About tax deductible?

Question

I am a self employed individual in Alberta Canada and i am curious as to what is considered deductible. i make roughly 60,000 per year and calculated (hopefully generously) that i should save about 20,000 by year end for taxes.

If i were to make a contribution of say 6,000 dollars to an rrsp would i then only owe 14,000 in taxes or would i pay taxes on 54,000 dollars for the year? As well information on what else is tax deductible (besides vehicle expenses i think ive got that covered) would be greatly appreciated

Answer 1

1) Regarding RRSP's they reduce your taxable income (vs taxes owing)

2) Regarding the living out allowance any excess over a reasonable amount should be included in your income. Per T E (first link) a reasonable amount is $65 per day.

I'm not sure whether you worked at this location for the full year so I won't fill in the numbers but your taxable income from the items mentioned in your question will = 60,000 + (2,500 x # of months) - ($65 x days) - RRSP contribution

I would recommend using Taxtips.ca calculator to get a rough estimate (2nd link) of your taxes payable.

Edit: To answer your original question I do not think there is anything else you'll be able to deduct in relation to your employment.