Income tax question

[greenapples]

I am a student and I work part-time at a small medical office. I'm not on their payroll. I get paid bi-weekly with the company's cheque made to my name. They do not take any tax off of it. Am I required to claim this on my income tax if I make less than a certain amount? Someone told me if I made under $6,000, that it isn't necessary to claim it since it's considered personal income?

I have no idea. Please help if you can.

[mystical2003]

Short answer is that you need to claim all income no matter the amount.

[Joseph88]

I am a student and I work part-time at a small medical office. I'm not on their payroll. I get paid bi-weekly with the company's cheque made to my name. They do not take any tax off of it. Am I required to claim this on my income tax if I make less than a certain amount? Someone told me if I made under $6,000, that it isn't necessary to claim it since it's considered personal income?

I have no idea. Please help if you can.

Yes, you are required to declare the personal income. Not only that, it is to your ADVANTAGE to file income taxes. You will be charged no taxes and you will get a head start in your RRSP contribution room. On top of that, if this is your first time filing, you will start getting GST cheques from the govt.

[cloudycanada]

NO, in general, you don't have to file a tax return unless you have to pay taxes. But unless you have some knowledge about taxes, I wouldn't trust "hearsay" from any friend nor anyone on a internet forum about how much you need to make before filing tax returns.

So, it's better and easier for you to file a tax return even though you probably don't need to pay taxes. Like other posters said, there are other benefits for doing so.

[controlyar]

NO, in general, you don't have to file a tax return unless you have to pay taxes. But unless you have some knowledge about taxes, I wouldn't trust "hearsay" from any friend nor anyone on a internet forum about how much you need to make before filing tax returns.

So, it's better and easier for you to file a tax return even though you probably don't need to pay taxes. Like other posters said, there are other benefits for doing so.

There is a personal minimum amount for which no taxes have to be paid.
Refer to the TD1 - personal tax credits. So technically, there is a minimum amount.

[cloudycanada]

There is a personal minimum amount for which no taxes have to be paid.
Refer to the TD1 - personal tax credits. So technically, there is a minimum amount.

yes, there is an amount ... but OP appears to lack adequate knowledge of income taxes and can easily miss-interpret a friend's suggestion or even the number that is stated on the TD1 form. It is possible that OP is very close to the personal credit amount. :D so i still suggest OP to just file the tax return.

[taxguru]

It's not clear if you have any other income, but generally speaking you don't pay tax if your total income is less than approximately $8,000 and you are a full-year resident.

Why file a tax return?

1. If you are over 18 at any time during 2006 you may owe CPP premiums on self-employed earnings.
2. If you are 16 or older you may be eligible for the Ontario Sales Tax Credit.
3. You can apply for the GST credit if you will be 19 or older in the following year (noted previously).
4. You will begin to establish RRSP contribution room in respect of self-employed or employment earnings, no matter what age you are. This will allow you to make more RRSP contributions in the future (also noted previously).
5. You owe income tax. You could owe tax on a small amount of earnings if you are a part-year resident. i.e. you moved to or from Canada during the year.
6. You have disposed of a capital property, even if there is no capital gain to report.
7. You have children and want to apply for the Child Tax Benefit.

[Joseph88]

It's not clear if you have any other income, but generally speaking you don't pay tax if your total income is less than approximately $8,000 and you are a full-year resident.

Why file a tax return?

1. If you are over 18 at any time during 2006 you may owe CPP premiums on self-employed earnings.
2. If you are 16 or older you may be eligible for the Ontario Sales Tax Credit.
3. You can apply for the GST credit if you will be 19 or older in the following year (noted previously).
4. You will begin to establish RRSP contribution room in respect of self-employed or employment earnings, no matter what age you are. This will allow you to make more RRSP contributions in the future (also noted previously).
5. You owe income tax. You could owe tax on a small amount of earnings if you are a part-year resident. i.e. you moved to or from Canada during the year.
6. You have disposed of a capital property, even if there is no capital gain to report.
7. You have children and want to apply for the Child Tax Benefit.

Great post TaxGuru.

[2Addicted]

Yes, you must file.. you owe CPP premiums as you are self employed.

The first $3,500 of your earnings are CPP exempt.. and the rest is subject to the self-employed rate of CPP contributions..

You do not however, owe taxes though..
On the bright side.. some provinces will give you credits which will help cover some of those premiums..

And another note.. as a student.. (assuming post-secondary...) you'll want to file to claim your tuition credits anyways.. you need to tell the government about your tuition NOW.. if you want to use them in the future when you're earning bigger bux...

[greenapples]

I am a 19 year old post-secondary student. I have filed the income tax for my tuition for last year, but I was just wondering if it was necessary claim my income as well.

This year, I have made approximately $7550.

Any more comments will be appreciated but thank you all for your help!

[pitz]

I am a 19 year old post-secondary student. I have filed the income tax for my tuition for last year, but I was just wondering if it was necessary claim my income as well.

This year, I have made approximately $7550.

Any more comments will be appreciated but thank you all for your help!

Yes, you are required to report ALL income from ALL sources, and you sign a declaration on your income tax return to that effect. "It is an offence to file a false return".

You won't owe any tax, may receive a refund, should receive GST Rebate cheques on a quarterly basis, and you will be accumulating RRSP contribution room.