[Nvasion]

please close now.

thanks to al that helped

[Nvasion]

sorry should be posted in the business section..

PLEASE MOVE

[PiuYi]

for federal

http://www.cra-arc.gc.ca/E/pbg/tf/5000-s1/README.html

[TheKingdom2000]

this is probably easy to understand

http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

15% on the first $41,544 of taxable income, +
22% on the next $41,544 of taxable income (on the portion of taxable income between $41,544 and $83,088), +
26% on the next $45,712 of taxable income (on the portion of taxable income between $83,088 and $128,800), +
29% of taxable income over $128,800.

[Nvasion]

link dont work but just to make sure... its 15% tax on income under 41,544?

[Nvasion]

edit

[Tapioca]

lets say if im making 45000 what tax bracket would i be in?

Up to $41544 is taxed at 15%, then...
Your income between $41544 and $45000 ($3456) is taxed at 22%.

And remember, this is just the federal income tax. Provincial tax is deducted as well.

[Nvasion]

iy yah!.... time to quit my part time job. just another question... itd be smart to quit my part time job then correct? i make about 5000 there a year

[twitchyzero]

inb4 Marco 911 comes in and flaunts about his near 7-figure income :lol

[Alatar]

iy yah!.... time to quit my part time job. just another question... itd be smart to quit my part time job then correct? i make about 5000 there a year

Yeah, not worth hanging onto the second job. I used to do the same, and found it bumped me into the next tax bracket. I made about 10-12k/year at it, but because it bumped me to the next bracket, my takehome benefit from that job ended up being about 3-4k, if I recall. Not worth it.

[Gumby]

My boss said "we're in Canada, we don't want you to get rich" during a group meeting. We all LOL'd!

[unit]

this is probably easy to understand

http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

15% on the first $41,544 of taxable income, +
22% on the next $41,544 of taxable income (on the portion of taxable income between $41,544 and $83,088), +
26% on the next $45,712 of taxable income (on the portion of taxable income between $83,088 and $128,800), +
29% of taxable income over $128,800.

Up to $41544 is taxed at 15%, then...
Your income between $41544 and $45000 ($3456) is taxed at 22%.

And remember, this is just the federal income tax. Provincial tax is deducted as well.

key word is "next"

[TheKingdom2000]

hey guys, i just found this...

http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2010-Personal-Tax

it automatically calculates your taxes!
wow, BC has one of the lowest taxes in Canada

[johny]

there is no reason to get rid of the 2nd job. if you want the extra money work it.

the more you work, the more you will make and take home. it will have no effect on the amount of taxes you pay on the first job.

the tax levels are tiered. you don't get "bumped up" into a bracket.

you will have less take home from the 2nd job then a guy who only has a 12k / year job. however you will still have more take home then if not working it at all.

you can't lose money by working more

[Blinky]

there is no reason to get rid of the 2nd job. if you want the extra money work it.

the more you work, the more you will make and take home. it will have no effect on the amount of taxes you pay on the first job.

the tax levels are tiered. you don't get "bumped up" into a bracket.

you will have less take home from the 2nd job then a guy who only has a 12k / year job. however you will still have more take home then if not working it at all.

you can't lose money by working more

Thank you. I'm always amused by people who complain that they "don't want to make more money because it will push them into a higher tax bracket". :failed:

[dachinesedude]

the math behind this is really not that hard, lets say you earn $45,000 a year

0-$41,554 ---> 15%
$41,544-$83,088 ---> 22%

taxes paid = ($41,554 x 0.15) + ((45,000-41,544) x 0.22) = $6,992

6,992 / 45,000 = 0.1553

so with a $45,000 income, you really only taxed at an average tax rate of 15.53%, even though you're in the "22% bracket" as some would call it

[unit]

if i understand taxes correctly, 22% will be your marginal federal tax rate, and your average federal tax rate will be 15.53%