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Hello Shawn!

** On Monday 18.01.21 - 12:41, Shawn Highfield wrote to August Abolins:

 SH>   I struggle to pay the rent every month but yet still owe
 SH>   them lots of money for income tax.  I make under min wage
 SH>   when you break it down.  Just can't figure them out.  If
 SH>   I made what socks made I wouldn't pay anything.

Socks?

If you're just managing the tax filing on your own right now, it  
may be worth getting someone to do the next one for you so that  
you do not miss out on any credits and new regulations.

As you are an independent contractor for your taxi work, make  
sure you account for every damn thing that relates to an  
expense: car wash and supplies, cleaning, safety equipment,  
professional dues and fees, etc.

If you calculate under min wage, that would be about 24K, less  
the 12K tax exemption, would leave about 12K taxable. But as you  
reduce that with legitimate expenses, your resultant taxable  
ought to be reduced further.  Even at 12K taxable, the taxes  
could seem high around 2K.   Bottom line, try to factor 10% of  
your weekly pre-tax dollars and keep that in a separate account.  
Then when tax time rolls around, draw from that.

I've heard that a RRSA (registered retirement savings account)  
is a pretty good way to offset the taxable owing.  Just stash  
anything you can in there (it gets deducted from your taxable  
owing.) Then, when you need some extra cash, you can withdraw a  
certain minimum without incurring any penalties.

But look at me... I should be following my own advise. It's just  
lately for me there is never enough cash to stash.  :(

I had about $100 (the minimum) in one RRSP savings account.  I  
thought that I could just forget about it and the $100 would  
still be there. But, no.  About 10 years later, it diminished to  
under $10. Apparently, that one was subject to a yearly admin  
fee and a percentage.  And, this was a solution that was  
recommended by the damn bank!

So, am I pissed off that the bank just engineered their advise  
so that they could just help themselves to $100?  Damn right.

--
  ../|ug

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