We have been testing the new calculator for quite some time
now, and have hopefully gotten all the bugs out, but if you see anything that
you think is a problem please let us know.
It is a
tax planning tool and financial planning tool,
and will not actually file your tax return for you. It will be especially
useful as a tax planning tool for those who have some control over their income,
such as
people making RRIF/RRSP withdrawals
incorporated business owners
investors trying to decide between investments
which produce capital gains, Canadian dividends, or other investment
income
The calculator includes links to information on some of the
non-refundable tax credits. The links open in the same window,
replacing the calculator, but when the browser Back button is clicked, the
previously entered information is still available in the calculator.
To open the links in a new window, right-click on the link, and
select "Open in New Window".
Features:
includes tax rates known for 2010 and 2009 as of
the date shown in the calculator.
calculates taxes for both spouses
calculates Federal alternative
minimum tax (ATM) using available information, but does not
calculate Québec ATM.
shows savings from RRSP deductions, and marginal
tax rate (when RRSP deduction amount is entered)
calculates CPP and EI
premiums on employment and self-employment (CPP only) income
option to indicate that employment earnings are not
subject to EI premiums (useful for incorporated business owners earning employment
income)
Working
income tax benefit (WITB) - Note:you are required to indicate in the calculator if you are eligible
for the WITB. If you indicate that you qualify, the
calculator will determine the amount you will receive, if any,
based on your income. Read the article on the WITB (above
link) to determine if you qualify.
Re WITB Rates used in the Calculator:
All WITB rates have been updated for 2009, and 2010 rates have
been estimated based on the QC inflation factor.
The article on the pension income
tax credit explains how pension splitting can result in a pension tax
credit for the spouse receiving the transferred pension.
If you want to compare different scenarios, come back to this
page to open the calculator a second time (right click the link, and select open
in new window), and compare them side by side.
To see the current tax rate tables for each province, go to the Tax
Rates page and click on the link for your province, or go to the marginal
tax rates page.
FAQ re the Tax Calculators:
Is the "tax savings re RRSPs" the amount of the income tax refund
I would get?
Answer:
The "tax savings re RRSPs" is the amount your income taxes
will be reduced for that amount of RRSP contribution (make sure it doesn't
exceed your RRSP
deduction limit). Compare the total income taxes result from the
calculator to what you have actually paid during the year to determine the
amount of your refund.
See topics and glossary items related to the
online tax calculators:
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
a professional advisor can assist you in using the information on this web
site to your best advantage.
See our Business
Directory for tax, accounting and finance-related firms in your
area.
Please see our legal
disclaimer.
