04/03/2025
Nurses, Avoid Owing Taxes After Maternity Leave!
Many nurses in Canada are shocked to owe taxes after their maternity leave. If this has happened to you, here’s why and how to prevent it!
✨️✨️Why Do Nurses Owe Taxes After Maternity Leave?
1️⃣ EI Withholds Too Little Tax – The government only deducts 10-15% tax, but nurses are usually in a 20-30% tax bracket. This creates a tax shortfall.
2️⃣ Employer Top-Up Payments – If your employer provides a top-up, it’s also taxable, and not enough tax is deducted.
3️⃣ Returning to Work Mid-Year – When you go back to work in the same year, your EI benefits + salary + possible overtime push you into a higher tax bracket, increasing what you owe.
✨️✨️How to Avoid Owing Taxes
✅ Request Higher EI Tax Deductions – Call Service Canada (1-800-206-7218) to ask for more tax to be taken off your benefits.
✅ Increase Payroll Tax Withholding – Fill out a new TD1 form at work to have extra tax deducted from your paychecks.
✅ Set Aside a Portion of EI Benefits – Save 15-25% of your EI payments to prepare for tax season.
✅ Contribute to an RRSP – This helps lower your taxable income.
✨️✨️How Having an Online Business Helps Reduce Taxes✨️✨️💻💻💻
Many nurses are turning to online businesses not just for extra income, but for tax advantages that help offset what they owe. Here’s how:
📌 Business Deductions – Expenses like internet, phone, home office, training, and travel can be written off, lowering taxable income.
📌 Lower Tax Bracket – Having a business allows you to reduce overall taxes by balancing employment and business income.
📌 Extra Income, No Extra Shifts – Instead of working overtime (which is taxed heavily), an online business lets you earn more while keeping your tax rate manageable.
If you’re tired of unexpected tax bills and want to learn how an online business can help you keep more of your hard-earned money, send us a message!
Let’s make your maternity leave financially stress-free.
