I make 50,000 $ a year and spend almost all. I save about 10 % in RRSP etc.

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"Ever dance with the devil in the pale moon light?"
"I always ask that of all my prey."
"I just like the sound of it."

No deductions are permitted for house rent UNLESS part of the property is used for business , you may get a provincial Property tax credit if your income is low.

Medical expenses are not deductible but there is a medical expense credit for expense over 3% of income. There is also a refundable medical expense supplement. Basic health insurance is free. Prescription drug coverage varies by province. You may have to pay a health insurance premium based on province / income.

Mortgage interest is NOT tax deductible.

If you are a salaried employee there are very few deductions that you can use to reduce your tax. If you are an independant business you can claim ANY expense incurred to make money. (like part of house rent , etc.)

Hey Guys,

This guy seems to be pretty naive!

You incur expenses to match your earnings.

I think you should first inquire and worry about the kind of job you are likely to end up with.

You are also missing a point. You have to have a Canadian designation to get a decent job.

To get CPA and then CGA (both accounting designations) for my wife and I, it cost us close to $50,000.00 including loss of salary.

I originally posted this question when i was in India..now that i am here for some time, here is the real calculation for 2 people:

Mortgage - 1800
Prop Tax - 300
Heat,Hydro, Water, Insurance, insurance, security - 300
Grocery - 200
CAR EMI - 350
Car Insurance - 300
Car maintainance- 100
GAS (1 car + Go)- 300
Rogers - (TV+Internet) 100
Cellphone+Home Phone 150
Reliance - 35
Outing / eating out - 150
Personal care - 100
Misc Home - 150

Total: 4335, round to 4300. Save $1000pm
So you need 5300K after tax.

Add 150pm if you have a kid and add 350 if you have parents with you

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Live and Let Live

Our (Family of 2 + 2)Expenses/Investment are as follows in Mississauga:

1.Rent for 2 bedroom including basement parking for a apartment :900

2.Bell Canada basic telephone:35

3.Rogers internet and cable TV: 55(Was earlier 118 per month including NDTV 24/7, Jaya TV, Zee TV and host of ultimate package but shut down recently to save on expenses).

4.Grocery:250(Vegetarian)(includes milk from India town at 3.99/ltr times 16 per month for homo milk, Rice at 10 Lbs per month, all vegetables from Chinese store, Chappati from the Gujarati lady store in Dundas(W) and south Indian grocery from Kaveri supermarket.

5.Car Insurance: 160

6.Car Gas: 160

7.Reliance India Call:25

8.Cell phone on my personal business account:35(Rogers $25 plan)

9.Occasional eating out at Kwality/Dosa Corner/Curry Leaves/Taco Bell/Subway and all other El-Cheapo places: 50

10.RESP:500(includes CCTB 254 + 100 for child under 6, my contribution 150)

11.RRSP:250 currently but will be ramped to 500 shortly.

12.Life Insurance: Term policy :50( but will be converted to Universal on increased income(hopefully in the next few months)).

In all the total outflow would be around $2500 per month with other annual expenses like my various professional membership which run to about 750 per annum and car maintenance which would run to about 500 per annum with 4 oil changes at 200(Midas) and other incidental expenses. The cost of clothing, shoes, winter wear, toileteries, printer cartridge, CD's, DVD's, membership/attending Desi Concerts and all other incidental expenses would run to around 2500 per annum. All clothing purchases are done at Sears Outlet Store in Dixie Mall, all toileteries, medicines are done at Wal-Mart and DVD, CDs are all purchased used from Rogers or the used CD store called The Beat Goes On at Eglinton/Mavis.

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My understanding(I'm might be totally wrong) is that once you cross $38,000 gross on combined income, your CCTB drops, your HST and all other inflows become negligble. I think the trick is to keep the gross income at $38,000 and any income over and above should be converted to CASH income to avail all the benefits from the government. If not you will just pay taxes, if you have to save on taxes you need to invest in RESP and hence you will need to work harder to save more money. This is at the cost of your leisure quality time with your family, loss in health either due to excessive work/pressure or lack of time for physical activity. Once you save on RESP then there is every chance of the government denying you the social pension and pay you the CCP only and there is another possibility of your children being denied the OSAP due to the higher income from your side(eventhough you might be paying most of it as taxes).

May be a good financial consultant could share with us a good calculation for a break off point where you can gain the maximum from government benefits along with low taxation so that you are total winner.

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Speech by Thomas Friedman of The New York Times....

"When we were young kids growing up in America, we were told to eat our
vegetables at dinner and not leave them. Mothers said, 'think of the
starving children in India and finish the dinner.' And now I tell my
children: 'Finish your maths homework. Think of the children in India
who would make you starve, if you don't.'"

Is it me or are the calculations for Groceries a bit understated? Its probably me but in our case they run to more than 3 times whats mentioned here. Maybe due to non-veg diet...but still...a huge difference.

Another reason to go veg I guess.

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Quote:

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Originally posted by chittesh

I originally posted this question when i was in India..now that i am here for some time, here is the real calculation for 2 people:

Mortgage - 1800
Prop Tax - 300
Heat,Hydro, Water, Insurance, insurance, security - 300
Grocery - 200
CAR EMI - 350
Car Insurance - 300
Car maintainance- 100
GAS (1 car + Go)- 300
Rogers - (TV+Internet) 100
Cellphone+Home Phone 150
Reliance - 35
Outing / eating out - 150
Personal care - 100
Misc Home - 150

Total: 4335, round to 4300. Save $1000pm
So you need 5300K after tax.

Add 150pm if you have a kid and add 350 if you have parents with you

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Mumbai Maazi Ladki ...