INCOME TAX $ 16000 nope it was just not enough taken off.for the goverment end

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Originally Posted by patman

Doesn't sound like it's wrong. I know it sucks, but that's pretty typical when you are self-employed and make more money for the first time. The biggest problem is the CPP on the self-employed income which would be close to $4000 of the $11,300. Most of my realtor clients just send in their total GST collected and then get a refund on their input tax credits when they file. And they usually also send in about 15% of their gross earnings just so they don't have this problem. They will give you a little leeway on your taxes and charge you interest at about 7%, but they will hound you to death about your GST if you are behind. Make sure you file it on time though so you don't get hit with the penalties.

Also be prepared for them to send you a nice little present in August requesting installment payments of about $5650 on Sept 15 and Dec 15 for 2011. They only let you go one year and then you need to pay along the way again.

Yuppers, I agree with the above.

If not incorporated. Not sure if you can or not, but if you can, look into incorporating... There are benefits. First would be paying a maximum tax of 18% as the corp (I think that is the amount), then dividending the shareholders. Dividends are almost tax free to the shareholder, I say almost as there is an accountment of some on the t4'd income. Something to look into for future. many ways to pay yourself this way. Also if dividended out, then no CPP, so no worries about that money. Or you can even do partial t4'd income and dividends. Basically more options.

But don't go to H&R for this, as their heads will explode. You will need to seek a real accountant to do the books this way.

If you can work this way, basically you can keep more money, and all done the honest way.