Canadian Income Tax Calculator 2013

There are big savings for filing on time even if you can't pay all your taxes right away.
Find out how much 2012 income tax you owe in Canada in one easy step.

If you would like to know the income tax for 2015, 2014, 2012, 2011, 2010 or 2009 see our

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 2013 maximum contribution limits. This actual contribution limit may be higher if there are unused RRSP contributions from prior years.

Terms of Use - Disclaimer

801 Comments

  1. james 09/13/2012 at 8:36 pm

    Hi,
    It is clear that i dont have to declare world net income prior to my landing in Canada. Suppose, i come to Canada in sept 1st and started working in oct 1st, i will be then considered as a resident for tax purposes.
    1. However, in order to calculate how much threshold 10k, the software requires my previous income before sept 1st? When i tried, the software calculates differently. Also, my accountant needs the previous income, which is world net income. Is this correct?
    2. Also, when you apply for sales tax / gst refund in provincial i.e. Ontario hst refund, they need to know your world net income prior to coming to Canada (even you stay less than 183 days in Canada)

  2. james 09/13/2012 at 9:48 pm

    Just to add information above:
    1. prior landing that year, i earned 9000 (jan-march) from salary
    2. sept-dec 2011, i earned 9000 also.

    a. i dont need to report my foreign income right? But, if not reported, will it considered tax evasion?

    b. but what about gst/hst? it needs previous world income.

    further info: reside in otario.

    thanks

  3. Hi James,

    If you enter Canada September 1 and start working October 1, you are a taxable non-resident because you have not resided in Canada for 183 days UNLESS there are other circumstances you have not disclosed.

    1) What software are you speaking about? Why would your accountant need the previous income? Sounds like the accountant is not aware of how to accurately process tax returns for newcomers... find a better accountant.

    2) Yes, that is correct... to determine any benefits, the total calendar year world income must be reported.

    Any foreign income earned prior to being a tax resident is not reportable for tax purposes, only foreign income (and Canadian income) earned while being a tax resident.

    I hope this has answered your question.

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

  4. Ellie Matchim 09/22/2012 at 3:06 pm

    Subject: Capitol gains

    My income is about 65.000 and I have sold land for 50.000 I know I do not have to pay taxes on 25.000 I have 11,000 room in my RRSP how much tax will I have to pay

  5. Hi Ellie,

    Based on the information you provided, using the calculator above, your tax liability would be $22,438.

    Any contribution to your RSP would result in a lower tax liability at the rate of $400 savings for every $1000 contributed.

    I hope this has answered your question.

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

  6. Gim 09/27/2012 at 12:17 am

    Hi.
    My family and I are Canadian permanent residents.
    But I have not been able to find a job in Canada and
    am still working in South Korea. As a result, I can stay in Canada only when
    I am on vacation, which is about 130 day long per year.
    My family resides in Canada on the money I send from South Korea.
    The following are my questions:
    1. Do I have to file tax return in Canada?
    2. If I have to file tax return, do I have to report
    my income from South Korea?
    3. Does my wife have to report the money I send to her on
    her tax return?
    Thank you in advance for your advise.

  7. Hi Gim,

    Can you answer these questions:
    - has your family physically lived in Canada for more than 183 days during 2012?
    - do you maintain bank accounts/credit cards in Canada?
    - do you own property (house) or rent a home in Canada?

    Q 1&2)
    If you answered yes to these questions, you may be considered a tax resident of Canada and therefore must report your world-wide income on your Canadian tax return.

    Q3)
    If you are transferring tax reported earned money to Canada into your wife's bank account, no she does not need to report this as it is not income.

    I would suggest you get a formal acknowledgement of your actual tax residency from the CRA to ensure you do indeed need to report or not report your non-Canadian income in Canada.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Tax Specialists
    link to
    647 367 3477
    Twitter: @Storoszko_Assoc

  8. Dee 09/28/2012 at 9:04 pm

    I live in Ontario. My salary is 46,000, but my bi-weekly gross pay amount is only $1,769.23 (3538.46 monthly, 42,461 annually). First, I don't understand why my gross pay is less than my salary. Also, from my $1769.23 gross, I pay 412.08 in taxes, leaving me with a net of only 1357.15, or about 2,700 monthly, and 32,400 annually. According to your calculator, I should be getting about 38,000 a year. Why is my net pay so much lower?

  9. Abby 10/05/2012 at 3:25 pm

    I am a PR holder with my wife fully living in Alberta while i work offshore on waters of the world. I concerned on how the tax remittance will be handled regarding my peculiar situation as I don't pay tax anywhere at the moment and becomes my full responsibility to do this. I'm the only one working while my wife doesn't and we have been settled in March 2012. Please advice how Alberta govt. handles such tax remittance situation and what document are required to show prove of earnings.

    Thank you.

  10. Hi Abby,

    You are required to report your world-wide income on your annual Canada Tax Return which includes your Alberta reporting.

    You should obtain reports from your employers for the wages you receive and use these to document your earnings for tax and pension calculation.

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

  11. Abby 10/05/2012 at 10:41 pm

    Thank you for responding to my question. A more precise question will be how much tax will I have to pay to the Alberta govt if I earn $100,000 per annum and how much rebate I'm I likely to enjoy due to my wife that is not working. Would there be any reduction on my tax remittance due to my being away from Canada for a little over half of my stay as I'm away 5.5weeks at offshore work (waters of teh world) and only on ground 4.5weeks of my time. This condition also affects the number of days I'm accruing towards my citizenship and as a result my wife will qualify for citizenship before me. I am most likely able to qualify for a PR extension based on this job. Will I get any better consideration for working abroad on tax front and or citizenship front. What if I get a get with $75,000 per annum pay in Alberta, how much tax I'm I likely to pay. Comparing both net of this new job and working offshore, how much is likely to become my net pay. Thank you for your advice

  12. Jimi 10/09/2012 at 9:47 am

    Just to make sure; Is it possible for HR of my company to not to deduct my tax for rest of the year?
    I mean is it worth to ask them or not?
    If there will be any outstanding balance then i will pay to CRA by myself.

    Thank You!
    Jimi

  13. Victoria 10/09/2012 at 9:05 pm

    Hello,
    My salary is 45,000 per year and am an Ontario resident. I recently got paid for ONE week of work, and my pay was only $665. This seems off to me - based on the number provided in the table above, my pay should be $720 a week. I do not receive benefits. The only deductions on my pay cheque are CPP, EI, and Federal Tax. Any ideas? Can you provide specific instructions on how to calculate the deductions amounts for each of those three items? Can you confirm what my pay should be for bi-monthly payments?

  14. Jo-Anne 10/10/2012 at 10:16 pm

    I have a question regarding the transfer of pension funds. My husband has recently changed jobs after almost 18 years during which time he paid into his company's pension fund. He has received papers regarding his options. We are leaning towards transferring the maximum under the Income Tax Act to a locked in retirement vehicle and taking the rest as a cash payout which we will have to pay tax on. I have 2 questions: First can a locked in vehicle be self directed? Second can we take what is left of the cash payout and put it into an RRSP to receive the tax credit for this year? Or is the maximum that we are allowed to transfer eating up that option?

  15. Emily 10/11/2012 at 7:14 pm

    Hi,

    I am a full-time university student. This summer I had a good summer job and ending up making around 20000 dollars or so. No income tax was taken off my paychecks, and so all 20000 dollars is now sitting in my bank account. Will I end up having to pay any income tax at the end of the year?

  16. Julie 10/16/2012 at 1:12 pm

    Can you clarify the difference between average tax and marginal tax rates as shown in the Canadian Income Tax Calculator 2012? For instance, if I have no deductibles except RRSP contributions, should I assume my taxation rate is closer to the marginal tax rate than the average? Thanks!

  17. Hash 10/16/2012 at 2:01 pm

    Hi,
    We are currently living in
    Gatineau, QC and planning
    to move to Ottawa, ON & our gross family income is 100k
    with 2 kids under 18? How
    much we will be saving
    for the taxes in ON
    compared to QC?

    Thanks!

  18. Mike 10/16/2012 at 2:34 pm

    Hi.
    I am doing some work for a friend and he is going to pay me some money for it. i am going to claim it on my taxes. what is the amount of taxes i should charge him. is there such an amount in newfoundland that i can make that way without being taxed on it or is it all going to be taxed. it isnt a big amount. its $6000 and its a one time thing.

  19. Hi Abby,

    If you are required to pay tax, you don't get a rebate.

    To determine your tax liability, enter your earnings for the year into the calculator above. It will provide you with the figures you require.

    As for a reduction as a result of you being off-shore, no, there is none as a tax resident of Canada.

    I hope this has answered your question.

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

  20. Hi Jimi,

    Only under very special circumstances, and approval from CRA, are you able to not have tax withheld at source.

    I hope this has answered your question.

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

  21. Hi Victoria,

    Without actually seeing your paystub, an accurate statement cannot be provided.

    Your best resolution is to speak with your HR/payroll office to confirm which deduction table they use.

    One thing to keep in mind, the tables are designed to have deductions for EI and CPP escalated so that these total amounts are collected by the months of August or September annually.

    I hope this has answered your question.

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

  22. Hi Jo-Anne,

    Your question is actually one of a financial planning issue with tax implications rather than an income tax question.

    You should consult with a financial planner to determine all the options available to you as there are definitely more than what is suggested by your husband's employer as you likely must consider a BUYOUT option and not a pension transfer.

    To simply answer your questions:
    1) Yes, a locked in plan can be self administered.
    2) Your contribution limit is not tied to years of service contribution, so contributing to both is possible.

    I hope this has answered your question.

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

  23. Hi Emily,

    Without knowing your tax status and available credits and deductions, you likely will have to pay some tax. Enter your details into the calculator above for an idea of the potential liability.

    I hope this has answered your question.

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

  24. Hi Julie,

    Your income tax rate is both the marginal and average tax rates.

    The marginal rate is the taxation level you fall within (ie. tax bracket) and the average tax rate is the average of all the tax rates you cross and fall within.

    I hope this has answered your question.

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

  25. Hi Hash,

    To obtain your answer, enter your information into the calculator above and review the different tax liabilities for the different provinces.

    I hope this has answered your question.

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

  26. Hi Mike,

    You don't charge him any taxes.

    You can only charge GST/HST if you are qualified and registered to do so. Unless you are registered, you are not providing a taxable service.

    I hope this has answered your question.

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

  27. Alexander Markin 10/17/2012 at 2:18 am

    Hello.

    As a sole proprietor in Ontario doing consultancy business, should I include GST/HST into my invoices to my US or other foreign customers?

    Thank You.

  28. tony 10/17/2012 at 2:37 am

    Hi there!I live in BC. My income for 2012 will be $94000.0. Taxes paid: EI $839, CPP $2306, Pension $3800,Union dues1800,Tax $17300.00. My husband's income for 2012 would be $ 3000.00(estimated. we have 2 kids 10&11. we can claim child care tutoring , anything alse? Also how much can we claim for private schools/ tutoring? any limit? pls. tell me what is the total tax I have to pay/ would get back. thanx

  29. Gary 10/17/2012 at 9:55 pm

    Dear Sir,
    I became PR of Canada in April 2010 and after landing i moved outside of Canada only to return permanently in April 2011. My wife and two kids stayed back and i went to UAE for work after staying in Canada for 1 month in 2011.For the Year 2010 we filed an income tax return of Nil salary. In 2011, i filed my overseas income return and my wife filed for zero income. Accordingly i paid income tax on my 2011 Income. In 2012 , i got a better job option in Singapore where my annual income in CDN $ would be about 120,000. I have a rented house and accounts in Ontario canada which proves that i am a factual resident of Ontario where my family is living. I am told by my friend that my income in Singapore will not be taxed as i am a deemed factual resident and there is a double taxation treaty between the two conutries. MY three questions to you below
    1. Would i be taxed on my Singapore Income as i am a tax resident in Singapore and would pay income tax.
    2. If Yes to above then how much.
    3. Is there anyways i can deposit some funds in RRSP account and get a rebate in Tax.

    Thanks for your patience and i will wait for your best advice.

    Regards - Gary

  30. suzanne c. 10/18/2012 at 1:42 am

    Message: Re income tax qc/on:

    I am a retired teacher in my late seventies, considering the possibility of moving closer to my daughter in Laval, QC.

    What I have found to date is that I will experience an enormous increase in provincial income tax if I am to move to QC.

    My income is pretty straightforward: teachers pension $45000 + OAS & CPP for a total of $65000 with very little savings .…. I have to withdraw close to $2000 per yr in RRIFS. I try to place some of this into a TFSA. There is hardly anything left anyway. I hate to withdraw more as it will only add to my income.

    The only credits I can see re QC income tax is credits for seniors in certain residences (& the place I am considering applies): rent, meals but only if served to the room I believe; also there is mention of a laundry credit, but again, I imagine that is only for somebody else doing your laundry. So actually, it's only rent that would apply.

    I have quite a lot of medical expenses not covered by OHIP and apparently QC will have a new health tax in 2012.

    As well, I am able to add gluten free food expenses accumulated over the year to medical expenses. I believe those are done at the federal level?

    All in all, it appears I could be paying well over $3000 in extra income tax there, something I couldn’t afford.

    Any suggestions on ways to avoid this large added expense outside of reducing my income excessively.
    Also other things I must consider if I am to make this move.

    Thanks for any insight into this very real problem of relocating to QC.

  31. Kryryn 10/18/2012 at 5:27 pm

    I would just like to ask if there's a way I'll know in advance (how to calculate) if I have to pay back (no refund) when I file my tax return next year.

    Right now, I'm at $47000 (gross). I have been on the same work/job for this year. My calculation is I'll be making around to $58,000 by the end of the year.

    I'm single (33 years old) and a permanent resident living in Winnipeg, MB.

    My only source of income is my work (fulltime employee) and my RRSP contribution (around $1700 by the end of the yr).

    I just don't wanna get surprised (of paying back) once I file my tax return next year

    Hope someone here can help me.

    Thanks in advance.

  32. Jessica 10/18/2012 at 11:58 pm

    I live in Alberta and just got a job that pays a salary, is it normal for them to take no taxes off? I have no idea how this works

  33. Hi Alexander,

    Firstly, to charge GST/HST you must be registered with CRA. If you are, you know you must charge GST/HST to Canadians.

    As for Americans and and other non-Canadians, the including of HST on your invoices would depend on several factors:
    - where are the services rendered
    - where is the service delivered
    - what type of service is rendered

    Generally, if the service is rendered and delivered to non-Canadian customers outside of Canada, it is not subject to HST. If the service is rendered and delivered to non-Canadian customers in Canada, it is subject to HST.

    For official clarification, you should consult the CRA to obtain an official opinion to avoid retroactive tax and penalty in the future.

    I hope this has answered your question.

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

  34. Hi Tony,

    Sorry say, but tutoring is not a deductible expense... childcare is deductible, tutoring is not considered childcare. If you have claimed it in the past, and it was not reviewed, discuss this matter with your tax preparation person as they can be responsible for any penalties and interest you may be assessed in the future, if they advised you to claim these amounts.

    If your husband's income will be $3,000 for 2012, you will be able to utilise his spousal deduction.

    For an estimate of your tax liability for 2012, enter your gross income into the calculator above and multiply it by 10/12 and compare the result to your Oct 31 pay stub. If the tax deducted is higher, you will be refunded the difference.

    I hope this has answered your question.

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

  35. Hi Gary,

    Firstly, as a tax resident of Canada for 2010, you were required to report your world-wide income on your Canadian tax return effective your tax residency date (even though you were working overseas, you were a tax resident of Canada). I suggest you request an adjustment for your 2010 filing to report this income.

    As you indicate, you are a factual resident of Singapore and therefore responsible to pay tax in Singapore and file a tax return. You are also a tax resident of Canada and are responsible to report your world-wide income on your Canadian tax return. Any tax paid in Singapore can be deducted as a foreign tax credit on your Canadian tax return.

    Yes, you can contribute to a RSP based on the contribution limit available to you from your 2011 tax return. For every $1000 contributed, you would receive a tax credit of approximately $200.

    As you work internationally, you should consult with a tax preparation professional for the filing of your taxes to ensure you are eligible to claim the maximum amount of 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

  36. Hi Suzanne,

    Firstly, based on your age, you may consider speaking with a financial planner to determine if converting part or all of your RIF into an annuity would result in tax savings and guaranteed income amounts.

    For your medical expenses, if they have not been covered by OHIP, they most likely won't be covered by the QHIP, but you should check with the Quebec Ministry of Health. Just as in Ontario, your medical expenses would be deductible on your Quebec tax return. As a resident of Ontario, you are already paying a health tax so moving to Quebec should not affect you greatly in this area.

    Without considering your residential care expense, you would have an approximate increase in tax payable of $4,000. Keep in mind that a portion of what you pay for residential care is considered rent and a portion can be considered medical expense, so you may benefit from this weighing of options.

    Yes, gluten-free items are eligible for the medical expense deduction on the federal level and also on the provincial level, if not covered by the provincial plan.

    You may wish to discuss the disability tax credit questionnaire with your family doctor; if you are not totally able bodied, you may qualify for the disability tax credit.

    Unfortunately, there are not many tax deductions available to single seniors. One option you may wish to consider for tax purposes is a common-law relationship (with prenuptial conditions to ensure your property and income remains yours) with a lower income individual as you would be eligible for income sharing on your tax return and therefore the income sharing credit.

    Finally, in considering moving to Quebec, you should not make the decision purely based on your taxation situation, but mostly YOUR needs and then those of your family.

    I hope this has answered your question.

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

  37. Hi Kreyryn,

    You'll need to pull out your calculator to get the answer to your question:

    1) Enter your estimated gross income into the tax calculator above to determine your tax liability. From the amount calculated subtract $300 (your tax credit from your RSP contribution).

    2) Multiply the calculated tax liability above by 10/12 and compare the result to your Oct 31 tax stub; this will give you an idea if you are payable or refundable.

    3) Subtract the amount calculated in (2) from your Oct 31 total tax deducted.

    4) Multiply the amount from (3) by 12/10 to determine your approximate refund.

    I hope this has answered your question.

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

  38. Hi Jessica,

    An employer is required to withhold source deductions (income tax, CPP and EI) from you pay cheque. If none of these are being withheld, check with your employer and your employment agreement as you may not be considered an employee. If not, you a an independent contractor and will be subject to a tax hit at tax filing time.

    I hope this has answered your question.

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

  39. Angelique H. 10/19/2012 at 1:27 pm

    I am a US citizen, and a permanent resident of Canada. I have been living here since 1988 (I moved here in my early 20s). I only recently heard that all US citizens have to file US tax returns, even if they are permanent residents of foreign countries. I am getting some mixed information and have a lot of questions. Hopefully someone can phone or email to help me figure out what I should do at this point. Like I said, I feel very unclear regarding what I need to do.

  40. Hello,

    Yes, it is true US citizens living abroad from the US are required to file US tax returns reporting their world-wide income. In addition, US citizens are required to report any cash and property holdings in excess of $10,000 held during any calendar year.

    Our firm has expertise in assisting US citizens living in Canada in handling their tax filing matters.

    I hope this has answered your question.

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

  41. Gary 10/22/2012 at 10:51 pm

    Dear Sir,

    Many Thanks for your response which is much appreciated. Do you have any office in Toronto / Mississauga region.
    I would like to have the contact details for the same.

    As an international worker, can you advice as to what all deductions are available to myself which qualify for deductions.

    Thanks & Kind Regards - Gary

  42. chandra 10/22/2012 at 11:53 pm

    Hello there !

    I am moving to Montreal in Jan on 2013. I will be earning $60,000 per annum. What do you think is the tax I will have to pay ? I will be working for a one year contract.

    Thanks a lot!

    Chandra

  43. Keith 10/23/2012 at 10:12 am

    Hi, I have some questions here and I hope you guys could help me out.

    I came here in Toronto Canada last January 2012. 2 months after I found a job which is in Mcdonalds as a crew on weekdays and a part time home support caregiver on weekends on a private employer. I could earn to as much as $2300 to both jobs per month. I was paid with a deduction from taxes in McDonalds, and on the other hand I am receiving a check from my private employer where in they don't pay me taxes from it. Aside from that, my private employer declared that money he gave to me every month. He also told me that don't declare this money coz you are already paying taxes from McDonald's and that would be enough, and chances are so slim for you to get caught. I really like the idea coz I also don't wanna declare that income knowing that I am still new here and I need the money for me to settle. My question is, should I declare my earnings from my private employer? Is it worth a risk? And, is it true that 7 years after they will erase yours credits from their database? Thank you so much. I am hoping for a reply.

  44. Joey 10/23/2012 at 11:03 am

    Hey there,

    I just have a question about the marginal tax rate vs teh payable tax. At my income of $70,000 in Ontario my marginal tax rate is 32.98% which is about $23,000 or so. However, it shows my payable tax as $15,000. Should I be expecting to pay the $23k or the $15k?

    Thanks in advance,

    Joey

  45. Hi Gary,

    Yes, we have offices in the Toronto/Mississauga area; we are serve clients across Canada regardless of their location through our virtual tax offices and service.

    Our contact info is available below.

    I hope this has answered your question.

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

  46. Hello Chandra,

    Enter your gross pay into the calculator above to determine your tax liability for your new job.

    I hope this has answered your question.

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

  47. Hi Keith,

    Your private employer is incorrect. If he declares the payment to you, you MUST report the income on your tax return. Your employer should also be deducting tax, CPP and EI as is required. If your employer doesn't declare the payments or deduct the tax, he can possibly be found in violation of reporting income and would be responsible for any deductions not withheld from you.

    Filing an accurate tax return reporting ALL your income is not only to pay tax, but to claim benefits... by not reporting your total income you lose the benefits. It is not worth the risk of not reporting your income as YOU LOSE OUT.

    Nothing is erased from your CRA file, amounts are carried forward when filing your tax return.

    I hope this has answered your question.

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

  48. Hi Joey,

    The tax rate you pay is your Average Tax Rate less personal exemptions, not your Marginal Tax Rate.

    The Tax Payable amount calculated above is you Average Tax Rate less standard exemptions. Depending on your personal situation, you may either pay the amount calculated above or less.

    I hope this has answered your question.

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

  49. Keith 10/24/2012 at 9:44 am

    Hi, sorry it's me again. I have some follow up questions here.

    Knowing the fact that I am still new here in Canada, Do I have some certain exemptions from taxes or any credits as a new immigrant?

    I know this sounds absurd but is it okay to declare only half of my income from my private employer so that I could pay less? I am just really afraid they might take a big amount of money that nothing will be left from me. I worked to death with my 2 jobs and I'm hoping I won't pay that much.

    And lastly, What benefits do you mean will I expect from the government if I pay my income taxes?

  50. Hi Keith,

    The purpose of filing an annual tax and benefit return is to report your income, report your entitlement to benefits and receive and credits due to you.

    As an immigrant, you are entitled to the same deductions available to a permanent resident of Canada.

    If your private employer declares your income, he reports your SIN to CRA. CRA will match your tax return details reported to those details they receive fro your employer. If there is a variance, you will be subject to penalties and interest.

    Not reporting ALL your income will result in not getting the maxmimum benefits such as CPP, EI, OAS, GST credit, and many others; plus the fact you will be committing fraud and will have your tax file reviewed ongoing to ensure you are compliant.

    I hope this has answered your question.

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

  51. Ted 10/24/2012 at 4:40 pm

    Hello,

    couple of questions for clarification if I may. A few details:

    UK citizen taking up employment in Alberta, postdoc job $44k Canadian, single/no kids

    1. For tax purposes will I be taxed in Canada, the UK OR can I choose?

    2. Are postdoc salaries province tax free?

    3. If taxed in Canada what would all the deductions be and can you explain the abbreviations (I assume EI is employment insurance for if you become unemployed?).

    Thank you in advance

  52. Hi Ted,

    Your tax reporting responsibilities will depend on your tax residency.

    If you move to Canada before July 1 of the calendar year, you will be taxable and required to report your your UK income to UK Revenue Service and your Canadian income to CRA.

    If you move to Canada after July 1 of the calendar year, you would be required to report ALL your only income to the UK Revenue Service and your Canadian income to CRA.

    No salaries are tax-exempt. Income taxes are due on all income.

    The deductions applicable to you would depend on your employer and your employment agreement. The basic standard items are tax, CPP (Canada pension) and EI (Employment Insurance).

    I hope this has answered your question.

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

  53. Will 10/26/2012 at 12:33 pm

    Hello,

    I'm separted and my only remaining financial obligation is to assit my daughters with their post secondary education. They both live with there mother.
    My contribution for last year was $4000.00.
    Just wondering if there is any tax benefit I am elegible for?
    Regards,
    Will

  54. Hi Will,

    Your daughters receive a tax slip for their tuition and book credit.

    This would be the only deduction available to you. If you shared contributing towards the tuition with your wife, you would need to discuss with her and your daughters who and how would receive the credit. Either spouse can claim the credit for both daughters (if they choose to transfer it to a parent) or you and your wife could each take the credit from one daughter and share the total credits.

    I hope this has answered your question.

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

  55. Martin 10/26/2012 at 2:54 pm

    Hi,

    I am German and a temporary project manager working in Canada for about 3 months. My company is deducting alltogether appr. 46% in taxes. I am definitely making a lot of money but if I use the calculator on this site and enter the amount I make in the three months, the deduction would be 33%. If I would assume that I work the whole year and enter that amount then I get the 46%. The question now is what is right?
    Thank you in advance
    Martin

  56. Hi Martin,

    To determine the accurate tax rate using the calculator above, you need to enter the ANNUALISED income, not just three months' worth.

    So if your contract is for three months, multiply the contract amount by four to obtain the annual salary equivalent.

    Additionally, please note that your tax liability may be different from that calculated above due to you not being a tax resident of Canada. We suggest you consult with a professional tax preparer come the year of the calendar year to ensure you pay the least amount of tax, and hopefully get a refund when filing your tax return.

    I hope this has answered your question.

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

  57. Kryryn 10/28/2012 at 5:59 am

    Thanks for answering my question. From my calculation (based on the one you provided) I have to pay back (no refund).

    However, I forgot to mention that I am also renting an apartment (for the whole year) and paying union dues as well so I'm thinking these will somehow reduce the amount that I have to pay back. I'm just not sure how much.

    I'm done paying my EI for the year and will be done on my CPP by the 1st week of November.

    I think I should not be working OT anymore from now till the end of the year so that my total gross income will be less.

    Thanks again in advance.

  58. Syed Nadim Ali 10/29/2012 at 11:05 pm

    Hi I am offered employement in Calgary and will be paid 84000 Gross and 6500 for convience allowance. I am wondering how much tax will be deducted in the province of Alberta

    Thanks

  59. Hi Kryryn,

    Any rent you pay will not affect your tax payable. Your union dues will affect the tax payable, but only by reducing your tax payable by few dollars.

    If you have been working OT, the tax deducted is usually higher than the regular annual tax rate so, historically, you should receive a good refund.

    I hope this has answered your question.

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

  60. Hi Syed,

    Enter your total gross pay including the convenience allowance (whether one time or more) into the calcuator above to determine 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

  61. Ian Cochrane 11/01/2012 at 10:58 am

    Hello. I am a Canadian citizen resident in Saudi Arabia. I plan to go to school in Osaka in 2013. I have been non-resident for tax purposes for 3 years, and have filed up to 2011 because I was paying back into my RRSPs under an LLP loan. I have no current debts in Canada.

    I keep a Canadian savings account; I would now like to park my savings in that account until next year, when I can access it from Japan to pay for my schooling there. I am concerned that holding more than $10,000 in a Canadian account may trigger a CCRA reassessment of my non-residency. Is this likely, in your opinion?

    Thanks!

  62. Hi Ian,

    Since your savings account is on record, there is no trigger to change your status.

    If you were to change your other decisive requirements to be a non-resident, then it would trigger a concern.

    I hope this has answered your question.

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

  63. Chucri 11/03/2012 at 7:26 am

    hi, i landed in quebec in april 2011. in april 2012 i declare Zero income for my taxes since i had no job. currently i'm working in UAE- Abu dhabi since may 2012. my income is divided in 2 portion one basic salary and the second is for accomodation. now what about the taxes shall i compute it for the basic only or for both .. please to advise!!
    thanks

  64. Hi Chucri,

    Both incomes are taxable to you if you are required to report them on a Canadian tax return.

    I hope this has answered your question.

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

  65. steven 11/04/2012 at 3:43 pm

    Hi, I will be applying for and receiving CPP next year. I and my common law wife will be moving out of canada the same year. We plan to withdraw from my RRSP as needed.We will also have some rental income from our house in Canada. My wife does not qualify to collect CPP so will be a dependant. I am wondering what is the max. I can earn before having to pay any income taxes for the each year?

  66. Hi Steven,

    If you are leaving the country, you will be a non-resident for tax purposes and therefore will not be able to claim your wife as a dependant.

    To maximise your deductions, DO NOT withdraw from your RSP until you convert it to a RIF first (this can be done at any time, not only at age 71). RIF withdraws will allow you to claim the pension deduction.

    The maximum earnings before taxation is your basic exemption of $10,822 for 2012.

    I hope this has answered your question.

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

  67. Arunkumar B 11/08/2012 at 6:47 am

    Hi I have got a offer for 65000 canadian dollars . I would be placed in Edmonton Alberta. I am single .I would like to know how much will be tax deducted for a year.

  68. Paul 11/08/2012 at 8:56 am

    Hi

    I am moving to Canada from a tax free country in the middle East.....Nice..I am a UK Citizen.

    If I am a married man with 2 children (not sure if that is relavent in the tax system) how much tax will I pay on A $90,000 Salary in Canada.
    Many Thanks

    P

  69. FAISAL MAHMOOD 11/08/2012 at 10:29 am

    Hi Arun,

    Total deduction from your income for the year will be as under.

    Income 65,000.00
    Income Tax 13,508.64
    Canada Pension
    Plan deduction 2,356.20
    Employment
    Insurance 839.97

    Net Income 48,295.19

    Regards,

    Faisal MahmoodCPA-MontanaPH: 416-998-7909

  70. FAISAL MAHMOOD 11/08/2012 at 10:38 am

    Hi P,

    Welcome to Canada and based on your information tax calculation is as under.

    It depends on which province you will be based and I am providing you calculation based on Ontario province. Based on the assumption that your wife will not work and your children are born in year 1995 or later following calculation will hold.

    Income 90,000.00
    Income Tax 19,544.40
    Canada Pension
    Plan deduction 2,356.20
    Employment
    Insurance 839.97

    Net Income 67,259.43

  71. steven 11/12/2012 at 7:27 pm

    Thank you for your reply. Further to my query. If my wife is a landed immigrant but not a Canadian citizen when we leave the country will she be able to claim the rental income on her Canadian tax return and her basic tax exemption? The house is in both our names.

  72. Brian Tobin 11/12/2012 at 9:41 pm

    I have received a gift of 5,000 not from an employer, but from the site owner where I work - is this taxable income? The contract is between my employer and the site owner.

    Thanks

  73. FAISAL MAHMOOD 11/13/2012 at 9:56 am

    Hi Brian,
    Any gain in cash or near cash raised through your normal work is your income. It will be reported as income in the year of receipt.

    Faisal Mahmood
    CPA

  74. FAISAL MAHMOOD 11/13/2012 at 10:09 am

    Hi Steve,

    As per rule one of the spouses can report rental income on the return. Canadian Income Tax rules are same for permanent resident and citizens of Canada but for the tax authorities the definition of resident is different. Simply resident is a person who resides in Canada for more than 183 days in a calendar year in Canada with few exceptions. As per your question if you move out of Canada and become nonresident for tax purposes, you will be taxed as nonresident on your rental income at source @15%.

    Hope this explanation will help, if you need more information please do not hesitate to contact.

    Faisal Mahmood
    CPA

  75. robert 11/15/2012 at 4:08 pm

    Hi, I was wondering if I would be considered a resident or non-resident of Canada for tax purposes. I am a US citizen with residential ties to the US. I am a day trader and am planning to spend much of the year in Canada. Would I be considered a Canadian resident for tax purposes if I spend more than 183 days in Canada during the year? I assume I would be a non resident if I spent less 183 days in Canada.

    Thanks.

  76. Faisal Mahmood 11/16/2012 at 9:54 am

    Hi Rob,

    You will be a deemed resident of Canada and your responsibilities regarding taxes are
    1. You have to file a Canadian income tax return for that tax year if there is income. You have to report your world income and can claim all deductions and non-refundable tax credits that apply to you;
    2. You are subject to federal tax and instead of paying provincial or territorial tax, you'll pay a federal surtax; and
    3. You can claim all federal tax credits, but you cannot claim provincial or territorial tax credits.

    Should you have more queries, do not hesitate to contact me.

  77. Betty 11/18/2012 at 6:31 pm

    Hi,

    I am considering a taxable job at $84,000; I am married, no taxable income by my husband and my daughter turns 18 in feb...I am wondering what a basic income tax deduction would I face? What are the tax incentives I could apply? How do I hire you? Thanks!

  78. FAISAL MAHMOOD 11/19/2012 at 10:10 am

    Hi Betty,

    Based on the information you provided and if you are in Ontario following is the estimate of your tax liability for the year 2013.

    Income 84,000.000
    Tax -17,567.40
    CPP -2,356.20
    EI -891.12

    Net 63,158.28

    If you want to contact me, my website http://www.taxchop.ca has all the information.

  79. Dan 11/19/2012 at 1:00 pm

    Hello,

    Thank you for this opportunity.

    How would the selling of a website be taxed in Canada: regular taxation or capital gain? I am talking about a website started from scratch and developed over several years (such as this one for example).

  80. FAISAL MAHMOOD 11/19/2012 at 4:51 pm

    Hi Dan,

    Selling of a website that someone has developed from scratch will be considered as capital gain provided

    This is not a regular business of the seller.

    The website has been developed over more than a year.

    However outcome of a particular transaction may be different under different circumstance.

    Should you need more information on a particular transaction, please do not hesitate to contact.

  81. Brian 11/19/2012 at 5:00 pm

    Hello!

    My question is to whether or not cash in my RRSP this year.
    I have very low income so far this year (below $10,000.00)and the current value of my RRSP is around $56,000.
    My RRSP has made no growth in over 5 years. I am actually regretting ever investing in RRSP's! The reason I want to cash them in is not because I'm broke but this may be the most opportune time to do it.
    I was wondering what are my best options? How much tax will I actually be paying if I cash out my RRSP while having low income?
    Also, I live in B.C.
    Thank-You!

  82. FAISAL MAHMOOD 11/19/2012 at 6:45 pm

    http://www.taxchop.ca .

    Hi Brian!

    RRSP is always a long term investments and if you cash the RRSP in the years of less income you pay taxes at lower rate as compared to higher in the years of high income.

    I am providing your calculations based on your income from other sources 10,000 and you cash another 10 or 20 thousands before Dec. 31.

