moving

Hye,
Pardon my ignorance, but what is the taxable income in Ontario. I guess it must be above a certain amount earned per year. What is that amount?

Thanks in advance.

Siren & Brian

Well, I'm not an accountant but...

The first $9000 (figure may be off slightly) if what you need to live (food shelter etc...) therefor non-taxable. As is approximately $2500 per child.

Basically, take your income....minus valid deductions (the $9000 per person, plus children, plus donations etc..) and what is left is your taxable income.

There is actually a calculation that is done with percentages and stuff on the tax forms but that's about the gist of it.

Siren

iaink

Taxable income is your gross income less personal/ spousal allowances, less any other deductions you are entitled too.(eg charitable donations, elligable medical expenses, professional memberships etc necessary for working, and some moving expenses) It is the amount that you are taxed on.

Best chance for calculating it may be to go to the revenue canada website, download the tax forms and read the guides. Its relatively simple if you are not running a business, at which point a lot more becomes deductable and it gets more complicated.

Iain

iaink

Sadly not the case anymore, thats what the canada child tax credit is suppost to be for, but its means tested and you get nothing for kids once you are at a certain income level. So no deductions for kids, but income over the next year based on your declared income once you file.

Iain

Bryan Kellar

In general, when someone is talking about taxable income, they are talking about all of your income minus all of your deductions. This is ultimately the amount that you are taxed on.

For example, someone says you will be taxed XX percent of your taxable income. This means that you will be taxed at XX percent of your income, but only after deductions for things like child care expense, moving expense, RRSP contribution, etc.

This would also incluse the personal amounts deducted in figuring the provincial tax.

Bryan

iaink

Cant believe I forgot about RRSP deductions One of those days today

Iain

Glaswegian

I have to disagree - that is what is means when the 'someone' knows what they are talking about!

When the 'someone' has no clue at all it can mean ANY other number!


You actually hear people claim to be 'exempt' from taxation because:

1) they are not old enough to pay tax
2) its only a part-time job
3) they only arrived in Canada part way through the year
4) they are old
5) the Revenue doesnt care about the small amounts

So, here I am again debating the definition of words!

Mrs G