Filing Tax Return---net income question?

Question

I am using software to file my tax return and was asked to input "net income",(I am in Ontario,Canada)
I am wondering Net Income is ----

Net Income=Employment income -( Income tax deducted+Employee CPP Contribution+ EI premiums)

(note:This is on T4 form);


Net Income=Total benefit Paid-Income Tax Deducted)

(on T4E form, This is for EI collector)

thanks

Answer 1

Your net income (line 236) of your tax return is based on the amount of income you reported on line 150 of your T1 General Income Tax Return less the total of the amounts reported on lines 207 through 235 inclusive.

The amounts for CPP (Box 16 of your T4) slip and EI (Box 18 of your T4 slip) are reported on the federal tax schedule 1 on lines 308 and 312 respectively, and on line 5824 (CPP) and line 5832 (EI) on your Ont tax schedule ON428.

The amount of tax you paid from all information slips is reported on line 437 of your 2006 Tax Return.

This is what you should be reporting, regardless of whether or not this information is to be used for either taxation or an EI collector.

(Just for the record, I used to work for CRA in the GST collections dept, so I am very aware what information they are looking for)

Good luck with your tax return!

Answer 2

Tax software tells you your net income after you are done inputting all of the information. It is your income after your deductions, like child care expenses and RRSP contributions.

It asks for your spouse's net income at the beginning, though. You can just guess your spouse's income (don't put it too low or the program will start claiming things that you aren't entitled to). Then, once your spouse has calculated their true net income, you can adjust your return.

Answer 3

Net income is what is left after all the tax deductions, insurance, etc. have been made.

Answer 4

confident you're terrific, you does not be required to report. yet whilst your inventory sales have been over the cut back to ought to report, it rather is a sturdy concept to report even although you do no longer ought to. The IRS does not understand that those are losses until you coach them what your foundation is, so there is a few threat that in case you do no longer report, their computers will kick out your documents as owing and you gets a letter. you will finally end up ok, and does not ought to pay it - yet you would be caught with some paperwork to straighten it out.