How much can I make without paying taxes in Canada?

Question

Is it $12,000?

Answer 1

The personal exemption per TD1 is $8681 for Ontario and $9600 for Canada.  That means that, if you live in ontario, you dont need to pay tax if your income is $8681 or less.  The exemption amount for other provinces may vary, as follows

http://www.cra-arc.gc.ca/formspubs/frms/...

When you begin working, your employer requires your SIN and perosnal information per TD1 so that your employer can withhold income tax, EI & CPP from your pay cheque.  You have no choice but providing them as an employee.  If you only make $5000 for the year, you will get your taxes back when you file your tax return later.

Answer 2

You are required by law to report all income regardless how much it is.  Employers need to obtain your social insurance number report your earnings to the CRA, and provide you with a T4 (Statement of Earnings)

Each year the amount may change but you're allowed a Basic Personal Amount as an Exemptions. For example the maximum basic personal amount in 2007 was $9,600 Each Tax situation is different, if you made less than $20,000 gross household income, go to Quicktaxweb and try out your tax return for free.

Answer 3

If you are employed, you are REQUIRED to give your SIN to your employer. Any time you don't, you could be fined $100.

On the other hand, if you are working on a subcontract, you may not be asked to give your SIN. In some cases though, the CRA may ask the contractor to gather the information as proof of who he is contracting the work to. Refusal to give your sin in this case would be grounds for dismissal.

If you are employed, you are not required to pay provincial tax unless your income is over $7400 (this figure varies depending on province of residence). Federal tax in not payable until your income reaches $9600. If you are a sub-contractor, you have to pay into the Canada Pension Plan once your income reaches $3,500.