    If you cash 10,000 from your RRSP Tax liability will be CAD $ 1,4000.

    If you cash 20,000 from your RRSP Tax liability will be CAD $ 3,7000.

    Should you need more information on a particular transaction, please do not hesitate to contact via http://www.taxchop.ca .

  83. Melinda Smith 11/21/2012 at 3:22 am

    I also have left over tuition amounts I can use.

  84. Faisal Mahmood 11/21/2012 at 10:32 am

    Students can carry forward indefinitely and claim in a future year the part of their tuition, education, and textbook amounts they cannot use (and do not transfer) for the year. However, if they carry forward an amount, they will not be able to transfer it to anyone. They have to claim their carry-forward amount in the first year that they have to pay federal tax.

  85. Brian 11/22/2012 at 6:06 pm

    Hello!

    I have another question regarding cashing in an RRSP.
    Let's say I want to cash in $20,000 of my RRSP. I know there will be a withholding tax of 30%, meaning $6000 will be remitted to the government. So, I will only receive $14,000.
    My question is, during tax season will I be claiming either the $14,000 or the full $20,000 as taxable income even though $6000 has already been withheld?
    The answer seems obvious but I would like to hear it from an expert.

    Thank You!

  86. Hi Brian,

    The amount you withdraw from the RSP is the taxable income amount, not the net amount after tax withholding.

    Without knowing your tax situation and the deductions available to you (ie. age, dependants, etc.), your best option in withdrawing funds from the RSP would be to do so in amounts under $5,000 as lower amounts are subject to lower withholding tax (15% vs 20% or 25%).

    If the RSP investment isn't doing well, you may consider switching from equity investments to a savings deposit investment which would guarantee your principal and interest earned or withdrawing and transferring to a TFSA to earn income tax free and have the funds available to you at any time. Be aware that the TFSA does have deposit limit if you have contributed in the past or not.

    I hope this has answered your question.

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

  87. Steve 11/22/2012 at 7:59 pm

    Hi,
    I am a Canadian and I work in the US with annual income of 63000 US$. My wife lives in QC and I still have ties to Quebec. my question is how much Tax should I pay in Canada?.
    Thanks,

  88. Hi Robert,

    Your question is actually not a simple one... firstly, because you are a US citizen, you must file your US tax return reporting your world wide income regardless of your residency.

    As for the Canadian taxation, if you are resident in Canada for more than 183 days during the calendar year, you will be considered a tax resident and are required to file a Canadian tax return for any world-wide income earned while a resident of Canada.

    Now, the complex part... if you are a non-resident of Canada (less than 183 calendar days in Canada) and the day trading is done through a *Canadian Broker*, you are required to file a Canadian tax return as a non-resident and report your trading transactions as business income.

    If you are a non-resident (less than 183 calendar days) with a foreign broker, no reporting or filing of a Canadian tax return is required.

    With your complex tax situation, it is recommended you use a professional tax specialist with expertise in cross border tax preparation, our firm would be available to you to assist in both your Canadian and US tax filing needs.

    I hope this has answered your question.

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

  89. Hi Steven,

    Yes, your wife would be able to claim the rental income on her Canadian tax return, but you should keep in mind and consider income splitting to reduce the total tax liability; since the house is in both your names, you would be easily able to split the rental income and therefore adjust your total tax liability.

    Once you get into residency/non-residency and Canadian vs foreign income and reporting, we recommend you use a professional tax specialist with expertise in cross border tax preparation to ensure your tax payable (if any) is at the minimum, our firm would be available to you to assist in both your Canadian and US tax filing needs.

    I hope this has answered your question.

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

  90. Hi Dan,

    If the web site has generated income in the past via advertising, adwords, membership fees, etc., the sale of the web site site would be considered business income and reported as such.

    If the web site did not generate any income whether actually via the site or via referral, the sale of the web site would be considered a sale of personal property and therefore be taxable under the capital gain rules.

    I hope this has answered your question.

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

  91. Hi Steve,

    Your tax filing requirements will need you to file both US and Canadian tax returns.

    If you have a Green Card, you are required by US Law to report to the IRS all your world-wide income regardless of your residency. Any tax paid/payable on your US tax return, you would be eligible to claim as a foreign tax credit on your Canadian/Quebec tax return.

    As for your question about how much tax liability in Canada, it would depend on the tax paid in the US. But a simple guide would be to enter your total world income into the calculator above to determine your Canadian tax liability and then to subtract from that amount approximately 75% of the US tax paid.

    With your complex tax situation, it is recommended you use a professional tax specialist with expertise in cross border tax preparation, our firm would be available to you to assist in both your Canadian and US tax filing needs to ensure your tax payable is at the minimum on both sides of the border.

    I hope this has answered your question.

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

  92. Margaret Lawther 11/23/2012 at 2:33 pm

    Hi, I am wondering how much Income Tax I will have to pay on 43,431.63 per year(approximately). I am a resident of B.C.

  93. connie 11/23/2012 at 7:42 pm

    Hi
    I am a Canadian citizen I just quit my job and have moved to Tunisia but will come to Canada every second month to do my job with housing supplied by job with an agency. So how will this effect my paying income tax here in Canada

  94. Hi Margaret,

    The easiest answer is to enter your gross salary into the calculator above to determine your annual tax liability and marginal/average tax rates.

    I hope this has answered your question.

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

  95. Hi Connie,

    It won't change anything... as long as you have residency ties to Canada, or are resident in Canada for at least 183 calendar days, you will be required to report your Canadian and foreign income and benefits (housing) on your Canadian tax return.

    If you have any Tunsian income tax withheld from your pay, you will be able to claim it as a deduction credit on your Canadian tax return.

    I hope this has answered your question.

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

  96. Alka 11/25/2012 at 9:45 pm

    I moved to Vancouver,Canada on 9th August 2012 on visitor visa to join my husband who is here on PR. I did my landing on 4th July 2012.I was just at home with no employment. Did i have to file taxes for 2011?
    Very recently i managed to get a part time job so will 2012 be my first year of filing tax? Can i file tax together with my spouse?I have some property back home which i inherited from my parent, i do not earn any income on that, do i have to declare that property and how? Thank You for your assistance.

  97. Hi Alka,

    If you were resident in Canada for 183 days or more during 2011 then you are required to file a tax return for 2011.

    If you have Canadian income, yes you must file a tax return. You cannot file with your husband as Canadian tax law requires each person to file separately.

    You must report the value of any world-wide property on your tax return. When you sell the property, you will be required to report this and pay any tax on the capital gain.

    I hope this has answered your question.

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

  98. Ahsan 11/29/2012 at 4:47 pm

    Hi there. I had to get incorportated because I got a conteract position at a Bank. I got incorporated in Oct 2011. I have completed a year and have filed my taxes already. Now as per my conversations with my boss they are planning to make me permanent in Jan 2013. So basically I do not need my corportaion after that. My question to you is if I can still continue to claim expenses for my corporation till Oct 2013(after which I will close it) even though I dont have any pay roll expenses or any income.

  99. Marina 12/03/2012 at 10:54 am

    This is a wonderful site, please keep it up.

    I am just wondering whether or not I should make my 4th installment of income tax as my income is lower this year. My business income to the end of year will be $79,085. I will have received pension income of $13,063 and investment income of approximately $12,000. My deductions would be business expenses $18,314, RRSPs 16,483, office in home expenses $5,000 rental expenses of 2,409 and car depreciation of 4,235. I have paid tax installments of $20,083. My 4th installment should be $6,591. Should I pay this or is my tax liability a lot lower than what I have already paid?

    Thank you very much in anticipation of your reply.

  100. Marina 12/03/2012 at 10:57 am

    Hi it's me again. I forgot to mention that I reside in Ontario.

  101. Vinu Thomas 12/03/2012 at 3:21 pm

    Hi,

    Can i claim child/baby day care expenses as part of tax. i mean if i pay CAD750 per month for day care, could i be getting back this money when i file my returns.

    This is in toronto. I believe you can do this in montreal but not sure about toronto.

    Thanks
    V

  102. Garage door parts 12/04/2012 at 7:21 am

    Thanks for sharing the link for income tax calculators. I have been looking for the 2012 one for quite some time now.

  103. LSM Insurance 12/04/2012 at 10:08 am

    You're welcome.

  104. Hi Ahsan,

    If your corporation is not generating income, you cannot record expenses.

    If you are not generating income through your corporation effective Jan 2013, you must file the final corporate tax return and request the corporation to be closed and pay the required fees.

    Besides, what good would keeping the corporation open to claim expenses be anyway? Your corporation is a PSB and must follow specific rules unlike other corporation types.

    I hope this has answered your question.

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

  105. Hi Marina,

    There would be more information required to provide you with a precise answer, but the easy way to determine it is to compare your 2012 income and expenses to your 2011 income and expenses.

    Take your net income for 2012 (subtract your expenses from your income) and divide it by your net income for 2011 (2012 net income/2011 net income = result A).

    Then review your 2011 tax return for your total income tax payable and multiply that amount by the result A. This calculated amount would be approximately what you will be owing for 2012 then compare it to the total amount of installments you have paid to date.

    If it is higher than what you paid, pay the difference. If it is lower than you have paid, do not pay any more installments for 2012.

    I hope this has answered your question.

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

  106. MJ 12/08/2012 at 12:10 am

    I just started my own business in April 2012 and I am not sure how much money I should put aside so I am not left short for April. I estimate that I will have $17,000 revenue and approximately $15,000 net. I will also have approximately $5,000 income from a job that was taxed, approximately $7,000 of EI income, and about $4,300 income from child tax benefits (2 kids). So in total I will have about $33,300 in gross income. What should I anticipate my tax obligation to be as well as all of my other remittances....CPP, EI, OHIP?

    Thank you!

  107. Hi MJ,

    To best determine the amount to set aside for your non-employment income, enter your total non-employment income ($15k +$4.4k + $7k = $26.4k) into the calculator above, the calculated result will be your tax liability.

    Next, to the calculated tax liability, add 10% of your net self-employment income ($15k) to determine your CPP contribution.

    As a self-employed individual, you are not required to contribute to EI.

    I hope this has answered your question.

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

  108. srinath 12/11/2012 at 11:25 pm

    Hi,
    I am from India and I will be working in a hospital at Toronto from August, next year. As I am non resident of canada do I have to pay for pension plan tax and what will be the tax structure for doctor who does fellowship there?
    Regards

  109. Hi Srinath,

    As an employee working in Canada, you are requried to pay any and all statuatory deductions which include tax and Canada Pension.

    There is no special tax structure, all Canadian tax payers are taxed according to the tax calculator above.

    I hope this has answered your question.

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

  110. Hi Will,

    Unfortunately, there is no tax benefit you are eligible for ... unless your wife and daughters agree to transfer the daughters' tuition and education deduction to you.

    I hope this has answered your question.

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

  111. Eddie 12/18/2012 at 3:42 am

    Hi

    I'm a South African and i will be moving to Calgary next year. How much tax will i pay if i earn 29 CAD per hour for 40 hours a week? And how do i get taxed if i get paid semi-monthly?

  112. Hi Eddie,

    You first need to calculate your gross ANNUAL income and then enter it into the calculator above to determine your tax liability.

    If you are paid semi-monthly, you will have 1/24th of the tax calculated above withheld from your pay.

    I hope this has answered your question.

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

  113. Steven 12/19/2012 at 3:42 pm

    Hi,

    If I were to buy and sell something like lets say a motorcycle. If I make a profit on it would I have to pay income tax?

    Also, If I were to do this would I need to be a registered business and charge PST and GST? Or can I operate as an individual and just pay the required income taxes?

    Thanks!

  114. Hi Steven,

    Great question!

    If you were to buy and sell something ie. motorcycle, yes, you would be required to report this income on your tax return (just the profit).

    You would be eligible to deduct any expenses related to the purchase and resale of the item including costs related to fix it up or prepare it for resale.

    If this was to be an irregular thing (only on occasion), then you would not be required to charge or register for HST/GST. If you were to do this regularly, once your sales (not profit) reached $30k, you are required to register and charge GST/HST, but not until then.

    I hope this has answered your question.

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

  115. Laurie 12/21/2012 at 2:52 pm

    I was wondering what I would be approximately paying in taxes and if there is anything I could do as I have bee unemployed since Feb 2012 collecting EI which is tax deducted but I also receive spousal support which is not. Unfortunately with owning a house most of my spousal support goes to that and I cannot take any off to put aside for taxes. What can I do. In total I have made about $42,600.00 for the year and have only paid about $1104.00 in taxes.

  116. angel 12/21/2012 at 6:45 pm

    hi, im a permanent resident, i live in ontario with my family, my earning to yeat is 86,782.11, deducted taxes 22,417.14, and my union and other contribution to pp, umiom and others is 7,012 this year i would like to know how much i can contribute to to RSP so i dont end up paying back more when i do my tax assessment

  117. david mariano 12/24/2012 at 6:05 pm

    Hi I was wondering if you could help....I've been living in Quebec for the last few years but am moving back to Alberta. I was wondering if I move back before Dec.31st , vs sometime in January, how much of a difference would that make on my tax return?
    I am single, no dependants - pretty straightforward - and made about 63K for 2012.
    Thanks,
    David

  118. Mary 12/24/2012 at 10:02 pm

    I am not sure I understand what 'basic personal exemption' means - I think it means this: you are allowed to make $10,320.00/year without having to pay tax on the number and anything over that amount you must pay tax on that. like my son made around $7000.00 in 2012 and was paying tax on this $7000.00 from his paychecks - due to the exemption will he get back all the taxes he paid??

  119. Jalal 12/26/2012 at 8:58 am

    Hi.
    I am a canadian citizen live and work in the Middle East since 1997. I am thinking now to go back and live in Canada. Do I have to pay any income tax for my earnings all these years outside Canada?
    Thank you in advance for your advise.
    Jalal

  120. Tina 12/27/2012 at 1:03 pm

    Hello,
    In 2012, I have no income and my husband is working. Should I withdraw $12000 and (deduct tuition carry forward ) of my RSP or spousal RSP or let my husband claim me . Which way is better?. Thanks for your time

    Tina

  121. Hi Jalal,

    In the rare instance that you had your family (wife and children) still living in Canada and you were supporting them, you would not be taxable on the income you earned for the years outside Canada.

    If/when you do move back, and if you are in Canada for less than 183 days during 2013, you would be taxes on your total world-wide income for 2013.

    I hope this has answered your question.

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

  122. Victor 12/28/2012 at 6:40 pm

    Hi!

    Advice please, do I have to pay canadian tax if I enter Canada just for few weeks to get residence card and then leave Canada for 1-1.5 years to prepare for relocation from Russia?
    In General, where should I pay taxes if I reside in Canada, but spent more then 183 days a year working in Russia for a local employer?

  123. James 12/29/2012 at 5:03 pm

    My salary this year is $120,000. I plugged that into your income tax calculator and it said I should be getting taxed at around 29%. However in reality im losing 45% off of each pay. this 45% includes cpp and ei but why is my rate so high?

  124. Jalal 12/30/2012 at 12:01 am

    Hi.
    Many thanks for your answer. My wife and kids are all living with me since 1997 in the Middle East. Thus, and as I understood from your answer, I have to pay an income tax on my earnings all these years working outside Canada?
    Many Thanks for your advise.
    Jalal

  125. Shiekh Tanveer 12/30/2012 at 2:42 am

    Hi,
    Seasons greetings! I am moving to Alberta as postdoc in Calgary university. My annual salary is 45000 canadian dollars. I have a wife as dependent and new born born baby. How much tax i will have to pay anually, I will be paid bimonthly.
    Thanks

  126. Vishal 12/31/2012 at 11:49 am

    I landed in Ontario on 23rd November and I have received around Gross salary $ 8600 Tax around $ 2200, Pension Plan as $ 500 and Balance as Net pay.

    Just wanted to check I will be taxable in Canada for the year ending Dec. 2012 as my salary is less than $ 9000.00 and will get a refund on Pension plan as well.

  127. Hi Laurie,

    Please confirm whether you are receiving spousal support OR child support: child support is not taxable in the hands of the recipient BUT spousal support is taxable in the hands of the recipient and deductible for the payer.

    If you do indeed receive spousal support, this income is taxable to you.

    To determine your tax liability, total all your income (EI, spousal support, etc.) and enter the amount into the calculator above. The result will be your tax liability. Deduct from this any tax deducted for your EI payments and the remaining amount is what you will need to pay for your 2012 tax return payment.

    I hope this has answered your question.

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

  128. Hi Angel,

    You can find what your allowable RSP Contribution Limit for 2012 is from your 2011 tax return.

    Canada Revenue provides you with this information on your 2011 tax assessment.

    I hope this has answered your question.

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

  129. AJ 01/04/2013 at 12:18 am

    Hi there,

    I have been a residence of Ontario for as long as I have been in Canada 14 years now. I own a house now 6 years, live and work in Ontario.

    Recently I have got married, my wife and I had purchased a property in Quebec. All our primary ties, banking, IDs and family doctors are located in Ontario. Also, both my wife and I work in Ontario.

    P.s. our mortgage although for our property in Quebec was issued in Ontario.

    I'm confused if I should file as Ontario residence or under Quebec.

    Also, I have been researching about the first time home buyer credit. I understand that I don't qualify but, would my wife be able to claim such credit even though we both purchased the house?

    I would appreciate any thoughts on that.

    Regards,
    AJ

  130. Marta 01/04/2013 at 12:44 am

    Hi, during 2012 I worked for 2 different companies.
    1st company) I was on payroll. I earned $6500
    2nd company) My employer pay me by cheque without deducting taxes. I earned $14000. In October, the same employer put me on payroll and I earned $6600.
    My common-law partner earned $32000/year.
    How do I need to do my taxes?
    How much I need to pay?

    Thank you

  131. Ben 01/04/2013 at 8:00 am

    Would a new resident still receiving deferred compensation from abroad for employment before coming to Canada be taxed on those amounts in Canada?

  132. K 01/04/2013 at 1:59 pm

    Hi, we landed as immigrants Dec 2009 but we came back to our country of origin in Jan 2010 then came back for a visit in 2011 from April 15-27 in Canada then went back again to the country of origin, do we have to file income tax and pay income tax in Canada knowing that our source of income came from our country of origin?

  133. Galy 01/04/2013 at 3:55 pm

    Hi, I am the only person who has an income in the family. My spouse is not employed, and last year I claimed spouse tax credit. This year my spouse plans to find a job, but we don't know if it will be permanent. If my spouse gets a job for just a month (making something like $1500), will I be able to claim spouse tax credit for this year, or if my spouse gets any income (even very, very small), I can not clam it?

    Thanks
    Galy

  134. Rahul 01/06/2013 at 2:51 pm

    Hello,

    Thank you for helping on taxes!
    We live in Ontario and I work for an employer based in Toronto.

    My gross salary for 2012 is $125,308.00. I have made full contribution to CPP and EI.
    As per 2011 Notice Of Assessment, my RRSP room for 2012 is $20,644.

    My wife does not work and as per her 2011 Notice Of Assessment, she has $26,397 and $28,536 dollars in federal unused tuition, educational, and textbook tax credit and Ontario tuition and educational tax credits, respectively.

    I would appreciate if you can please run two scenarios for my tax rebates:

    1 If I contribute maximum amount allowed ($20644) towards RRSP, what will be my tax rebate?
    2 If I contribute only $17,000 towards RRSP, what will be my tax rebate?

    I would like to take benefit by transferring maximum allowed tuition credits from my wife’s account to me.

    Thank you so much!

  135. Hi Jalal,

    Fortunately you have it reversed... if your wife and children lived in Canada while you worked overseas, you are taxable in Canada.

    If your wife and children lived overseas while you worked, the income is not reportable or taxable in Canada unless you have other residential ties in Canada ie. owned house, assets, etc.

    I hope this has answered your question.

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

  136. Hi David,

    If you move back to Alberta from Quebec, you would benefit from the lower provincial tax rate in Alberta.

    Additionally, you are able deduct your moving expenses if you are returning to Alberta with a job waiting for you.

    I hope this has answered your question.

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

  137. Hi Mary,

    Personal Exemption means just as you are thinking... the amount of income a person can earn and not pay tax on.

    If your son worked during the year and earned under the Exemption Amount, any tax deducted from his pay is refundable.

    I hope this has answered your question.

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

  138. Hi Tina,

    Do you NEED to withdraw funds from your RSP? You should never think to withdraw funds from a registered account unless there is a NEED to do so.

    If you did not work during 2012 and your husband does have income, he would be eligible to claim a spousal deduction for you, but you still have to file a tax return to report your zero or minimal income.

    I hope this has answered your question.

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

  139. Hi Victor,

    To be tax payable in Canada, you must be a tax resident (physically in Canada for more than 183 days during the calendar year) or have Canadian sourced income.

    I hope this has answered your question.

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

  140. Hi James,

    If you have 45% being deducted from your pay, I would review the stub to determine what is actually being deducted (tax, benefits, employer expenses, etc.).

    If the income tax portion only is in excess of 32%, check with your payroll office to question the reason.

    I hope this has answered your question.

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

  141. Hi Shiekh,

    Enter your gross annual salary into the calculator above and the tax liability will be calculated.

    I hope this has answered your question.

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

  142. Hi Vishal,

    As of your landing date, you will be taxable in Canada as you have received income during this time.

    The personal exemption in your case, would be prorated for your actual time in Canada. As a result, you may be tax paying come time for filing your tax return.

    I hope this has answered your question.

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

  143. Hi AJ,

    There should be no confusion.... where is your home? Is your principal residence in Ontario or Quebec as of Dec 31, 2012? Whichever province you have your principal residence at Dec 31, 2012 is your tax residence for filing purposes.

    You can claim an amount of $5,000 for the purchase of a qualifying home made in 2012, if both of the following apply:
    - you or your spouse or common-law partner acquired a qualifying home; and
    - you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).

    From the details you provided, it appears you and your wife do not qualify based on previous home ownership.

    I hope this has answered your question.

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

  144. Hi Marta,

    To determine your tax liability, enter your total earnings (employee and contract) into the calculator above. This will provide you with your total tax liability. From this amount, deduct the tax withheld from your paycheques. The difference will be what is owed at tax filing time.

    I hope this has answered your question.

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

  145. Hi Ben,

    Base don International Tax Treaty, the income is taxable when you receive it, not when it was earned.

    Your deferred benefit payment is taxable when you receive it in Canada. Any income tax withheld (for the amounts received while in Canada) by the benefit trustee in the issuing country can be applied as a foreign tax credit in Canada.

    I hope this has answered your question.

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

  146. Hi K,

    To be tax liable in Canada, you must have either Canadian sourced income OR be a physical resident in Canada for more than 183 days during a calendar year.

    I hope this has answered your question.

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

  147. Hi Galy,

    You are eligible to claim the spousal tax credit for your husband as long as he earns less the the personal exemption amount, ~$10,300.

    The spousal tax credit decreases in amount as his earned income increases decreasing to zero when the exemption amount is reached.

    He must file a tax return to verify his income and the amounts entered on his tax return are transferred to yours for the credit.

    I hope this has answered your question.

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

  148. Hi Rahul,

    For every $1000 you contribute to your RSP or Spousal RSP, you would be eligible to receive a tax credit of $434.

    Spouses are eligible to transfer up to $5000 of tution credit, but unfortunately, you are not eligible to transfer tuition credits beyond the year of incurrment.

    I hope this has answered your question.

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

  149. AJ 01/07/2013 at 7:25 pm

    Hi,

    Many thanks for the response!

    Just for clarity purposes, my wife and I had purchased the property in Quebec before we have got married. Prior to that, I had lived in my own house with my family. My wife (girlfriend then) had lived with her parents.

    Based on the above facts, I would think that she is eligible to claim HBTC, i.e. she does meet the two conditions outlined.

    Correct me if I am wrong.

    Thanks again in advance :)

    Regard,
    AJ

  150. Hi AJ,

    Unfortunately, you are incorrect:
    - if your name in on the deed for the QC property, it nullifies your credit eligibility
    - the QC property is not your wife's principal residence, it nullifies your credit eligibility.

    Mostly you don't qualify for the New Home Buyers Credit because you didn't acquire an eligible property.

    If by chance, you happen to be an US citizen residing in Canada, you should also be aware of the filing requirements for US citizens when purchasing property in Canada. This is required to be reported on your US tax return,

    I hope this has answered your question.

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

  151. AJ 01/08/2013 at 12:49 pm

    Many thanks!

    That does it :)

    Regards
    AJ

  152. Rob 01/10/2013 at 1:10 am

    Hi,

    I am self-employed and live in Quebec. However, my revenue is generated solely in Ontario. Do I end up paying Quebec or Ontario tax rates?

    Thanks

  153. nick 01/12/2013 at 8:41 am

    hello i have a question about a tax refund in 2012 i made 73124.08 gross income and paid in 16074.54 in taxes, 839.97 in ei premiums and 2306.70 in cpp. I have no deductions. wondering if i will get back a refund or have to pay

  154. Hi Rob,

    Your tax liability and tax payable is determined by where you reside, not where your income comes from. In your case, your tax residence is Quebec.

    I hope this has answered your question.

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

  155. Hi Nick,

    Without additional details of where you reside and any other tax deductions available to you, I can only point you to the 2012 Tax Calculator. link to lsminsurance.ca

    Enter your gross income into the calculator above to determine your tax liability and compare the result to the actual tax deducted from your pay during 2012. If more was deducted than the calculator determined, you will be receiving a refund.

    I hope this has answered your question.

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

  156. Johnny 01/13/2013 at 11:38 am

    Hi This site was very helpful in computing tax payable, thanks. However I still am confused as to the amount of refund I would get for the tax year 2012. For 2012, I worked in Ontario for 2 months and got a gross pay of 4200 (net is only 3800), and had a deduction of 1100. I worked in Sask for 9 mos and got paid 25000 gross, but net is only 19000, and deductions were 5400. Can you please give me an idea on how much I would get for refund or how to compute for this? It will be very much appreciated.Thank you

  157. Hi Johnny,

    It's not really that confusing.... simply add to together your gross pays from the two jobs and enter the total into this calculator: link to lsminsurance.ca

    The calculator will determine your tax liability for 2012. Compare the amount it calculated, for the province you lived in at Dec 31, 2012, to the total TAX deducted (not total deductions as there is more than tax deducted). If the total tax calculated is lower than the tax deducted from your pay, you`ll be getting a refund.

    I hope this has answered your question.

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

  158. Dan 01/14/2013 at 2:29 am

    Hi, I am a US citizen considering spending more than 183 days in Canada in 2013. I am trying to get a rough idea of my tax liability if I stay more than 183 days in Canada during the year. I am a professional gambler (I know that Canada does not tax gambling winnings, however since it is my profession, it is my understanding that I would owe taxes on my winnings). I know I would have to file a US return as well.

    I am going to assume income over $135,000. I know I would have to pay the federal rate of 29%. I am a little confused about whether I have to pay the province tax rate as well, or do I pay the surtax of the federal rate (48% of the federal tax).

    Thanks

  159. Kim 01/14/2013 at 2:44 pm

    Hi, I think this is such a good site and thankyou. I have a couple of questions. I made 33,415 gross and also another 10450 recieved in renting out my condo. Besides maintenance ($350 a month) and taxes ($1300 last year, is there anything else I can right off. Second question, how do I find out how much to put into RRSP's so that I don't have to pay more taxes. 2012 I bought around $1700 in RRSP. Also, my new tenant wants to know if she can claim her hydro that she pays for.

  160. Hi Dan,

    Excellent question!

    Yes, you are correct that general gambling winnings are non-taxable in Canada, but if the gambling is done on a professional/regular basis, it is considered business income and therefore taxable. As a tax firm, we have individuals like yourself as clients in this situation.

    Your taxable income would not be taxed at the highest federal tax rate, but the average tax for the province in which you reside. Additionally, keep in mind there would be allowable business deductions available to you as well to reduce your Canadian taxable income.

    To determine your approximate total tax liability, enter your anticipated earnings into the calculator above to determine your tax liability based on your province of residence.

    Please note, you would be required to contribute Canada Pension or Social Security.

    Additionally, effective planning could also make the Canadian gambling earnings tax exempt in the US on your US tax return.

    Our firm specialises in the tax return preparation for US citizens and dual US/Canadian citizens minimising tax liabilities on both sides of he border.

    I hope this has answered your question.

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

  161. Hi Kim,

    We welcome and appreciate your comments.

    Great question too!

    You are able to claim any expenses related to the condo rental maintenance and property taxes as you mentioned, but also mortgage interest, related office and operational expenses as well.

    Living expenses are not deductible by your tenant, unless a business is operated from the condo.

    As for your RSP Contribution Limit, you can find this info on your 2011 Tax Return Assessment or by accessing Your Account on the CRA web site.

    I hope this has answered your question.

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

  162. Dan 01/15/2013 at 1:42 pm

    Thank you for your response. I was looking at the US / Canada tax treaty and was wondering how you would interpret article 4 section 3a ( link to irs.gov ) -

    Where, by reason of the provisions of paragraph 1, an individual is a resident of both
    Contracting States, then his status shall be determined as follows:
    a) he shall be deemed to be a resident only of the State in which he has a permanent
    home available to him; if he has a permanent home available to him in both States, he
    shall be deemed to be a resident only of the State with which his personal and economic
    relations are closer (center of vital interests);

    I own a home in the US, and would be renting in Canada. Because I have a permanent home in the US, would that make me a deemed resident of the US, not Canada, for tax purposes?

    Thank you.

  163. Hi Dan,

    This indeed is a complicated and not a simple issue.

    Deemed residency is based on several different factors, both personal and economic.

    Firstly, you must consider what the view of your US state is to residency. Do you live in a US state that considers you a permanent tax resident even if you leave the US? California, for example is one.

    When it comes to deemed residency, some of the factors (this is is not exhaustive) considered is physical residence, whether renting and/or owning; do you have a family (wife & children living with you in US or Canadian residence) as family ties are a strong consideration of deemed residency; will you have assets in Canada (bank account, credit card, etc.).

    IRS Article 4 section 3a is identical to the Canadian Tax equivalent and can be interpreted favourably to you with all the facts on the table. Discussing your personal issues is not appropriate in a forum such as this. I suggest you contact us directly to consider your options. Email: [email protected]

    I hope this has answered your question.

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

  164. Dylan 01/15/2013 at 4:17 pm

    Hi, I've been on unemployment for half of the 2012 year and then based on being unemployed I was able to take part in government schooling called Second Career. So the government pays my 700$ a month tuition and 600$ a month for books for a whole 12 months.I was on EI getting about 750$ a month from January till august then the schools funds took over. On top of the govt paying for my schooling, they give me 750$ a month for living allowance, that kicked in, in august after my EI. So I now live off the govt living allowance of 750$ since august.

    Since this is a mix of EI and govt school funds I was curious (without kids a house a car) etc. What could I or should I expect as a return amount when getting my taxes back?. I pay rent in a shared apt 350$ a month. Thanks for working on this for me.

  165. Hi Dylan,

    The likelihood of you receiving a tax return on EI earnings is very low since EI only withholds 10% for tax.

    Don't let the lack of federal tax refund deter you from filing an income tax return as filing will entitle you to other credits and benefits, not just a tax refund.

    I hope this has answered your question.

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

  166. John 01/16/2013 at 4:16 pm

    My Mother inlaw lives with us and we pay her $7800 per year to take care of 2 children.
    Because she doesnt pay any rent and is making under the personal exemption amount can I claim her as a dependant?
    from Nova Scotia
    thanks

  167. Hi John,

    There are two types of Dependant Deductions available.

    The first is the Eligible Dependant deduction. You may be able to claim this amount if, at any time in the year, you met all of the following conditions at once:

    - You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person.
    - You supported a dependant in 2012.
    - You lived with the dependant (in most cases in Canada) in a home that you maintained. You cannot claim this amount for a person who was only visiting you.

    Since it sounds as you have a spouse ('we'), you would not be able to claim this deduction.

    The other Dependant Deduction is if the person is under 18 or over 18 and infirm or disabled. If your mother-in-law is infirm, she can transfer the deduction to you through her tax return.

    I hope this has answered your question.

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

  168. Jane 01/17/2013 at 9:34 am

    Hi,

    I was a full time student in 2012, as well as working full time for 8 months of the year. I made 30500, and for some reason i was not taxed on my earnings. I am not sure if this was because i had tuition credits left over or something. It says my total credits is 27000 and provincial is 26000. I reside in Ontario will i have to pay the full amount (4000) of the tax back?

  169. Hi Jane,

    The first place to start is to ask your employer why there was no tax withheld.

    Did you inform your employer of your tuition tax credits? If you completed a TD1 form when you started working in 2012 and informed your employer of the credits, they may have adjusted your exemption level to accommodate the tax deduction.

    Without knowing the reason for why your employer did not withhold tax, any additional suggestion is unavailable.

    I hope this has answered your question.

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

  170. Joan 01/17/2013 at 6:02 pm

    I have a question...in 2009 I had to claim capital gains on a sale of property here in Nova Scotia, it was split 50/50 between me and the ex ( we were separated at that time)on the income tax form..so my question, 3 years later, because of the divorce I never received any of the money that I claimed in capital gains, he got it all in the divorce...but I claimed half of it in 2009 as a capital gains

  171. Hi Joan,

    Not quite certain what your question is...

    Capital gain is the increase in value of an asset. At the time of your divorce, to value the assets of your marriage, the value of the property would have been assessed as a deemed disposal. As you note, you and your husband split the gain and you reported your portion on your tax return.

    Capital gain is not a refundable commodity... it's income and you paid tax on the income, there's is nothing to be returned to you.

    If the question you are posing is why you did not receive the proceeds of the deemed disposal and subsequent taxable capital gain, you should speak with your divorce attorney as it would have been included in the settlement.

    I hope this has answered your question.

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

  172. Rajan 01/18/2013 at 2:55 pm

    Dear Sir,

    I am a PR in Canada and working out side Canada. Now I have an job offer from a Canadian company, who has promised to pay $45,000.00. What % of tax to be paid from this amount and what would be the net amount available with me?

    Look forward to hear from you.

    regards

    Raja

  173. Hi Raja,

    Enter your gross salary into the calculator above to get your answer, it depends on your province of residency.

    I hope this has answered your question.

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

  174. LD 01/20/2013 at 12:12 pm

    Hi,
    I have set up a sole proprietorship. As of now I have one client and we have agreed on a rate of CAD 65 per hour. I started work on 1 January and expect to consult for a year until end Dec. In this case I will make about 126750 CAD. What will the taxes I pay on this amount? In addition, my husband does not work but trades in stock. Can I cosndier him a dependent? How much of tax relief will this give me?

  175. Ann 01/21/2013 at 9:46 am

    I returned to work in August 2012 what tax bracket was I taxed? I need to know if I was taxed at my full salary rate for 2012 or at the rate from from August to December?

  176. Steven 01/21/2013 at 6:51 pm

    Hi,

    I am currently being paid dividends each month instead of salary from the company I manage. How much money should I set aside for taxes?

