I now have all the papers needed to do my 2010 tax declaration. I had worked quite a lot in 2010. Before deduction, I earn 49 398.99$ in work income + 4 112.42$ in dividend earning + 100$ or so in capital gains + around 300$ or so in online money. I didn’t trade that much in 2010. I mostly buy and hold. Overall, that makes more than 50k in income. Could seem great, but that 50k in salary include I don’t know how many hours working at 3 different jobs... Anyhow, if I calculate after all deductions, it makes something like 43 838.03$. This includes the 30% taxable dividend income.
For 2010, I made a RRSP contribution of 7 048$. 43 838.03$ - 7 048$ = 36 789.41$. My taxable income is of 36 789.41$. I use MorningStar Marginal Tax Calculator to see if I already pay enough in taxes. According to the Marginal Tax Calculator, I have 3 308$ in Federal tax and 4 206$ in Quebec provincial tax, for a total of 7 513$.
I know it’s not like this I should calculate it, but: 49 398.99$ - 43 838.03$ = 5 560.96$ (suppose this is the amount I pay in taxes for 2010...)
7 513$ - 5 560.96$ = 1 952.04$
Does it mean I will have to pay 1 952.04$ in taxes?
I don’t think so. It will be less than 1 952.04$, but I may have a little extra to pay in taxes. For 2010, I had gain about the same salary and had made a 10 000$ RRSP contribution. At that time, I had paid something around 500$ extra in taxes.
10 000$ = 500$
7 000$ = ?
7 000$ x 500$ / 10 000$ = 350$ + 500$ = 850$
850$ makes a bit more sense but even here, I know my way of calculating it is far of being accurate... Anyhow, I need to have at least a 1 000$ ready in safe in case I need to pay extra in taxes...
This calculation do not include my tax credit for around 4 months of public transportation (from January to March or April 2009 – after what, I gave up on metro pass and only use my 2 feet to go everywhere...), my student loan, tax credit for dividend and other tax credit for investment loan. I am not exactly sure of what is eligible regarding all of the money I borrowed for investment. But once I find out, it will make a great post idea.
In other words: more money, more problems.