Looking for an accountant - tips?

[Dave]

My gross income before deductions is $40,000

This is all self-employed income... you haven't pay any taxes on this?

[Dave]

Sorry double post.

[corpfan1]

Well, this is my first year of doing this full time...I have added a bit of S-E income to previous year's but my main income in previous years was being a full-time teacher.

As of January 1st I quit and am doing this full-time, so no I haven't paid any instalments or anything yet for 2007.

The $40,000 was just an example.

[corpfan1]

Here is a link I found that seems like a quick and easy Guestimator of taxes in Canada:

http://www.taxtips.ca/taxcalculator.htm


Dave, can you look it over and tell me is it a good little tool to get a rough idea of what might be owed and how RRSP/deductions can affect the amount payable?

Thanks!

[kaus]

Originally Posted by corpfan1

So if I do the full amount...can it OVEREXCEED helping me reduce my taxable income? Is that possible?

Just curious...

Rough example...

I can contribute $18,000

My gross income before deductions is $40,000


How does the math work roughly for this? Just so I get an idea of how the RRSP affects stuff.

Thanks!

From previous years 35,000 usually ends up with roughly 5500 in fed tax ( at most) The way I have looked at with myself is for every $1200 in RRSP`s you are likely to knock off $250 of your amount owing. Mind you that $5500 or so always had close to $1300 return without adding the RRSP stuff

Just an estimate because yours depends on your tax bracket. I am sure you would move up one level than the example I have given because you would than be the PartB on your federal tax worksheet meaning higher rates now.

Also dont forget I believe you still have to contribute to CPP

[corpfan1]

If accurate the TAX CALCULATOR link above seems to work pretty well.

I am really just trying to get an idea of how much to put aside for:

TAXES

RRSP

Christmas shopping (lol)


...so that I know how much Kraft Dinner I can afford in January! LOL

[Dave]

Hypothetically,

http://www.taxtips.ca/tax_rates.htm#FAQRRSPSavings

$40,000 = 4453 federal.... 2340 provincial = $6793

An 18k RRSP contribution would leave your taxable income for the year at 22k

$22,000 = approx. 1400 federal.... 630 provincial = $2030

A savings of $4760

Taking into account CPP and EI premiums.

About $4000 is savings.

[corpfan1]

Plus an additional maximum of $3,979.80 for CPP right??

No EI for self-employed right?

[JohnG]

Hey Chris,

I am in Toronto and have a really good/nice accountant that does the accounting for my catering company. He is located at Eglinton and Bayview and his name is Joseph Cass. His number is 416-440-1600. My aunt is the receptionist there that's how I first found out about them. I am pretty sure that he would be happy to work with you doing your taxes for your affiliate revenues. Anyways, hope that helps, John.

[Dave]

Oops you're right Corp,

No EI premiums or benefits for us self-employed and I believe 9.5% CCP premiums if I remember correctly?

So on $40,000 self-employed income even with an $18k RRSP deduction you will have to pay about $6000

Not taking into account your business related deductons which may bring your total down a tad.

Welcome to Canada.