  177. Jay 01/21/2013 at 8:04 pm

    For a typical large business, are employee salaries 100 percent deductible? For example, I pay my assistant 35k, and my taxable income is 100k - would my tax bill then be 65k?

  178. Hi LD,

    Your proprietorship income is considered self-employment income and treated the same as employment income, subject to the same withholdings.

    To determine your tax liability, enter your gross pay into the calculator above. The rates are based on your residency.

    You may be eligible to claim your husband, but not likely if he does have Canadian sourced income or income from abroad, he would be considered self-employed as a investment trader and his earnings would be required to be reported.

    I hope this has answered your question.

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

  179. Hi Ann,

    For any salary, EXCEPT part time workers, the employee has income tax withheld at the marginal rate of their gross annualised salary.

    I hope this has answered your question.

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

  180. Hi Steven,

    You don't mention the type of dividends you receive, as a result it's suggested you set aside an amount equivalent to the tax liability calculated when you enter the gross payments you receive into the calculator above.

    I hope this has answered your question.

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

  181. Hi Jay,

    For a typical large business, any salaries and wages T4'ed are deductible.

    From the way you posed the question, you are not a large business. Wages paid without being T4'ed generally are not eligible for tax deduction.

    I hope this has answered your question.

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

  182. Manuel 01/23/2013 at 4:15 pm

    Hi,

    I landed as a PR with my wife on May 13th, 2012 and I started to work on June 25th at Calgary, AB. My annual salary is 112,000 CAD, but last year I only got 56,000 and the company deduct to me around 16,000.

    My wife is not working and she has no income.

    How much I am going to paid in taxes?

    Thanks,

  183. Hi Manuel,

    The $16,000 you mention deducted, is this all tax or all included deductions?

    When using the calculator above, the tax payable would be about $11,000.

    If you indeed had $16,000 in tax deducted, you will be entitled to a tax refund.

    I hope this has answered your question.

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

  184. Jerry 01/24/2013 at 8:12 pm

    thanks for this site and your answers.
    I am requird to incoporate a company by my agency empolyer for my wage, please what expencese do i have to make on the coy and what is my tax rate as a company, what is my tax rate if i am on devidence as compared to if on salary from the inc. and what is the best option to help us, to be on salary or devidence?
    I live in alberta as permanent resident with a stay at home mum wife and 4 kidds.

  185. Jerry 01/24/2013 at 8:14 pm

    sorry the coy is making $65/hr for 40 hrs a week.

    thanks
    Jerry

  186. Ellie 01/25/2013 at 1:43 pm

    Hi
    My husband according to his last pay stub made 38000 this year gross. We have five children 2 of who have disabilities and qualify for the certificate . All our children are under the age of seven . I am also a stay at home mom so I am also my husbands dependant. Last year when we filed our taxes we did not know that our 2nd child had a disability . Our second child has mild Cerebral palsy and need special devices for walking. Each brace ( he needs 2) cost around 3600. Our insurance won't cover it . ADP covers 75% which leaves us with a cost of approx 1200. I am hoping that our tax return will cover the majority for our expense. Since our insurance won't cover this is this a medical tax write off ? Will our return be enough to cover the cost on our end?

  187. Hi Jerry,

    As an incorporated Personal Service Business, you are taxed at a higher rate than a regular corporation and much more than an employee. Additionally, you are required to pay 100% of the CPP contributions rather than half.

    I would recommend you take 100% salary to avoid the higher tax rate which comes if you choose to be paid via dividends.

    I hope this has answered your question.

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

  188. Mike 01/25/2013 at 11:14 pm

    Single man on long-term disability; $26,300 total annual income. How much income tax should I have deducted to break even at year's end 2013?

  189. Hi Ellie,

    Without knowing what your husband had withheld, an exact answer cannot be provided, but unless he requested less tax to be withheld, he will receive a tax refund that should cover the additional expense.

    Be sure to claim the braces expense as a medical deduction to get the benefit; as well as any premiums paid for the health insurance.

    As you mention the discovery of your second child's disability after filing your 2011 tax returns, I recommend you get the disability tax credit application back dated to 2010 or earlier and request adjustments to your previous filed returns.... you should receive a large additional refund for years 2011 and prior.

    Additionally, you may wish to contact the Cerebral Palsy association in your area for information on assistance (grants) for covering medical devices; the March of Dimes also provides assistance.

    I hope this has answered your question.

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

  190. Hi Mike,

    That depends on the source of the total income for 2012... was it through CPP or through an LTD insurance plan or other source?

    Benefits received from a LTD insurance plan are generally tax-free.

    If the total income is taxable, simply enter the gross amount into the calculator above to determine your tax liability. It should provide you with an estimate of the tax payable.

    As you ore on LTD, have you applied for the Disability Tax Credit? It will provide you with an additional tax credit against your taxable income.

    I hope this has answered your question.

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

  191. Barbara 01/28/2013 at 6:06 pm

    Hi,
    I like this site and appreciate your answer for every one. I do have some concern, That I am Canadian, who left Canada on Nov. 25th, 2012 to Egypt,,,which I get married there and planing to stay there till my husband be back with me, I have been working and pay tax in Canada for almost 11 month and here is my questions:
    _ do I file my tax as resident for 2012?
    _ do I have the right to claim my husband or file as single?
    _ I don't work here, do I have to report that to CRA?

    Thank you

  192. mike 01/29/2013 at 3:47 pm

    Hi my mother lives with me she dosent work or have any income shes 50 years old i was woundering if i would be able to claim her has a dependent.

  193. Esther Hails 01/29/2013 at 9:20 pm

    HI, I have a quick question that I have been trying to look up but can't find the answer to. My Husband took a Job 300Km away from home and commuted for the first 3 months, but took an apartment near work once witnter came due to the long drive. We own a house as our primary residence for which we are still paying a mortgage. My question is: is there a tax deduction for renting an apartment for work purposes. Also can he deduct travel expenses for his commute. He left a job near home to go to his current job away from home since his current job is within his profession.and the other job was not.

    I do not work but go to school part-time and look after our 2 children and the family home.

    Any information would be helpful. Thank you,

  194. Hi Barbara,

    Since you were resident in Canada up to November 2012, you are a tax resident and must file your Canadian tax return for 2012, reporting ALL your worldwide income.

    If you are legally married or common-law, you must file as your legal status. ie. if married, must file as married.

    If your husband lived in Canada for 183 days during 2012, he must file a Canadian tax return as well. If he did not live in Canada, you must report his worldwide income for 2012 on page 1 of the Canadian Income Tax and Benefit Return.

    You must report your worldwide income, if you have any.

    I hope this has answered your question.

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

  195. Hi Mike,

    There are two types of Dependant Deductions available.

    The first is the Eligible Dependant deduction. You may be able to claim this amount if, at any time in the year, you met all of the following conditions at once:

    - You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person.
    - You supported a dependant in 2012.
    - You lived with the dependant (in most cases in Canada) in a home that you maintained. You cannot claim this amount for a person who was only visiting you.

    The other Dependant Deduction is if the person is under 18 or over 18 and infirm or disabled. If your mother is infirm, she can transfer the deduction to you through her tax return.

    I hope this has answered your question.

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

  196. Ahmed 01/29/2013 at 9:32 pm

    Hi,

    I am a new landed immigrant, arrived 18/December/2012.

    I am intending to study while I own business in Sudan, Africa.

    Do I pay income tax on my earnings outside Canada?

    I own couple of real estate properties in Egypt, but not renting them, no revenue, do I also pay taxes on that??.

  197. Hi Ester,

    Firstly, there is no deduction available for the commuting expense your husband incurred travelling to and from work.

    Your husband may be able to claim the expense of the rental apartment. You will need to have your husband take to his employer form T2200 found here: link to cra-arc.gc.ca

    If the employer approves and signs the form allowing your husband to deduct the apartment rental, he will be able to claim it as an employment expense.

    I hope this has answered your question.

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

  198. Ahmad 01/30/2013 at 2:35 pm

    I am new in Canada and I work in a restaurant in Mississauga. I will earn in my first year $ 40000. And my wife will earn another $ 40000. How much will pay tax ? What about tips, included with taxes.

    Thanks for your cooperation
    Ahmad

  199. Hi Ahmed,

    Yes, As of January 1, any foreign income you have must be reported on a Canadian tax return, as you are a Canadian tax resident. You would be able to claim any tax paid in Egypt for your earnings as a tax credit on your Canadian tax return.

    As for your property, yes, you must declare the value, but you do not pay any tax on the asset unless it is generating income.

    I hope this has answered your question.

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

  200. MIKE 01/30/2013 at 9:40 pm

    hi,

    i am a pizza delivery driver and i made about 6.700 last year (2011) and the year before 3,800(2010) started in july that year.

    i received a letter from CRA and they want some records (bank statements,receipts etc) to prove i only made that much. that's one problem, my other problem is i made around 12,000 for this coming tax season (2012) should i claim all expenses like gas, insurance, car repairs/maintenance, etc.? or is it worth it?

    thanks for your help

    p.s. is there any sources on pizza delivering. for taxes?

  201. Victor 01/30/2013 at 10:06 pm

    Dear sir/madam,

    I want to incorporate my medical practice in Saskatchewan and wish to know:
    1) Can I draw all earnings as dividends and if so what is the current dividend tax rate?
    2) What is the corporate tax rate applicable to the money left within the corporation.
    3) Can I sell my house to the corporation and borrow money from the bank through the corporation to make interest payments deductible?
    4) Is good will worth anything in monetary terms?
    5) Can I manage an investment portfolio of stocks in a retirement fund within the corporation?
    6) How much money can I invest per annum in a retirement fund held within a corporation?
    7) I have approx $100,000 that I can contribute
    to my RRSP during this year.

    Thank you,

    Victor

  202. Hi Ahmad,

    Enter your gross earnings (including all tips) into the calculator above to determine your tax liability.

    Your taxable income includes all tips and other monies you receive.

    I hope this has answered your question.

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

  203. K 01/31/2013 at 10:29 am

    Hi, I would like to know about TFSA. I have not contributed at allbut since last year, I did more than 5K. Is the contribution accumulated over the years? How much then is my contribution room? I'm afraid I might be taxed since I put a lump sum amount. Also, do I need to declare this in the tax return? Appreciate your reply. Thanks.

  204. marvi anaper 02/01/2013 at 12:27 am

    Hi! I just want to ask do I need to file income tax return when I dont have any income to report since I am a stay at home mom.I arrived in canada just last june 2012..thanks in advance.

  205. Mustafa 02/01/2013 at 9:31 am

    Hello, I wanted to confirm income tax for working overseas. I am a Canadian resident of Ontario province. I am currently working outside of Canada. My income started in December 14 2012 and I will be working overseas for 1 year as per contract, and my salary is $101,000. Am I eligible for any tax break? Any info would help, thank you in advance for your time.

  206. Jay 02/03/2013 at 4:15 pm

    Hi,
    I would be starting a job in Vancouver. My annual salary would be 44000. How much tax would I have to pay and how much would I have in hand?
    Thanks,
    Jay

  207. Shibu Mathew 02/04/2013 at 5:43 am

    Hi,

    i was an international student in the year 2012 and spent over 45000 dollars in just fees for the Vancouver Film school. During that time I didnt work. My expenses were taken care of by my parents from back home. The company I am joining for work asked me if I file my taxes so I was doing that. I want to know if I am applicable for any kind of tax return from BC

  208. Jennifer Arlay 02/05/2013 at 3:06 am

    hi, i'm currently studying and i paid for my tuition $5,000. how many % deduction is school tuition fees for your income tax. Thanks

  209. Hi Mike,

    Sorry, but we can't help with the bank statements and receipts, but we can answer you about the expenses related to your pizza delivery work.

    Yes, you can claim auto expenses (gas, insurance, repairs, licence, etc.) based on the actual kms driven for work. You need to keep a log of the kms driven for work and personal use as CRA may request this information.

    It most certainly is worth saving on tax by utilising the deductions available to you.

    I hope this has answered your question.

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

  210. Hi Victor,

    To answer your questions:

    1) Yes, you can take all dividends vs salary, but you need to consider all tax implications and credits available to you to make the best decision. The current tax rate for dividends can reach 33.3%.

    2) The corporate tax rate combined can be as high as 27% in Saskatchewan.

    3) No, Professional corporations are not able to conduct business or hold assets outside of the professional area of practice.

    4) No, only as a business expense.

    5) No investment portfolio permitted, a private pension plan administered by a third is is permitted.

    6) An investment advisor can give you details regarding IPPs.

    7) Wonderful, but what is your limit permitted?

    I hope this has answered your question.

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

  211. Hi K,

    The contribution limit is accumulative, so if you do not contribute one year, that is available to you in following years.

    If you have never contributed to a TFSA, the current cumulative limit for 2013 is $25,500. Since you contributed $5k, your limit would be $20,500... this information is available on your tax return assessment.

    You do not declare any contributions on your tax return as the TFSA is a non-taxable account.

    I hope this has answered your question.

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

  212. Hi Marvi,

    You don't have to file a tax return if you have no income, but if you don't file you are not eligible for benefits.

    I hope this has answered your question.

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

  213. Hi Mustafa,

    Depending on your employer and the industry, you may be eligible for the overseas tax credit. Consult with your employer to see if you qualify.

    I hope this has answered your question.

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

  214. Hi Jay,

    Enter your expected gross salary into the calculator above to determine your tax liability and net pay.

    I hope this has answered your question.

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

  215. Hi Shibu,

    If you have tax withheld by your employer, yes you may be entitled to a tax refund.

    You can utilise your tuition credits as they are a non-refundable tax credit for you.

    I hope this has answered your question.

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

  216. Hi Jennifer,

    Qualified tuition paid is eligible as a non-refundable tax credit, which means if you paid tax, you would receive a refund of approximately 15% of your tuition credit.

    I hope this has answered your question.

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

  217. DIANNE 02/06/2013 at 1:29 pm

    Hi
    I currently recieve CPP, old age security and the supplement
    If I work part time how much can I make before it will effect these pensions?

    Thank you

  218. Margaret 02/06/2013 at 2:19 pm

    Hi,

    I've been living in Korea for ten years, but returned to Canada in 2010 for six months, then left for Korea again. My Korean husband attends school in B.C. and is being asked to provide my world income in order to get a student loan. Do I have to pay income tax in Canada? I don't live there and my husband isn't working - does he have to file income tax?

    Thanks for any help you can provide.

  219. Hi Dianne,

    The CPP and OAS will not be affected by additional income. As for the GIS, you have an income exemption of $3,500.

    I hope this has answered your question.

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

  220. Hi Margaret,

    Anytime you are physically resident in Canada for 183 days or more during a calendar year you become a tax resident of Canada and are required to file a Canadian tax return reporting your world-wide income.

    You are also a tax resident if you are not physically resident in Canada for 183 days or more IF you have residential ties to Canada... ie. family living in Canada.

    Since your husband is resident in Canada, you may be considered a Canadian tax resident and would be required to file a Canadian tax return from the date your husband moved to Canada.

    Your husband being a tax resident of Canada would be required to file a Canadian tax return, especially if he is a student and paying tuition as filing a tax return would allow him to apply for benefits and tax credits.

    I hope this has answered your question.

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

  221. Emil Vassev 02/07/2013 at 12:48 pm

    Hello,
    I am doing a full time postdoc in Ireland - University of Limerick. I have a family and an apartment in Canada, so I'm considered as a resident of Canada. What taxes should I pay in Canada?

  222. Karen 02/07/2013 at 3:17 pm

    Hi,
    I am a full-time house wife from BC. My husband earned 38000 last year and probably paid about 4700 in tax. We have a 2 year old son and his UCCB is 1200 from last year. Would you have any rough estimate of how much refund should we get? And how soon can we file?

    Thank you.

  223. Karen 02/07/2013 at 10:42 pm

    I am a full time employee with an office in St. John's, NL. I am cleaning the office on weekends as well, I am wondering how much besides my regular pay do I need to make before paying taxes on it?

  224. Hi Emil,

    As you are aware you are a tax resident of Canada, you would be required to pay the same taxes you would as if you physically were present in Canada... federal and provincial.

    I hope this has answered your question.

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

  225. Hi Karen,

    Firstly, the UCCB goes towards your taxable income calculation on your tax return.

    For a rough estimate of your tax liability, enter your husband's gross pay for 2012 into the calculator above and compare the result to the tax deducted on his final pay stub for 2012.

    As for when to file, file as soon as you know and are certain you have received all your tax slips due to your family (T4s, T5s, UCCB, etc.). Usually by late February or mid-March. If you file before you receive all your slips, you would be required to file an amendment request to adjust your tax returns.

    I hope this has answered your question.

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

  226. Hi Karen,

    All your income is taxable, there is no tax free amount.

    I hope this has answered your question.

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

  227. beth 02/08/2013 at 4:33 pm

    How can I pre-determine how much I need to contribute to my RRSP in order to avoid paying any income tax this year? My gross income is $111350.64 and my income tax deducted at the source for the 2012 year is $18030.00. I live in BC.

    Many thanks,
    Beth

  228. Hi Beth,

    As you ,ikely suspect, the tax withheld at source is too low and you will will be in a payable position at tax filing time.

    Your estimated tax liability will be $10,450.

    At your income level, for every $1,000 you contribute to your RSP you will receive a tax credit of $407.

    In your specific case, you would need to contribute $25,750 to your RSP to eliminate your tax payable.

    I hope this has answered your question.

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

  229. Jean 02/09/2013 at 12:27 am

    I'm about to retire, and I was told by a friend that I don't need to pay taxes if my income (including CPP and OAS) doesn't exceed $39,000.00 per year. Is this true?

  230. Emi 02/09/2013 at 9:16 am

    I am a Canadian citizen and resident of British Columbia. I am a full time housewife. My husband who is not Canadian nor a resident works in a tax free country and sends money to me in Canada. Is the money he sends me taxable? Thank you.

  231. Hi Emi,

    Your husband may be working in a tax-free country, but he is a taxable resident of Canada by virtue of marriage. The money he sends to you is not taxable in your hands, but he must file a Canadian tax return to report his worldwide income.

    I hope this has answered your question.

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

  232. Hi Jean,

    Your friend is incorrect.

    Any income you receive in excess of the personal exemption amounts is taxable.

    I hope this has answered your question.

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

  233. Belinda Seeley 02/09/2013 at 7:32 pm

    Was trying to find income levels for BC , as I made as a single person 26k last year and I am wondering if I will owe when I file my taxes. Where does one find a table on income levels in BC for singles ? Tried Revenue Canada but couldn't find it

  234. Hi Belinda,

    You can find the 2012 Tax Calculator here: link to lsminsurance.ca

    Enter your gross income into the calculator and it will determine your tax liability. Compare the result to your tax paid on your slip and it will provide you with an estimate of the refund or payable.

    I hope this has answered your question.

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

  235. Jane 02/10/2013 at 5:40 pm

    I am a Canadian Citizen but this coming summer, I will be in the U.S on a work visa for what would be categorized by the Canadian government as a Professional job. I also have a family to support residing in Canada.

    Will I get double taxed (pay taxes for BOTH the U.S and Canada)?

  236. giovanni 02/10/2013 at 6:41 pm

    hi i live in quebec i make 25.000$
    my wife makes 20.000$
    and ireceive 16000 $ in dividents
    we usualy have a split incom
    all this is gross income
    what will i have to pay on the dividents received
    regards giovanni

  237. Hi Jane,

    You will be taxable in both US and Canada. To ensure you are not double taxed, be certain you get tax planning assistance with your US and Canadian tax returns. The Canada-US Tax Treaty ensures no double taxation, but you need to find someone that knows the tax laws.

    It seems many tax preparers have jumped on the US tax band wagon and offer to help file a US tax return when they have no idea of the tax laws between US and Canada.

    When seeking assistance in any tax service (Canadian or US), be sure you ask questions about your tax situation and how long they have experience in US/Canada tax services, if your questions are not answered quickly and accurately or the person just set up shop, find someone else!

    Our firm has over 10 years of US tax service and planning experience and over 20 years of Canadian tax service experience.

    I hope this has answered your question.

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

  238. Hi Giovanni,

    Depending on the dividend income, it can also be split with your wife for tax savings.

    Income tax is calculated based on Net Income. Dividends come with a tax credit so that taxable dividends equals regular income.

    Take your total gross income and enter into the calculator above to determine your liability.

    I hope this has answered your question.

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

  239. Jean 02/11/2013 at 9:16 am

    I understand once you retire at 65 years that if your combined CPP and OAS does not provide enough funds to live on (and yet you don't qualify for a GIS), then it's advisable to transfer your RRSP funds to an RRIF. It's not advisable to take money directly out of your RRSP account because say, if you remove $5,000.00 from it, there's a withholding tax of 10% and you end up with only $4,500.00 which is a huge tax hit.

    If you transfer your RRSP to an RRIF, I understand that the minimum you can take each year is 6%. Is it possible to transfer some funds from my RRSP to an RRIF without transferring the entire amount? (I'd rather not receive 6% of my entire RRSP.)

    If I were to find employment after retirement and if I've transferred all or part of an RRSP to an RRIF, I understand that I would no longer be able to make further RRSP contributions to lower my taxable income.

    I've been told that this is the rationale behind people doing their best to wait until they're 71 years old before they transfer to an RRIF.

  240. Emi 02/11/2013 at 2:09 pm

    Hi. Thank you for your response. You mention that my husband would need to file a Canadian tax return even though he is not a Canadian citizen nor a resident just because he is married to me (and I am a Canadian resident). Is this just for reporting purposes or can the Canadian government actually make a non-Canadian citizen/non-resident pay taxes on income not made in Canada? Thank you.

  241. AT 02/11/2013 at 10:55 pm

    I am consulting to the United Nations (NYC) remotely from within Canada. I have heard that income from United Nations is tax-exempt for Canadians but I cannot find any information for this. Some have said that you must be outside of Canada for this to be true. Others say otherwise. Any advice?

  242. Hi Jean,

    Firstly, find someone else as a source of information... the person you are hearing these comments from is very incorrect!

    If you only receive CPP and OAS, you definitely qualify for GIS! That's who the GIS is designed for. If you have other sources of income, you would not qualify for GIS.

    If you have no other source of income, but do have RSP savings, it's advisable that you transfer to a RIF because you would qualify for the pension tax deduction, that's the only difference from withdrawing from a RIF vs RSP.

    The RSP will have withholding tax, but you either pay it when you withdraw the funds or at tax time. No real issue there.

    Your source is incorrect in the minimum amount that must be withdrawn from a RIF before 71... 6% is totally off! The formula to calculate minimum RIF withdrawals before 71 is:
    1 divided by (90 minus your current age) so if you are 65, the minimum withdrawal amount is 4% and increases to 5% at age 70.

    If you are looking for a retirement source of income from your RSP, but don't wish to cash in, purchase an annuity with a portion of your RSP to qualify for the pension deduction and likely a portion will also be tax-free. Consult a financial planner for details, not your source!

    I hope this has answered your question.

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

  243. Hi Emi,

    Even though your husband is not a Canadian citizen or resident, he is a tax resident by virtue of marriage and supporting you.

    CRA will not force him to file a tax return, but if your husband ever chooses to become a Canadian resident or citizen, he can be disallowed by virtue of your knowledge and his refusal to comply to Canadian Tax Laws.

    I hope this has answered your question.

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

  244. Hi AT,

    Unfortunately, you have heard incorrectly... income earned outside of Canada is taxable just as if if were earned within Canada.

    Not only is your US income taxable in Canada, but it is also taxable in the US and you are required to file a US tax return to retrieve any taxes paid.

    I hope this has answered your question.

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

  245. Jean 02/12/2013 at 5:01 pm

    Thank you so much for your excellent advice. It is very much appreciated.

  246. Annie 02/12/2013 at 9:08 pm

    My husband and I are seniors, and 30 yrs ago, he invested about $10,000 for me in a spousal RSP over a couple of years. Now that amount has grown to $75,000. and in 2011 I transferred it in total from a term depost (at less than 2%) to a mutual fund that I've been using for 15 yrs (avg 5%) I took none of the RSP out at any time. The trouble began when the T slips showing the transfer came, one showed me as the owner of the investment, but Ray as the contributor of the new investment, the other showed only me. Revenue Canada - in all their great wisdom, decided to tax me on this $75,000. (and of course they will again when I actually do withdraw the funds) They were going to tax me over $26,000 plus claw back my OAP...... We went back and forth for a few weeks, them never letting me actually speak to someone who knew anything, just a message taker who knew zip, til finally I said "enough, I'm going to the media (Steele on your Side) and within 15 min the message taker called me back and said "everything is fixed, its back like it was when you filed your taxes"...... I could never get a straight answer about why it happened at all. Now of course, I'm afraid to change the investment. Why can't these spousals have the "spousal" part dropped after the 2 yr waiting period. This has caused me grief at other times as well. I've decided to start cashing it in, just to get rid of the problem cuz in 4 yrs I have to switch it to a RIF .....
    I can't believe others haven't had a similar problem.??
    thanks,
    Annie

  247. Jennifier 02/13/2013 at 1:25 am

    Dear Sirs,
    I am a permanent resident in Canada. I am a housewife with no income with 2 dependents one under 18 and one at 18. My husband works in overseas. He earns around ~C$83000 a year (May I know what will be tax amount for C$83000??). He pays taxs in both HKG & CHINA. In my case, do I require to submit personal tax return and so how about my husband who only stays in Canada for 7 weeks a year. Please advise, thank you very much!

  248. Hi Annie,

    I'm not quite certain of what your question to me actually is, but from what you have noted, it seems your investment company has made a mess of the administration of the Spousal RSP.

    Spousal RSPs are set so a working spouse may contribute to a non-working spouse's RSP. Any contributions made by the working spouse to the non-working spouse's RSP belong to the non-working spouse UNLESS the funds are withdrawn within two years of the contribution, then the amount withdrawn is taxable to the working spouse.

    From what you say, it seems the investment company screwed up and deregistered the spousal RSP when you transferred it from a term deposit to a mutual fund investment. The clue to this was you started receiving T-slips.

    Canada Revenue did nothing wrong as it only taxed you as a result of the investment company deregistering your RSP.

    If I were in your position, I would be contacting the account manager and or the financial institutions regulatory in your province to lay a complaint about this error by your investment company.

    I hope this has answered your question.

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

  249. Hi Jennifer,

    Even though your husband works outside of Canada and is only in Canada for a few weeks at a time, he would be considered a taxable resident in Canada because you and his children live in Canada and receive support from him.

    Your husband as well as yourself should both be filing Canadian tax returns to ensure the proper reporting and application for benefits available.

    Any taxes paid overseas by your husband (he must file the HK and China tax returns too) are deductible on his Canadian tax return so he does not pay double tax.

    To determine your husband's Canadian tax liability, enter his gross income into the calculator above to get your answer.

    I hope this has answered your question.

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

  250. Annie 02/13/2013 at 4:32 pm

    Hi, Thanks for your reply, I probably didn't explain well, O receoved a T4RIF from Prospera which was a Statement of Income from an RRIF, but Box 20 (Degristration) is blank, it was the Trust Company that I was investing with, at that time of change, I had changed back to an RRSP (from the RIF) as I wanted it to continue growing, but it clearly states that I received no funds, but transferred the funds under section 60 (L)V 2011 I think there would have been no problem if my husbands name had not been down as contributor, and my name as annuitant. Rev Can said the investment companies did nothing wrong, and also that I did my taxes correctly, so that left me to believe that they screwed up......otherwise, how could they correct it so quickly....I didn't have to do a thing, prior to that, they were just making me jump thru hooks, resending them this form and that.
    I just want to make sure that I do it correctly next time, so this doesn't happen again. Maybe I should phone the mutual fund company and see if it could be handled differently.....next time.

    thanks so much for your insight,
    Annie

  251. jennifier 02/13/2013 at 5:22 pm

    Dear Sirs,

    Thanks for your information. I have not filed my tax since I am permanent resident in 2010. Can I start to file tax return this year only reporting his earnings last year? or do I have to report tax from my earnings from 2010 onwards? Do I have to pay penalty cox I don't know I have to pay the tax. Please advise, thanks!

  252. Mike 02/13/2013 at 5:50 pm

    I had no income in 2011 but I brought 12000$ from out of country.
    I stated in the airport. then I showed it in T4,now CRA is asking for T4 slip which I don't have.
    Please guide me what to do

  253. Hi Jennifer,

    You can start to file your tax return at any time you desire, but if you do have tax payable for unfiled tax returns, there will be penalties and interest. If no tax is payable, any benefits available would be lost by not filing tax returns.

    I hope this has answered your question.

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

  254. SairSir,am 02/14/2013 at 4:27 am

    Dear Sir,
    At an offer provided by the company as 54000 CAD/Year, is all the amount subjected as taxable income.

    If yes, what are the tax exemptions if I have a non working wife + 2 daughters of age 4 and 1.

    The place of stay will be Concord, Ontario.

    Also suggest whether for a normal spendings can be accomodated within 54000 CAD/year.

  255. Sunita 02/14/2013 at 10:37 am

    Hi,

    My parents will hopefully be receiving their permanent residence soon. I wanted to ask whether their Indian pension (paid by the Govt. of India) will be taxable in Canada?

    Thanks
    Sunita

  256. Hi Mike,

    CRA is simply conducting a review of foreign income... contact your employer overseas to obtain the T4.

    I hope this has answered your question.

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

  257. Hi Sair,

    Yes, your total income is taxable in Canada.

    Enter your gross annual income into the calculator above to determine your tax liability.

    I hope this has answered your question.

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

  258. Hi Sunita,

    Yes, your parents' Indian pension will be taxable in Canada and will not be taxable in India per Canada-Indian Tax Treaty.

    I hope this has answered your question.

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

  259. Daniel 02/14/2013 at 8:44 pm

    Hi there,

    I'm curious to know what my approx tax return will be this year.

    In 2012 i made 42,402.04.
    I was taxed 8,186.96
    CIT 5,601.95
    CPP 1,852.62
    EI 732.39

    I have deposited 4,000 in RRSPs

    Do you know what i would roughly get back if anything?

  260. M.IBRAHIM. 02/15/2013 at 11:22 am

    I am a landed immigrant in March, 2010. I bought a home in Toronto and left my wife and 3 kids and went back to Saudi Arabia where I work.Since I have residential ties in Canada, do I need to file Tax return? Is my overseas income taxable in Canada.My income in Saudi Arabia is tax free.
    Thanks
    Regards.
    Ibrahim.

  261. sourav 02/16/2013 at 10:23 pm

    Hi!
    I am a full time international grad student who is going to pay CAD 6000 per year as tuition fees. Every month CAD 450 is being deducted from my stipend. I want to know how much should i get as tax return when I will file for the tax.
    Thanks

  262. Hi Daniel,

    Yes, you will be eligible for refund... by contributing to your RSP, you saved $947 in tax payable.

    For every additional $1000 RSP contribution, you will receive a tax credit of $240.

    I hope this has answered your question.

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

  263. Hi Ibrahim,

    Yes, as a taxable resident of Canada, you are required to report your world-wide income on your Canadian tax return.

    I hope this has answered your question.

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

  264. Jessie 02/17/2013 at 6:37 am

    Hi,
    I would like to study in Canada for 2 years. During these 2 years, I would receve salary from my company in my home country. It will be transferred to a Canadian bank acount. Would I be taxed on this monthly salay and other study allowance I received?

  265. Hi Sourav,

    A tax refund is based on several factors including the amount of income tax paid and taxable income. Without all the details, a prediction cannot be made.

    Be certain to keep records and all your receipts for tax filing time to maximise any refund.

    I hope this has answered your question.

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

  266. Hi Jessie,

    Your taxable residency status is based on several factors, most importantly the type of Visa you will have. Unfortunately, without the details a more precise answer is not available.

    I hope this has answered your question.

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

  267. Nick 02/19/2013 at 7:44 am

    I am a UK citizen married
    to a Canadian citizen, and will will shortly retire to
    Canada after working overseas. I will receive a monthly
    pension income from a UK
    based scheme. Will I have
    to pay full applicable
    income tax in Canada on my pension income, or are
    there any concessions?

  268. william 02/19/2013 at 5:04 pm

    i will make 26000 this year in wages. i will have a 20000 capital gain from mutual fund sold. i live in ontario. what would the taxes payable be?

  269. sam 02/21/2013 at 10:51 am

    Last year my husband started his own buisness on top of us both working full time. When you have your own buisness you do not get taxes taken off. so how do I calculate how much taxes we would owe on $10 000 as we were not taxed on it as it came from the new buisness. We have about $12000 in write offs for the company.

  270. kj 02/22/2013 at 9:37 pm

    Hello, I live in Ontario and work 2 jobs.

    for one job i made $22296 and paid $2959 in tax and $982.01 in CPP and $408 in EI.

    for the other job i made $9363 and paid $605 in tax and $341 in CPP and $171 in EI.

    Will i have to pay the government any money? or will I be getting a refund?

  271. Hi Nick,

    Unless the UK pension is taxed in the UK (tax withheld at source), you are tax liable for all world-wide income as a Canadian resident.

    If the UK pension is taxed at source, the tax paid can be applied as a tax credit on your Canadian tax return; you can also be eligible for the pension tax credit.

    I hope this has answered your question.

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

  272. Hi William,

    Capital gains are taxed on half the gain... in your case, $10,000 of the gain is taxable.

    To determine your tax liability enter your taxable income ($26,000 + $10,000 = $36,000) into the calculator above.

    I hope this has answered your question.

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

  273. Hi Sam,

    Enter your husband's full-time salary into the calculator above to determine his salary tax liability. Then, enter the total of your husband's salary plus his self-employment income into the calculator to determine the total tax liability. Subtract the salary tax liability from the total tax liability to determine the tax liability for the self-employment income.

    I hope this has answered your question.

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

  274. Pramod 02/22/2013 at 11:41 pm

    Hi,

    I was in working Ontario,Canada from 29-Jan-2012 to 06-May-2012.

    My Total Taxable Income during this period is CAD 18,700 and Tax Paid during this period is CAD 3,500.

    Could you please let me know, how much Tax Retuns I can expect this year?

    Thanks in advance.

  275. myra 02/23/2013 at 12:51 pm

    Hi, Im a PR resident in Canada and got married last year. Im filing my tax, and i have question about my spouse salary.

    Am I going to declare his salary even thou his not a PR of Canada?

  276. w anderson 02/23/2013 at 1:55 pm

    Have a "in kind" RIF payment ;what are the tax implications ?

  277. Venessa 02/23/2013 at 3:18 pm

    Hello,

    I have been collected EI benefits since Feb. 2012, while on maternity leave. I noticed on my T4, that will the benefit paid $17,000, I was only taxed $123. How much of this is taxable and would making an RRSP contribution help me owe less tax back?

