in Canada. Do I pay tax on full amount of 15 years of end of service benefit or only the portion which relates to period since I established my residential status?

  796. Hi Giovanni,

    Yes, your total income is reported on both your Quebec and Canada tax returns and is taxed based on the gross amount after personal deductions available to you.

    To have an idea of your tax liability for 2012, use the calculator found here: link to lsminsurance.ca
    Enter your gross income into the calculator to obtain 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

  797. Hi Zawiah,

    If you did not have ANY residential ties (apartment, bank accounts, credit cards, other property, direct family members, etc.) to Canada, No, you are not required to report non-Canadian income.

    BUT if you had ANY Canadian income during this time, Yes, you are required to file a tax return to report it and possibly your foreign income.

    I hope this has answered your question.

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

  798. Hi Al-debby,

    It does not matter when the severance pay is earned, what counts is when the severance pay is received. If you received the cash payment of your severance pay while a tax resident of Canada, the entire amount is reportable and taxable.

    I hope this has answered your question.

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

  799. Brenda 12/29/2012 at 6:24 pm

    I am a working senior earning 35,000 a year plus CPP and OAP.My husband and I are separated and he being an American citizen - I am receiving a spousal senior pension from the US. Do I pay tax in Canada on this pension?

    Thanks,

    Brenda.

  800. Hi Brenda,

    All income you receive while living in Canada is potentially taxable.

    If the pension is an employer's pension plan, yes it is fully taxable.

    If the pension is a Social Security payment, only a portion of this will be taxable.

    Keep in mind also, that you are required to also a file an US tax return to report the income to IRS/US; you may be eligible for tax credits as a result.

    Our firm specialises in assisting individuals like yourself with US and Canadian tax filing, we would be happy to discuss your service filing needs.

    I hope this has answered your question.

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

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