(1) What are the personal income tax rates in Canada for 2014?

According to CRA, these are the rates that an individual will use when completing their 2014 income tax and benefit return. The information may change during the year to reflect updates to the law.

Federal tax rates:

  • 15% on the first $43,953 of taxable income, +
  • 22% on the next $43,954 of taxable income (on the portion of taxable income over $43,953 up to $87,907), +
  • 26% on the next $48,363 of taxable income (on the portion of taxable income over $87,907 up to $136,270), +
  • 29% of taxable income over $136,270.

Ontario tax rates:

  • 5.05% on the first $40,120 of taxable income, +
  • 9.15% on the next $40,122, +
  • 11.16% on the next $69,758, +
    12.16% on the next $70,000, +
    13.16 % on the amount over $220,000

(2) Who has to pay personal income tax in Canada?

If you a resident of Canada, and moves to another country, could still be considered to be a resident of Canada for tax purposes.  If you left Canada in the year to travel or live abroad, you need to inquiry CRA, and if you moved to Canada in courrent year, you have to report your world income for the part of the year that you were a Canadian resident

(3) What income are not taxed?

According to CRA, you do not have to include certain amounts in your income, including the following:

  • any GST/HST refund or Canada child tax benefit payments, as well as those from related provincial and territorial programs;
  • child assistance payments and the supplement for handicapped children paid by the province of Quebec;
  • compensation received from a province or territory if you were a victim of a criminal act or a motor vehicle accident;
  • lottery winnings;
  • most gifts and inheritances;
  • amounts paid by Canada or an ally (if the amount is not taxable in that country) for disability or death due to war service;
  • most amounts received from a life insurance policy following someone’s death;
  • most payments of the type commonly referred to as strike pay you received from your union, even if you perform picketing duties as a requirement of membership; and

(4) What employment expenses are deducted?

According to CRA, if you are a commissioned salespeople, you may deduct certain expenses as following:

  • professional membership dues
  • union dues
  • salary paid to an assistant
  • supplies used in employment
  • travling expenses
  • auto expenses
  • phone
  • office rent or home use
  • meals and entertainment

(5) Do I have to file my income tax without income?

According to CRA, you must file a return for current year if any of the following situations apply:

  • You have to pay tax for current year.
  • We sent you a request to file a return.
  • You and your spuse or common-law partner elected to split pension income for current year.
  • You received working income tax benefit (WITB) advance payments in current year.
  • You disposed of capital property in current year (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed amounts to you, or you are reporting a capital gains reserve you claimed on your last year’s return).
  • You have to repay any of your old age security or employment insurance benefits.
  • You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or the Lifelong Learning Plan. For more information
  • You have to contribute to the Canada Pension Plan (CPP). This can apply if, for current year, the total of your net self-employment income and pensionable employment income is more than $3,500.
  • You are paying employment insurance premiums on self-employment and other eligible earnings.

Even if none of these requirements apply, you may still want to file a return if any of the following situations apply:

  • You want to claim a refund.
  • You want to claim the WITB for current year.
  • You want to apply for the GST/HST credit (including any related provincial credits). For example, you may be eligible if you turn 19 before April 2014.
  • You or your spouse or common-law partner want to begin or continue receiving CCTB payments, including related provincial or territorial benefit payments.
  • You have incurred a non-capital loss in current year that you want to be able to apply in other years.
  • You want to carry forward or transfer the unused part of your tuition, education, and textbook amounts
  • You want to report income for which you could contribute to an RRSP in order to keep your RRSP deduction limit for future years up to date.
  • You want to carry forward the unused investment tax credit on expenditures you incurred during the current year
  • You receive the guaranteed income supplement or allowance benefits under the old age security program. You can usually renew your benefit simply by filing your return by April 30. If you choose not to file a return, you will have to complete a renewal form.

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