    Thank-you

  278. Mandy 02/23/2013 at 3:50 pm

    I am a married, mother of one 2 year old and was a full time university student for 4 months last year. My total tuition costs for last year was $2700, I also have $280 in medical, $7487 in childcare costs and $220 in student loan interests to claim. My son was in full time childcare the entire year. My total income for last year was roughly $35700 and I paid about $4700 in taxes, will I be entitled to a return or have to pay based on this information?

  279. Hi KJ,

    Based on your info, you will be entitled to a refund.

    I hope this has answered your question.

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

  280. Hi Pramod,

    With the limited info, you likely will receive a full refund.

    I hope this has answered your question.

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

  281. sk 02/23/2013 at 5:14 pm

    Hi,

    I am immigrant / Work permit Holder and My wife joined me in Sep 2012 along with my Daughter (I am came to canada in May 2012)

    Am I eligible for spousal credit and Child benefit ? if Yes is it full 10822 or is it prorated ?

    Also is my personal tax credit for both proventional and sate prorated ?

    Please clarify spousal credit for both Provential and Fedral

    Thanks,
    Sk

  282. Hi Myra,

    All Canadian sourced income is reportable and taxable in Canada.

    If your spouse lives in Canada, regardless of citizenship, and earns income, the income is taxable and must be reported on his Canadian tax return.

    I hope this has answered your question.

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

  283. Hi W Anderson,

    Any income received from your RIF is taxable, regardless of it's form.

    I hope this has answered your question.

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

  284. Hi Vanessa,

    All of the EI you received is taxable.

    Yes, contributing to your RSP will reduce your tax liability.

    I hope this has answered your question.

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

  285. Hi Mandy,

    Based on the info provided, you should be entitled to a tax refund.

    I hope this has answered your question.

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

  286. Hi SK,

    All tax credits are prorated, be they provincial or federal.

    I hope this has answered your question.

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

  287. Ramesh 02/25/2013 at 1:35 am

    I am canadian PR and my wife is in Pakistan, she never come in Canada. Can i write her name in income tax and what i have to use Non resident or deemed recident or what?

  288. Hi Ramesh,

    Only residents of Canada may be claimed as dependants.

    I hope this has answered your question.

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

  289. Phil Cherry 02/26/2013 at 4:21 pm

    I am a self employed contractor who is paid an hourly rate plus mileage. I received my T1204 from the company which had the hourly rate and mileage all rolled into to one payment. How do I deduct the mileage portion on the income tax form. I know how much the is mileage as opposed to the hourly portion.

  290. Fernanda Huerta 02/26/2013 at 5:22 pm

    Hello,

    I got a job offer in Alberta with an income between 60,000 and 80,000.

    Does this mean I'll be paying around 21-23% of taxes?

    What does the marginal tax rate mean?

    And I was told I could/would get a refund at the end of the year. Is this true? How does this work?

    Btw, I am a mexican citizen. Have never lived in Canada before.

  291. Hi Phil,

    There is no separation of the mileage from the wages... the total amount is taxable income. You cannot deduct income, only expenses.

    I hope this has answered your question.

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

  292. Hi Fernanda,

    The marginal tax rate is the rate of tax you are liable to have payable for your income.

    You are entitled to a tax refund if the tax withheld exceeds the tax liability for your income received.

    I hope this has answered your question.

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

  293. Snir 02/28/2013 at 1:13 pm

    I'm a married self emplyee earning 50000.00 per ear. i would like to know how much have to pay.I have not contribute any tax yet.

  294. Hi Snir,

    Enter your gross income into the tax calculator above to obtain your answer. In addition to the tax, you are also required to contribute to CPP which would amount to about 10% of your gross income.

    I hope this has answered your question.

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

  295. winston 02/28/2013 at 6:00 pm

    I have been working in Yellowknife, NT Canada since June 15th 2012 while my spouse and 3 children have been in Newfoundland, Canada, I have a full time job here and my spouse and kids have just moved here with me in Jan 2013. I have put on my tax return that my residence was Newfoundland because thats where my spouse and dependants lived as of Dec 31st 2012 but yet i have been here and worked here since June of 2013. The tax rate in newfoundland is much higher than in Yellowknife, if I filed for Yellowknife residency i would have gotten back 6,500 in income tax but because I put down Newfoundland for my residence I will only get back 3,400. Really unsure if I should leave it as is or if I'm ripping myself off and should have filed Yellowknife as my residence. I would like to hear a professional opinion. Thanks

  296. Hi Winston,

    Seems you've answered your own question.

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

  297. Kris 02/28/2013 at 11:23 pm

    Hi,

    I made 38500 last year and was only taxed 4649. I do have a credit because I paid 1114 for transit. Would you be able to tell me if I am going to owe?

    Also, I went to file last year and they told me I owed 300 because I didn't pay enough taxes. I had a school paperwork I was waiting for to include so I told them not to file because I felt they made a mistake (I got a big return the previous year through another company that handled the filing) and I never ended up filing for last year. Therefore, I never received my GST payments either. So my second question is - how badly will not filing affect me and can they just use my GST credits to offset that when I file this year?

    Thanks,

    Kris

  298. Roshan 02/28/2013 at 11:45 pm

    Hi,
    I am an international post doc fellow at western university. I have joined the fellowship on Feb 1, 2013. My annual income is $30,000. I am paying a rent + utilities equal to sum of $350 per month. I am new and confused about tax filing. I have following questions.
    1. Do I need to pay tax this year.
    2. Am I eligible for any tax credits.
    3. Do I even need to file the tax returns.
    In my home country I have already paid taxes for the previous years.

    4. I am married but my spouse is not accompanying me here. Does it effect tax returns.

    5. Can you explain me more about tax credits for temporary residents.

    Thanks
    Roshan

  299. emily 03/01/2013 at 2:33 pm

    My mom came to Canda holding temporary resident visa and lived with us for 5 and half months, am I elgible to claim caregiver amount on line 315 for my Mom, please advise.

    Thanks a lot

  300. Nazia Batool 03/02/2013 at 6:07 am

    Hi,

    I am a Canadian Citizen working in Dubai, UAE thinking of relocating back to Toronto in a month.

    I however, need to know my take home pay enabing me to decided of whether or not to move.

    Can you please let me know of the total taxes I would need to pay on a Gross salary of CAN $100,000 inclusive of provincial, CPP/EI, and mandatory federal deductions.

    Many Thanks in advance

    Nazia

  301. Hi Kris,

    Firstly. you can't file your 2012 tax return without having filed your 2011 tax return... CRA will holdback any refund for 2012 until you do file 2011.

    How does the person you went to know you were in a payable position without actually filing your tax return... that person was not a professional tax return preparer and had no idea of your actual tax refund status.

    A note to you and all reading this column... Get your tax return done by someone that is more that hanging a shingle out saying they do tax returns for $20... you get what you pay for... errors and missed deductions by someone that doesn't know anything about the income tax laws. The lower the price you pay to have your taxes filed, the more likely you lose!

    As you personally know, you lost out on the GST and other benefits due to you because you didn't file... don't ever make that mistake again. Get your tax return filed every year and use a professional tax preparer, not someone with a tax return software and computer.

    To determine if you are payable or not, enter your total wages into the calculator above and compare the result to your actual tax deducted on your T4 slip... this is the only way to estimate. Obviously, with the additional transit credit, your refund would be larger.

    I hope this has answered your question.

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

  302. Hi Roshan,

    The answer to your questions:

    1) it depends on the amount of tax that has been withheld from your 2012 pay.

    2)Yes

    3) You may be required to file returns for BOTH countries

    4) No

    5) Tax credit5s are available to all tax paying residents

    I hope this has answered your question.

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

  303. Hi Emily,

    For you to claim the caregiver deduction, your Mom must be disabled and eligible for the Disability Tax Credit.

    I hope this has answered your question.

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

  304. Hi Nazia,

    For an accurate answer, you should speak with your employer to get the answer as deductions vary by employer.

    For an estimate, enter your gross salary into the calculator above to determine your tax liability. Additional statutory deductions would amount to approximately 10% of your gross salary.

    I hope this has answered your question.

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

  305. Ankit 03/03/2013 at 12:23 pm

    Sir,
    I am a Student at University of Alberta. I didn't file my tax last year as i didn't work in 2011 but i paid my university fees. After that I started work in January 2012. But I worked with various organizations last year and i do not have any idea how to calculate my tax for 2011 and 2012 together because i have to include my University fees of both years. And Approximately my earning for last year was $30000 and my fees for both years was $18000. Please help me out.

    Ankit

  306. LEO 03/03/2013 at 2:05 pm

    Hi!I separated from my wife,we have trips, I paid $17000 on T4 to nanny .How can I deduct this from my $140000 income.

  307. Hi Ankit,

    You do not pose a question here... simply take your tax documents for 2011 and 2012 to a tax professional for assistance in filing your tax returns.

    I hope this has answered your question.

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

  308. Hi Leo,

    Who issued the T4? Was it issued from a business or your personal remittance account? If personal, the primary custodian can claim.

    Who has primary custody of your child(ren)? The primary custodian is eligible to claim child care expenses.

    Child care expenses paid by the non-custodial parent are not deductible.

    I hope this has answered your question.

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

  309. zeena 03/04/2013 at 9:36 pm

    I got $17,000 in EI last year while on maternity/parental leave. How much tax will I have to pay back? There were no deductions for ei,cpp, fed tax.

  310. Hi Zeena,

    Your 2012 tax payable/refund is based on your total income for the year, enter your total income for 2012 into the calculator above to determine your tax liability.

    Also, check your T4E as it would show the tax withheld from your EI payments.

    I hope this has answered your question.

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

  311. LEO 03/05/2013 at 3:52 pm

    Hi!Last year I bougt rental property ,I didn't get any profit or lost.Do I have to file real estate report

    THANKS

  312. Hi Leo,

    It is totally IMPOSSIBLE for you not to have either a profit or loss on the rental property... I suggest you find a professional accountant to discuss your bookkeeping... you are likely losing out on deductions available to you.

    A rental property can be profitable or it can be not profitable, but never neither!

    Even if it were possible for you to just break-even, yes, you would still be required to report your income and expenses on your tax return.

    I hope this has answered your question.

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

  313. Scott 03/06/2013 at 2:03 pm

    Hi,

    I worked for one employer in Alberta in 2012, making $70k gross. I paid $14.8k in regular income tax alone, and was expecting a couple thousand dollars for a tax return. My tax return was $28.00 at H&R Block. I went over all my paystubs, and the majority of them taxed much higher than 15%, or even 22% for the income I earned after $43k. Is there a slip-up somewhere? Will the CRA correct this, or should I not get my hopes up?

    Year-end numbers for EI: $839 and CPP: $2306.

  314. Hi Scott,

    Best get a second opinion by finding a free tax prep service on the web.

    Using the calculator above the liability is about correct compared to your result.

    If you noticed the tax was increased as you earned more during the year, there most likely was set up issue with your payroll information and the payroll department did a catch up to not have you in a payable position.

    I hope this has answered your question.

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

  315. Rana 03/06/2013 at 9:45 pm

    Hi

    I am a International student who has paid around $7363 in tuition in Sept 2010 with no income and Winter 2011 with only income $624.00. I am residing in British Columbia. I’m also a co-op student and I work in company from Jan 7 to 9 Dec 2012.I earned around $42,000. I’ve been automatically paid my income tax, cpp etc on each of month from my biweekly paycheques so I was wondering how much tax return should I be expecting?

    Moreover I didn't paid last year Novemeber tax from my pay cheque because I signed T1 form so I didn't pay any income tax in November last year but I paid CPP and EI in November and as I mentioned above that I paid Income Tax , CPP and EI rest of the year

    I also want to know that I paid all my co-op fees around CAD 1600 to TRU for each work term so it means I did three work terms where I paid around CAD 4800.00(Tution Fees) to my University but I get reimbursement amount around CAD 2100 from my company where I worked last year as per mentioned in the offer letter.

    Below information is from my T4
    Income taxes: CAD 6000
    CPP: CAD 1700
    EI: CAD 800

    And I always carry forward my tuition fees(CAD 7363) of Fall 2010 and Winter 2011 amount to next year in last two year's tax return

    Please let me know around how much taxes would I get back this year.

    If you have any questions and concern please let me know.

  316. Dave 03/06/2013 at 9:53 pm

    My son bought a universal life policy when he was a Canadian Resident. He has since moved to the U.S. and is a permanent US resident. What will be the taxation if he cashes his Canadian Insurance policy in?

  317. K 03/07/2013 at 11:30 am

    Hi, I would like to find out if I still need to declare in the tex return in Canada our properties and income outside Canada even if we do not have residential ties with Canada anymore. However, we are Canadian residents but living outside Canada already.

    Thanks.

  318. Mo 03/07/2013 at 2:10 pm

    Hi,

    I just started a 6 month contract where I have to collect my own taxes, HST, and CPP. I assume I also have to collect EI. In one of your responses to another contractor about taxes, you mention to set aside 10% to cover CPP. Will that also cover EI premiums? Also, does the tax payable entry in the LSM Canadian tax collector cover both the federal and provincial tax owed or just the federal tax? Cheers! Mo

  319. Janice 03/07/2013 at 9:39 pm

    My income for year was 22537.80 and only income tax was off UIC which was 760.00. Is the first 10822?.00 not taxable. I want to pay some income tax - what should I pay approx. I only receive OAS and CPP now.

  320. Hi Dave,

    The tax-ability of the cash out would depend upon the Adjusted Cost Base of your son's policy. Your agent could assist you in determining this.

    Any proceeds over the ACB would be taxable.

    I hope this has answered your question.

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

  321. Hi Rana,

    To determine your tax liability or refund, enter your gross earnings for 2012 into the calculator above and compare the tax calculated to that on your T4 slip.

    Tuition credits are only claimable net of any reimbursement you may have received.

    I hope this has answered your question.

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

  322. Hi K,

    Your tax reporting responsibilities would depend upon your tax residency... have you requested an official opinion from CRA?

    If you are a non-tax-resident, you would only report your Canadian sourced income; if you are a Canadian tax resident (not the same as physical living resident), you would be required to report your world-wide income on your Canadian tax return.

    I hope this has answered your question.

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

  323. Hi Mo,

    As you are an independant contractor, you do not collect income taxes, CPP or EI. If required, you remit them.

    As an independant contractor, you are not eligible for EI under regular employee guidelines, you must apply for special guidelines, if applicable.

    The calculator above will determine your income tax liability for federal and provincial amounts, as it is broken down by province.

    I hope this has answered your question.

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

  324. K 03/08/2013 at 1:29 pm

    As a follow-up question, if we are living outside Canada and no residential ties anymore which means we gave up our health cards, etc. but not the citizenship.
    Do we still need to file for income tax in Canada? Our source of income is coming from outside Canada. Please advise. Thanks.

  325. Landon 03/08/2013 at 4:50 pm

    What are the tax reporting rules that apply to an escalating rate GIC, non-registered?

  326. Carol 03/08/2013 at 8:40 pm

    Hi
    Hope i word this properly
    A US citizen who is a permanent resident of Canada marries a Canadian (residing in Canada)-- when filing US taxes after marrying
    is the Canadian spouse's income taxable in the US?
    Thank you

  327. Hi Janice,

    NO, the first $10,822 is not non-taxable.

    Your income tax liability is based on your marginal and average tax rate for your total income.

    Have your tax return prepared and you will then know the amount of tax you will be required to pay or not.

    I hope this has answered your question.

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

  328. Hi K,

    The follow up answer is the same as the original...

    Your tax reporting responsibilities would depend upon your tax residency… have you requested an official opinion from CRA?

    If you are a non-tax-resident, you would only report your Canadian sourced income; if you are a Canadian tax resident (not the same as physical living resident), you would be required to report your world-wide income on your Canadian tax return.

    I hope this has answered your question.

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

  329. Hi Landon,

    Good question!

    For any multi-year GIC, bond, etc., the interest earned for the year is to be reported whether the interest is credited (paid to you) or not). This is done to report the interest during the life of the investment rather than reporting all the income at the end of the investment period.

    I hope this has answered your question.

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

  330. Hi Carol,

    A Canadian citizen, regardless of marriage to an American citizen has no responsibility or requirement to report non-American income or file a US tax return.

    If there are tax advantages for the American spouse to do so, including the Canadian spouses' income would be beneficial.

    I hope this has answered your question.

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

  331. Ashley 03/11/2013 at 12:06 pm

    My husband has been working for his uncle, who has never asked for his SIN, my husband has been there over a year now and has been paying regular taxes off his paycheque but we have recently found out that his uncle has not been putting any of the money deducted into taxes hes been keeping it for himself, my husband also doesnt recieve a pay stub. What can we do about this situation.

  332. Hi Ashley,

    Looks like your husband has a court battle ahead... he's responsible for reporting his earnings even if his uncle doesn't pay the taxes nor provides him with a T4. Best get a lawyer or local police involved to resolve the situation.

    I hope this has answered your question.

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

  333. Dear Readers,

    If you feel the answers provided to your questions are unclear or require further explanation, we suggest you contact your tax professional for advice, as this forum is limited in scope to the information provided.

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

  334. Syed 03/12/2013 at 3:25 pm

    We are a family of five including self; all of us have completed our landing in May’12 to become Permanent Residents of Canada. After staying here for a month we travelled back to our country of origin. I returned back to Canada alone at the end of Oct’12 to hunt for jobs and was lucky to get one where I have joined and working since the first week of Jan’13.
    In the previous year (2012) the total number of days I stayed in Canada is 81 during which I was jobless. I was a non resident of Canada for 140 days in the same year.
    My family is still in our country of origin as I am settling down here and plan to join me in another couple of months.
    Here are my questions….
    1. In the previous year (2012) since I was a non-resident of Canada for 140 days and was working for my previous employer, do I have to declare income for this period?
    2. If I need to declare income, do I have to declare starting from the day I landed in May’12 till the end of 2012? Or
    3. If I don’t have to declare the income from May’12 to end of 2012, do I and my spouse file a zero income TAX returns for the year 2012? (In this case of my spouse she is still a non resident of Canada and she is not working anywhere and I am supporting her along with kids who are with her).
    4. I have not yet applied for CCTB, since my family have already landed to become permanent residents but they are currently residing outside Canada, can I go ahead apply for it? Or wait for them so that I can apply for it once they are here in Canada?

    Your response will be much appreciated.

    Thanks,
    Syed

  335. B Pal 03/13/2013 at 7:45 pm

    Hi,I collected my PR card from Toronto since 2009 and I am planning to move to Toronto for settlement in Oct 2013 with my family (my wife and one adult daughter only). I work in a multi-national IT company in the UK and I am a British national. I got a job in its Toronto office. So I am planning to move from the UK office to Toronto office. My questions:
    1> My office will not reimburse my relocation expenses.Will I get any credit against my relocation expenses? If yes, what are the items covered under relocation expenses (like air fare for all 3 family members, initial hotel charge, daily expenses, local travel cost, cargo delivery charge etc)?
    2> My wife doesn't work and she is fully dependent on me. Will I receive any spousal credit?
    3> To calculate income tax using your table above should I deduct personal exemption amount (~CAD$ 10,000) from my gross salary to calculate the taxable amount?
    4> My office will pay max 5% of my salary matching contribution to RRSP. So If I pay 7% RRSP will I get the credit for total 12% contribution to RRSP?
    Thanks in advance,

  336. Ash 03/14/2013 at 9:18 am

    Hi,
    I am a Canadian PR holder but currently working in India. I got married in April 2012 from India and in May 2012 my firm asked me to work for 3 months from Canada. So for the whole year of 2012 I worked 3 months in Canada and the rest in India. When I was in Canada I was paid in CAD and tax was also deducted. My wife doesnot have Canadian PR and is not working. Now my question is for that 3 months when I was in Canada eventhough my wife was not with me in Canada can I get tax reduction because she is dependent of me?

    Thanks!

  337. Hi Syed,

    To answer your questions:

    1) No, you are not a tax resident of Canada

    2) You cannot apply for CCTB until a tax return is filed

    I hope this has answered your question.

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

  338. Hi B Pal,

    To answer your questions:

    1) No, relocation expenses to Canada are not deductible.

    2) Depending on your wife's credit available from her tax return, yes.

    3) No, the personal exemption is already taken into consideration.

    4) If you are eligible for it, yes.

    I hope this has answered your question.

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

  339. Hi Ash,

    In order to be eligible for the deduction, the dependant must be resident in Canada.

    I hope this has answered your question.

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

  340. Pedro 03/15/2013 at 4:39 pm

    Hi,
    I immigrated last year in February from Brazil and I'm now living in Vancouver. I was told I could get a refund of my moving costs (airplane tickets, shipping and rent), but other sources mention that's only valid for within Canada moves or within two foreign countries. Could you please clarify?

  341. Hi Pedro,

    The deductibility eligibility would depend on several factors that would need to be reviewed.

    The costs involved in moving to Canada (to become a tax resident) are not deductible; costs of moving (as a tax resident) for employment are deductible.

    In your case, costs may or may not be eligible for deduction, depending on information available to your tax preparer.

    I hope this has answered your question.

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

  342. Sam 03/16/2013 at 9:32 pm

    Hi!

    I have 3 subcontracts and earn $1700 a month from them and was wondering how I go about my taxes with this as the contract company does not deduct taxes.

  343. DK 03/17/2013 at 11:40 pm

    I'm a dual citizen living permanently in Los Angeles. In 2012 I earned $774 from Canada Pension plus $1494 from ACTRA Fraternal Pension for a gross of $2268 -- with $224 held back for Non Resident Tax.

    The calculator above indicates I owe no tax on this small sum. Since I am non Resident and not eligible for certain deductions, is this true? And if it is which form should I fill out in order to get a refund if I'm due one?

    Thanks

  344. maya 03/18/2013 at 10:34 am

    Hi,
    I just graduate and my income is 30,000 CAD/year. I have no house, no kids.
    Last year, I was international student, so I paid 20,000 for college. 2 years ago, I paid 10,000 for English school to improve my English when I came to Canada firstly.
    I am wondering how much I have from tax reduction?

    Thank you so much,
    Maya

  345. Alex 03/18/2013 at 4:32 pm

    A couple of questions:

    1) I live in Ontario, and earn $59000/year. I contribute $5000 annually to RRSP's. What can i expect to pay in tax?

    2)I am currently having $591 (EI,CIT and CPP)removed in taxes per pay period.
    Are EI, and CPP deductions included in my the tax rate?

    Thanks

  346. Hi Sam,

    You must report the income as self-employment income on schedule T2125.

    I hope this has answered your question.

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

  347. Hi DK,

    You may be a non-resident, but you are eligible for a tax refund.

    You need to file the T1 Tax and Benefit Return.

    I hope this has answered your question.

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

  348. Hi Maya,

    Without knowing your tax situation, an exact answer cannot be provided, but it would depend on whether you filed a tax return for 2011 to file for benefits last year.

    I hope this has answered your question.

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

  349. Hi Alex,

    1) First, use the calculator above to determine your tax liability. From the liability calculated deduct $300 for every $1000 you contribute to your RSP.

    2) No, CPP and EI are not income taxes.

    I hope this has answered your question.

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

  350. Matt 03/19/2013 at 1:56 am

    Hi, my wife moved to Canada to reside with me in January, and she became landed immigrant in August. Does she need to file a tax return?
    She doe not have any employment income for the calendar year as she took a year off from her job abroad and I compensated part of her salary loss. Is there a tax credit associated with that?
    Thanks,
    Matt

  351. DK 03/19/2013 at 12:11 pm

    Hi. Clarification please. In your answer above you say I'm elegeble for a refund on the small amount of pension I received in 2012. Yet last year when I filed I was notified that I did not qualify for some deduction (again the amount was only around $2000) so I would not get a refund. I have no idea what that deduction might be. This year when I file what should I look for? Thanks again.

  352. Hi Matt,

    If your wife has no Canadian sourced income, she is not required to file a Canadian tax return.

    Unfortunately, there is no credit for compensating your spouse.

    I hope this has answered your question.

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

  353. Hi DK,

    Perhaps you should check with your providers to determine your tax status: Part I income tax is refundable in Canada, Part III income tax is not refundable in Canada. If CRA has advised you are not entitled to a refund, you likely have had Part III income tax withheld.

    Part III income tax is refundable when you file your US tax return.

    I hope this has answered your question.

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

  354. Curtis Gleim 03/19/2013 at 8:29 pm

    How much Federal Income tax should I get deducted monthly off my CPP Disability cheque of 750.00 in Saskatchewan so I don't have to pay income tax in next year?

  355. John 03/19/2013 at 9:20 pm

    Hi, I am considered a self contractor and my taxable income is roughly $82,000 year.
    I have roughly $52,000 of unused RSP contributions that I can use in 2013.
    a few Questions:
    - How much should I save roughly from each invoice in percentage?
    - Whats the difference between the average and marginal tax rate? Avg shows 23% but marginal shows 39%
    - How much could I contribute to RSPs to offset what I owe in taxes? for example, lets say i owe $20,000 in taxes. If I put $20,000 into RSP for 2013 tax year, would this offset what I owe in taxes?

    Thanks in advance for your help!
    John

  356. Andrew 03/20/2013 at 1:04 pm

    I am a citizen of Singapore and a Canadian PR. I have been offered a job in Singapore and will be looking to work there for at least 3 years. As I am a national with a tax treaty country, will I be considered a factual non-resident for Canadian income tax purposes? What are the conditions that will allow me to be considered a non-resident for Canadian and are they mutually exclusive or do they all have to be met? Thank you.

  357. William 03/20/2013 at 10:10 pm

    I am an Ontario resident working in the Alberta oil patch thru the winter to make ends meet.
    My flights cost me around $1000. to Alberta and back from Ontario which I have to pay out of my pocket in order to be employed.
    I make a decent living working in Alberta for 5-6mths per year but the costs of the flights add up to around $4000.00 during that employment time and once in Alberta I also have a $500/mth housing cost and gas to get to and from work each day. Can I write any of this off?
    I work 4 weeks on, Alberta and 1 week off Ontario.

    Thanks for your reply.

  358. Darren Austin 03/21/2013 at 10:34 am

    Hi, just out of curiosity how much can I claim for my 2 kids and wife who is not working on a yearly tax return? Thank you

  359. Yongchun Liu 03/21/2013 at 5:54 pm

    Hi,

    I am a postdoc. I moved in Canada in August 2012. When I use Ufile to calculate my income tax, I am not sure whether I should add my wife's information(She is living in China). If I don’t fill in her information, I will pay ~$2900. But when I fill in her information with zero income, I just need to pay $784. Which one is correct?

    Thanks

  360. Anika 03/21/2013 at 11:25 pm

    Hi I'm a bit confused about the ta rate difference between provinces.
    When I look at ON And PQ, ontario charges 5% and 9% apprximately on first 40k and above respectively(all rounded). In quebec, they say 16%for under 40k and 20% for above.
    I don't quite undestand why the tax difference is only different by about 4000 for 60k (mock salaray number) when I do a calculation using their given income tax rates, I see almost 6500.
    Is there something else being considered here?

    Also, if I work for a ontario based company and go to quebec during the year at the end of the year do I file tax under quebec or ontario? Can I come back during the holidays and still declare under Ontario while staying/living at my parents (on dec31) or is that fraud?

    Thanks!

  361. Kelli 03/22/2013 at 2:20 pm

    Hi,

    I received my T4 and my income was 8089,37 but my income tax deducted was only 78.79. Does this mean I am going to owe taxes?

    thank you

  362. Muddaser 03/22/2013 at 2:24 pm

    Hi,

    I am a student working in Ontario. In 2012, I was a full time university student from Jan 2012 to Apr 2012. I worked full time from Apr 2012 to Dec 2012, with gross earnings around 20 000. In 2012, I entered on my TD1ON Personal Tax Credit Return a claim amount of 17000 (based on the formula given) and 18000 for TD1. In 2012, I did not pay any tax (it was not deducted from my weekly salary) and I am assuming I will have to pay a certain amount soon. How much will this amount be?

    Also, as of now in 2013, I am still not paying taxes on my weekly salary. If I will be resuming full time university studies from Sep 2013 to Dec 2013, and working full time from Jan 2013 to August 2013 (earning around 35000), what will be my tax for 2013 that I have to pay to CRA?

    Thanks,
    Muddaser

  363. Trudy 03/22/2013 at 7:38 pm

    Hi, I have 2 questions....is it legal to withhold income from one employer (when more than one) with the intent to claim next year??? and also...I have a daughter that was 18 years old in 2012...she lived with me for about 5-6 weeks in 2012...can I still claim her as a dependent?

  364. Hi Curtis,

    That depends on the total of your tax income.

    Enter your gross income for the year in the calculator above to determine your total tax liability and then divide the amount by 12 for your monthly amount.

    I hope this has answered your question.

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

  365. Hi John,

    Enter your gross annual taxable income into the calculator above. This will present you with your tax liability.

    To estimate the amount you should set aside from your billings, use the average tax rate result of the calculator.

    The marginal tax rate is the 'tax bracket' your income is within; the average tax rate is the cumulative of the tax rates used to calculate your tax liability.

    RSP contributions do not reduce your tax liability dollar for dollar; for your income level, you would receive a tax credit of $320 for every $1000 contributed.

    I hope this has answered your question.

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

  366. Hi Andrew,

    The answer to your question is not able to be easily answered in this forum, you should contact CRA for an official opinion of your tax residency under the conditions you have specified.

    I hope this has answered your question.

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

  367. Hi William,

    Your personal living expenses are not deductible against your income, unless there is something to that effect in your employment agreement.

    Your travel expenses may be deductible under some circumstances, but this should be discussed with your tax return preparer.

    I hope this has answered your question.

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

  368. Dev 03/23/2013 at 8:01 pm

    Hi,

    I am indian and will work in Downtown toronto from march'13 to october'13. I am married and my wife is dependent on me. But currently not living with me i.e. she is in india. Can I avail tax benefits for my wife and can I have to pay tax for these duration 8 months?

    Thanks,
    Dev

  369. Hi Darren,

    Unfortunately, there is nothing you can claim for your wife and children, unless you have incurred child sports or arts related expenses.

    You are eligible to transfer from your wife's tax return her spousal credit and dependant's credit.

    I hope this has answered your question.

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

  370. Hi Yongchun,

    For you to report your wife's income for tax credit, she must file a Canadian tax return.

    If she is not a Canadian tax resident, you cannot transfer the credits to your tax return.

    I hope this has answered your question.

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

  371. Hi Anika,

    The answer to your question is beyond the scope of this forum, perhaps you should contact the Minister of Finance for your province to question the tax policies of the province.

    I hope this has answered your question.

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

  372. Hi Kelli,

    The answer to your question would be determined by entering your total income for 2012 into the calculator above.

    I hope this has answered your question.

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

  373. Hi Muddaser,

    The purpose of completing the TD1 and TD1ON forms is to determine your personal non-refundable tax credits so the amount of tax withheld from your pay in not too excessive of the amount for which you would be liable.

    The TD1 and TD1ON forms are to be updated every year when your tax situation changes; it would be in your best interest to revise your forms on file with your employer to avoid a huge tax liability at year end.

    I hope this has answered your question.

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

  374. Hi Dev,

    Yes, you are required to report your tax earnings for the income you earned in Canada.

    No, you cannot claim your foreign wife as a dependant as she does not live in Canada.

    I hope this has answered your question.

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

  375. Hi Trudy,

    You must report income during the year you received it.

    You can claim your daughter if her other parent did not claim her.

    I hope this has answered your question.

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

  376. bhavesh 03/27/2013 at 5:20 am

    Hello there

    I am Bhavesh Veera , Planning to come to Toronto or Montreal in July 2013.
    I would like to know about the tax Credits I would be eligible for and the amt of same

    1) I will be only earning person in family , wife will be house wife
    2) 2 Children aged 5 and 9 busy in Schools
    3) I have dependent parents but in India , Can I get any rebate of Medical expenses I incur for them.
    4) No Foreign earnings.
    5) May be Frequent Travel to USA.

    Thanks for your help

  377. Nagaraju 03/27/2013 at 5:37 am

    Hi,
    I am a non-resident of canada and got a opportunity to work in canada for 6 months(April 2012 to October 2012). I worked for these 6 months and came back to my country. Now I have received the T4 form and have to file the tax. I am new to process and heard that first time filling should be manual. Could you please suggest how can i file my returns.

    Regards,
    Nagaraju

  378. Hi Bhavesh,

    Potential tax credit are non-refundable and can only be utilised to reduce tax liability.

    For a view of all the tax credits available, please check: link to lsminsurance.ca

    I hope this has answered your question.

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

  379. Hi Nagaraju,

    As you are a non-resident, your tax return will need to be paper-filed.

    Best to contact an experienced tax preparer to assist you in this filing.

    I hope this has answered your question.

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

  380. Zahra 03/28/2013 at 6:18 pm

    I was accepted into a program last year, in which I worked for 6 weeks and received $2 000 in total. I recently got a T4 in the mail and I'm not sure if I'm supposed to fill out and mail it or just leave it. I was 17 when I worked and got paid so would I still have to pay tax?

  381. Hi Zahra,

    If you received a T4 slip, you are required to file a T1 tax and benefit return.

    I hope this has answered your question.

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

  382. Andrew F. 03/31/2013 at 3:39 am

    I have been living with my gf for 1.5 years now, if we were to claim common-law (AIR in Alberta here) is there a process needing to be addressed before filing? Or can we simply check the common-law status or add on some sort of form to accomplish the same?

    I have made 98k.. she has made around 5k this year, will all her back tuition/education amounts be able to be transferred to myself along with a spousal credit for this year, or only her education amounts from this year.

    Thanks!

  383. Hi Andrew,

    Good question!

    Couples, whether male/female or same sex, that live together for a period of at least one year are considered in a common-law relationship. Many do not know this and do not declare this on their tax returns. Some do not declare because they don't consider themselves in a common-law relationship; others do not because they may lose benefits or tax credits.

    In your case, since you have been together one and a half years, 2013 would be the year you would report as common-law.

    You would not be eligible to transfer tuition credits from previous years, only for the year tax reporting year.

    I hope this has answered your question.

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

  384. Jeff 04/01/2013 at 8:18 pm

    Hello and thank you for helping people with your site and advice.

    My questions is about the Ontario children`s activity credit vs Canada Child Fitness credit ? I am claiming Ontario children`s activity credit for my children and not Canada Child Fitness credit. Is this a problem ? If I claimed both it seems it would be a double claim and wrong. Can you clear this up. I seem to be reading conflicting information and would like to file correctly. Thanks

  385. Frank 04/02/2013 at 5:45 pm

    I am a US resident and citizen but I receiver a Teachers pension with tax withheld from Canada. How is this taxed and how do I figure my return? My canadian income is about $15,546 and the nonresident tax withheld is about $1,685. Will I be able to get any of that refunded?

  386. Hi Jeff,

    You will not be double claiming as they are two different tax credits: one applies to your federal tax return and the other applies to your provincial tax return.

    I hope this has answered your question.

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

  387. Hi Frank,

    You first need to ask your pension source which income tax is being withheld.

