Personal Finance

Calculating taxes to pay government

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Deal Addict
Nov 28, 2013
3234 posts
1383 upvotes
Quebec

Calculating taxes to pay government

So I'm kinda the worry type and I usually try my best to make it so I don't have any payment due to the Gouvernemtn when I do my taxes

I found this website
https://www.thomsonreuters.ca/en/dtprof ... lator.html

That seems to show how much I need to pay the QC and the Fed government in tax to arrive at 0$

So at least once per month I calculate how much taxe I own to each government by comparing how much I made in the atm in the year then I compare how much in my pay I paid to the gov and compare with the site

is this a good way or am I doing it the wrong way?

Thanks
7 replies
Deal Fanatic
Dec 12, 2009
6145 posts
3616 upvotes
Toronto
If you owe a $3K balance on filing, they will put you onto quarterly installments.
There is no real need to get your balance owing to $0.
As you have learnt, you can make your own installment schedule.
Deal Guru
User avatar
Mar 23, 2008
13006 posts
10009 upvotes
Edmonton
ratatapa wrote: So I'm kinda the worry type and I usually try my best to make it so I don't have any payment due to the Gouvernemtn when I do my taxes

I found this website
https://www.thomsonreuters.ca/en/dtprof ... lator.html

That seems to show how much I need to pay the QC and the Fed government in tax to arrive at 0$

So at least once per month I calculate how much taxe I own to each government by comparing how much I made in the atm in the year then I compare how much in my pay I paid to the gov and compare with the site

is this a good way or am I doing it the wrong way?

Thanks
Are you self-employed, or is an employer handling your deductions? If your employer is handling it, make sure they have the right information for you, and there's no reason for you to redo your calculations every month. If your self-employed, the CRA has a payroll deduction calculator that you should be using.

C
Deal Addict
Nov 28, 2013
3234 posts
1383 upvotes
Quebec
CNeufeld wrote: Are you self-employed, or is an employer handling your deductions? If your employer is handling it, make sure they have the right information for you, and there's no reason for you to redo your calculations every month. If your self-employed, the CRA has a payroll deduction calculator that you should be using.

C

I'm employed


In QC its known that Employeers will always take the minimum required by the law, and that won't necessarily mean you will end up at 0

more then 80% of the time you will still have some to pay when its tax time
Deal Addict
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Sep 14, 2012
3442 posts
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Montreal, QC
ratatapa wrote: I'm employed


In QC its known that Employeers will always take the minimum required by the law, and that won't necessarily mean you will end up at 0

more then 80% of the time you will still have some to pay when its tax time
I live in Quebec as well and unless I contribute to an RSP outside of my company, I will generally have to pay both provincial and federal governments on April 30 (income tax deadline). The reason for this is mainly my investment income which don't have any taxes deducted at source.

That having been said, there is no need to get it to $0 and if you owe some money as long as it isn't a lot of money and you have this money on April 30 when it comes time to filing your income tax returns and paying, it is better for you since you had the money to possibly invest whereas the government didn't get your money interest free.

In Quebec, you can also speak with your employer and ask them to deduct more taxes from source (from your pay) just like you can have them deduct less taxes from you (if you fill in the necessary forms two forms).
Deal Addict
Nov 28, 2013
3234 posts
1383 upvotes
Quebec
lmcjipo wrote: I live in Quebec as well and unless I contribute to an RSP outside of my company, I will generally have to pay both provincial and federal governments on April 30 (income tax deadline). The reason for this is mainly my investment income which don't have any taxes deducted at source.

That having been said, there is no need to get it to $0 and if you owe some money as long as it isn't a lot of money and you have this money on April 30 when it comes time to filing your income tax returns and paying, it is better for you since you had the money to possibly invest whereas the government didn't get your money interest free.

In Quebec, you can also speak with your employer and ask them to deduct more taxes from source (from your pay) just like you can have them deduct less taxes from you (if you fill in the necessary forms two forms).

Which I did, they remove 40$ per pay for Fed, and 40$ for Prov

The goal is not to get to 0$. I just don't want to owe money to the gov on April 30 which is why I try to get as close to 0 or lower then 0

Always scared to do my tax and exemple arrive to 'I owe them 3k" which wasn't budgeted
Deal Addict
Apr 16, 2015
1471 posts
1887 upvotes
If you have one employer and no other income (from investments, etc.), it should come out close to zero if you've properly filled out the TD1 form (and the Quebec equivalent). If you do have other income, you can fill in the box on the back of the form requesting that they withhold more from each pay.

FYI -the website you linked to in your 1st post only accounts for the basic personal exemption. If you have a spouse, tuition, etc. you can deduct those as well, resulting in a lower tax burden than is shown on that website.

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