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| *Ostroff, Fair and Company>>>Canada Taxes |
I live in Canada and have a tax question? |
I am currently a student but before I was working at the bank. When I worked at the bank my paycheque was deducted tax before it was given to me. However now I work part time at an investment firm and they don't deduct any tax because I'm a "consultant"/temp. If I make under 8k at this new job, do I have to pay more tax in feb? I made more than 8k at the bank but does this matter because the cheque already deducted tax? You will have to pay taxes on the $8,000 consulting commission. You will be charged an ordinary tax rate. Depending on how much money you made at the bank and how much they withheld, it may be that the bank withheld enough to cover your small commission. I recommend you add up your income for the year check how much tax you will be liable on that amount and then compare it to how much the Bank withheld. Source(s): Tax accountant If you made 8K this year as a consultant and another 8K at the bank, your income for the year is about 16K. For the sake of simplicity, say you don't have any other deductions - ie RRSP contributions, etc... - your taxable income is the same, 16K. That means, federally, your tax liability is $2,400 ($16,000 x 0.15). Look at your last paystub from the bank and see how much tax they deducted. More than likely it is less than $2,400. In which case, you might end up with a balance. But if you are a student, you might be able to lower your tax liability with certain non-refundable tax credits such as tuition fees and education amounts. Click to this link from CRA which is specific to students: http://www.cra-arc.gc.ca/e/pub/tg/p105/p... This publication is a good reference if you need further information. Good luck! Yes, you'll have to pay tax on the the income from the investment firm. Basically, the investment firm has decided that the tax is your problem and isn't deducting it from you. They will however issue you a T4 for the income in the new year, meaning CRA will know about the income. |
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