How much do you set aside for taxes?

[Starshine]

I have been putting away 15% of my income for taxes, but I'm starting to think that I won't need nearly that much considering that I have a relatively low-income and that I have quite a bit I can write off. This is my first year, so I'm not sure how much to save for tax time.

For those of you who have been doing this for a while, do you mind sharing how much you have to pay for taxes (and possibly your income as well)?

[fruitloop]

Last year my income was about $34,000 and I paid about $1100 in taxes (cpp, ei, etc.) This year I'm forcasted to make just over 35 so I'm expecting my taxes to be about the same next year.

[momof2cuties]

Someone correct me if I'm wrong ?? I think there is a base amount $6000 or $7000 you can make that or under and you don't have to pay income tax???

[Starshine]

^^^ I think it's $10,000 and under.

[fruitloop]

It actually depends on your province I think...could be wrong. Last I saw (last year) it was 16,000.

[apples and bananas]

Fruitloop, was that paid out after all was said and done? Or did your write off's take care of a portion of what you owed?

[momof2cuties]

I got to take my daycare full-time and or charge more! You guys are making awesome amounts!!! Great to see people having success with their daycare business :)

[fruitloop]

Fruitloop, was that paid out after all was said and done? Or did your write off's take care of a portion of what you owed?

That was after all was said and done. I paid out $1100 to the government...booo :( The year before I made a little less had to pay about $800-$900. I always try to save at least $2000 to cover my taxes. Whatever doesn't get used is play money :) If you have rrsp's and such though it would probably take care of what you owe.

[cfred]

After write offs, I typically show a profit of about $15,000 from a $40,000-$50,000 gross. I usually don't pay. The most I've ever paid was $1100 but typically get money back.....just enough to pay the accounting bill :)

[jodaycare]

I paid a lot of money to the government last year but it was because I cashed in my RRSPs which was almost $30,000 dollars so that was added to my gross income of almost $60,000. I will never do that again. In a typical year though I usually pay about $1200 but that includes CPP which is based on your income.

[apples and bananas]

I was only open half a year last year and I got a ton back! But it also had to do with the amount of childcare I paid out for the first half of the year that I was working outside of the home. :)