The Tax Preparation Blog

Posts Tagged ‘tools’

Question: How much do I pay deposit for RRSP to avoid paying taxes?

Here’s some details – I work at two places, neither is aware of the other one so no adjustments to the deductions are made.

At place #1 I earn $50.000/year before taxes, and they deduct the taxes from every paycheck.

At place #2 I earn $6.000/year before taxes, and they also deduct taxes from every paycheck.

Rough calculations (http://lsminsurance.ca/calculators/canada/income-tax/2009) say I have to pay a little over $11.000 in taxes, and that company A has already deducted (if they’re doing their accounting well) around $9.500, which leaves me owing the government about $1.500.

So now,

question #1: Are the above rough calculations somewhat accurate, or are they way off?

and

question #2: How much $$$ in RRSP do I have to deposit so I don’t have to pay the $1.500 I owe the government? Or, if I am not allowed to pay that much, what’s the maximum I can pay in RRSP, and by paying that much, how much in taxes will I have to pay?

Btw. this is for 2009.

Thanks!

Answer: I went through that calculator as well, and I’d say it’s fairly accurate, but it doesn’t seem to take into account that you would also be paying CPP and EI premiums. There is a maximum to each, and you will easily reach it on the $50,000 job. Any CPP or EI collected from the $6,000 will be creditted to you as an over payment, and will also reduce your income tax obligation. This won’t amount to very much, though. Probably about $225.

In either case, take a look at the calculator again. Each dollar that you put into your RRSP will reduce your income tax by the Marginal Tax Rate. For example, if you’re in Ontario, you would have a marginal tax rate of 31.15%. If you contribute $1,000, your income tax would be reduced by $311.50 ($1,000 * .3115).

Before you make a contribution, check your Notice of Assessment for 2008, or contact the CRA to find out what your RRSP contribution limit is. Over contributing doesn’t help you, and can subject you to some rather stiff penalty.

Canadians growing more optimistic about their finances versus last quarter, according to latest Russell Financial …

Many Canadians are feeling better about their financial outlook this quarter, as the capital markets enjoy a resurgence of late.

The Life of Steve Jobs – So Far [Apple]

# apple Here’s an idea: How about we stop focusing on livers for a second and look at the good, bad and as he might put it, “insanely great” parts of Steve Jobs life so far? More »

5/28/09: White House Press Briefing

Question: How much can I save with 2400 British Pound post tax salary in the UK?

How competitive is a salary of 2400 British pounds per month post tax fin the UK for a 6 years experienced IT professional ,with more than 4 years of experience in product development ,from India.How much could be saved with a decent lifestyle? I’ve to support my family ( my spouse only).

To introduce myself,I’m a software engineer carrying close to six years of relevant industry experience in Core Java/J2EE based product development and sustaining and IT solutions building.By education,I’m a Bachelor of Technology graduate from the Indian Institute Of Technology, Kharagpur, one of the internationally acclaimed engineering schools of India.

I’m actively looking forward to working in the US ,preferably in a product devlopment organization, on Java/J2EE based technologies .Currently I’m working in the sustaining engineering division of the Product Development department of a middleware company in Bangalore

Answer: its a reasonable average salary tax will be just above 25%. You should be able to earn more once your here with your qualifications. Lifestyle will depend on where you are based, wont get you far in london. Have a look on some of the UK property websites for an idea of what you could rent I think you would be looking at around £600 upwards for reasonable property. Good luck.

Fehr man with a plan

BOSTON — Here, essen tially, is the message pre sumptive NHLPA executive director Donald Fehr has been presenting to the players during the autumn tour preceding union balloting: “Hire me to lead or don’t hire me at all.” This, according to sources, is the ultimate condition of employment for…

IRS information – statute of limitations – tax assistance – tax help

Question: Customs/brokerage fees from US to Canada?

Will I be charged Canadian duty/customs fees if I order PC software from the US online? I already paid sales tax when I ordered it. If customs isn’t an issue, should I be charged brokerage fees from the shipping company?

Answer: Canadian customs will charge you on anything they can! Everything I’ve ever ordered from the US, I’ve had to pay GST and PST. I even brought my dogs over from the US to have surgery in Canada, and had to pay tax on them, even though I had them for a year.

Celebrating 25 Years Helping Canadian Small Businesses, Sage Simply Accounting Delivers Mobility and Business …

Made-in-Canada Accounting Software Turns Everyday Data Into Insights; Small Business Owners Can Now Manage Business Processes on the Road and Get Paid Faster

Internet Merchant Account | E-COMMERCE MERCHANT ACCOUNTS

Question: Does the GA tax free weekend apply to online purchases as well?

I know that the tax free weekend applies to clothes, computers, and school supplies. I am going off to college and was wondering if the tax free applied to online purchases? Also does it apply to bedding? Futons? Thanks.

Answer: if i’m not mistaken the last time i buy online i didn’t pay tax for my item but i still need to pay those import tax and etc…

Hernando County YMCA to sponsor Youth Biathlon

Thursday, September 23, 2010 SPRING HILL Youth biathlon kicks off Oct. 2 at YMCA The Hernando County Family YMCA invites youth ages 6 to 16 to participate in the YMCA Youth Biathlon that will be at 9 a.m. Oct. 2 at the facility, 1300 Mariner Blvd. Participants will be swimming and running. The cost is free for facility members, $5 for program members and $10 for nonmembers. Other activities …

UPDATE – NOW FREE Scottish School Dinners – Paid for by English Tax Payer