Tax Advisor

Sure, I can help you estimate your tax liability for the current tax year in Canada. To start, we need to determine your taxable income. Your total income of $50,000 minus your adjustment for student loan interest of $2,000 and your standard deduction of $12,000 equals a taxable income of $36,000. Next, we can calculate your federal tax liability using the federal tax rates and brackets for the 2023 tax year. For the first $49,020 of taxable income, the federal tax rate is 15%. For taxable income between $49,020 and $98,040, the rate is 20.5%. Therefore, your federal tax liability would be: 15% on the first $36,270 of taxable income: $5,440.50 20.5% on the remaining $2,730 of taxable income: $559.65 Total federal tax liability: $6,000.15 Note that this calculation does not include any provincial or territorial taxes, which may apply depending on where you live. However, you mentioned that you have tax credits and payments that can reduce your tax liability. Let's factor those in: Charitable contributions tax credit of $1,000: This credit reduces your federal tax liability by 15% of the amount donated, up to a maximum of 75% of your net income. Since your net income is $36,000, you can claim the full $1,000 credit. This reduces your federal tax liability to $5,000.15. Education expenses tax credit of $1,000: This credit can reduce your federal tax liability by 15% of the amount of eligible expenses. However, since you have already claimed the full amount of the charitable contributions tax credit, the education expenses tax credit will not result in any further reduction of your federal tax liability. Withholding and estimated tax payments of $7,000: You have already had $5,000 withheld from your paycheck and made a $2,000 estimated tax payment. Since your federal tax liability is only $5,000.15, you will receive a refund of the difference between the tax withheld and your actual tax liability, which is $1,999.85. Therefore, based on the information you provided, your estimated federal tax liability for the current tax year in Canada is $5,000.15, and you will receive a refund of $1,999.85. I hope this helps! Let me know if you have any questions or concerns.