Anyway, someone was asking me tax brackets this year, and I didn't know for sure, so I checked them out:
<$10,320 - None
$40,726 - 15%
$81,452 - 22%
$126,264 - 26%
>$126,264 - 29%
*and Alberta prov. taxes are easy: it's just 10% of federally taxable income. So at this amount, you also wouldn't have to pay provincial taxes. Every dollar you make is your own. Also, if you made $12,384, you'd get to take home exactly $10,320 after taxes, which would mean that you worked 234.5 hours for free (which is, of course $2,064, or the difference between $10,320 and $12,384). Obviously, this assumes no deductions nor other (official) incomes and a minimum wage of $8.80. This is a simple example of tax bracket realizations and what monitoring your income versus deductions can do. Because in this simple (and poor, ha!) case, nobody wants to work 264 hours for free, especially when they otherwise only make minimum wage.**
**this kind of thing happens when I'm bored after 6 hours at a library. Luckily I just received the electric-letter from Rollzero, so I can go read that instead.
Observed:
1 comment(s):
So by setting aside $2065 into a non taxable form of savings, you drop yourself back into the non-taxable bracket and keep more money. Not exactly an excuse to work 264 hours less. Bikes, beer,and babes are all acceptable excuses.
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