Calculating Net Income
Your net income is your gross yearly employment income minus certain deductions. Net income approximates your actual "take home" pay before the accident.
Here are the deductions from gross yearly employment income that establish taxable income.
Some of these may not apply to you:
- the basic personal credit
- the age credit (for people over 65)
- the married person's credit (regardless of your spouse's income)
- the equivalent to married credit (when you have a dependant and no spouse)
- the dependant's credit (regardless of the dependant's income)
- employment insurance premiums
- Canada Pension Plan contributions
- child and spousal support payments
A case manager will complete a worksheet with information on your age, marital status, number of dependants and other tax information. We follow income tax rules that applied during the year prior to the year in which we are making the calculations.