albera income tax
#16
Joined: Sep 2008
Posts: 12,830
Re: albera income tax
Agreed, but it isn't compulsory.
One way in which Canada's taxation is different to the UK's, is that there is still joint taxation for couples, and the higher earner can use the lower earner's allowances. I'm retired, but I've put off claiming all my pension entitlements and put my savings into long term investments, so that my income is kept low. This reduces my husband's income tax by about $1,800 p.a.
Even so, I still don't have to file a return to get the rebate for my husband. He can just put the figures for my unused allowances on his return. However, I choose to do so. I have to work out my tax liability in order to work out my husband's, so I might as well send them the forms.
One way in which Canada's taxation is different to the UK's, is that there is still joint taxation for couples, and the higher earner can use the lower earner's allowances. I'm retired, but I've put off claiming all my pension entitlements and put my savings into long term investments, so that my income is kept low. This reduces my husband's income tax by about $1,800 p.a.
Even so, I still don't have to file a return to get the rebate for my husband. He can just put the figures for my unused allowances on his return. However, I choose to do so. I have to work out my tax liability in order to work out my husband's, so I might as well send them the forms.
#17
Re: albera income tax
Agreed, but it isn't compulsory.
One way in which Canada's taxation is different to the UK's, is that there is still joint taxation for couples, and the higher earner can use the lower earner's allowances. I'm retired, but I've put off claiming all my pension entitlements and put my savings into long term investments, so that my income is kept low. This reduces my husband's income tax by about $1,800 p.a.
Even so, I still don't have to file a return to get the rebate for my husband. He can just put the figures for my unused allowances on his return. However, I choose to do so. I have to work out my tax liability in order to work out my husband's, so I might as well send them the forms.
One way in which Canada's taxation is different to the UK's, is that there is still joint taxation for couples, and the higher earner can use the lower earner's allowances. I'm retired, but I've put off claiming all my pension entitlements and put my savings into long term investments, so that my income is kept low. This reduces my husband's income tax by about $1,800 p.a.
Even so, I still don't have to file a return to get the rebate for my husband. He can just put the figures for my unused allowances on his return. However, I choose to do so. I have to work out my tax liability in order to work out my husband's, so I might as well send them the forms.
The reason I'm asking is because I am contemplating returning to the working world, in a very part time way, and I was just wondering if it is worth it from financial perspective.
#18
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,686
Re: albera income tax
Do you know if there is some sort of calculator where you can determine this amount of tax savings? Or do you just have to go through the process of filling out the tax forms with and without the allowances?
The reason I'm asking is because I am contemplating returning to the working world, in a very part time way, and I was just wondering if it is worth it from financial perspective.
The reason I'm asking is because I am contemplating returning to the working world, in a very part time way, and I was just wondering if it is worth it from financial perspective.
For an example I tested a couple where one earned $75,000 and the other nothing. The $75,000 earner pays $16,632 in tax, EI and CPP and gets to keep $58,368. If the OH gets a job that pays $15,000 the $75k earner's take home pay drops to $55,289 and the $15k earner keeps $13,778. They are $10,699 better off.
I can't think of any circumstances where they would be worse off.
Try http://www.taxtips.ca/calculators/taxcalculator.htm. It look a bit intimidating getting started but easy enough to do lots of what ifs once you get the hang of it.
Last edited by JonboyE; Oct 13th 2011 at 11:24 am.
#20
Re: albera income tax
Do you know if there is some sort of calculator where you can determine this amount of tax savings? Or do you just have to go through the process of filling out the tax forms with and without the allowances?
The reason I'm asking is because I am contemplating returning to the working world, in a very part time way, and I was just wondering if it is worth it from financial perspective.
The reason I'm asking is because I am contemplating returning to the working world, in a very part time way, and I was just wondering if it is worth it from financial perspective.
However, my husband earns enough to have a marginal rate of tax of 36%. I can imagine, that if I took a low paid part-time job, and then took into account the cost of working -- clothing, fares, having to buy more pre-prepared meals - and so on, the cost of working could outweigh the benefit.
However, since I'm retired, I've not had to do that calculation.
#21
Re: albera income tax
I think either way I will go back to work just for my sanity.
I have been at home with my children for a number of years but they are older now and a lot less work. I just don't know what to do with myself all day.
I will be taking some courses in computerized bookkeeping to get myself a bit up to date and then I will see what is out there.
I have been at home with my children for a number of years but they are older now and a lot less work. I just don't know what to do with myself all day.
I will be taking some courses in computerized bookkeeping to get myself a bit up to date and then I will see what is out there.