    If Part I income tax is being withheld, it is refundable on your Canadian tax return.

    If Part III income tax is being withheld, it is not refundable on your Canadian tax return. You may be able to have it refunded on your US tax return.

    I hope this has answered your question.

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

  388. bhavesh 04/03/2013 at 11:19 am

    Hello , its good site to see your tax credits.

  389. Gabriella 04/07/2013 at 11:35 pm

    Hi there look: my boyfriend worked for 5 years in Toronto and he lways reported his incontax. Unfortunately after those 5 years was denied residence and had to return to his native country in August 2012. Now he wants to make his incontax of 2012 to recover all of the taxes that he was deducted in 2012. my question is: I can do the taxes for him?
    thanks!!!!!!!

  390. Razieh 04/09/2013 at 11:51 pm

    Hello
    I am a homemaker, who fill some surveys on internet for a little money. I would like to know if I should do anything about tax.
    my incoming is not more than 100$ in a month.
    thank you

  391. Nick 04/10/2013 at 4:42 am

    I am a UK citizen married
    to a Canadian citizen, and will will shortly retire to
    Canada after working
    overseas. I have company
    share option schemes granted over several years. What is the Canadian tax position when
    they eventualy vest with a
    capital gain/dividends.

  392. Norman 04/10/2013 at 12:46 pm

    I trade the forex markets, and I am under the impression that you can not trade this type of investments in a TSFA or RRSP account. Yes or NO ? If yes, is there any special way which I would have to go about setting it up?

    Thank you,

    Norman

  393. Ian 04/10/2013 at 5:28 pm

    I see that if you get a T4 slip, honorariums are included in Box 14 and reported on line 101. Logically, if you do not get a T4 slip, an honorarium should be reported on line 104. In both cases, one can get a deduction on line 363. As a retiree, I had an honorarium included on a T4A slip. It appears in Box 28. This appears to make it reportable on line 130, which does not allow a line 363 deduction. The instructions on what to report on line 104 and what to report on line 130 do not include honoraria specifically and hence are vague. Can I report the honorarium on line 104 and get the line 363 deduction?

  394. Chris Samis 04/13/2013 at 3:29 pm

    Hi,

    I am an incorporated Communication Technician subcontracting to a company that contracts out technical services to telecom carriers in Alberta. My gross 2012 earnings totalled $46,552.93 with total related expenses of $6,885.91 amounting to $39,667.02 taxable net income. My wife is a stay at home mother of two boys with no income. My question is am I likely to pay higher taxes being incorporated than had I earned the same amount as an employee without carrying expenses?

  395. Dmjawed 04/14/2013 at 12:26 pm

    What is the tax rate for world income when somebody has no income in Canada and declaring income outside.

  396. Hi Gabriella,

    You can complete the tax return for your boyfriend, but he must sign and file the tax return.

    I hope this has answered your question.

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

  397. Hi Razieh,

    Technically, you should include this internet survey income on personal tax return; you will not be taxed on this small amount, but it should be reported.

    I hope this has answered your question.

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

  398. Hi Nick,

    Your world wide income will be taxable in Canada, depending until the tax treaty treatment of the income.

    Your capital gains will be 50% taxable (ie. 50% of your capital gains are taxable) at the personal tax rate. Non-Canadian dividends are also taxed at your personal tax rate.

    I hope this has answered your question.

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

  399. Hi Norman,

    Your question is beyond the scope of this forum as this forum is for tax questions.

    For an answer to your question, best to consult with a brokerage firm for specific details as to what is available to you.

    I hope this has answered your question.

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

  400. Hi Ian,

    Unfortunately not, the issuer of the T4A has specified that the honourarium is not employment related income.

    I hope this has answered your question.

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

  401. Hi Chris,

    Self-incorporated persons (Personal Service Businesses) are taxed at higher rates that regular small corporations. So, yes, the corporation will pay higher taxes than you as an individual.

    If the corporation pays you via a T4 slip, you can reduce your taxes.

    I hope this has answered your question.

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

  402. Hi Dmjawed,

    Foreign income is taxed at the same rate Canadian sourced income is taxed.

    I hope this has answered your question.

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

  403. Bernard Hasenberg 04/18/2013 at 3:13 pm

    I am renting the basement in my 2nd house to my daughter.
    Will I have to declare this as rental income?
    The upstairs is rented out and income declared.
    Thanks
    Bernie

  404. Hi Bernard,

    Yes, you are required to report the income from renting the basement of your rental property to your daughter.

    I hope this has answered your question.

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

  405. Robert 04/18/2013 at 7:34 pm

    Hello,
    A friend of mine mentioned that legal bills due to a marriage breakdown are tax deductable..If it is true, how far is one allowed to go back to claim those expenses?
    Thanks,
    Robert

  406. Ammar 04/19/2013 at 1:42 pm

    Hi,
    I am a Canadian citizen left canada in 1997 when I was 14 with my parents and lived in the Middle east since then. I started working 10 years ago in different companies in the middle east and the current one is in Dubai. I am married with 2 kids living with me. I am thinking of returning to Canada to live there for my kids to grow Canadians! do I have to pay taxes on my earning from current company in Dubai or previous companies?
    Highly appreciate your advise.
    Ammar

  407. Hi Robert,

    Your friend is incorrect.

    Legals cost only to recover income are only deductible, not due to marriage breakdown.

    I hope this has answered your question.

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

  408. Hi Ammar,

    You only are required to pay taxes if you are a tax resident of Canada.

    I hope this has answered your question.

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

  409. Ammar 04/20/2013 at 6:15 am

    HI,
    Many thanks for your quick reply. You said that I only am required to pay taxes if I am a tax resident of Canada. Then I do noy have to pay anything as I live outsiude Canada? What will hapen when I return?
    Pls advise.
    Ammar

  410. Mahendra 04/21/2013 at 2:05 pm

    Hi,

    I have a couple of question
    1) First question related to Tax exemption/credit due to change in my status from Work permit to Permanent resident.
    I moved to Canada in Aug-2011 on work permit and filed my first Tax return in April 2012. However I became permanent resident in Aug-2012. Do I get any tax benefit after becoming permanent resident or it does not have any impact to tax I pay.
    2) Can I get any tax benefit if I spend money on medical expenses, however it is less than 3% of my net income?
    3) What is the minimum net income criteria to be eligible for Trillium Benefit?

    Thanks,
    Mahendra

  411. Neetan Kanji 04/23/2013 at 12:22 pm

    Hi
    I am self employed and for example say I made $30,000 last year but I contributed $7000 into my RRSP. Do I pay CPP on the $30,000 or would I minus the 7000$ RRSP contribution from my income and pay CPP based on $23,000 ?

  412. Paul 04/24/2013 at 12:55 pm

    Hi,

    I worked in Canada for 10 months in 2012 and earned $19000. I had 1 year "working holiday" visa. Do I have to pay federal tax and
    surtax for non-residents of Canada?

  413. Kim 04/25/2013 at 3:19 pm

    Would like to know why part time employees have to pay more tax when they file their income tax return.

    Thank you.

  414. Meher 04/25/2013 at 6:16 pm

    Hi
    I don't have any income last year 2012 but my wife earned $11050.00 during 2012. She is getting $1943.00 as per her returns.
    Am I eligible to get any amounts from Tax returns 2012.
    Please advise.
    Thanks in advance.
    Regards
    Meher

  415. Hi Mahendra,

    There are no changes to the personal exemption amount or credits when your immigration status changes.

    There is no benefit if your medical expenses are less than 3% of your net income.

    There is no minimum income level required for the Trillium Benefit.

    I hope this has answered your question.

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

  416. Hi Neetan,

    Your CPP contribution is calculated based on your GROSS income, not less your RSP deduction.

    I hope this has answered your question.

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

  417. Hi Paul,

    Depending on your actual tax status while you were present in Canada, you may be a non-resident or a deemed resident.

    If you are a non-resident for tax purposes, your are liable for federal tax and the non-resident surtax.

    If you are a deemed resident for tax purposes, you are liable for the federal tax and the respective provincial tax for where you resided.

    I hope this has answered your question.

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

  418. Hi Kim,

    Part time employee are usually in a tax payable position at tax filing time due to their employers not deducting sufficient tax.

    You can request of your employer to take additional tax to resolve this concern.

    I hope this has answered your question.

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

  419. Hi Meher,

    Yes, you are are entitled. You must complete and file your own tax return for 2012.

    I hope this has answered your question.

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

  420. Ammar 04/26/2013 at 4:09 pm

    Hi,
    Appreciate your reply to my above question. Many thanks.
    Ammar

  421. Hi Anmar,

    Tax residency is not the same as immigration residency. If you live outside Canada, you can be a tax resident, just like if you live in Canada, you may not be an immigration resident.

    If you require confirmation of your residency, you should contact CRA for an official opinion of your tax residency.

    I hope this has answered your question.

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

  422. Loic 04/28/2013 at 1:02 am

    Hi there,

    I worked 2 jobs in 2012, i'm married, 2 children (aged 10 and 2) + RRSP and my wife is working:

    1)my first income was $86,029
    My second job was $15,168

    2)My wife income was $71,500

    Although I told my P/T job that i was already paying CPP/EI, they stil withheld them,but It seems that i owe CRA a whopping $4,000.
    We have RRSPs, 2 dependants,child care expenses,public transit expenses etc... but it does not seem to "help".

    I used your software, and i find a gap of around $7k between income deducted and the calculation of your software.

    My guess is that I should have made additional withdrawals of around $150 bi-weekly to offset the higher bracket that the P/T job puts me in.

    What would you recommend please?

    Tahnk you

  423. Hi Loic,

    Not sure what software you are using or talking about, we don't have tax software on our site.

    Perhaps you should have your tax preparation reviewed by a professional to ensure you entered the proper information.

    I hope this has answered your question.

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

  424. JO 04/29/2013 at 1:49 am

    Hi, I work as an unlicenced real estate assistant in BC. My "employers" consider me to be self employed contactor and thus did not take off any taxes throughout the year. I am paid an hourly wage. I work full time in their office, mon to fri 9-5. Therefore I have NO write offs for taxes such as home office expenses etc. I made $25,194 in 2012 (with them for 10 months). I just did my own taxes and calculated that I owe $5,599. Could this be correct?! It sure seems like a lot. And .... Are they able to make me an employee and deduct my taxes? They have said they cannot because they themselves are self employed as realtors. If they can - how - what do they need to do?

    Please help. I really feel stuck!
    JO

  425. Hi Jo,

    Your employers are incorrect and can be creating a huge problem for themselves.

    You are their employee and they must deduct and withhold EI, CPP and income tax. If they are caught not correctly paying you accordingly, they can be responsible and be required to pay penalties and all back deductions they should have paid on your behalf.

    All realtors are self-employed and nothing prevents them from having employees themselves.

    I hope this has answered your question.

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

  426. Hugues, 04/29/2013 at 9:54 pm

    I am a deemed non-resident of Canada for 2011 and 2012! Canada has a tax treaty with France.I live in Ontario.
    I would like to file a 2011 with an income of $ 10,000 and 2012 tax year $ 20,925 as self-employed.
    What forms should I be using, if I do not have any deduction how much will I be paying in taxes and what penalties am I expecting to roughly pay with Revenue Canada. This is to help me strengthen my immigration file in order to become a landed immigrant.
    Thank you.

  427. Hi Hugues,

    How have you determined you are a DEEMED NON-RESIDENT for 2011 and 2012?

    To report your income, you use the Non-Resident tax return.

    Your tax payable would be as calculated using the above calculator.

    I hope this has answered your question.

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

  428. Raj 05/06/2013 at 6:35 pm

    I came to canada in 2009 on PR Visa. I went back in April 2010.

    I did not work/earn any taxable income during this period.

    Now I have come back in April-2013. Do I require to file Tax return for 2012? I was not working/not earn in Canada.

    Can I file my CCTB-Child tax benefit/HST-GST Credit benefit now?

  429. Hi Raj,

    You are not required to file a 2012 tax return as your were not a tax resident of Canada.

    Unfortunately, you are not able to apply for UCCB, GST and other benefits for the same reason as these benefit programs are applied via the annual tax return.

    I hope this has answered your question.

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

  430. Jim 05/10/2013 at 7:22 pm

    Hi,

    Just wanted to say thanks for this tool, we know how hard it is as we are also working on salary and remuneration research here in New Zealand.

    Jim from down under

  431. LSM Insurance 05/11/2013 at 9:11 am

    You're welcome Jim. Thanks for the note.

  432. Thomas 05/14/2013 at 3:31 pm

    I am a US citizen offered a senior position in BC starting at about $150,000. Wondering about tax rates for expats working in Canada when I still have to pay US taxes.

  433. Hi Thomas,

    As a US citizen, you would not be double tax as Canada-USA have a tax treaty to avoid this.

    As a US citizen, you are required to file your US tax return regardless of your residency. As a US citizen working in Canada, you are required to file a Canadian tax return.

    We specialise is assisting US citizens avoid having to pay tax in the US on their Canadian income. For more information, you can contact Paula through our web site.

    I hope this has answered your question.

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

  434. Jimi 05/14/2013 at 6:15 pm

    I am a real estate agent, receiving HST on the commission.

    Do I have to pay it back all?

    Any way to save HST?

  435. Hi Jimi,

    Firstly, in order to be paid HST, are GST/HST registered with CRA? If you are, the guide you received will provide you will all the reporting details.

    If you are not, GST/HST registered, then your broker is giving you extra money that is only to be reported as income.

    I hope this has answered your question.

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

  436. Edward 05/21/2013 at 7:55 pm

    I am taking a full-time (9-5, 40hrs/week) position with a US owned company as an "Independent Contractor" where I will be working from home providing customer support via the Internet, would I be considered self-employed or a sole-proprietor business?

  437. Kurt 05/22/2013 at 11:48 am

    Hi
    As self employed, I have made 100% of my earnings from a customer located in Europe. I dont have any other income. All I made was only 6000$ for 2012. When I have used 2 online return programs, and one showed 260$ return while other one showed 800$ return. am I doing something wrong on my claims?
    Thanks

  438. Nicole 05/22/2013 at 12:02 pm

    I am a contractor sole and get paid 2500 every two weeks, how much money should I put aside each paycheck?

  439. Hi Edward,

    Self-employed or a sole-proprietor business are the same, both are reported on your personal tax return.

    I hope this has answered your question.

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

  440. Hi Kurt,

    Without knowing the details you are entering, no answer could be provided to you.

    At $6,000 (not knowing if this is gross or net), you would not be tax payable, but you would be CPP contribution payable and, depending on the province you live in, you could also be health tax payable.

    I hope this has answered your question.

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

  441. Hi Nicole,

    To get the answer to your question, you will need to enter your gross wages (26*$2500 = $67,600) into the calculator above to determine your tax liability.

    To the amount calculated, add 10% of your gross to cover the CPP contributions you would be required to pay as well.

    I hope this has answered your question.

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

  442. ellen 05/23/2013 at 6:17 pm

    does this include Federal Tax? Is there anywhere I can get an idea of the taxes I will be paying comprehensively?

  443. Hi Ellen,

    Yes, the calculator above calculates the total of both the federal and provincial income taxes based on province of residence.

    It does not include other deductions such as CPP and EI, as these are not taxes.

    I hope this has answered your question.

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

  444. Stu S. 05/26/2013 at 4:56 pm

    I am filing my old tax return from 2009, 2010.

    I was living and working in BC up until 2012. I now live in Alberta I filed my 2012 tax return in Alberta.

    I need to know if I send my old tax returns to BC or Alberta?????

    Thanks

  445. Sk 05/26/2013 at 5:31 pm

    Hi, I am on employment here at Canada and likely to leave Canada by June 26th, 2013. I am assuming I will a non resident since my stay in Canada is less then 183 days, I have no other property or income other then my employment income , should I still need to pay taxes on my employment income for year 2013 ? Please advise

  446. Hi Stu,

    All tax returns are sent to Ottawa (or the CRA tax office for your area), send your 2009 and 2010 tax returns to the same place you did for 2012.

    Be certain you enter the province of your residence during 2009 and 2010 accurately so you can benefit from the tax credits from the province of residence.

    I hope this has answered your question.

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

  447. Hi Sk,

    Even though you may not be a taxable resident, you must pay tax on your Canadian income AND report it on your home country tax return to obtain an additional tax refund.

    I hope this has answered your question.

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

  448. John Eric 05/26/2013 at 10:11 pm

    What type of credit do you get for funeral costs?

  449. Hi John,

    If you are asking if funeral costs are tax-deductible, unfortunately, no they are not.

    There is no tax relief for funeral expenses.

    I hope this has answered your question.

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

  450. Jon 05/27/2013 at 3:02 pm

    Good morning,

    I find myself in an interesting situation where my employment status was originally treated by my employer as that of a contractor, but upon a ruling by the CPP, they have determined I am an employee.

    With that in mind, I have been trying to calculate my taxes on a "per paycheque" basis, given that my income is a mix of both hourly + commission, but I'm having a heck of a time trying to find out what each paycheque's tax deductions should be. Would you be able to point me to a formula that I could use, or a resource page to which I could refer?

    Thank you,

    Jon

  451. Hi Jon,

    Try this link:
    link to apps.cra-arc.gc.ca

    It will assist you in determining the accurate net pay after tax, CPP and EI deductions.

    I hope this has answered your question.

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

  452. Patrick 06/01/2013 at 11:07 pm

    Hi,

    I'm a Canadian citizen who owns a house in Montreal that I will rent 'cause I'm expecting getting a job permanently in New Zealand. I'll be on a work visa offered by the NZ based company. I'm also expecting getting my residence there in NZ and coming back 2 times a year for 2-3 weeks for vacations. My question is would I pay the difference on my provincial and federal income taxes on my NZ salary? I know I will be taxed on my rental, but what about my salary gained in NZ? My teen daughter will also stay here with her mom (I'm separated) for the first year and probably come with me in NZ in 2-3 years. I'll also keep my bank account in Montreal.

    Thanks for your help!

    Patrick

  453. Hi Patrick,

    based on the information you have provided, you appear to be a tax resident of Canada are will be required to report your world-wide income on your Canadian tax return.

    As working in New Zealand, you will be required to file a tax return there and to report on your Canadian tax return any NZ income tax paid to receive a credit in Canada.

    You should contact CRA as you may be eligible to consider yourself a non-tax resident in Canada... for this you would need an official opinion from Canada Revenue Agency.

    I hope this has answered your question.

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

  454. Kajal 06/03/2013 at 1:27 am

    Hi,

    What is the difference between average tax rate and marginal tax rate. Which rate should I apply on my gross income to come to net pay?

    Thanks!
    Kajal

  455. Pritam 06/04/2013 at 7:41 am

    Hi
    I came in canada in sept 2012 and left on dec 28 2012 for good. I have only employment income in canada.

    1. In schedule A - World wide income form I need to include canada and outside canada income for the period sept 2012 to Dec 28 2012, right?
    2. I didn't had any outside canada income during sept 2012 to dec 28 2012, then I can claim personal exemtion of 10000$ on schedule 1, right?

    Thanks
    Pritam

  456. Sk 06/04/2013 at 7:22 pm

    Hi,just want to check if my vacation pay that I get post my resignation can be adjusted against any amounts that I am payable to my employer ..like relocation allowance that company paid me last year

  457. Sk 06/05/2013 at 9:17 pm

    Is vacation pay taxed at same rate or does it differ ?

  458. S 06/09/2013 at 3:21 pm

    Hi

    Can you please tell me how much amount I will get after tax, if I get 80K in Calgary
    (i have spouse and kid as dependent)

    Regards
    S

  459. elaine 06/10/2013 at 3:30 pm

    I have questions regarding tax... what if the one who did my tax goes wrong... imean im separated when i did my 2011 tax then 2012 tax i did it another place and they put married. and my kids r gone. when i file it in 2011 im separated and i have my two kids...what should i do... my ex husband is in another country so its impossible that im married ive been separated since 2011

  460. cheryl cheverie 06/20/2013 at 2:16 pm

    Took out 8,000 of RRSP's to
    pay off Line of credit and
    closed it down... have no consumer debt. Will make 45,000.00 this year.2013.How much tax do i owe.. trying to make sure I have enough saved for it?
    Thanks

  461. Hi Kajal,

    The marginal tax rate is the 'tax bracket' in which your annual income falls. The average tax rate is the average of the total tax brackets your income falls within.

    The average rate is which you should be using.

    I hope this has answered your question.

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

  462. Hi Pritnam,

    As you are not a tax resident of Canada, you only report your Canadian income on your Canadian tax return.

    You are not eligible to the entire personal exemption of $10,000 as you are not a tax resident of Canada.

    I hope this has answered your question.

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

  463. Hi SK,

    Any vacation pay due to you is based on your employment agreement with your employer and the provincial standards.

    I hope this has answered your question.

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

  464. Hi SK,

    Vacation pay is taxed at your average tax rate which is based on your marginal tax rate.

    I hope this has answered your question.

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

  465. Hi S,

    Enter your gross annual salary into the calculator above to determine your net pay after taxes.

    I hope this has answered your question.

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

  466. Hi Elaine,

    If you discover your tax return has been filed in accurately, it is your responsibility to have it corrected.

    As for married vs separated... just because you live in different countries, it does not legally create a marriage separation. To be legally separated, there must be a legal action to confirm it.

    I hope this has answered your question.

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

  467. Ajesh 06/20/2013 at 6:29 pm

    I am not a Canadian citizen. But I have an offer from a company in Waterloo, and will have to work on a work permit visa. According to the CRA payroll calculator for a hypothetical income of 120k the following are the deductions: Federal tax deduction 34,367.67 Provincial tax deduction 23,746.94 Total tax deductions 58,114.61 CPP deductions 2,356.20 EI deductions 891.12 Total deductions 61,361.93 Net amount 58,638.07.

    But according to your calculator the Net amount after tax in Ontario is 84,718. Can you please explain this difference? I am not able to make head or tail of the CRA computation since they had mentioned the federal and provincial tax rates to me around 26% and 11.6% respectively. But their calculator seems to be deducting much more than that.

  468. Hi Cheryl,

    If you are not self-employed, your employer will withhold sufficient tax to cover your tax liability based on how you completed the TD-1 form.

    To have an estimate of your tax liability, enter your gross income into the calculator.

    I hope this has answered your question.

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

  469. Chris W 06/20/2013 at 7:23 pm

    I'm starting a contract position, annual Salary is $200,000.00 treated as a contract, I do have an option of being salaried what should I select note I am currently paying down a tax owing bill of 70,000, what about GST?

  470. Hi Ajesh,

    Not knowing what CRA calculator and what information you are entering into the calculator, we cannot comment on your results.

    When we use the CRA calculator entering $120k annual salary, the results match the calculations provided by the above calculator.

    I hope this has answered your question.

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

  471. Hi Chris,

    Whenever offered the opportunity between a contractor and employee position, the employee position is always the best alternative.

    As a contractor, you would be required to remit GST and that would likely come from your pocket not the employer's.

    I hope this has answered your question.

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

  472. kim 06/26/2013 at 7:42 am

    HI, I bought Condo A in Feb 2010 for 125000 rented it out from Nov 2010 to Nov 2012.
    Mean while I bought Condo B for 112000. Nov 2010 and lived there unit Nov 2012. At which time I rented Condo B starting Nov 2012 until present.
    I have sold Condo B for 115000 and would like to sell Condo A. Do I get to choose which one I will pay Capital gains on or will it be both.

  473. Hi Kim,

    Sales of both condos will be subject to capital gains which are 50% taxable.

    I hope this has answered your question.

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

  474. Ahmed 06/28/2013 at 12:33 pm

    Hi
    I recently became a permanent resident of Canada, however after my short landing I will be returning back to the UAE. My question is will i get taxed on my income/savings before and after i became a PR noting that I plan to return to Canada for good after 6 to 8 months after my short landing.
    Thanks

  475. Caesar 06/29/2013 at 11:02 am

    I worked last year in the USA, but the company I worked for never gave me a US SIN , I worked with my Canadian SIN.
    How can I claim a tax devolution from the IRS?

  476. Hi Ahmed,

    Based on the information your provided, you would need to contact the CRA to obtain the correct information.

    Follow this link to CRA:
    link to cra-arc.gc.ca

    I hope this has answered your question.

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

  477. Hi Caesar,

    Your company does not issue you an US SSN, you must apply for it.

    As for your 'tax devolution', you should consult with your company for your actual status.

    Working for a Canadian company in the US doesn't necessarily means you are taxable in the US.

    Did you receive a W2 form (the US equivalent to a T4 slip) from your employer?

    I hope this has answered your question.

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

  478. Ilya 07/03/2013 at 11:29 am

    Hi,
    I am an international student here in Canada,and currently there are 2 topics bothering me. First of all, last year I was living and studying in British Columbia, paying tuition of around 13000 per year, as well as renting an apartment for 900 per month, but I didn't do any tax refund. After a year i moved to Toronto, ON so I was wondering if I can still get the tax back for the previous year? If yes, what will be the approximate amount? Second question is, this year i am in Toronto, paying tuition approximately same amount (13k) as well as doing full-time job for 3 summer month (salary is ~900$ per two weeks, deducting around 200$ per paycheck, so the total comes to 700-750 per two weeks). Will it be possible to make a tax refund for this summer job + education? If yes, what will be the approximate amount.
    Thank you! Found this website very useful, lots of useful information for people who just arrived and started studying/working in Canada.

  479. Kirti 07/04/2013 at 10:37 am

    Hi,

    We are moving to Canada, Ottawa from India. We need your help to understand what will be our net take home salary will be if our annual gross salary is C$220000.
    Number of dependents 3
    Spouse (37), not working
    Children
    One 2.5 Year old
    Second 13 Year old

    Thanks for your help!
    Let me know if more details are required?

    Best Regards,
    Kirti

  480. kelly 07/07/2013 at 6:58 am

    i was woundering if i start pulling my stocks out at a rate of 16,000 a year with no other income. will i have to pay taxs on them being under the 24k base min in saskatchewan??

  481. Adam 07/08/2013 at 3:42 am

    Hi,
    I am a Canadian citizen but live and work in the USA on a TN. I can do that work remotely from here in Ontario also as my employer does not have a problem with. If I do that how much tax will I pay after paying the USA taxes. I make $110,000 have wife(does not work) two children about 8 year and 4 year. I pay USA federal 7,000, Social security tax 4,400, Medicare tax 1,500 and I contributed about 15,000 in 401 K. There is no state income tax in the state I live. Just want to get an idea how much more will I have to pay?

  482. Bob F 07/15/2013 at 1:25 am

    I work for a US company and we were just awarded a contract to work in Canada at Newfoundland/Labrador (Lower Church Hill Falls).

    I will be working on a work visa, my length of stay may be lengthy. My question is will I need to pay Canadian and US federal taxes or just Canadian. I have worked in the middle east (Qatar) from 2008 till 2012, so I understand the required US laws I am just unfamiliar with Canadian tax law.

    Thank You
    Bob F

  483. Hi Ilya,

    I'm not certain what your questions is, but here goes...

    Depending on the length of time you are in Canada, you may become a tax resident (generally if you are a resident in Canada for at least 183 days during a calendar year.

    If the above qualifies you, yes you are required to file a tax return, not only to report income, but to claim benefits as well. Not sure if you are due a refund, only by completing and filing a tax return you will know.

    I hope this has answered your question.

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

  484. Hi Kirti,

    Taxation in Canada is based on the individual, not a family.

    Enter your individual gross income (not family gross income) into the calculator above to determine your after tax pay.

    I hope this has answered your question.

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

  485. Hi Kelly,

    The tax effect of cashing out of your stock for income would depend on any gains the portion withdrawn would have.

    Depending on your initial deposits and the income earned over the years plus the gains, half of the gains would be taxable.

    You are not taxed on the original amount you invested.

    I hope this has answered your question.

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

  486. Hi Adam,

    If you worked for your US employer in Ontario, the employer would not be required to withhold US taxes, FICA, etc.

    Your earnings would be taxable in Canada and you would not pay any US tax. You would be required to file a US tax return and any tax paid would be refunded. Keep in mind the FICA taxes are higher in the US and the employer must not withhold this as FICA is not refundable.

    I hope this has answered your question.

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

  487. Hi Bob,

    I assume that if your company has been awarded a contract, it will be setting up operations in Canada. As you will be working in Canada, you will be required to have Canadian source deductions (tax, etc.) withheld from your paycheque.

    At tax time, depending upon your tax residency (whether you are a tax resident or Canada or not), you would file your Canadian tax return first and then your US tax return. This is to ensure you are not double taxed and take the appropriate foreign tax credit on your US tax return.

    As a side note, your employer should apply to have you not contribute to the Canada Pension Plan, but to US Social Security, if you do not plan to permanently reside in Canada.

    Our firm would be available to assist you with your cross border tax filing requirements.

    I hope this has answered your question.

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

  488. Laura 07/21/2013 at 6:46 pm

    Hi,

    My husband moved to AB in March 2013 for work and is only home to NS once every 3 months or so for a couple weeks. Our house will be going up for sale late this year, so that my daughter & I can move to AB in 2014.

    Currently, he holds a NS license & NS Health Insurance. In order to make AB his permanent residence for this year, does he just need to get his license and health coverage switched to AB? Thanks!

  489. PM Shareef 07/21/2013 at 6:48 pm

    Hello,

    I have been trading forex and have lost some money. Since then I have gone and got some trading education. These are my questions.

    1. Can I report my trading loss as business loss since it was treated as business?

    2. The trading was done through UK based brokers like Forex.com and Alpari.com. Does it make any difference for the tax purposes?

    3. I was told that the fees I paid was tax deductible. Should this be reported as education expense or business expense?

    Thanks in advance for your response.

    PS: My primary income was salaries from my full time day job.

  490. Megan 07/21/2013 at 6:50 pm

    Good morning,

    I am currently working as a full-time contractor, receiving an hourly rate + HST (13% on top of my pay). I am trying to figure out how much money I should be setting aside for income taxes, CPP, EI and HST.

    Since my boss pays me for my HST (13- of my pay cheque into my savings account for income taxes, CPP and EI for the end of the year. For example, my pay is 35/hour at 80 hours/week. Total pay: $2800 + 13% HST ($364) = $3,164. $364 is put away for HST and then $1100-1200 is put away for income tax, CPP and EI.

    I’m wondering if the amount I am putting away for income taxes, CPP and EI is enough to cover at the end of the year. I was then wondering… do my business expenses get reimbursed after filing for taxes or does the amount get deducted off the total amount of taxes I owe?

    Please get back to me when you have time!

    Thanks,
    Megan

  491. John 07/21/2013 at 6:52 pm

    Hi,

    I am self-employed, and currently in the lowest tax bracket, but still paying CPP and some tax. I am considering deferring all CCA claims until future years when I may need to lower my tax bracket. However, when I calculated expected refund + CCTB + GST/HST credits, I discovered that they drop by roughly 70- tax on a $2500 higher income.

    Can you see sufficient benefit of deferring a CCA claim when there is such a large (one time) drop in money that I expect to get back? I hope that future income increases, but can't predict by how much.

  492. Eric K 07/21/2013 at 6:54 pm

    Hi,

    I work from home and would like to hire my son as my office assistant. By my calculations, he can earn up to $200 per week and not have to pay any personal income tax on it.

    How old does he have to be to be my employee?

  493. Joseph 07/21/2013 at 6:55 pm

    Re: Province and Principal Residency

    My wife and I live in Ontario for 13 years now, and we own a house. Recently, I got a job offer in Saskatchewan. Our plan is that while I will be working in Saskatchewan, my wife and children will stay in Ontario; and that we keep our bank accounts unchanged. I will visit them perhaps every month or so.

    My questions are: Since my wife and children are living in Ontario and our bank accounts unchanged, I assume that my "principal residence" will be Ontario. Please confirm if this is correct. I am not clear as to what my province of residence will be. I guess the province I reside on December 31 will be Saskatchewan. So, is my "provincial residence" Ontario or Saskatchewan?

    The other issue I guess is that every province requires a person to convert their driver's licence and health insurance after living in the province for 90 days. If I buy a car in Saskatchewan to get to work, I guess I would need to get Saskatchewan's driver's licence, and most likely the health insurance too. How does this will have effect on my residencies? Should I keep my Ontario driver's licence and OHIP?

    Thanks.

  494. Hi Laura,

    Yes, by getting the AB licence and health card it will make him a resident of the province for tax residency.

    The sooner you sell the house in NS is even better.

    I hope this has answered your question.

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

  495. Hello PM,

    1) What proof have you that you treated it as a business? Did you have formal education before opening the account?

    2) Any investment or commodity trading is reportable in Canada regardless of the location of the brokerage service. It may also be reportable in the country of brokerage depending on tax treaty purposes.

    3) If the fees you are mentioning are related to the brokerage account, yes, the fees are deductible as investment expenses. If the fees are related to your trading/training education, no they cannot be considered for the education/tuition deduction. The fees can be considered a business deduction if the transactions after your training are reported as business transactions.

    I hope this has answered your question.

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

  496. Hi Megan,

    To determine your personal tax liabilities, enter your gross salary for the year into the calculator above to determine your income tax liability.

    For your CPP liability, consider it 10% of your income.

    You do not have any EI deductions required as you are an independant contractor are only can contribute if you wish to be eligible for pregnancy and sickness benefits.

    I hope this has answered your question.

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

  497. Hi John,

    If the difference is only $70, the deferral of CCA is not reasonable as deferring CCA doesn't increase the annual amount you are eligible to deduct.

    I hope this has answered your question.

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

  498. Hi Eric,

    Yes, you can hire your son to work for you. A reasonable age is 13. You must be aware that you will have to issue a T4 slip for any employee wages, including your son. You would also be required to remit source deductions for CPP at the date he turns 18.

    I hope this has answered your question.

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

  499. Hi Joseph,

    Your provincial tax residency is based on provincial requirements... easy confirmation is your health card and licence as this establishes your residency. As long as you maintain an Ontario licence/health card, you will be an Ontario resident.

    Your choice of province to reside within is a decision you can only make.

    I hope this has answered your question.

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

  500. Ammar 07/24/2013 at 7:25 am

    HI,
    I am a Canadian Citizen left Canada on 1996 back to my country, Syria (where I Have immigrated to Canada from). and:
    - I stayed in Syria till today (18 years).
    - I have no ties at all in Canada except that I hold a Canadian Passport.
    - I know that Syria has no tax treaty with Canada.
    - I am thinking these days to go back to Canada due to current situation in Syria.
    My question is: do you advise me to fill in the "NR73 - Determination of Residency Status (Leaving Canada)"? form and send it to CRA BEFORE I RETURN back to Canada? And do I have to pay any taxes on my earning all these years in Syria?
    Many Thanks
    Jalal

  501. Hi Ammar Jalal,

    Form NR73 is completed upon LEAVING Canada.

    You would need to complete Form NR74 upon ENTERING Canada.

