The Tax Preparation Blog

Archive for the ‘Tax Software’ Category

Question: What is my net income for $35000/yr salary in Ontario?

I’ll be starting a job offering an annual salary of $35,000 per year. What is my net income after taxes/EI/CPP contributions? How do I calculate this?

Note: I attempted to use CRA’s payroll deduction calculator and it says I’ll be making $17,000 net income.. is that correct?? It seems like too little income to me.

Additional details: I’m a single person living in Ontario and fresh out of university.

Answer: Good day,

Using Tax Calculator found on the net your Federal and Ontario Tax should be approximately around $4970. In addition to this amount you need to add $1559 (CPP) and $606 (E.I) which would bring your “tax total” to $7135 (approx $27865 as net income…in your pocket). This is a very simple tax case…! If you have tuition “deduction” or if you have invested into an RRSP then these situation should have tax implications (i.e. lower your tax). Also, if your employer has a pension plan, then some number would have to be re-adjusted. If your personal situation change (i.e. getting married, disability etc…) these life events would affect your tax rate, as well.

www.taxtips.ca web site has a lot of tax information.

For your info, www.studiotax.com offer a very nice tax software. You can give a contribution.

Hope this help in planning your budget.

Congratulations for your first job.

Playful pup pleases Parker!

Question: Relocation assistance – ordinary income or adjustment to basis?

I received relocation assistance from my employer in 2009. Included in the package was reimbursement on the loss in value of my home that I sold in my original location as well as broker fees, etc. This reimbursement will be included on my W2.

When reporting these items on my 2009 tax return, is it more appropriate to report this as ordinary income (since it is on my W2) or exclude it from ordinary income and bake it into the gain/loss on home sale calculation (adjustment to basis in home, etc.)? If you can provide an example directly from the IRS literature that addresses this, that’s an automatic best answer.

Answer: You may want to check this page at the bottom. They have some info on moving and deductions. Hope this helps!

Investment Performance Measurement (Frank J. Fabozzi Series) $45.00 Many investment books include a chapter or two on investment performance measurement or focus on a single aspect, but only one book addresses the breadth of the field. Investment Performance Measurement is a comprehensive guide that covers the subjects of performance and risk calculation, attribution, presentation, and interpretation. This information-packed book covers a wide range of related top…

First Thoughts: Obama’s opening bid

Presidential budgets are more political documents than anything else, and this budget is by someone who wants to win re-election in 2012. Now we wait for the GOP’s counter-offer.

Calculating Income Tax

Few extra days for your taxes

Yes, today is April 15. No, your taxes aren’t due — yet. The deadline for filing federal and state income taxes this year is Monday. The due date was moved because of Emancipation Day, a local holiday in Washington, D.C., that commemorates the day President Abraham Lincoln freed the slaves in the District of Columbia.

Question: Can you tell me what my 2010 income tax refund will be?

My year to date before taxes was 40254.00 my pretax deductions for medical insurance and 401k was 3939.16 my taxable wages was 36015.44 social sec 2354.24 medicare 550.59 and fed tax 4784.57 I had a kid in June of 2009. What is the estimated tax refund including the child tax credit that I should get back?

Answer: H&R Block website has a calculator that figures your refund amount. And its actually very accurate!

Missing out on a tax refund? Many low-income Tennesseans are

If you qualify, you receive the full amount of the earned income tax credit, not just a refund of what you had withheld.

How I Estimate My Tax Return To See If I Get a Refund

New Resources from Principal Funds Help Demystify Social Security

According to the Social Security Administration, 74 percent of current retirees are receiving a reduced Social Security benefit.1 Principal Funds has created a suite of resources for financial professionals to help their clients make the most of their benefits.

Xpnsit shows how to get more tax back – Work related uniform and clothing expenses