How much will we make after taxes?

Question

I am trying to figure out what our take home pay would be on $80000/yr. We live in BC Canada. My husbands a truck driver and I stay home with our three children so all of the income is his. Thanks in advance for your help!

Answer 1

Hi there,

To answer your question I will assume the following:

1. Your husband is employed as a trucker by a trucking company, ie. he is not self employed

2. You don't make any money yourself, just your husband does.

3. Your husband has no extra benefits from employment that are taxable (ie. paid lunches, free use of the truck on personal time, health benefits paid for by company  etc.) and no additional deductions (RRSP deductions, employer matching of pension/RRSP, etc.)

If the conditions above are correct, then every week his gross pay is $ 1538.46 and the taxes paid (both federal and provincial will be $ 347.60 and the CPP and EI will be $ 72.82 and $ 26.62 respectively, so his net after tax income would be $ 1091.42 per week.

When he files his tax return for 2008 by April 30, 2009 (next year), he will get back a bunch of tax because he can claim you as a married person and he won't pay tax on about $ 6000.00 of his income and he can claim children for credits too. So after he files his income tax return next year he will receive a fairly good refund back on taxes , assuming again this is his only income and the families only income.

To get back a larger net tax cheque now instead of receiving a refund in 2009 from the government after filing his T1 return, he should go to his trucking employer and ask them for a form called TD1 (it is also on the Canada Revenue site). Basically this form tells the employer to withold less or more income taxes based on your situation than what should be normally deducted by the employer for tax by default. By doing this, he could increase his net paycheque to say maybe about $ 1140.00 (an extra 50.00 per week), but he wouldn't get a refund then at tax time when he files his T1.

If your husband is self-employed as a truck driver, this really complicates things , because he is now self-employed and can make deductions that would really lower his taxes paid, so this is a different story.

I hope to have helped you out here.