    If required by CRA, then NR73 would be required to determine you tax liability responsibility during your time away from Canada.

    I hope this has answered your question.

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

  502. Ammar 07/26/2013 at 8:22 am

    So many thanks for your quick and clear response. one point though, and based on my case explained above, do you think I have to pay any taxes on my earning all these years in Syria?
    Many thanks,

  503. Hi Ammar,

    Based on the info provided, no I am unable to provide any more details... you failed to file the NR73 upon your leaving Canada... this would have determined your tax responsibility.

    I hope this has answered your question.

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

  504. Dilon 07/27/2013 at 8:08 am

    Hi,

    I work on a fly in/fly out schedule, so I am not home always.I own some rental properties, so I have hired a property manager to help take care of the properties while I am away. Am I still able to claim car expenses, gas... since when I am back I am involved taking care of it(maintenance...)

    Thanks,
    Dilon

  505. Nadine 07/27/2013 at 5:12 pm

    Hello,

    I am thinking of starting a business part time as a pooper scooper for dog owners (I work Full Time), I am hoping to resister the business this week.

    Is there a percent of earnings I need to set aside for taxes?

    I am not sure if I can claim my office in my house, and clothing.

    Thank you in advance for your help!

  506. Marc 07/27/2013 at 5:21 pm

    Hi,

    I'm getting caught up on previous tax years by filing for 2010-2012 now. I'm a BC resident, however from September 2010 - September 2011 I was technically living and working in Ontario. All of my government issued documents still noted I was a BC resident. I also did not apply for changes to any of my BC government-issued documents (CareCard, BCID, Driver's license, etc.). Where should I file my returns for 2010 and 2011?

    Marc

  507. claire 07/27/2013 at 5:28 pm

    Hi,

    How much percentage should I be putting away for income tax if I am self employed. I make under 800 a week with no taxes taken off.

  508. Kim 07/27/2013 at 5:33 pm

    Hi,

    I will be starting a 4 month contract as a freelancer at an advertising agency. They will be paying me a weekly flat rate and will not be deducting any taxes. I have obtained a business number so am required to file GST/HST as well as my personal income taxes. I don't understand how the GST/HST works. Will I owe 13% (GST/HST) of my income as well as income tax and CPP? My estimated income from this freelance work is $23,000. I would appreciate some help understanding approximately what I will owe the government so that I can put this money aside.

    Thank you.
    Kim

  509. sacha 07/27/2013 at 5:35 pm

    Hi,

    I am trying to find out some information for my mother. My father has income tax debt (personal and business) and has recently had a stroke and is hospitalized and incapacitated. My mother needs to find out if she is liable for his tax debt. Is she? Also he has an RRSP from when he was an employee (he has been self-employed for the last 20 years). Can the government take his RRSP if his tax debt remains unpaid?

    Any information you can provide would be most helpful.

    Best regards,
    Sacha

  510. connie 07/27/2013 at 5:38 pm

    Hi there,

    I am trying to help a friend who has an incorporated business and is self employed. He paid himself 48,000.00 out of the company and the rest is to be used for taxes and maintenance on his rig. How much taxes should he be taking off to file for his personal income tax cpp ect..? he is single.

    Connie

  511. Chloe F 07/27/2013 at 5:41 pm

    Hi,

    I am an independent contractor in the province of Quebec. I work from home mostly, but I do go into the office for meetings a few times a week. I have a three bedroom apartment that I share with my boyfriend, one of which is the office. I have worked for 2 different companies as a contractor, so far this year. I am concerned about paying my taxes next April, and want to be prepared. I am wondering how much I can deduct from my earnable income of $35,000 annually. (My apartment has 3 rooms, kitchen, livingroom, bathroom) I am assuming bathroom counts as half? So perhaps that would be 20% of rent which is $272. (Total rent is $1360). I am wondering what other things I can deduct, and how I go about doing this when I file my taxes – do I bring in a copy of the lease? Also I assume my bus pas ($80/month) would be deductible? Do I bring in the receipts? Thanks in advance, I am a tax newb and have no idea what benefits Quebec has to offer, if any.

  512. Elli J 07/27/2013 at 5:46 pm

    Hi there,

    My dad passed away 6 years ago and my mom never claimed the funeral expenses. But recently someone told my mom we should have.

    My question: Could she claim it? If so, is it now too late?

    Thank you, Elli

  513. Neil 07/27/2013 at 5:49 pm

    Hi,

    I have not lived in Canada since 2008 and I assumed that I did not have to file a tax return as I live in the US now? Is this the case?

  514. Mike 07/27/2013 at 5:50 pm

    Hi i need some clarification my court order states that the children reside with father 60- of the time with mother and both have shared custody.The question is can the father claim both children on his income tax since he has primary residence? Thank you for your time and hope to hear from you soon.

  515. Homa 07/27/2013 at 5:54 pm

    Hi,

    My mother passed a way in 2012. I had to up grade the casket for religious reasons, to meet with the minimum requirements of the Holy book, can I claim this on my tax return?

  516. Darlene 07/27/2013 at 5:56 pm

    Hello,

    Is a person liable to pay income tax on forgiven debt negotiated payments? eg. A debt settlement company negotiates on your behalf. You have a 10000 accumulated debt with different creditors. They negotiate that down to 6000. Do you pay income tax on the savings of 6000?

  517. Karen 07/27/2013 at 6:07 pm

    Hello,

    December 2012 I closed down my business in Quebec and moved to live in Ontario. If I claim my tax in Ontario do I still have to pay some sort of tax for Quebec?

    Thanks.

  518. hukum 07/27/2013 at 6:11 pm

    I support my parents living outside Canada, can i get tax deduction for the expense?

  519. Jaclyn 07/27/2013 at 6:13 pm

    Hello,

    Which province should I claim residence as? I lived in ns until last year in February, however then I moved to Alberta to work in a camp for most of the year on a permanent position, then resigned and moved back to ns this January. I traveled back to visit family and girlfriend during the years was working away, every few months or so for a week or two at a time. I do not have a drivers license in Alberta, but paid alberta taxes and was physically there almost all year working in the camp, therefore lived there. Which province should I pay taxes to? Or is this a grey area? I am worried that if I call for advice from the revenue tax people they will want to take more money from me since it benefits the government, and make me pay ns taxes, however this would nt be accurate. I am not common law or married, however my name was still on the lease with my girlfriend because it was a one year lease term. Help!

    Thank you.

  520. Chuck 07/27/2013 at 6:25 pm

    Hi,

    I bought an apartment in Calgary last year from my son for fair market value so he could buy a house. I financed the property with a line of credit on my residence in BC. My daughter will buy the apartment, but had just graduated and couldn't qualify for the mortgage. She is living in and making all payments (line of credit, condo fees, taxes, etc.) on the apartment. When she qualifies for a mortgage on her own (in a couple of years) we will put the property in her name. Do I have to show this as an investment, with rental income and expenses, etc.? There is no intent to operate this as a business or make profit. I don't need the income nor the losses.

  521. David 07/27/2013 at 6:28 pm

    Hi,

    I was travelling in Canada in 2012 and while there I worked in Vancouver for 2 months as a contractor. I have returned to my home country (Ireland) now and need to figure out if I have to pay taxes for the work I completed.

  522. Hugues 07/27/2013 at 6:33 pm

    Hello there, my question to you today is concerning self employment. I worked 2 weeks in the whole year as a self employed. I lost a at the end of September and looked for work from the to the end of the year. my question is my expenses start from when, do I say that from the beginning of October looking for work was part of my self employed time for the expenses or it only apply for the 2 weeks I contracted from a placement company who hire technicians to work at different company. paid hourly, so I billed the contractor cie and they get paid from the company I worked at.

    thanks

  523. Kelly 07/27/2013 at 6:36 pm

    Hi,

    My daughter moved to Saskatchewan from Ontario in Sept 2012..she turned 18 a month later..she never worked in that province, she does however have a T4 for non-taxable income in ontario as she was a status indian working on a reserve, she had a baby in Feb 2013 and they want her to file a return for 2 yrs prior in order to access her Child tax..why is this necessary as she has just turned 18 and to which province does she file?

  524. Thangaraj 07/27/2013 at 6:38 pm

    I am a Canadian Citizen that lived and worked the entire 2012 in Boston, USA. I only have a small interest income in Canada. Should I be reporting my US employment income in the Candian Return? Is it necessary for me to file a Canadian return?

  525. Mike 07/27/2013 at 6:51 pm

    Hello,

    In March of 2012 I took out $25000 from my RRSP’s for the HBP in order to purchase a home on Vancouver Island. I partnered with a friend and was going to get involved in a new business over there. After careful consideration I decided to accept a job in Vancouver and never took up residence except to help with renos.

    Does this still qualify as the "intention to occupy"? If not do I then qualify to cancel and repay by the end of this calendar year.

    Thanks

    Mike

  526. Ron 07/27/2013 at 6:54 pm

    I have a rental property, which was flooded. I received an insurance settlement and in turn I performed most of the work myself. Do i need to claim the insurance settlement as income?

  527. Shannon 07/27/2013 at 6:59 pm

    My income has remained pretty much the same as well as my contributions. Last year I received a refund, but this year I owe. THe only change in my household is that my wife makes more this year. Is this affecting my income tax return? How?

  528. Grace 07/27/2013 at 7:04 pm

    I am living in Quebec and want to know if it is worth filing a tax return, I am an Australian citizen on a work permit but a resident of Canada currently. i earned approximately $22,000 in 2012 in BC and Quebec.

    Also my first job in Canada I apparently ticked a box of my earnings being not over 11,000 or something I was a bit confused I think, so maybe i did not pay tax here?

    So I guess I am wondering if i will be eligible for a rebate or will have to pay.

    A bit confusing I know
    Thanks
    Grace

  529. Paola 07/27/2013 at 7:06 pm

    My husband began working in Labrador in 2012 (no Quebec income) and resides there, pays rent, etc. He filed his federal taxes from there. We are still married but I work and live in Montreal. Do I need to include his income in my tax return and how do we claim our child care expenses?

  530. Hi Dilon,

    Perhaps, how much do you do vs your property manager and what is it you do?

    Your auto expenses may be eligible for deduction, but will only be limited to the recorded and logged kms driven for this activity.

    Sounds like you may be in need of an Accountant to ensure you are benefiting from all the deductions available to you.

    I hope this has answered your question.

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

  531. Hi Nadine,

    Your tax liability would be approximately 35% of your gross earnings.

    You would be eligible to deduct DIRECT business expenses, so if you purchased specific clothing used for this work, it would be deductible.

    I hope this has answered your question.

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

  532. Dilon 07/29/2013 at 10:43 am

    Thank you for your reply. I do have an accountant, but I wanted to get a second opinion. My accountant advised me not to claim expenses such as car, phone... because it would invite the gouverment to audit me.

    In terms of what I do, when I am in town which is approximetely 1/2 the year I take care of all the maintenance, that is getting material, hiring handyman or contractors, in certain cases I do the maintenance myself. I know I am not able to claim my own labour, but I do incur car expenses... I am also involved in resolving tenant disputes... I hired the property manager on a full service contract paying %5, since I want them to take care of the places when I am away. But when I am back, I am very hands on, which allows me to save a great deal in other expenses.

    What I was wondering is if I am able, should I claim car expenses, phone...? and if so would I be open to an audit?

    Thanks a lot!
    Dilon

  533. Evan 07/29/2013 at 12:39 pm

    Hi I am Evan,
    I am a medical doctor working in Oman where i am paid 100836.00 Canadian dollars per year without tax. I have Canadian PR received in 2012 and now my wife and two kids staying in Ottawa and finalized a home as a new buyer on loan amount 317000.00 dollars in Ottawa ( where i am paying 35% as a down payment. My wife is working for 20 hrs /week in department store. I am interested to know how much i am going to pay as Tax .

  534. Chris 07/29/2013 at 4:14 pm

    Good day,

    My girlfriend and I are planning on moving from Ottawa, Ontario to Gatineau, QC in September.

    I know it's impossible to guess, but I was wondering if you could at least help us get a ballpark as to how much we will owe in taxes for living in Quebec but working in Ontario?

    We each work full time. She grosses about 65,000 and I gross about 35,000. Is there a way you can estimate how much we should be saving for the year?

    Kind regards,

    Chris

  535. gabriel 07/29/2013 at 7:51 pm

    Hi,

    Which form of employment has a better tax regime: corporation (sole proprietorship), trade name, regular employee. I need to assess before deciding on Alberta contract work.

  536. Ken N 07/29/2013 at 7:52 pm

    Hello,

    My wife and I have not filed our income taxes for over 10 years. We want to deal with this immediately, should we start with a voluntary disclosure?

    What is the best way for us to proceed?

  537. Melanie 07/29/2013 at 7:56 pm

    Hi

    I work in Quebec (Gatineau) but live in Ontario (Ottawa), I pay the Quebec provincial tax and all their other bonus taxes each pay!! This results in a refund each year from the difference between the Quebec and Ontario provincial tax amounts, but as a single mom with 3 children, I really need to make use of this each pay cheque. I am a claim code 8 for Federal taxes, but its the provincial taxes that are high and to which I would like to reduce. Is there anyway I can just except myself from provincial tax on a TP 1015, for no more then 2 months to get some benefit of having more income these months to offset what I have to pay the rest of the time on each pay cheque?

    I would rather have this income per pay as my cost of living monthly expenses are great and this would be valuable to me. Or can I just except myself # 5 of the TP 1015 but add an additional deduction amount in # 3 of this form so that it is not as much as what the Provincial amount is per pay?

    Thanks
    Melanie

  538. Kim 07/29/2013 at 7:58 pm

    I am a Subcontractor for a small business and my paycheque does not have tax deducted, I was wondering what I can deduct while file filing my taxes?

  539. Tony 07/29/2013 at 8:00 pm

    Hi,

    Good day.

    I would like to declare dividend income of 40,000.00 on my personal tax return for 2012 from my corporation. I have no other income.

    What are the tax implication on the corporation’s end as I am not sure if taxes were suppose to be paid on this $40k by the corporation and if any slips should have been filed?

    Thank you!

  540. Thomas B 07/29/2013 at 8:01 pm

    Hi,

    I currently reside in Quebec. I have just accepted an offer of employment in Ottawa. I have also rented an apartment in Ottawa and intend to commute back to Quebec on weekends. I own a home in Quebec.

    My question:

    Am I allowed to change my permanent residence to Ontario? I was considering using my Ottawa based apartment as my permanent address.

    If yes, when I eventually sell my home in Quebec (our intent is to leave Quebec for Ontario within the next 12-18 months) will I then be obligated to pay a Capital Gains tax on the sale of my home?

    Thanks in advance for any help.

  541. Girish 07/29/2013 at 8:03 pm

    Hi,

    I have a regular full time job. Also I made some profit in trading forex part time.

    How do I declare the income, will it be a business income or a capital gain.

    Girish

  542. Carman 07/29/2013 at 8:06 pm

    If I am self employed, can I put what I would owe for taxes into an RRSP and come out even?

  543. Nieves S 07/29/2013 at 8:08 pm

    Hello,

    Thank you for your time. I am a single parent (soon common law), working full time at my day job and just started a sole proprietorship as well. What amount should I set aside from each job for taxes? Do I also need to pay for CPP/WCB/EI if I’m covered through my day job already? If my side work is done at home, does that mean I can’t deduct anything for my vehicle use?

    *i live in BC and my personal business makes less than $30,000. My income from my day job is around $41,000

    Thank you!

    Nieves S.

  544. Christian B 07/29/2013 at 8:10 pm

    Hi,

    Just got laid off at the end of March 2013. I will receive a $20,000.00 severance. My last paystub indicates my year-to-date income $22,929.00, income tax year-to-date $4,031.00, CPP $1099.57 and E.I $434.07.
    So my question is how much deduction ( % ) should I expect from the severance.

    Thanks

  545. Elana 07/29/2013 at 8:11 pm

    Hi,

    I just opened a home business (home child care centre).

    I was wondering how much I should put aside each week for taxes.

  546. MIKE S 07/29/2013 at 8:12 pm

    HELLO,

    IS INCOME SPLITTING ONLY AVAILABLE TO PENSIONERS OR IF ONE PERSON IS STILL WORKING & COLLECTING CPP & THE SPOUSE ONLY COLLECTING CPP BEING RETIRED.

    THANK YOU
    MIKE

  547. Dennis 07/29/2013 at 8:14 pm

    Hi,

    Working-in-Quebec Ontario residents have automatic deductions to support Quebec childcare. How does an Ontario resident claim or apply for childcare deduction refund ? CRA has no knowledge of this.

  548. Lisa S 07/29/2013 at 8:20 pm

    Hi,

    I have been on LTD all of 2012 through my employer. Can my husband claim me as a dependant? My T4 from my employer is $0 and I have not been given anything from the Co-operator’s, the insurance company that my employer uses. I am still unable to work and I receive $1887 per month in LTD benefits.

  549. Brenda 07/29/2013 at 8:21 pm

    Hello,

    I just started cleaning houses for a living. I made 26,000 in 2012.

    After expenses it shows about $11,000. I also contributed $1200,00 in RRSP . Can you tell me approximately how much taxes I will have to pay?

    Thanks for your help.

  550. Krisy 07/29/2013 at 8:22 pm

    Hello, my name is Krisy and I am self employed. I was wondering how to calculate my monthly taxes that would be deducted (pay to the government)? I just claimed my income for 2012 and ended up owing, but I expected that. I want to be more prepared for 2013?s tax return. Where can I find information or a guide to figure that out? I will also need a guide for employees (future additions).

  551. Edward 07/29/2013 at 8:24 pm

    Hi,

    I am taking a full-time (9-5, 40hrs/week) position with a US owned company as an "Independent Contractor" where I will be working from home providing customer support via the Internet, would I be considered self-employed or a sole-proprietor business?

  552. Marie 07/29/2013 at 8:26 pm

    Hello,

    This is Marie. I am a subcontractor and earned about 15k last year. There is no deduction in my paycheques. What is the percentage I have to pay. I have some expenses around 5000$.

  553. Nathalie K 07/29/2013 at 8:30 pm

    Hi,

    I have 5 kids, I haven't filed taxes since 1999. As I was a stay at home Mom until 2005 I moved to Quebec. Since July 2006
    I moved to Costa Rica for 5 years and as of May 2012 I am a resident of Ontario again.

    I'm just not sure where to start. What to file, how far back? My kids 2/5 were born in Costa Rica under 4 years. Can I claim for them?

    My ADHD son what can I claim for him extra he's 13 never collected a penny.

    Help!!!

  554. Stu S 07/29/2013 at 8:32 pm

    Hello,

    I am filing my old tax return from 2009, 2010. I was living and working in BC up until 2012. I now live in Alberta I filed my 2012 tax return in Alberta. I need to know if I send my old tax returns to BC or Alberta ?????

    Thanks

  555. David P 07/29/2013 at 8:35 pm

    Hi,

    I am temporary working under a TN Visa for a company in Milwaukee WI.

    I started in the US on October 15, 2012. I have been doing contract work for this company in Canada for 7 years as a contractor and paying Canadian income tax yearly. I spent approx. 2 months in the US last year under this TN.

    Do I pay US taxes or Canadian for this 2 month period.

    I am back in the US and it looks like i will spend most of the Year here what do I do for taxes, I have already made my quarterly contributions to Canada.

  556. Hi Marc,

    When you say you were technically working and living in Ontario, do you mean you returned your BC health Card and drivers licence for an Ontario health card and licence?

    If you did not switch to Ontario residency (proven by health card and licence), you actually and technically were still a BC resident.

    You would file as a BC resident for the back tax years.

    I hope this has answered your question.

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

  557. Hi Claire,

    Use the calculator above, entering your gross income for the entire year to obtain the tax liability you would have for the year.

    I hope this has answered your question.

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

  558. Hi Kim,

    Depending on the agreement with your employer, the GST/HST would either be included in your hourly rate or on top of your hourly rate.

    Either way, you registered so you must collect and remit GST/HST.

    Income tax and other deductions have absolutely nothing to do with GST/HST and must be handled separately.

    After the GST is taken out of the picture, you have income tax and CPP contributions to send in to CRA. Use the calculator above to determine your income tax liability and estimate 10% of your gross pay as the amount owed for CPP.

    I hope this has answered your question.

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

  559. Hi Sacha,

    If your parents have joint bank accounts, the CRA will freeze them to collect what is owed. If your mother is in any way a director/partner/shareholder in your father's business, she can be held responsible for Director's Liability.

    Any assets in your father's name which are unsecured, like bank accounts, RSPs, etc. can be seized by CRA for personal and business director liabilities.

    I hope this has answered your question.

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

  560. Hi Connie,

    How had the corporation made the payments to your boyfriend... as salary or dividend? Your boyfriend would have been required to issue T4 slips for salary or T5 slips for dividend payments.

    If this all sounds complicated, you best suggest your boyfriend gets an accountant that will help him with his books and save him some money!

    You can suggest to him that our firm has expertise in helping small business and independant contractors keep their books in order and SAVE them in tax! We offer reasonable rates for every type of small business.

    I hope this has answered your question.

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

  561. Hi Chloe,

    Great question! Now is the time you should be planning for 2013 tax year end and planning for your next tax return.

    First, in order for you to be able to deduct home office expenses, you must have this confirmed in your employment agreement and a completed form T2200.

    For a home office, you can only claim the area you have a dedicated area for work only and where you would meet clients... it cannot be part of a bedroom or part of a dining room.

    As a suggestion, I recommend you obtain the CGA Personal Tax Guide to provide you with some guidance: link to cga-ontario.org

    I hope this has answered your question.

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

  562. Hi Elli,

    Our condolences for your loss.

    Unfortunately, funeral expenses are only deductible in certain very rare situations, but in this case not for your mother.

    She is unable to deduct any of your dad's funeral expenses.

    I hope this has answered your question.

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

  563. Hi Neil,

    Just by working in the US does not relieve you from tax liability responsibilities in Canada.

    It is general practise a requirement to complete a NR73 form upon your leaving Canada to determine if you will continue to have a Canadian tax reporting and liability responsibility.

    It would be recommended you seek out a cross-border tax specialist to assist you in determining your tax reporting responsibility. Our firm assists individuals like yourself in this situation.

    I hope this has answered your question.

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

  564. Hi Mike,

    Family court law has nothing to do with how income tax liability is determined.

    Even though you have shared custody of your children, it doesn't always flow through to the tax return.

    Because you have joint custody and if your ex-spouse agrees, you both can share the tax credits for the dependants. You cannot independently decide to take the full credit by yourself.

    I hope this has answered your question.

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

  565. Hi Homa,

    Even if there is a personal or religious requirement to upgrade or provide additional service for burial, funeral expenses are not tax deductible.

    I hope this has answered your question.

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

  566. Hi Darlene,

    Excellent question!

    At this time, forgiven debt is not considered taxable income to the debtor.

    I hope this has answered your question.

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

  567. Hi Karen,

    Was your business a sole proprietorship or a corporation?

    If sole proprietorship, in order for you to report your QC income in Ontario, you must be an actual resident at Dec 31... meaning you must have an Ontario health card and drivers licence.

    If corporation, it must file when the business is registered and conducted business.

    I hope this has answered your question.

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

  568. Hi Hukum,

    You are only permitted to claim those eligible as dependants if they reside in Canada.

    I hope this has answered your question.

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

  569. Hi Jaclyn,

    If your ID was not changed to Alberta when you went to work there, you are still considered a resident of Nova Scotia... especially if your name is on a lease in Nova Scotia.

    I hope this has answered your question.

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

  570. Hi Chuck,

    As long as your daughter pays all the related expenses for the maintenance and habitability for the apartment and you receive no financial benefit, you do not need to report and rental income.

    Depending on when you sell the apartment to your daughter, you will have to sell it to her at the going market rate and if there is a gain, this gain will need to be reported as a capital gain.

    I hope this has answered your question.

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

  571. Hi Hugues,

    If you worked on two weeks as self-employed, you can only claim expenses/deductions incurred during only those two weeks.

    I hope this has answered your question.

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

  572. Hi Kelly,

    Regardless of age, each person that either receives a income reporting slip (T4/T4A/etc.) is required to file a tax return.

    In your daughter's case because she is applying for the Child Tax Credit, the CRA wants to ensure they calculate the benefit correctly by knowing the accurate income tax history or her and the baby's father.

    I hope this has answered your question.

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

  573. Hi Thangaraj,

    Without knowing your employment agreement and your ties to Canada an accurate answer cannot be provided, but from the details you did provide, a Canadian tax return IS required and your US income MAY be required to be reported in Canada as well.

    I hope this has answered your question.

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

  574. Hi Mike,

    Bas news...

    In order to qualify for the HBP, the house must be habitable and since you never lived in it, there was no 'intention to occupy'.

    You should have repaid the $25000 advance before the end of 2012.

    All of these conditions should have been discussed with you at the time of your making the HBP application.

    I hope this has answered your question.

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

  575. Hi David,

    The personal cheques you received, to reimburse you for paying off the credit cards during your marriage, are not income... especially since you two are not divorced.

    I hope this has answered your question.

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

  576. Hi Ron,

    Whether you did the work yourself or you hired someone to do the flood clean up, the insurance payment for the insured rental property is income.

    I hope this has answered your question.

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

  577. Hi Shannon,

    Without actually seeing how you reported and completed your tax returns, an accurate answer is not available.

    There can be many items which could affect married couples in the transferring of credits. If your wife went form almost no income to having a salary of over $15k, this would eliminate your spousal credit eligibility.

    I hope this has answered your question.

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

  578. Hi Grace,

    It's not an issue whether it's worth filing a tax return, it's mandatory since you earned income in Canada.

    Depending on the income earned and taxes deducted, you are likely eligible to a tax refund. In the event you are not eligible for a refund, you would be able to claim the tax paid in Canada as a foreign tax credit and receive it as a refund in your home country.

    I hope this has answered your question.

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

  579. Hi Poala,

    Has your husband obtained a NL health card or driver's licence? If not, he is still a factual resident of Quebec and is required to file his tax return as such.

    Yes, you are required to report his income on your tax return, just as he is required to report your income on his tax return.

    I hope this has answered your question.

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

  580. Hi Dilon,

    Look for another accountant... the one you got is providing you very poor advice.

    As a hands-on property owner, you are actually entitled to a multitude of deductions available.... and none of which would trigger any review or audit.

    A good accountant saves the client money, not discourages him making more.

    One thing to bring up with your accountant... what have they done to protect your assets, both investment and personal?

    I hope this has answered your question.

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

  581. Hi Evan,

    As you have defined residency ties to Canada, yes your foreign earned income is reportable and taxable in Canada.

    Use the calculator above to determine your personal tax liability... enter into the calculator your gross annual salary in Canadian dollars and it will calculate for you the net after tax pay. Do the same for your wife to determine her net after tax pay.

    I hope this has answered your question.

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

  582. Hi Chris,

    Easier done than said!

    Enter your personal gross income into the calculator above for an accurate estimate of your net after tax pay... keep in mind, QC does have other 'bonus' taxes so add 10% of your gross pay to the total tax for your total QC tax liability. Repeat the same for your wife.

    I hope this has answered your question.

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

  583. Hi Gabriel,

    If by better tax regime, you mean tax advantages... they basically are all the same... it all depends on what you require.

    A corporation will allow you to defer personal taxes (if you have many customers and not just one customer/employer), but provide legal and liability advantages to the owner, but costs to maintain.

    Sole proprietorship is simplest and reported on your personal tax return.

    Trade name registration has no tax advantages as this can apply to all business types.

    Regular employee is same as sole proprietorship, but you have the safety of a salary and the ability to claim EI if you are unemployed.

    Contract work is best done as an employee, never be persuaded by the employer or anyone else to set up a corporation as a personal corporation is taxed at a much higher rate than sole proprietor or employee.

    I hope this has answered your question.

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

  584. Hi Ken,

    If you have not filed your tax returns and you definitely know you owe tax all those years (both self employed), contact a tax attorney immediately to prevent having your assets seized before contacting the CRA.

    If you and your wife have been employed and had tax deducted from your paycheques, contact a tax accountant to assist you in completing the tax returns. Based on the results, the accountant will suggest your options... likely simply filing the back returns to get your refunds and ensure you are eligible for CPP benefits.

    I hope this has answered your question.

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

  585. Hi Melanie,

    Simply updating the TP1015 and applying for credit to your QC tax, evenly over the year through every pay, will resolve your concern.

    I hope this has answered your question.

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

  586. Hi Kim,

    Basically nothing! In order for you to be able to claim employment expenses, you require an employment contract that allows you to do so plus you require an Employment Declaration from your employer specifying you are eligible to claim deductions.

    I hope this has answered your question.

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

  587. Hi Tony,

    There is no tax implication to your corporation because dividends are determined after the corporation pays tax on it's annual income.

    Your accountant will have had to file T5 Return to report the dividends paid along with your corporation's T2 tax return.

    If you do not have an accountant, it is suggested you contact our firm directly for assistance in handling this tax situation as it can create problems for you and your corporation if not handled correctly.

    I hope this has answered your question.

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

  588. Hi Thomas,

    If you keep your Quebec drivers licence and health card, you are considered a resident of Quebec and taxable in Quebec.

    As long as you rent your second residence, you will not be considered to have converted your primary residence for capital gains purposes.

    I hope this has answered your question.

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

  589. Hi Girish,

    Depending on the frequency and number of transactions you have made in your trading activity, it can be considered personal or business. It may be part time activity compared to your full time job, but you may have also conducted a lot of trades which can be considered excessive of personal activity. Best to discuss with a tax professional at your tax filing time.

    I hope this has answered your question.

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

  590. Hi Carman,

    No, it doesn't work that way... for every dollar you contribute to a RSP, you get a tax credit of $0.15, or more, depending on your marginal tax rate.

    I hope this has answered your question.

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

  591. Hi Nieves,

    Using the calculator above, you can determine your potential tax liability.

    First enter your gross salary into the calculator above to determine your salary tax liability (A).

    Next, enter the total gross earnings for a year (your gross salary plus your gross self-employment income) into the calculator for your total tax liability (B).

    Then, subtract A from B (B-A) to
    determine your self-employment tax liability... this is what you will need to have to pay when you file your tax return. You will also be require to pay CPP contributions which would be about 5% of your gross self-employment if you maintain a salary of $41k.

    As self-employed, you do not contribute to EI, but you may be required to pay WCB based on your provincial requirements (WCB is not a tax).

    I hope this has answered your question.

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

  592. Hi Christian,

    Your deductions should be about the same as your YTD since the payout is similar to your gross pay YTD.

    If your employer pays you in one lump, there may be a higher amount of income tax withheld vs if they pay you in bi-weekly payments.

    I hope this has answered your question.

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

  593. Hi Elana,

    Without knowing what you expect to gross in this new business, it would be recommended you set aside 25% for tax and other tax related liabilities.

    I hope this has answered your question.

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

  594. Hi Mike,

    Pension income splitting is available to spouses when one or both receive eligible pension income (CPP is not eligible pension income for splitting).

    Only private pensions and the equivalent are eligible for pension splitting.

    I hope this has answered your question.

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

  595. Hi Dennis,

    Great question!

    Any deduction withheld for the Quebec Parental Insurance Plan (part of EI in Quebec) is automatically refunded to you on your Ontario tax return, IF the tax return is completed accurately for the deduction.

    I hope this has answered your question.

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

  596. Hi Lisa,

    Your husband cannot claim you as a dependant unless you are disabled and qualify for the Disabled Tax Credit.

    He can use your personal basic exemption when you transfer it to him on your tax return.

    I hope this has answered your question.

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

  597. Hi Brenda,

    Based on your details provided, you will not owe any tax.

    I hope this has answered your question.

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

  598. Hi Krisy,

    Great question because now is the time to plan for this tax return year.

    Using the calculator found at the top of this page, enter your gross salary/income expected to determine your tax liability for the entire year... divide by 12 for your monthly amount.

    You do not state whether you are salaried or self-employed, likely self-employed and, if so, you also need to add to your tax liability your CPP contribution requirement which would be 9.9% of your gross self-employment income.

    The CRA web site, as well as this web site has invaluable tools to assist you in your planning and knowing what deductions you are eligible to claim.

    I hope this has answered your question.

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

  599. Hi Edward,

    There is no difference between being self-employed and a sole proprietor... the tax calculation and liabilities are identical.

    As a side note, please beware that since you are working as a contractor for an US company, you may be required to file an US tax return.

    I hope this has answered your question.

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

  600. Hi Marie,

    Based on the information you provided, you would not be liable to pay any income tax, but you would be required to pay CPP contribution based on 9.9% of your net income.

    I hope this has answered your question.

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

  601. Hi Nathalie,

    It is truly sad that you have not filed your tax returns since 1999 as you have missed out on thousands of dollar in tax credits and benefits.

    I recommend you gather all your tax and related documents together an contact an accountant that can assist you in filing your back tax returns... you may be able to collect some of the tax credits you are eligible to receive.

    I hope this has answered your question.

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

  602. Hi Stu,

    Your answer can be found on your drivers licence for the years of 2009 and 2010... which ever province issued your drivers licence and health card for these years is your tax residence.

    You send your tax returns to Ottawa, completing the provincial tax returns at the same time.

    I hope this has answered your question.

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

  603. Hi David,

    If the company issued you a W2 (the US equivalent for a T4), you are required to file an US tax return called 1040NR. Any US tax paid or payable is able to be claimed as a foreign tax credit on your Canadian tax return where you will also report the US income.

    Depending on the time you are in the US and your ties to Canada, you will be required to file an US AND Canadian tax returns... be certain that your US employer is not withholding FICA from your pay as this tax is not refundable.

    I hope this has answered your question.

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

  604. Sara 07/31/2013 at 2:58 am

    Hi,

    We are trying to set up a business with farming. We farm grains and we want to know how to start a business like what can save us money? what things can be deducted? Do we need a gst number? Also my husband get a base salary which taxes are taken from that already.

  605. Brian 07/31/2013 at 3:01 am

    I want to pay off my mortgage, borrow to invest to get employment income taxes back. Does the interest paid on the mortgage just lower your marginal tax rate? Or how does it reduce your tax burden?

  606. Sara 07/31/2013 at 3:04 am

    Sorry, forgot to mention we're in Alberta.

  607. Dylan 07/31/2013 at 5:22 am

    Hi there, I'm a young 19 almost 20 year old living in BC and I'm currently starting my own news/media website/online news show that I intend to run like a business and make money and a career out of.

    I'm planning to incorporate radio as well but in the meantime I'm extremely confused about what taxes I need to pay as someone who is self employed? I also might be moving to Alberta so could you also tell me what taxes as someone who is self employed would have to pay there?

    Thank you I really appreciate the help!

  608. Hi Sara,

    Your question is more of a business planning one rather than a tax related one.

    If you are enquiring about getting into farming, your best resource for answers is finding someone in the industry/crop that would act as a mentor for you. This person will answer questions from his real experience to help you make the best decisions.

