Work/Life Balance

Should stay-at-home mom to go back to work?

Q: My kids are now in high school. I have been a stay-at-home mom for the last 17 years. Now, I am considering getting a job.

CanadaOne.com
Send to a friend
Print
However, my husband has been able to use me as a deduction on his taxes. If I get a job, I don't want for us to end up paying more in taxes than what I bring home. If my husband makes $100,000, how do I figure out what the minimum salary is, to make my going out to work worthwhile, and actually make us money, instead of costing us money?

Krysta Adamski, CA, a senior tax manager with WBLI Chartered Accountants, answers:

Your husband is able to claim a tax credit for you that is called the spousal amount, if you have no income or minimal income. The tax credit is useful for families with only one working spouse; however, the tax savings of the credit only amount to about $2,000 (depending on which province you live).

What this means is that if you go to work and can take home more than $2,000 after taxes, you will be ahead from a tax perspective. Of course, very few people would be willing to go to work to net the same family income so then it becomes a matter of how much extra it would take for you to be willing to go back to work -- $5,000? $10,000?


For example, if your husband makes $100,000 and you are not working, his take home pay after taxes would be approximately $70,000 (if you live in Nova Scotia); $72,500 (if you live in Ontario) and $75,000 (if you live in British Columbia).

If you were to go to work and earn $10,000, your husband's net take home pay would be lower by approximately $2,000 but your overall family take home pay would increase to approximately $77,000 (N.S.), $80,000 (Ont.) and $83,000 (B.C.). By going to work and earning $10,000 you will be increasing your overall family income by $7,000-$8,000, depending on where you live.



Bookmark and Share   Send to a friend     Print