This comprehensive income tax calculator can be used for Ontario residents to calculate 2015 income taxes for employment income, self-employment income and rental income.
To maximized your tax saving, you should deduct all your eligible expenses, and claim all your tax credits. This comprehensive income tax calculator includes those most common tax deductions and tax credits.
You can use it to see how your tax deductions and tax credits affect your tax saving. If you think this comprehensive income calculator is too complicated, you can try the simple income tax calculator
Your Employment Income
Get your employment income form box 14 of All Your T4 Slips.
Your Self-employed Net Income
Your self-employed net income = your self-employed gross income – your self-employed business expense
Your Rental Net Income
Your rental Net income = Your rental gross income – your rental expenses
Other Taxable Income
Your other taxable income may include
- Old age security pension
- CPP or QPP benefits
- Universal child care benefit (UCCB)
- Employment insurance (EI) benefit (box 14 on your T4E slip)
- Interest and other investment income (Use schedule 4 to calculate the right amount)
- Taxable capital gain (Use shedule 3 to calculate the right amount)
- Taxable support payments received
- RRSP income from your T4RSP slip
Your Tax Deductions
Tax deductions reduce your taxable income, thus reducing the amount of tax you owe. The percentage of your tax saving equates to your marginal tax rate.
Registered Pension Deduction
If you have a registered pension plan with your employer, you can deduct the pension amount.
Your RRSP Deduction
If you contribute into RRSP financial institutions, you can deduct your contribution amount up to your RRSP deduction limit.
Child Care Expense Deduction
You can claim the amount you pay to have someone look after your child so that you can earn income from employment or carry on business. Use Form T778to report your eligible child care expenses.
Moving Expenses Deduction
You can claim eligible moving expenses if you move and establish a new home to work or run a business at a new location. To qualify, your new home must be at least 40 kilometres (by the shortest usual public route) closer to the new place of work or school. Use Form T1-M to calculate your eligible moving expenses.
Employment Expense Deduction
You can deduct certain expenses you paid to earn employment income. You can do this only if your employment contract required you to pay the expenses and you did not receive an allowance for them, or the allowance you received is included in your income. Most employees cannot claim employment expenses. You cannot deduct the cost of travel to and from work, or other expenses, such as most tools and clothing. You should have a completed copy of Form T2200, Declaration of Conditions of Employment signed by your employer.Use Form T777 to calculate your eligible employment expenses.
Your Other Deductions
Other deductions include
- Allowable support payment made
- Carry charges and interest expenses
Your Tax Credits
Your tax credits directly reduce your tax liability. It produces the same tax saving amount for all taxpayers, despite those taxpayers’ different marginal tax rates.
Federal tax credits = amount claimed x lowest federal rate (15%)
Ontario tax credits = amount claimed x lowest Ontario rate (5.05%)
Basic Personal Amount
It is a tax credit available to anyone. If your income is less than this amount, you are not subject to income tax. An unused amount can be transferred to your spouse, but it can’t be carried forward.
Canada Employment Amount
If you reported employment income, you can claim this employment amount.
Public Transit Amount
You can claim cost of monthly public transit passes or passes of longer duration such as an annual pass for travel within Canada on public transit.
Home Buyer Amount
You can claim an amount of $5,000 for the purchase of a qualifying home acquired, if you are first-time home buyer.
Interest Paid On Your Student Loans
You may be eligible to claim the interest paid on your loan in current year and the preceding five years
Tuition and Textbook Amount
The tuition, education, and textbook amounts allows you to reduce any income tax you may owe. Your educational institution will provide you with a slip that has the total eligible tuition fees paid as well as the months you were enrolled either part-time or full-time.
CPP Contributions Through Employment
If you are employed, you and your employer should already contribute to CPP, so you can see this amount on box 18 of your T4 slip.This comprehensive income tax calculator will calculate the amount you are supposed to pay automatically. If the amount deducted in your T4 is more than you should pay, you will get the extra amount back after filing your income tax.
CPP Contributions Through Self-employment
If you earn self-employed income more than $3,500, you will have to pay CPP on your self-employment income. And you can claim the amount you pay. This comprehensive income tax calculator will calculate the amount you are supposed to pay automatically.
Employment Insurance (EI) Premium
As an employee, you have to pay EI premium, and you can get tax credits for the EI premium you paid. You can see the EI you paid on box 15 of T4 slip. This comprehensive income tax calculator will calculate the amount you are supposed to pay automatically. If the amount deducted in your T4 is more than you should pay, you will get the extra amount back after filing your income tax.
Other Eligible Amount
You may also claim the following amounts
- Spouse or common-law partner amount
- Age amount can be claimed if you are 65 or older and your net income is less than $71,592 in 2014.
- Children’s fitness amount
- Children’s art amount
- Disability amount
- Medical expenses
- Caregiver amount
- Donations and gifts
Income Tax Deducted
Income tax deducted at source will be shown on the following tax slips:
- Box 22 of T4, T4A, T4A(OAS), T4A(P), T4A-RCA and T4E.
- Box 28 of T4RIF.
- Box 30 of T4RSP.
Tax Paid By Instalments
If you are self-employed and your net tax owing is more than $3,000, you would have to pay your tax by instalment.
Working Income Tax Benefit (WITB)
Working Income Tax Benefit is a refundable tax credit intended to provide tax relief for eligible working low-income individuals and families who are already in the workforce and to encourage other Canadians to enter the workforce.
You are not eligible for the WITB if:
He must also ask the purchaser to offer the seller with a list need essay writing service of references, that will provide the seller feedback on the degree of the newspaper, so the seller can assess the grade of the newspaper himself.
- You do not have an eligible dependant and are enrolled as a full-time student at a designated educational institution for more than 13 weeks in the year;
- You are confined to a prison or similar institution for a period of 90 days or more in the year; or
- You do not have to pay tax in Canada because you are an officer or servant of another country, such as a diplomat, or a family member or employee of such person.
This online comprehensive income tax calculator provides an estimate of the amount of your tax owned or refund. This estimate is based solely on the information provided by you at any given time. When you file your income tax, the CRA will use the information from your tax return and that of your spouse or common-law partner to calculate an actual amount.