    Check with your provincial resource to see if there is a farmers' association in your area; contact a local equipment retailer for contact names; contact your provincial or town office to see how you can network with farmers.

    I hope this has answered your question.

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

  609. Hi Dylan,

    Sounds like you have a good idea of what you want to do... now you just need to do it... the least of your worry is taxes! Make money!

    Being self-employed is no different from working for someone, when it comes to taxes.

    As an employee, your employer deducts taxes, CPP, etc. As a self-employed person, you simply pay the taxes due when you file your tax return.

    I recommend you ask your parents if they know of an accountant that can spend some time with you to set up your (accounting) recording system for your business. This would ensure you get off on the right foot.

    I hope this has answered your question.

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

  610. Marius 07/31/2013 at 5:27 pm

    Hello,

    I have started trading recently with a small profit for the year. How do I report this to Canada Revenue? What forms do I need and how specific would the reporting be. My trading is all US dollars with a Canadian Broker.

    Look forward to your favourable answer.

    Regards
    Marius

  611. Rob M 07/31/2013 at 5:30 pm

    Hello,

    If I have regularly claimed the depreciation on the use of my car as a self employed individual, and sold the car at the end of the tax year, but then bought a new one, how do I claim the depreciation for the older car?

  612. Jasson 07/31/2013 at 5:33 pm

    Hello,

    I am a full time employee at a firm, and have also just recently received my real estate license. I am curious on what expenses I can claim against my personal income so I can recover the desk fees, commission splits, vehicle allowance, phone etc What if I can't close a sale in any given year? For example 100K income, 30K income tax deductions, 20K real estate related expenses...am I getting the full 20K back or 20K out of 100K salary become tax free?

    Please advise.

  613. Hi Brian,

    With a mortgage obtained to purchase or maintain the home, the mortgage interest charged on your principal residence is not deductible.

    If you have the cash available to pay off your mortgage... do it! You cannot borrow to pay off the mortgage and then deduct the interest on the second loan.

    If the house was fully paid off, and you obtained a mortgage (when the house is free and clear) and used the funds to invest in an income generating investment, the interest would be deductible as an investment expense.

    The investment interest expense does not have an affect on your marginal tax rate... the investment expense merely reduces the investment income that is generated by the investment for which you obtained the mortgage.

    Paying off your mortgage, borrowing again to invest will not reduce your employment tax liability, nor result in a refund of your employment tax paid.

    Mortgaging your house to invest is very risky.

    I hope this has answered your question.

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

  614. Hi Marius,

    Depending on the frequency of your trading activity, it can be considered either investment or business income.

    If the income is considered investment, you would report as such on your annual tax return.

    If the income is considered business, you would report as such on your annual tax return.

    All required forms are in the tax return guide/kit.

    As for specificity, you must 100% accurate... all trading transactions are reported to CRA by the broker and you must ensure your reporting matches theirs.

    I hope this has answered your question.

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

  615. Hi Rob,

    Good question!

    If you have claimed capital cost allowance (depreciation) on your vehicle, you must report the sale on your tax return.

    At the same time, the calculations will determine whether you have made a capital gain or suffered a terminal loss on the sale.

    You will also start to claim depreciation on your new car, if it is used for business purposes.

    You do not continue to claim depreciation on the old car after you sell the old car.

    I hope this has answered your question.

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

  616. Hi Jasson,

    Firstly... register as a GST Registrant if you have not already done so.

    You cannot claim against your non-real estate personal income. You are able to claim any/all expenses directly related to your real estate selling activities.

    If you do not close a sale during a calendar year, you are still paid a base (which may be recoverable by the broker agency), which is still considered real estate activity income.

    In your example, the $30k income tax would be based on your $80k net earnings.

    It recommended you find an accountant to assist you in setting your recording system so you can take advantage of all the credits available to you, including paying the least in GST/HST on your earnings.

    I hope this has answered your question.

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

  617. Stephanie R 07/31/2013 at 7:43 pm

    Hi, I have a similar question to the one posted previously (re: 1099 forms). I am a Canadian citizen/resident (BC) and have been offered some contracting work for a US company as a 1099 independent contractor (I will do this work remotely, from Canada). Will I be required to file a US tax return, or will I just declare this income on my Canadian tax return? Anything else I should know?

    Thanks for your help! Steph

  618. AGIT Consulting Canada Ltd. 07/31/2013 at 7:45 pm

    Hello,

    AGIT employs an Ontario Resident for work in Ontario.

    What will be AGIT's Tax deduction liabilities for this employee? Will it be based on Ontario Taxation or Quebec Taxation?

  619. Neeraj 07/31/2013 at 7:47 pm

    Hi,

    I worked from Jan 2012 till Nov 2012 in BC. In Dec 2012 I started working in Quebec and moved there.

    My spouse and child lives in Ontario.

    What should be my province for Tax filing?

    thanks,
    Neeraj

  620. Hi Stephanie,

    If you are issued a 1099 form by your US employer, yes, you must file an US tax return in addition to reporting the income on your Canadian tax return.

    I hope this has answered your question.

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

  621. Hi AGIT Consulting,

    If you hire an Ontario (or any other province) resident to work outside your province of residence, you are required to follow the liability reporting of that province's tax requirements.

    I hope this has answered your question.

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

  622. Hi Neeraj,

    An easy one... look at your health or drivers licence... whichever province issued the card and you held it in possession as of Dec 31 is the province of your residence and tax reporting.

    I hope this has answered your question.

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

  623. Jeff H 08/07/2013 at 3:34 pm

    Hi,

    My wife is a status native and her income is shown in box 71 of her T4 and not claimed as income. Her net income is zero on line 236 of her return.

    My question is can I still claim her on line 303 (spouse or common-law partner amount) of my non-refundable tax credits?

  624. Tom 08/07/2013 at 3:40 pm

    Hi,

    In 2012 moved from Quebec to Ontario.
    1. Do I have to inform Revenu Quebec I moved.
    2. I inherited my moms home and sold it, she passed away early in the year I lived in the home for years. As well she lived there for years then she decided to move in a residence to live in the residence in her last 4 years of life.

    Do I have to file in the her succession the designation of principal residence form?

  625. Patti 08/09/2013 at 2:45 am

    If I am self employed why do I have to pay CPP? Can I opt out?

  626. Hi Jeff,

    On your wife's tax return, line 236 is the key to you being able to claim your wife's personal exemption on your tax return.

    As you indicate the T4 box 71 amount does not carry down to line 236 so, yes, you can claim your wife's personal exemption through the spousal exemption on your tax return.

    I hope this has answered your question.

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

  627. Hi Tom,

    When you mention you moved from Quebec to Ontario, did you relinquish your Quebec driver's licence and health card and apply for Ontario cards?

    Once you relinquish your Quebec benefits cards and receive your Ontario cards, you become a resident of Ontario and have no need to report to Revenu Quebec.

    You do not mention in which province was your mother's residence. What was happened to the house during the four years she was in the care residence... was it rented out? Did she report it as her primary residence on her tax return or did she report the care residence as her primary residence?

    Generally, you would not have to file the succession form as it would relate to non-principal residence.

    You would have had to had your mother's house valued at the time of her death and the difference between that value and the amount your received for selling the house would be required to be reported on your tax return as a capital gain.

    I hope this has answered your question.

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

  628. Hi Patti,

    The Canada Pension Plan is a mandatory contributory social security plan. It not only provides retirement benefits, but also disability benefits.

    All persons over 18 that work and earn income in Canada contribute to CPP and must contribute through their workplace (employers and employees each pay half the contributions and self-employed individual pay both halves).

    You are not able to opt out of CPP contributions.

    I hope this has answered your question.

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

  629. tom 08/10/2013 at 12:24 pm

    recap ; followup and answer to your questions

    Hi,

    In 2012 moved from Quebec to Ontario.
    1. Do I have to inform Revenu Quebec I moved.
    2. I inherited my moms home and sold it, she passed away early in the year I lived in the home for years. As well she lived there for years then she decided to move in a residence to live in the residence in her last 4 years of life.

    Do I have to file in the her succession the designation of principal residence

    your question

    You do not mention in which province was your mother’s residence. What was happened to the house during the four years she was in the care residence… was it rented out? Did she report it as her primary residence on her tax return or did she report the care residence as her primary residence?

    + both were in Quebec
    +past 4 years it was rent free and as only child i continue to live there as my principal residence in it until she passed away. She did not report neither as primary residence.
    +the home was sold immediately after i inherited.

  630. Sudirikku 08/10/2013 at 5:30 pm

    Hello,

    I have a DUPLEX rental property purchased on last year and we are planning to sell and use proceeds to purchase a new one.

    1.) If we do that, Do we need to pay Capital Gain Tax?.

    2.) We use our Line of credit to put down payment when we purchase, In this case, do we need to pay capital gain tax?.

  631. Hi Tom,

    Based on your additional information, it would appear the residence did transfer when you moved in and your mother moved to the care residence. If you and she didn't declare this change of primary residence, you both missed out on tax credits available to you.

    I hope this has answered your question.

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

  632. Hi Surdirkku,

    Yes, you are responsible for calculating your capital gain and paying the tax, regardless of where or how you paid for the property.

    I hope this has answered your question.

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

  633. sherry 08/12/2013 at 2:08 pm

    Hi
    I just got my job. I wonder the income tax rate of BC and the after tax income if I got the basic salary of 10.25?
    Thanks.

  634. Andrew 08/12/2013 at 2:32 pm

    Does the tax payable column include both federal and provincial tax or just federal?

  635. Hi Sherry,

    Your after tax pay and total income tax deducted is based on your GROSS ANNUAL earnings.

    Try this: multiply your base rate of $10.25 by the number of hours you will be working in a week then multiply this by 52. The total you get is your gross earnings, enter this amount in the calculator above to determine your tax liability and after tax pay.

    I hope this has answered your question.

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

  636. Hi Andrew,

    The tax payable column contains both your provincial and federal income tax calculated.

    I hope this has answered your question.

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

  637. Roberta 08/15/2013 at 10:37 am

    Just wondering why I have to prove that I have been separated from my spouse since 2011 Jan... he has not been residing in our home... I was not the one that left the home... my address is still the same.

  638. Tyler James 08/15/2013 at 7:18 pm

    Hi there,

    I have just started an independent contractor position where my base salary is $30, 000 a year ($2,500 a month).

    I will also be making extra income based on the number of billing hours for our clients that will change from month to month.

    I am looking to see how much I should budget for my taxes?? I am not sure about the CPP and have used the calculator (link to lsminsurance.ca) to determine my regular tax rate and am unsure where to go from there.

    Thank you

  639. Hi Roberta,

    I'm not certain what you are asking, but I believe you have been contacted by CRA to validate your marital status?

    The validation process is designed to maintain the integrity of child and family benefits and credits programs. The CRA may validate your marital status to ensure you are receiving the benefits and credits that you are entitled to. If your marital status is reported incorrectly, it may affect the calculation of your child and family benefits.

    If CRA is requesting validation, it can mean that either you or your spouse has filed information on your respective tax returns stating contrary information.

    I hope this has answered your question.

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

  640. Hi Tyler,

    Good to see you used the income tax calculator for determining your tax liability.

    As you will be billing $30,000 or more during the year, you must register and collect GST/HST from your employer... beware as your employer may deduct the GST/HST from your salary to pay it... be sure you discuss with your employer to ensure the GST/HST is on top of your salary and other earnings.

    The amounts you determined by using the income tax calculator are very correct, basically use the marginal tax rate as the amount to set aside.

    Additionally, for CPP, set aside 10% of your gross pay to cover CPP contributions.

    I hope this has answered your question.

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

  641. K. D. 08/16/2013 at 11:51 pm

    If I work in china for a year or more do I pay tax in Canada or Quebec?

  642. Widhy 08/17/2013 at 8:43 pm

    Hi,

    The first half of this year I was a full time employee. I quit the job and begin day trading (stocks). When it comes time to file the tax return, is it the same as filing a personal income tax? Also how much money should i put aside to pay taxes on my profit from day trading?

    Widya

  643. Karen 08/19/2013 at 10:57 pm

    I am the financial guardian for my CLP who was disabled in a skiing accident. His income is only CPP disability. That is all. His income doesn’t exceed $9000/year so his outstanding (and longstanding) CRA/EI debt has never been repaid (and never will be). It has been this way for 5 years. Now I am told he may have a small inheritance from his mother’s passing.

    My question is:
    1) am I required to pay off his CRA/EI debt (which will likely use the entire gift)? and
    2) where do I put it on his tax return as income? Thanks

  644. Hi K.D.,

    Your tax liability to Canada will all depend on your tax residency status. Working in China does not automatically result in you not being taxable in Canada or the province of your residence.

    For your best interest, you should contact CRA and obtain a formal opinion (in writing) of your residential status.

    I hope this has answered your question.

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

  645. Hi Widhy,

    Your day trading activity is considered self-employment income and is reported on your personal income tax return under business income.

    To obtain an accurate estimate, use the calculator above to determine your tax liability. Your CPP contribution liability would be approximately 10% of your gross income.

    I hope this has answered your question.

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

  646. Hi Karen,

    As your common law partner's financial guardian, you have the duty to pay his debts with any assets he would own/receive.

    His mother's bequest to him would not be taxable to him and therefore not reported on his tax return.

    Given the info that your common law partner has a large CRA/EI debt, keep in mind that as his common law partner you should have or would have benefited from the transfer of his disability tax credit and personal tax credits to your tax return. These amounts could be collected from you by CRA. If you did not claim the credits, it may be wise to do so now to repay the CRA/EI debt.

    I hope this has answered your question.

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

  647. John 08/20/2013 at 1:31 pm

    I made $30,000 between Jan and June but I did not have income tax deducted from my paycheques over that period. I will gross approx $40,000 between July and December with full tax deductions ($1554/month). I have $60,000 federal and $60,000 provincial tuition credits remaining. Can you give me an estimate of the refund I should expect? thanks!

  648. Hi John,

    Based on the information that your tuition credits match your income, you should be in a position to a refund of all the income tax withheld.

    I hope this has answered your question.

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

  649. Cindy Y 08/23/2013 at 5:04 pm

    My daughter had attended USA university for two years during which she terminated taxable staus. In 2013 she returned to Canada.Can she claim tuition deduction for year 2011 and 2012?

  650. Hi Cindy,

    Unfortunately, tuition and book tax credits are only eligible if reported on the student's Canadian tax return in the year received.

    Since your daughter severed her tax ties to Canada, she would only be able to use the tuition credits on her US tax returns.

    I hope this has answered your question.

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

  651. Norah Kettle 08/24/2013 at 3:19 pm

    I am ready to sell or gift my cottage.

    I have 2 sons, one is interested in buying the cottage one has no money.

    The cottage was my principle residence until 2006.

    What are the tax implications if I gift it to the 2 boys, and if I sell it do I pay capital gains?

  652. Hi Norah,

    Regardless of how you choose to transfer the cottage (gift or sell), capital gains will be applicable and half of the gains will be taxable.

    Since the cottage is not your principal residence, effective in 2006, the cost base would be based on the Fair Market Value at that date and the gain would be the difference between the FMV today (or the sale price, whichever is higher), regardless if the cottage is gifted or sold.

    I hope this has answered your question.

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

  653. Fiona GL 08/29/2013 at 2:27 pm

    Hi,

    I was recently laid off and am in turn looking to take on contracts as a self-employed individual rather than return to work as an employee. I am trying to figure out how much tax I would have to pay on earnings.

    At my previous job I was making $140,000 gross. I got paid for a total of 10 months in 2013, including severance.

    I plan to take on a part-time contract. I want to figure out how much I would need to charge gross in order to make after-tax income of $4,000 per month.

    Kind regards

  654. Fiona GL 08/29/2013 at 2:28 pm

    Hi,

    I'm located in BC, if that is a concern.

    Kind regards

  655. Hi Fiona,

    Without an estimate of your anticipated gross earnings, a specific tax percentage is not determinable.

    You can use the calculator above to enter various estimates of your anticipated gross earnings to determine your tax liability.

    In additional to your tax liability calculated, you would also be required to contribute to CPP and the contribution rate is 9.9% of your gross earnings.

    Keep in mind also, you would be required to register for GST. If you do not register for GST and your gross earnings exceed $30,000, you would be required to remit 5% of your earnings for GST.

    I hope this has answered your question.

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

  656. Bailey 08/30/2013 at 8:28 pm

    My mother has recently passed in May. She left us an RRSP, two deferred profit sharing plans and a life insurance plan all through her work.

    My question is, are any of these monies going to be taxed? Before I split up the money, I would like to put some aside for taxes if I need to.

  657. Hi Bailey,

    Firstly, our condolences for your loss.

    With the exception of the life insurance payout, all monies received into your mother's estate will be taxable.

    The estate executor will need to prepare your mother's tax return for the income up to the date of her death (this does not include DPSP, death benefit, etc.).

    The executor will also need to prepare a final tax return (T3) to report the income received after death (DPSP, death benefit, etc.).

    Keeping in mind the above reporting requirements, you can take her before death gross and enter into the calculator above to determine this tax liability and then do the same separately for the income received after death. Adding the two calculated amounts together will provide you with an idea of the total tax liability.

    I hope this has answered your question.

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

  658. Yogesh 08/31/2013 at 5:07 pm

    I have been a offered to work in Canada on work permit for couple of years and I am have offered to work from home.

    I am wondering which province should I choose in order to save tax... my offer is of 77,420, would you please let me know the tax I will have to pay province wise?

  659. Hi Yogesh,

    Unfortunately, you do not get to choose the province of your residence for tax purposes, regardless if you work from home or not, the province in which your employer is located (conducts business) would be your tax residence.

    I hope this has answered your question.

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

  660. brenda 09/02/2013 at 1:35 am

    Hi,

    I lived in Saskatchewan for 2 months and worked for 2 weeks then moved back to BC. How do I file income tax with the T4 from Sask?

  661. Hi Brenda,

    Preparing your tax return with a T4 slip from SK is exactly the same as if it were a BC T4 slip.

    Treat any T4 slip the same and enter the information accordingly provided.

    I hope this has answered your question.

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

  662. Lloyd 09/07/2013 at 8:05 pm

    My business made just under $300,000 so far this year if I assume a net income of $400,000 how much tax will approximately pay?

  663. Hi Lloyd,

    Is you business a corporation or a proprietorship?

    If a proprietorship, enter the $400k into the calculator above for your personal tax liability.

    If a corporation, estimate an approximate 25%, but consult with a tax professional so this can be minimised to a lower rate.

    I hope this has answered your question.

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

  664. Sean S 09/07/2013 at 8:52 pm

    Hi,

    I am looking to start a construction company with two other people.

    I wanted to know the best way to set it up. I thought just doing a LLC would work, but have also heard of each person having their own company, and that company would each own a third of the construction company.

    Tax breaks would be my main concern.

    Any advice you can provide would be greatly appreciated.

  665. Hi Sean,

    Good question!

    No, you cannot set up an LLC in Canada as this form of business ownership does not exist here. The LLC is an American business structure.

    Generally, in Canada there are four forms of business ownership:

    - sole proprietorship
    - partnership
    - corporation
    - and cooperative.

    My guess is that you're inquiring about the limited liability that an LLC provides would find the corporation the best approximation of an LLC in Canada. Corporations provide limited liability that sole proprietorships and most partnerships do not.

    The only other form of business ownership in Canada that is available to the general public and offers limited liability is the Limited Liability Partnership. Limited Liability Partnerships are usually only available to groups of professionals, such as lawyers, accountants and doctors. The rules for who may or may not form a Limited Liability Partnership vary from province to province.

    Let's look at the two main, plus tax advantages and disadvantages of each of these forms of business ownership.

    The Sole Proprietorship
    Advantages
    - Easiest form to set up
    - Owner solely controls the business

    Disadvantages
    - Unlimited liability
    - Can be hard to raise capital

    Tax
    - Tax reporting is done on the personal tax return of the owner
    - tax advantages are limited to tax deduction of business expenses

    The Partnership
    Advantages
    - Shared risk
    - Shared management

    Disadvantages
    - Risk of conflict between partners
    - Shared decision making

    Tax
    - Tax reporting is done on the personal tax returns of the partners via a partnership return
    - tax advantages are limited to tax deduction of business expenses

    The Corporation
    Advantages
    - Limited liability
    - Easier to raise capital

    Disadvantages
    - Most expensive form of business to set up
    - Involves a lot of ongoing paperwork

    Tax
    - Tax reporting is done via a corporate tax return as the corporation is considered a 'person'
    - tax advantages include the tax deduction of business expenses and the deferral of profit to the shareholders until dividends are paid

    As a general rule, unless your partnership business is going to have earnings (profit) of more than $150,000, sole proprietorship or partnership is the preferred method as they are most cost effective.

    And when you're talking about having a separate (holding) companies own the construction company, the earnings would need to be over $500,000.

    A corporation is your best best for tax breaks as it allows you to leave profit in the company and take it out as dividends when it's to your personal tax advantage.

    I hope this has answered your question.

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

  666. Gordon 09/09/2013 at 4:17 pm

    Hi,

    What is the most tax efficient way to structure one's forex trading? Including legal offshore structures.

    Thanks,

    Gordon

  667. Hi Gordon,

    No sure what you mean by structuring one's forex trading for tax efficiency... there is only one way... report it legally.

    Forex trading is considering business income, not personal investing therefore not eligible for the 50% taxability of capital gains.

    I hope this has answered your question.

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

  668. Smoth 09/09/2013 at 6:43 pm

    I have a bit of a complicated question. I intend to hire a professional to aid with taxes when the time comes, but I was curious about general details.

    I am finishing my PhD this year, and starting around july 2014 I will be moving from Canada to the USA for a post-doctoral position. As a PhD I pay no taxes, but as a post-doc I will have to pay taxes.

    I know there is a tax treaty between the USA and Canada, but will I pay taxes in Canada or the USA (it will be ~2-3 year term in the USA). I have a lot of tax credits built up from the last 10-11 years as a student (over $100,000 I think), and so i'd like to be able to use those, but if I pay US taxes I would assume that I can't use them.

    I'll be making $50,000 US dollars a year, paid from the USA, and i'll be on a student visa (J1 I think), but also have student loan payments to make (I guess the interest is deductible, but again, probably only in Canada as they are Canadian student loans).

    The complicating factor now is that I MIGHT get a fellowship from Canada, which would mean I would be paid $40,000 a year from the canadian government, and then the remaining $10,000 from the US. In that case would I pay canadian taxes on the $40,000 from the Canadian government, and then $10,000 from the US I would pay US taxes?

    Thanks!

  669. Hi Smoth,

    Not sure where you get your information, but PhDs are just as prone to taxes as post-doctorates are... taxes are based on income, not title or position.

    Your questions may be general in your view, but are actually not.

    Canada and US does have a tax treaty which is in place to avoid double taxation, not tax evasion.

    Your tax residency will determine where your tax liability lays... if you maintain dual residency, there will be the requirement to pay taxes in both countries.

    Tax credits in one country are not necessarily transferable to another in a different tax year, so your Canadian education credits would not be valid in the US.

    Your best opportunity is to consult with a tax professional prior to moving to ensure your tax residency is part of your tax planning as any/all world-wide income is taxable in the country of your tax residency (tax residency s different from physical residency).

    I hope this has answered your question.

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

  670. Sol 09/12/2013 at 3:58 pm

    Hello :)

    I have a question that no one has answered it accurately, and I hoping you can Help me. I am offered a position to work overseas salary offered is $90,000, it is a full year contract. My concern is am I still to pay Tax on it? or How much? So many people told me if I am going to be absent from Canada I do not have to pay any tax. I live in province of Ontario. Hope to hear back from you.
    Mamooda

  671. Danielle 09/13/2013 at 10:32 am

    Hi,

    Recently I was an intern with a company, they have now hired me fill time with pay two times a month of $1,000 each pay totaling $2,000 per month.

    My question is I'm not on the companies pay roll I receive my cheque after I have sent an invoice to the accountant.

    If the company is not taxing my taxes off and I'm getting an even $1,000 per pay cheque. I'm wondering how much I will have to pay the government in taxes at the end of the year, it looks like I'm self employed.

    Should I be setting aside a good chunk of money to pay my taxes with at the end of the year? Any information you can provide me with is greatly appreciated.

    Thanks.

  672. Hi Mamooda,

    As long as you have residency ties to Canada (health card, drivers licence, bank accounts, apartment/house, credit cards, etc.), you are considered to be a tax resident of Canada and therefore required to pay taxes on your world-wide income in Canada.

    As for the amount, use the calculator above to determine the tax liability... enter your gross annual salary and it will provide you with your total tax and net pay amounts.

    If you were to cut all residency ties to Canada, you would then be not tax resident in Canada and then not required to pay tax.

    I hope this has answered your question.

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

  673. Hi Danielle,

    It appears you are an independant contractor, or at least the employer has hired you as one.

    You are not only responsible for your tax liability as a self-employed person, but you also are required to contribute to CPP and potentially GST.

    To determine your tax liability, enter your gross annual salary into the calculator above and it will provide you with the tax percentage to put aside for payment at tax time. In addition to the tax, you need to set aside 10% of your salary for CPP contributions.

    I hope this has answered your question.

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

  674. William T 09/13/2013 at 5:26 pm

    Hi,

    I am a full-time registered nurse and recently took a casual position doing insurance medicals as a self-employed person; i.e., they pay me monthly but do not provide a T4 slip. I expect it will only be about 5-10 grand a year. Is there any way I can have someone else claim this income, ie. my son in university?

  675. Hi William,

    Unfortunately, there is not way another person can claim the income you are to receive.

    As a self-employed individual, an option to you is to hire your son to assist in your business and pay him for his work. This form of income splitting is acceptable.

    I hope this has answered your question.

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

  676. John 09/15/2013 at 4:44 pm

    My brother and I bought a home together in 2005 for $275,000. I still live at the house with my wife but he moved out three years ago. We are selling the house now for $525,000. How do we handle the capital gains?

  677. Nicole 09/15/2013 at 4:59 pm

    Hey there,

    I am going to start another job soon as a phone call operator, so I would like to know two things: Do I need to inform my current employer that I am working another job (will it effect how much tax he deducts from my pay?) and second, how do I work out how much tax I need to pay as I will be self employed. This second job will earn me between $1000-$2000 a month, my current job earning are $2500 (sad but true!) Does paying tax on my self employed job mean I just file a return once a year to cover the tax?

    Much appreciated,
    Nicky

  678. Hi John,

    The good news is that you have no capital gains... but your brother must do some research.

    As long as he was resident/living in it, he was exempt from any capital gain. As of the date it was not his principal residence, it became capital property to him. Your brother needs to research the market value of the house as of the date he ceased living in the house. This will be his cost base in the calculation of capital gain.

    Half of the difference between the new cost base and $525k would be his capital gain. Remember you lived in the house so it remained your principal residence, so no capital gain for you.

    50% of the calculated capital gain is taxable to your brother.

    I hope this has answered your question.

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

  679. Hi Nicky,

    Unless your employer has a requirement that you are not able to have another job, there are no tax effects. They must continue to tax your earnings regardless of having a second job.

    To find out what your tax liability will be with your self-employed earnings, take the total income for the year (full time job plus second job) and enter it into the calculator above. The result will be you total tax liability. Subtract from it the total taxes you will pay through your employer and the the net difference is what your self-employment work is taxed.

    I hope this has answered your question.

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

  680. Grant 09/16/2013 at 5:37 am

    Hi

    I have a question regarding the determination of whether I could be assessed as a deemed resident or not?

    I am currently a resident of South Africa for tax purposes, and I am taking up a 7 month work contract in Calgary.

    I will be entering Canada on the 21st September 2013, and my contract ends on the 18th April 2014. (total of 211 days)
    I would like to find out if the entire period counts in determining the 183 day rule, or if due to the fact that it is over 2 calender years I would not lose my non-resident status?

    During the work period, I would have a Canadian bank account and an apartment will be provided for me by my employer.

    Your assistance is greatly appreciated.

  681. Hi Grant,

    The 183 days is based on calendar years. Since your time in Canada spreads over two calendar years, you are not a taxable resident of Canada.

    Even though you will be a non-taxable resident, this does not mean you will not be required to pay Canadian tax or file a Canadian tax return.

    I hope this has answered your question.

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

  682. Peter B 09/16/2013 at 3:43 pm

    Living in Quebec, working as commissioned courier driver in Ontario. Are there certain things I need to know about about tax time and deductions from pay earned?

  683. Hi Peter,

    Working in Ontario, you'll be subject to Ontario source deductions (Federal/Ontario income tax, CPP and EI).

    Living in Quebec, you'll be subject to paying the difference in tax and QIP that is calculated when you file your QC tax return.

    I hope this has answered your question.

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

  684. Diane 09/17/2013 at 9:10 pm

    Hi,

    Going to start working for a lady (she said I would be considered self employed).

    So how much tax and CPP, EI, etc. would I put away for the end of the year, I would be making approx. $12. per hour for 20 hours a week.

    If I am employed as a independent contractor, what expenses can I claim at the end of the year???

    Thanks

  685. Hi Diane,

    To determine your tax liability, enter your gross wages for the year into the calculator above. It will calculate the tax liability you will need to set aside for when you file your income tax return.

    You are also required to contribute to CPP, so take 10% of your gross wages and set it aside for the CPP liability.

    As for deductions, without knowing what kind of work you are going to do, it would be best for you to google "self-employment deductions for (your work position)".

    I hope this has answered your question.

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

  686. Julie 09/18/2013 at 2:01 pm

    If you work PT for an employer and PT as a contractor. Individually I don't make over 30k in either position. Will these incomes be taxed together or separate as the tax brackets are completely different.

    If they are taxed separately what is the percentage should I budget for, for the contract work.

    Thanks Julie

  687. Hi Julie,

    Your income tax payable would be determined by the combined totals.

    I hope this has answered your question.

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

  688. Lauren 09/18/2013 at 3:58 pm

    Does your federal income tax come off the gross amount of your paycheque? Or are you deducted EI and CPP ... and then your FI tax is deducted from the left over amount of Gross pay - EI - CPP = (amount federal income tax is calculated on) or are you actually taxed twice on the same money.?

  689. Hi Lauren,

    Income tax calculation is based on gross wages before deduction of CPP and EI.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    link to storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  690. Kelly J 09/19/2013 at 1:34 pm

    Hi,

    Can I claim parking for work on my taxes.

  691. Hi Kelly,

    The answer is generally No, but under certain circumstances you might... your employer would require that you bring your car to work for use by the business.

    If you run errands for the business, your employer must provide you with a signed T2200 form to permit you to deduct parking and related car expenses on your tax return.

    I hope this has answered your question.

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

  692. Ali 09/20/2013 at 11:23 am

    Hi,
    I am a Canadian citizen but have been a tax resident of Switzerland for many years. I moved back to Canada permanently in 2013. Although I am not yet of retirement age, shortly after leaving Switzerland I received some vested company pension plan benefits from my former employer in Switzerland. This money is currently sitting in a (tax free) locked-in retirement account in Switzerland. Since I am no longer a resident of Switzerland I have the possibility of withdrawing this money as a lump sum. I will have to pay tax at source in Switzerland if I do this, however the tax rate will be quite favourable. There is a bilateral tax treaty between Canada and Switzerland, which should prevent double taxation. However, I am unclear on whether I would also be required to pay tax on such a payout in Canada (e.g., if it were regarded by CRA as part of my taxable income for 2013) and ultimately forced to effectively pay the Canadian tax rate, which would almost certainly be higher than the Swiss one.

  693. Hi Ali,

    Under the Swiss/Canada Tax Treaty, you are required to report the income on your Canadian tax return.

    You will be taxed at the Canadian marginal tax rate for your total income, but you will be able to deduct the Swiss tax paid as a foreign tax credit on your Canadian tax return.

    I hope this has answered your question.

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

  694. Michele 09/20/2013 at 3:31 pm

    Hi, I will be a permanent residence in Toronto, but I will continue with my present work in Libya (1 month in Libya and 1 month Toronto)at the end of the year I will spend more days in Libya. All my incoming is from this job. My wife leave in Toronto and not working. What will the rate tax be? Thank you!

  695. Hi Michele,

    Because you'll have residential ties to Canada, you'll be a deemed resident of Ontario and the tax rate wold be just as if the income were earned from work in Ontario.

    You may also be subject to Libyan tax and would be required to file a Libyan tax return.

    I hope this has answered your question.

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

  696. vickie 09/23/2013 at 4:57 pm

    the $2000 pension tax credit that can be taken starting at 65 yrs. can that income be claimed by the spouse and if so, just 50% orf it? My concern is that if it forms part of the income for the one recieving it, it could push them into a higher tax bracke, so can the spouse with the lower income claim it?

  697. HI Vickie,

    The pension tax credit can be taken anytime a person receives eligible pension income, not just starting at 65.

    The pension tax credit does not apply to CPP benefits, but only other pension income.

    Only the taxpayer with pension income can claim the pension tax credit up to $2000. If the pension income is eligible for splitting, then the spouse is eligible to claim up to $2000 on the pension income received in the splitting process at tax filing time.

    The tax credit IS NOT income, it reduces taxable pension income.

    I hope this has answered your question.

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

  698. Nora 09/27/2013 at 3:18 pm

    Hi there,

    Just have question about claiming childcare expenses. Income is around 104k and paid about 18k in childcare expenses in 2012. What type of credit is that to my income and what kind of impact would it have on my return?

    Thank you

  699. Hi Norah,

    To get your answer, you'll need to use the calculator above to obtain your tax liability and the tax credit calculator (located here: link to lsminsurance.ca ) to obtain the impact on your tax liability.

    Subtract the tax credit calculated from the tax liability calculated and compare the result to your year end income tax withheld.

    I hope this has answered your question.

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

  700. Sai Kumar 09/28/2013 at 2:23 am

    Sir, I got an offer in Canada(Toronto) and my Salary is $42,000(All Inclusive like Daily Allowance,Transportation House Allowance etc). Can you Please guide what could be my take home salary per month after taxes.

    Your quick response will be appreciated and is of great help for me.

    Thanks
    Sai Kumar

  701. Hi Sai,

    Enter your gross annual salary into the calculator above to obtain your after tax pay.

    I hope this has answered your question.

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

  702. Sarah Bertucci 09/30/2013 at 1:46 pm

    Hi,
    I have a question regarding how to figure out how much tax you owe when you have done contract work. I did contract work for 12 weeks in 2013. How would I go about figuring out how much tax I will have to pay on my 2013 income tax?
    Thank you,
    Sarah Bertucci

  703. Hi Sarah,

    If the work was the contract work, enter your gross wages into the calculator above to determine your tax liability.

    To the tax calculated above add 10% of your gross wages for the CPP contribution you will be required to pay. The total of these two amounts is your total tax liability.

    I hope this has answered your question.

