Tax questions: Looking for clarification to why am i still paying tax to CRA?
Hello,
Just did Taxes for this year and found i have to pay 200$ again to CRA, last year i had to pay 800$.
I have no other income other than my full time job which is roughly 85k this year.
I made sure i did extra contribution which is 7000$ RRSP this year.
My bring home every month is roughly 4500$, so a total bring home is close to 54000$
that mean my employer paid roughly 30000$ in taxes. Along with 2000$+matching are RRSP from that (i also contributed 3000$ extra on top from outside)
So roughly 28000$ in tax Include CPP/EI
My question is since my total tax bracket is 29.65%, Since i did contribute 7000 and have 22k contribution room. My expectation should (85000-7000$) x 29.65% = 23127 actual taxed right?
With CPP + EI around 5000$.
My expectation is tax is actually around 28127$ then?
so overall I need to pay 100-200$ tax per year?
Is this assumption correct?
What i don't understand is, if my employer already paid every tax for me, and if i don't contribute RRSP, shouldn't i be at 0 and not owning tax? assuming my employer paid everything already right? They specifically paid everything as far i can tell since that's how much bring home i got. I have no 2nd job, no other income, no investment income, did nothing else but only a FT income.
anyone with similar tax range as me can give me a good example?