Timeline for Canadian tax calculation for a sample income
Current License: CC BY-SA 4.0
11 events
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| Nov 2, 2020 at 18:36 | history | edited | brian | CC BY-SA 4.0 |
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| Nov 2, 2020 at 16:41 | comment | added | user2371765 | So what is the total tax? 22493? CPP is a pension. One will get it after retirement. What does EI cover? Disability? Unemployment? Can you modify your answer a little bit to include these items? | |
| Nov 2, 2020 at 16:00 | comment | added | brian | Sorry, I actually entered the investments as if they were CAD. You've still missed some tax credits and Ontario health + surtax. If I use *1.33 I get 22,493. There will also be CPP and EI taken off your paycheck ~$3-4k. | |
| Nov 2, 2020 at 15:47 | comment | added | user2371765 | OK. I might review some of that later; right now, I just want an approximate number. I did not include tax on capital gains. It is 0.5*20000*0.205 = 2050, and tax on dividends is 2000*.055 = 110 . So total tax as per my calculation is 18000+ 2160*1.33 CAD/USD= 20873.8 and as per yours is 21156. There is a CAD 282 difference which is fine. | |
| Nov 2, 2020 at 15:45 | vote | accept | user2371765 | ||
| Nov 2, 2020 at 15:32 | comment | added | brian | You may have based it on that but you didn't read the 1000+ pages of accompanying regulations. You missed a lot. It's all spelled out line for line in the calculator. | |
| Nov 2, 2020 at 15:29 | history | edited | brian | CC BY-SA 4.0 |
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| Nov 2, 2020 at 15:29 | comment | added | user2371765 | I based my calculation on official Canadian government sources. I want to understand how your numbers -which are markedly different from mine- were arrived at, and I am not sure whether a tax calculator can help me with that. | |
| Nov 2, 2020 at 15:23 | comment | added | brian | There are links for all your questions at the website. You won't learn taxes just from comments here. I uses 18k for the rrsp deduction. CPP is Canada pension plan. EI is employment insurance. If it's regular employment you'll still be paying some CPP | |
| Nov 2, 2020 at 15:17 | comment | added | user2371765 | Thank you. Did you use the RRSP deduction of 18K? What is CPP? EI? I wanted this income to be assumed as employment income (not self-employment). I don't have any tax document. This is just a hypothetical salary. So I am not sure what to enter in what box. | |
| Nov 2, 2020 at 15:07 | history | answered | brian | CC BY-SA 4.0 |