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

  704. Donald 10/08/2013 at 10:07 am

    I plan to move to Toronto with my 18 yrs son. I am a single parent. I have around one million Canadian dollar asset in Hong Kong. Do I have to report once I land? also I plan to find full time work and since I have to support my son for university, do I get a tax exemption for my son? If I may like around $36000 a year how much tax i would be looking at.

    Thanks you

  705. Hi Donald,

    Any non-Canadian assets/deposits over $100,000 must be reported to Canada Revenue. Your foreign savings ARE NOT taxed, but the income on these savings is taxable and this is the reason the assets/deposits must be reported.

    You are eligible for certain tax credits and deductions as a single parent with a university attending child. To see which tax credits you are eligible to request, use this calculator:

    link to lsminsurance.ca

    I hope this has answered your question.

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

  706. Barb 10/14/2013 at 12:28 am

    Hi,

    Wondering what the difference is between average tax rate and marginal tax rate.

  707. Margret 10/14/2013 at 12:32 am

    Hi,

    I lived and worked in Quebec from Aug 2010 to end of Sept 2011 and then moved to Ontario when I lost my job.

    At this time my children were in a govt funded daycare. 2 Years later Revenu Quebec is asking for a refund plus penalties for daycare because I did not pay my taxes in Quebec but in Ontario. As a result of this move I will now be taxed twice. Do I have any recourse?

    Thank you in advance for your help,
    Margret

  708. Saurabh 10/14/2013 at 12:35 am

    Hi,

    I moved from Quebec to Ontario for work and will be in Ontario on December 31st, so will file income tax returns accordingly.

    (a) However, I continue to pay rent for the apartment in Quebec since my lease is for one year and I haven't been able to sub-lease the apartment. Can I claim the rent in the income tax returns considering that I would not be filing Quebec tax return.

    (b) Can I claim moving expenses since I moved to take up employment in Ontario.

    Please advise.

    Thanks

  709. chris o 10/14/2013 at 12:38 am

    Hi,

    I am a resident of Toronto, Ontario and will be employed as a consultant for a Toronto based company providing consulting services for expanding their business into the US. Do I charge HST on my consulting services.

  710. Diane 10/14/2013 at 12:41 am

    Hi,

    I live in Ontario. My boyfriend who lives and works in Alberta bought a house in Ontario which he rented out. He wants me to move into his house and for us to be together as a couple but with him still living full time in Alberta where he has his own rental address. He plans on coming back and forth to Ontario around 3 to 4 times a year to see me while living in his house and he will also be helping with expenses as a family. I have one child 13 years old not being his biological child. He is a resident of Alberta and can not change this due to the nature of his job being in a union and having to be a licensed driver in Alberta where his vehicle remains all year round. Our question is as a couple how do we claim common law but living in separate provinces for our tax returns. If he choose his home province to be Ontario where he owns a house he would loose his job in Alberta and his home address is in Alberta. I have to notify CRA when I move into his house in Ontario and he will be helping me with living expenses. I work but can not manage to pay his mortgage as rent on my own. We want to make this our home together as a couple where we plan to retire and will be in a few years getting married. We are very confused how the living in separate provinces will work . Any advice would be greatly appreciated, Thank you.

  711. Hi Barb,

    Your marginal tax rate is the rate of tax you pay on the last dollar of income. For tax planning, it is also the rate you pay on the next dollar of income. The Canadian income tax system is a progressive tax system, based on tax brackets. The details of the brackets and their rates can be found on at link to cra-arc.gc.ca .

    Unless you understand your marginal tax rate, tax planning and investment planning cannot be properly done.

    Your entire income is not taxed at your marginal tax rate. You should not confuse you marginal tax rate with your average tax rate. Your average tax rate is calculated by dividing the total tax you paid by total taxable income.

    I hope this has answered your question.

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

  712. Hi Margret,

    Unfortunately, the person you sought out to assist you with your tax preparation was not experienced enough to understand the consequences of accurate provincial residency reporting.

    Even though you moved to Ontario and resided in Ontario on Dec 31, 2011, you were actually a resident of Quebec for 2011 and should have filed your tax return accordingly.

    The good news is that, yes, you can correct this to reduce your Revenu Quebec liability.

    All you need to do is file a T1-ADJ request to basically refile as a Quebec resident for 2011. I recommend you find an experienced tax preparer to assist you with this to ensure the calculations are done accurately.

    I hope this has answered your question.

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

  713. Hi Saurabh,

    Be sure to prepare and file your tax return as depending on the date you moved from Quebec to Ontario will determine your tax reporting responsibility, not the fact you were physically resident on Dec 31. If you moved to Ontario before June 30, you will be an Ontario resident (you will also need to ensure you have obtained and Ontario Health Card and Driver's Licence as applicable. If you moved to Ontario after July 1, you will be considered a Quebec resident even if you resided in Ontario on Dec 31.

    As for your specific queries:
    a) Quebec rent is not deductible if you are an Ontario resident.
    b) Moving expenses are claimable if you moved more than 40 kms closer to your place of employment than your previous address.

    I hope this has answered your question.

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

  714. Hi Chris,

    You mention you will be employed as a consultant... will you be an employee or contractor?

    As an employee you will not be required to collect HST.

    As a contractor, yes, you are required to register and collect HST for your services.

    I hope this has answered your question.

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

  715. Hi Diane,

    Very good question!

    Even though you live in different provinces, you still are common law and must file your tax returns accordingly. Your partner cannot arbitrarily choose which province he lives in. He works in Alberta and maintains a residence there so he is a resident of Alberta. You are a resident of Ontario.

    Your partner's Ontario house is not considered his residence as it is basically still a rental property, even though you reside in it. He will need to continue to report accordingly.

    I recommend you use an experienced tax preparer to assist you with your 2013 tax reporting and filing to ensure you and your partner claim the most deductions available with this somewhat unusual living arrangement.

    I hope this has answered your question.

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

  716. Tahir Saleem 10/15/2013 at 4:28 pm

    I have been living & working in Canada for last 10 years. I have never contributed to RRSP. So my contribution room has accumulated to 143000.
    What is the best thing to do? Should I contribute all i.e. 143000 in one go or should I spread it over a few years. I will highly appreciate your guidance on this matter.

    Thanks.

  717. Hi Tahir,

    If you have the cash available, best to contribute now rather than later... any income with be tax exempt.

    Additionally, you do not need to utilise the RSP Deduction all at once, it can be deferred over years. ie. if you only require $80k of your RSP Contribution to eliminate your tax liability with your RSP Deduction, the remainder can be carried forward for use in following years.

    I hope this has answered your question.

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

  718. Robert 10/16/2013 at 12:52 pm

    Hi,

    I rent an apartment in Alberta, my wife and family live in Ontario. I am supporting two homes and travel back and forth every two weeks (14 days on/14 days off). I pay for the flights. I am not self-employed. Are my flights tax deductible? Is my rent in Alberta tax deductible? Which province would be considered my province of principal residence?

  719. zain 10/16/2013 at 12:58 pm

    Hi.

    I have $50,000 income from the employment and I have to show another $25,000 income as self employed. Do I need to register the business for my self employment or I can just report the $25000 cash income I earned ?? And what can I claim if I report self employment income.

    Thank you.
    Zain
    Toronto. Ontario

  720. Hi Robert,

    Unless you have an Alberta Drivers Licence and Health Card, you are a resident of Ontario.

    As for your flights and rental, you should enquire with your employer to see if they would complete the T2200 form which permits you to deduct these expenses for your income taxes.

    I hope this has answered your question.

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

  721. Hi Zain,

    You must report all income on your tax return.

    In your case, you are not needing to register your business until your self-employment income exceeds $30,000.

    When you file your tax return, you will see that self-employment income is easily reported on the Self-Employment form. Here you can see what is available for you for eligible deductions.

    I hope this has answered your question.

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

  722. Sushil 10/16/2013 at 1:06 pm

    We are a permanent resident of Canada and were getting UCCB and CCTB in 2009. My wife went to India with children for surgery and she stay there up to Jan, 2011. we got UCCB and UCTB. but now CRA sent a demand notice to pay back about $ 16,000.00 . but I sent more than that to care of my wife and children to India and have all receipts. Please suggest me I can appeal for that or I have to pay back .

  723. Hi Sushil,

    Unfortunately, you were not eligible to receive the benefits while your family resided outside of Canada.

    Even though you sent the money to care for them, these benefits you received were not yours to receive.

    The UCCB and UCTB are benefits which are eligible to be received by dependants residing in Canada only, not over seas.

    By not reporting accurately that your wife and family returned to India, you can be considered fraudulent... pay the balance due ASAP.

    I hope this has answered your question.

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

  724. Rupinder Singh Billing 10/17/2013 at 8:00 pm

    Hello,

    I have one question I am working as a sub contractor in driving line and working in Fort MacMurray. I moved in Alberta from BC in March 2013 and now moved to Manitoba in October but working as a sub contractor in Alberta and getting cheque on the name of Alberta numbering ltd company. I am confused where should I pay personal and company tax is it in BC, AB or Manitoba. thanks

  725. Allison 10/17/2013 at 8:06 pm

    Hi,

    If my child had a negative income (has his own business that is in the red) and attended University, can he still claim tuition? Can he transfer tuition to me to claim? If so which one would be more beneficial?

  726. Janice 10/17/2013 at 8:15 pm

    I have a friend whose taxable income was 10000 from line 260. She would like to get another part time job to add to her income. She was wondering how much more can she make before paying taxes? Her husband is on AISh and there total income from line 150 was 28000

  727. Hi Rupinder,

    To determine which province you file your annual tax return, check the following:
    a) which provincial drivers licence to you have?
    b) which provincial health card to you have?
    c) which province did you physically reside in the most days during the year.

    I hope this has answered your question.

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

  728. Hi Alison,

    If your son has negative income he has no need to claim the tuition credit - he needs to report it, but not claim it.

    Since he does not require it this year, he can transfer it to you for you to use. He can transfer up to $5000 (federally and provincially) to you in the year he received the credit. Any avail credit over $5000 not transferred is carried forward to future year for him to utilise.

    I hope this has answered your question.

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

  729. Hi Janice,

    Unless your friend has access to additional deductions from her spouse, any income over $11,000 is require her to pay tax.

    I hope this has answered your question.

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

  730. Lianne 10/19/2013 at 3:31 pm

    Hi,

    My husband is an independent contractor making 8700 per year. Using your tax calculator for Ontario, it states that he doesn’t have to pay any income tax, yet, when we file a return we have to pay for a self employed business return which costs substantially more than a basic return. Does he have to file a separate self employed return or can he use a basic one and can I declare him as a dependent?

  731. Hi Lianne,

    Based on the detail you have provided, the tax preparer you are using is greedy.

    You and your husband should both file tax returns to ensure you receive all the credits available to you, but that doesn't mean you need to pay substantially more for an extra form or two.

    I suggest you find a more reasonable and professional tax preparer for your filing needs.

    Contact our firm and we will review to see what the our rates would be for your filing needs.

    I hope this has answered your question.

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

  732. Kalpesh 10/21/2013 at 8:53 pm

    Dear Team,

    I was going through your forum and had few queries if I can get some recommendations on the same.

    Currently am in Bangalore, India.

    However have received a Job offer in Calgary, Canada.

    My details and queries are as below.

    We are a family of 4. Me, my spouse and my twin children age 2 years.

    job location : Calgary, Alberta.

    would be moving to Canada on Work Permit if we do.

    Package offered : CAD 95000.

    Additionally 8,000 CAD for relocation expense, 2500 CAD for some kind of Bonus and other Performance Bonus at the end of Financial year.

    So I was wondering what kind of Income tax liability would I be looking at. i.e. how much income tax should I be paying at the end of the year.

    What kind of tax credits or tax deductions I can claim or be eligible for, keeping in mind my Spouse not working and 2 small children.

    Since in India my Tax filing is done by my C.A. (CPA), I was wondering if similar service is available in Canada? If yes what kind of cost would I be looking for.

    What kind of investments should I be looking into, in case I move to Canada,. i.e : PF, insurance, etc... to help me build financially once I move there.

    And if I do accept the offer and move to Canada do I be eligible for any kind of relocation dedication for the movement. If yes what things do I keep in mind while travelling to claim the same.

    Regards,
    Kalpesh

  733. Hi Kalpesh,

    Your question scenario is not one that can be easily answered within this forum, but I will attempt to respond.

    Using the calculator above, enter your gross annual salary including any benefits (relocation expense, bonuses, etc.) into the calculator to determine your tax liability.

    To determine what tax credits you are eligible to receive, use this calculator: link to lsminsurance.ca

    Subtract the credits from your tax liability to realise your net liability.

    Yes, you are able to access a professional to assist you with your Canadian tax preparation and reporting. The fee is dependent upon the information required to be filed.

    As for your interest in investments, this you should refer to an investment professional once you arrive in Canada. They will be able to advise which investment vehicles would be best for your planning needs.

    I hope this has answered your question.

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

  734. John 10/23/2013 at 2:59 pm

    I am working outside Canada and they have no TAX system there but I am still resident of Canada but I don't have medical services so do I have to declare my outside income.

  735. Hi John,

    Not having medical services is not a reason that would make you eligible to be not taxable in Canada.

    You would need to determine if you status as a taxpayer from your status as a factual Canadian resident.

    There are many items to consider and best consult with a tax professional to ensure you are aware of the circumstances and consequences of foreign employment income.

    I hope this has answered your question.

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

  736. Barb 10/24/2013 at 10:50 am

    My job in Alberta may end before Dec 31st and I would then relocate to Ontario. I'm trying to figure out if I should stay in Alberta for the tax year or come back to Ontario. What extra would I have to pay to Ontario?

  737. Shalyn 10/24/2013 at 12:00 pm

    Hi,

    I babysit out of my home and I am wondering how much money I can make before I have to start to pay taxes on it

  738. Hi Shalyn,

    You start paying tax on earnings over $10,822, but this can be increased depending on your available deductions.

    Even though you may make under $10,822, be sure to report all your income on your tax return!

    For low income earners that are under the personal exemption level of $10,822, you are eligible for a refundable tax credit... it pays to report every dollar you earn!

    I hope this has answered your question.

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

  739. brendon 10/24/2013 at 8:40 pm

    I have been a minor hockey referee in the province of NS for the past few years (mostly while attending university). I have made between $200-500 a year (no idea of the exact amounts) and have never been given a T4 form from Hockey NS. Is this income that is supposed to be reported to CRA? If so, how do I go about reporting it after the fact and will I be penalized for not knowing/reporting it?

  740. Hi Barb,

    Good question! As mentioned in previous postings, residency is not as simple as it appears on the tax return.

    If a taxpayer has ties to more than one province on December 31, CRA considers him to be resident only in the province where he has the most significant residential ties for the purposes of computing provincial tax payable.

    Among the factors used by CRA in determining a taxpayer’s principal province of residence are: where his driver’s licence and vehicle registration are issued, which province provides health care benefits, and in which province his spouse and dependants reside.

    In your case, if you move to Ontario before the end of the year, but maintain your Alberta drivers licence and health card and most importantly, (in the case of Quebec, if someone may become resident there) you lived in Alberta for the majority of the year (over 183 days), you would be considered a resident of Alberta.

    CRA and the provinces take provincial residency very seriously because of the differing tax rates between provinces. Ensuring you understand the residency rules will prevent CRA coming back and reassessing your tax return for not accurately reporting your province (or country) or residence.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    link to storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  741. Hi Brendon,

    Yes, the stipend you received as a hockey referee is considered taxable income.

    Organisations are not required to issue T4s or the like for amounts under $500, but you are required to report this income.

    For the time being, I would not be worried about reporting the income for previous years as you likely incurred expenses (uniform, travel, supplies, etc.) which would have likely totalled the amounts you received.

    Going forward, I would recommend you track the amounts paid to you and especially track the expenses you have out of pocket (travel, car expenses, etc.) so that you can prevent this income from becoming tax payable.

    I hope this has answered your question.

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

  742. Jonathan 10/25/2013 at 1:35 pm

    Hello,

    I was trying to find out the income tax rate for the year 2013, and I used your online tool. But I was confused with the average tax rate and marginal tax rate, How would I know which rate is more likely for me.

    -Thanks

  743. Hi Jonathan,

    Both rates, the average rate AND the marginal tax rate are applicable to you based on your income entered.

    Refer to a posting earlier (posted Oct 14) for the definition of these terms.

    I hope this has answered your question.

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

  744. Robert 10/27/2013 at 6:11 am

    If I open an RESP for my grand-daughter what happens to my contributions if I die? Would there be any tax implications for my estate?

  745. Ivy 10/27/2013 at 9:48 am

    What would be the tax rate if I sell investments within my Canadian Holding Company. I have equities with an Adjusted Cost Base of $100,000 plus or minus and the current market value is roughly $150,000. Are they taxed at my personal rate or corporate rate and what is the %

  746. Hi Robert,

    Once you contribute to your grand-daughter's RESP, the contributions, any government grants and future income belong to your grand-daughter.

    The contributions are gifted to your grand-daughter and have no effect on your estate.

    I hope this has answered your question.

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

  747. Hi Ivy,

    If the investments are within the holding company, the holding company is taxable at it's corporate rate on any gains realised.

    I hope this has answered your question.

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

  748. kara 10/28/2013 at 3:52 pm

    Hi,

    I have a small business (sole proprietorship) and go to craft shows in Alberta. In the past I have made under 10,000 and have had to pay between $300-450 for income tax. This year it looks like I will make over 10,000 (after expenses) and I'm trying to find out approximately what the tax rate will be. I will likely make around 18,000 this year.

  749. Hi Kara,

    Enter your expected income (after expenses) into the calculator above to determine your tax liability.

    In addition to income tax you'll be required to contribute to CPP. Consider 10% of your net income as the amount of your required CPP contribution.

    I hope this has answered your question.

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

  750. Kevin 10/29/2013 at 3:56 pm

    Can my spouse claim the use of my car/home for her business? If so does she require a BN and GST# and or can she file those along with her T4?

  751. Hi Kevin,

    Yes, she may use the family vehicle for her business use, BUT she must keep detailed logs of the travel and purpose and you must keep detailed records of the personal travel and expenses.

    No Business or GST registration is required.

    I hope this has answered your question.

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

  752. Michael C 10/31/2013 at 8:51 pm

    How do I obtain a copy of 2012 T5 slip?

  753. Hi Michael,

    For a copy of your T5 slip, you can either contact the issuer of the T5 slip or the CRA.

    I hope this has answered your question.

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

  754. Dan D 11/02/2013 at 4:25 pm

    Hello:

    I am self-employed for the 1st time in 2012. I grossed about $19K over a 4 month period while incurring about $8K in expenses.

    This included about $5500. for inventory and $1000. for repairs to inventory. As this was my only income for 2012 am I entitled to a tax
    refund?

    Thanx.

  755. Hi Dan,

    Unless you've paid income tax during 2012, you won't receive a tax refund.

    Although you may not be tax payable or refundable, as self-employed, you are required to contribute to CPP. Your contribution required would be approximately 10% of your net income.

    So, even though you may not be tax payable, you do have a tax liability for your 2012 tax return.

    I hope this has answered your question.

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

  756. Shaddy 11/03/2013 at 4:32 am

    Hi,
    I was born in Canada and left the country to Egypt when I was 5 years old. Since then I had no ties with Canada. I have lived most of my life in Egypt and across the GCC ( UAE,QATAR,KSA):
    1- If I will return to Canada/becoming a resident anytime in the near future, will I pay any taxes on my income/assets gained in the past.
    2- If I will send my wife and son to live in Canada while working in Qatar, will I be subject to taxes. Approx. how much I will pay , if my salary is approx. 9,000 CAD in Qatar?
    3- If I will stay in Canada and have accounts/certificate of deposits in Egypt and I am getting interest on that. Should I pay taxes on that? How much I will be paying approx. if the interest is around 2000 CAD?
    4- If I am getting interest from a bank in Egypt, while I am staying in Canada, through a credit card (ie. mastercard) and I am using that on purchases, paying rents,etc. , Will I be taxed on that ?
    5- Is there any tax treaty bet. Canada and Qatar?

    Regards,

    Shaddy

  757. Hi Shaddy,

    Answers to your questions:
    1) No, you are only taxed by Canada on income while a tax resident of Canada.
    2) Yes, as having your family in Canada will make you a factual tax resident of Canada. Use the calculator above to determine your tax liability.
    3) Yes, any income, including investment/interest income, is taxable in Canada while you are a tax resident of Canada.
    4) Same as 3.
    5) Yes, there is a tax treaty between Canada and Qatar. Any income withheld and paid to Qatar is eligible for a foreign tax credit in Canada.

    I hope this has answered your questions.

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

  758. Denae 11/05/2013 at 1:30 pm

    Hi,

    A non-profit organization for which I used to volunteer wants to hire me as a "contractor" and pay me to do some work that's similar to what I did as a volunteer. I put "contractor" in quotations because I am not an "independent contractor"... I am not operating a business. This is a one-off.

    The project would take less than a month and I will be paid less than a thousand dollars in total for my work. Will I need to report this income at tax time?

    (I am also an employee elsewhere, and having taxes, EI and CPP contributions automatically deducted from my pay.)

  759. Hi Denae,

    The terms 'contractor' and 'independent contractor' are essentially the same. Any contractor work is considered as operating a business.

    Yes, any income you receive, regardless of the source is reportable and taxable.

    As a contractor, you will be able to claim any direct expenses you will incur for doing this project, to reduce your tax liability.

    I hope this has answered your question.

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

  760. Susan B 11/05/2013 at 1:35 pm

    I have always lived in Quebec. I just bought a house in Ottawa but I am keeping my Quebec house. I work mostly in Ottawa and will live 60- Quebec. How do I determine my residence for tax purposes. What do I have to do to be considered an Ontario resident?

  761. Hi Susan,

    For you to become a resident of Ontario, it's easy... sell your Quebec home, move to Ontario, get an Ontario Drivers Licence and Ontario Health Card.

    Unless all of these items are not done, you will remain a taxable resident of Quebec.

    I hope this has answered your question.

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

  762. cindy y 11/06/2013 at 1:19 pm

    Hi?darling

    My son work in USA, Is he responsible for claiming tax in Canada and United States next year?

    If he reports his income to both countries, he will pay dual income tax. Can you help us? thanks!

    Anyway, My friend take heritage from her mother who is not resident of Canada. Is she liable for heritage tax?

    Cindy
    Thanks

  763. Hi Cindy,

    You do not provide sufficient details to allow us to provide you with an accurate response.

    If your son moved to the US during 2013, yes, he must file both a Canadian and US tax return. Depending on the date he moved and the residency ties he has to Canada, he may be required to file Canadian and US tax returns in the future.

    By heritage, do you mean inheritance? Depending upon the country of residence of her mother and the inheritance, she may be taxable in the foreign country and inn Canada.

    Both your son and friend should seek professional assistance to determine the extent of their taxability.

    I hope this has answered your question.

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

  764. Kurt F 11/08/2013 at 11:46 pm

    I reside in Ontario, but have many clients in Quebec. I am a insurance broker and also have a Quebec Corp. Where do I pay taxes?

    I recently moved to Ontario from Quebec.

  765. Hi Kurt,

    If you are asking about you personally, it would depend upon when you moved to Ontario. If you moved before July 1, you would be taxable in Ontario.

    But, note that your clients do not belong to you and they do not determine your personal taxability; the clients belong to your corporation. Your corporation is resident in Quebec and is required to pay tax on the income from your Quebec clients. Any clients outside of Quebec require your corporation to file the provincial tax return of those clients... ie. 85% of your clients are Quebec based so 85% of your corporation's income is taxed in Quebec; 15% of your clients are in Ontario so 15% of your corporation's income is taxed in Ontario.

    We suggest you get in contact with a professional tax preparer/tax accountant to ensure you are compliant in your corporate as well as personal tax filings.

    I hope this has answered your question.

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

  766. Ashley 11/10/2013 at 6:39 pm

    Hello,

    If I was to sub-contract how much money should I set aside for end of year taxes? Also, what expenses am I able to claim? Fuel, meals on the road, home office etc??

    Thank you

  767. Hi Ashley,

    Without solid numbers, a precise answer is not available.

    Enter your anticipated annual income into the calculator above. It will provide you with your income tax liability; to it add 10% of your gross income to account for your required CPP contributions.

    As for available deductions, it would depend upon the type of work you will be doing. Any direct work related expenses (driving/vehicle expenses, home office, etc.) are available to you, but they must be substantiated to the work and income received.

    I hope this has answered your question.

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

  768. greg m 11/11/2013 at 1:07 pm

    Hi,

    Is the $1,500 fee paid to tax lawyer for VDP filing individual income tax deductible? If so in what line this can be claimed and under what section is this allowed?

  769. WA 11/11/2013 at 1:09 pm

    Hi,

    I work and rented a room in Montreal but the family lives in Ottawa, Ontario. I have daughter (1+ year old) and wife who doesn't work just housewife. I am working in Montreal since march 2013 and this is my second employer here.

    My question is how would I file tax? How would the child benefits calculated? Should I include that I pay rent here in Montreal as well? Under what status should I file the tax Quebec resident or ontario? Later on if I have to apply for EI how would that work?

    Regards,
    WA

  770. Hi Greg,

    Sorry, no, the legal fees you incurred to file a VDP are not deductible.

    I hope this has answered your question.

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

  771. Hi WA,

    Filing your tax return will depend upon which province you are resident within... which province issued your drivers licence, health card, etc.

    For questions related to benefits and EI, you should contact Service Canada.

    I hope this has answered your question.

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

  772. margaret 11/11/2013 at 9:02 pm

    If I am renting an apartment and sublet it for less than I am paying. Can I clam the difference as a loss? I am moving to a house.

  773. Hi Margaret,

    You can, but be ready to justify (prove) it to CRA if it is questioned.

    I hope this has answered your question.

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

  774. Anonymous 11/13/2013 at 10:09 pm

    I am looking to lend $25K to a friend to help him expand his privately held small business. He has agreed to pay me interest of x% on this loan, but I would NOT get any shares/ownership. Would I be able to qualify my loan as an RRSP eligible investment in order to eliminate the taxation of interest income?

  775. Hi Anonymous,

    Small business loans are not eligible for RSP investment purposes.

    If you were to register a mortgage with the small business, it would be possible, but there are fees to do so which would not make it economical for you for a loan of this size.

    Investing the in the shares of the small business (corporation) is possible, but again fees would make it not economical for you.

    I hope this has answered your question.

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

  776. fred 11/14/2013 at 8:49 pm

    ?I have a regular job and work a second job at a small business. We plan to legitimize the income earned at the second job starting in 2014. Compensation will be increased to accommodate the estimated amount of tax that will be owned on this additional income. How do we determine the estimated amount of tax? For example if we are currently paid $200 for a days work how do we figure out how much more to pay per day to cover the amount that will be "lost" to taxes? The regular income of the individual varies from about $80-$100,000 and is taxed correctly. The additional income is between $10-20,000.

  777. AZ 11/14/2013 at 11:32 pm

    As a self contractor for almost a year now.

    My question is what are the federal and provincial taxes that must be deducted from my gross income.

    For example: if my income is 60,000 per year, do I deduct a provincial and federal tax percentage along with a percentage of CPP ?

    Currently working out of Ontario.

  778. Hi AZ,

    Enter your estimated gross wages for the calendar year into the calculator above to determine your tax liability.

    CPP Contributions are about 10% of your gross wages.

    I hope this has answered your question.

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

  779. Hi Fred,

    Not sure what you mean by legitimise the income from the small business... any income from any source is legitimate and must be reported on your tax return and reported by the small business for tax credit.

    If you are looking to calculate the gross pay based on $200/day net. First annualise the amount ($200 x 5d x 52wk = $52000) and plug numbers into the calculator above until the result in the net pay calculated equals the amount you wish ($52k).

    Simply work it backwards until you get the gross amount to fit the net pay amount.

    I hope this has answered your question.

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

  780. Russ G 11/16/2013 at 5:06 pm

    I transferred to Quebec from Ontario 10/2011. My wife & I took up an apt 03/2012.

    I missed the file date for my 2011 & when 2012 came around skipped again as 2011 is out standing, I had never missed in 40 years and always did my own.

    My issue was Moving cost.
    Where to declare residence as, I have a seasonal home in Ontario.

    My wife has no income, my income is 100% T4 all monthly payments have been made. I just need help on the which province as the rate is higher in QC can it be?

    Thanks. I want to get this done.

  781. Hi Russ,

    Moving costs have nothing to do with residency, only employment.

    Which provincial drivers licence did you hold at Dec 31, 2011? This would be your province of residence for 2011, since you moved during October of that year.

    For 2012, you would be a tax resident of Quebec even if you have not yet updated your drivers licence or health card.

    I hope this has answered your question.

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

  782. Tommy 11/17/2013 at 9:04 pm

    I work in Ontario but live in a rented apartment in Quebec. My family owns a cottage in Ontario, which I am named in the trust. I spend several weeks there in the summer as well as time over Christmas (including December 31). Can I use this property as my residence and file Ontario tax return?

  783. Hi Tommy,

    You answered your own question... you have not any ownership or residency rights to the cottage in Ontario.

    To help you understand... which province issued your drivers licence? in which province did you sleep at least 183 nights?

    Get an apartment in Ontario to satisfy the residency requirements.

    I hope this has answered your question.

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

  784. Russ 11/21/2013 at 11:07 pm

    Thank you So 2011 12 months licence ontario determines my province for filling .. How about which year can I claim moving cost for employment
    The transfer was 10/2011 my home went to storage till 03/2012 sold home 10/2011 quebec file 2012 not file 2011
    Thanks
    Russ
    .

  785. Jay 11/23/2013 at 10:10 pm

    HI,
    I am a Canadian Citizen left Canada on 1996 back to my country Syria (where I Have immigrated to Canada from). and:
    - I stayed in Syria till today (18 years).
    - I have no ties at all in Canada except that I hold a Canadian Passport.
    - I know that Syria has no tax treaty with Canada.
    - I am returning these days to Canada due to current situation in Syria.
    My question is: Do I have to pay any taxes on my earning all these years in Syria?
    What do I have to do as soon as I arrive in Canada?
    Many Thanks
    Jalal

  786. Elias 12/02/2013 at 1:03 pm

    Hello, I am making 40,000$ annually but no deductions are made from my pay check. I live in Quebec and I was wondering if that 28.53% includes all deductions including medical care, federal income taxes, employment insurance, quebec parent insurance plan, provincial taxes, quebec pension plan, etc. Thank you kindly. Happy holidays !!!

  787. Patrick 12/03/2013 at 1:04 am

    Can you let me know about Capital Gains Taxation on Canadian non-residents that sell their property in Ontario and make a profit?

    If I purchased my home for $300000 and sell it for $400000 and the gross profit is $100000. I know that I am to be taxed on 50% of that gain. What would be the amount of tax that I need to pay? Because I don't have status, does this count as income, or is it still regarded as a Capital Gain based on your calculator above?

    I'm just confused between the marginal tax rate and the average tax rate when it applies to this profit from the sale of a home when you are not a Canadian resident.

    Thank you very much in advance.

  788. Alison B 12/06/2013 at 4:14 pm

    I was just wondering if someone could help me out. I was on "contract" for a bit at my job, and I was paid by a cheque but no taxes were deducted. I was making $14.00 an hour for 40 hours in a week. Total of all cheques are $5887.00, how much will I be paying in taxes when I claim in 2014? I am now on payroll, and having taxes deducted. Now making $14.50 an hour for 40 hours a week. I live in Ontario, Canada.

  789. Hi Russ,

    Moving expenses are deductible in the year incurred unless the expense amount is higher than the income earned at the new location, then is the excess is available to be carried forward.

    I hope this has answered your question.

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

  790. Hi Jay,

    If you have no tax relevant residential ties to Canada, you are not tax liable in Canada.

    If Syria does not have a tax treaty with Canada, you are subject to double taxation by both countries under certain circumstances.

    I hope this has answered your question.

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

  791. Hi Elias,

    No, the tax rate calculated by the calculator above only include federal and provincial income taxes, not any other payroll related deductions.

    I hope this has answered your question.

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

  792. Hi Patrick,

    Non-residents are subject to different tax rates than Canadian residents.

    Upon the sale, the transfer authorities would withhold an amount of tax ranging from 10% to 20%.

    Depending upon the nature of the investment in the property, the income could be considered would be general income or capital gain, this would be concluded by the transfer authorities.

    If it is capital gain, the taxable portion would be 50% of the gain.

    As you are a non-resident, any gain would not be eligible for the primary residence exemption.

    I hope this has answered your question.

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

  793. Hi Alison,

    You would need to estimate how much non-contract earnings you will have for 2013.

    Add together the contract and non-contract earnings and enter the total into the calculator above. The tax calculated would be the total tax; you would then need to subtract the tax you estimate for your non-contract work to obtain your answer.

    I hope this has answered your question.

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

  794. Krissy 12/07/2013 at 9:23 pm

    Who's name is it best to put on childcare tax receipt? The lower wage earner?

  795. Hi Krissy,

    It should be the actual payer of the childcare... so if the childcare is paid for by a non-parent, that`s the name.

    If a parent pays the child care expense, both names should be on the receipt so the deduction can be utilised by the most efficient tax savings.

    I hope this has answered your question.

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

  796. Chris 12/07/2013 at 9:42 pm

    I am separated from my wife. How could I update my status? We are living separately.

  797. Col 12/07/2013 at 9:54 pm

    Hi,

    I pay my mother to take care of my three-year old while I am at work. Can I claim this as a daycare expense and if I do will it impact my mother's taxes?

  798. Hi Chris,

    If your marital status has changed, you must inform the CRA of your new status and the date of the change. You can do this by using “Change my marital status” on My Account on the CRA Web site or by calling 1-800-387-1193.

    You may also complete and send form RC65, Marital Status Change or provide the information by sending a letter to the tax centrethat serves your area. Be sure your letter includes the date (day, month and year) of the marital status change, your name and social insurance number, along with your spouse or common-law partner’s name and social insurance number (if applicable).

    I hope this has answered your question.

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

  799. Hi Col,

    In order to claim childcare expenses your mother must provide you with receipt that includes her name and SIN number, and she must declare the income on her tax return. If her total annual income is over the basic federal personal amount of $10,527 in 2011, she may have a balance owing but it does depend on any other credits or benefits for which she may qualify.

    I hope this has answered your question.

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

  800. montreal_edm 12/08/2013 at 8:25 pm

    I paid the childcare expenses this year in Quebec, will I get the refund if I move to another province by the end of year?

  801. Hi Montreal,

    Without more details from you, only a general answer can be provided to you...

    Depending on your move date, if before July 1, no refund will be available and any advance refund will be repayable; if after July 1, you may be eligible for the daycare refund.

    I hope this has answered your question.

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

Skip to
second column

Leave a Reply

 

Head Office: 2900 John Street Suite #302 Markham, L3R 5G3
Office 1-866-899-4849, 905.248.4849 Fax 905.300.4848


© LSM Insurance Services Ltd. 1998-2017




Translate »