1.     Overtime

I get this question lot of time should I do overtime or not. Concern is that If I do overtime then I have to pay lot of Taxes

This is completely wrong notion if you overtime then you have to to pay taxes at Tax Rate according to your income and rest of the money is in your pocket. Eg if you make in a week 500$ in overtime and regular you make 400 and on 900$ company takes 35% taxes eg 315 it means 900-415 = 585 is in your pocket. So on 500 overtime after 35% taxes (175) still 325 is in your pocket. If you did not do overtime you would have got only 400-35% (140) =260.  So with overtime u got 325$ extra.

So by doing overtime you are not paying higher taxes so not doing overtime just because of fear that you have to pay more tax is completely wrong.

Another example supposingly your income is 50000. You pay say 12000 taxes on 50000. You do overtime of say 5000 in year and you pay on that 2000 tax. So after overtime total income is 55000 and total tax paid is 14000. So now suppose on 55000 u are supposed to pay say 13000 tax then $1000 you will get it back. So whatever tax is deducted on overtime is just a advance tax but actual taxes are calculated at the end of year when u come to me

To Conclude do not worry about doing overtime.

2.     CPP (Canada Pension Plan)

a.       CPP is must on Salary income and self employed income. You cannot skip it

b.      CPP generally is 4.95% of your income and same is to be contributed by employer. In case of self employed you have to pay 9.9% (employer and employee share)

c.       You pay CPP if you earned income exceeds 3500$

d.      You normally get CPP when you retire as early as 60 year of age but you can contribute to CPP up to 70 year of age. If u get CPP at 60 you will get less as compared to if u get at the age of 65

e.      CPP you can get earlier also if you got hurt and you are permanently or partial disable. Its starts right away once you are medically certified as permanently disabled. If you have kids they will also get the CPP money. So you can say CPP is kind of Disability Insurance

3.   Legal Expenses

a.       You can deduct only those legal expenses which you have incurred to fight right to  income. Eg if u spend legal expenses to fight spousal support or salary or other income its deductible in taxes. Eg if you employer is not paying you salary, or commission income or other and you spend legal expenses to recover that money then its tax deductible

b.      Legal expenses paid not to pay income is also tax deductible. Eg if you are fighting that you do not have to pay spousal support that’s tax deductible

c.       Legal expense paid to fight exempt income eg WSIB, Child support are not deductible