REVscene - Vancouver Automotive Forum

dasuperstar · 08-22-2011, 12:27 AM

Hello Folks,

Just finished school last December and started working full time last January 2011. I do have a 25,000 worth of tax credit 10,000 for national and 15,000
for BC. I'm wondering if I could get a full refund next year since I do have tones of credit or I need to buy RSP to balance it out. My current Federal Income Tax (T4) YTD Deduction is aprox 7k and would be 9-10k hopefully more by the end of the year.

Would I get a full refund when tax season comes?

Thanks

SumAznGuy · 08-22-2011, 07:08 AM

I don't know the exact number, but even at $10K in income, do not expect to pay that much in taxes. It maybe something like $18K that is the cutoff.
From past experience, you may even end up with left over tuition credits for next year.

Try using a tax/RRSP calculator to maximize it.

dasuperstar · 08-22-2011, 08:13 AM

Quote:

Originally Posted by SumAznGuy

I don't know the exact number, but even at $10K in income, do not expect to pay that much in taxes. It maybe something like $18K that is the cutoff.
From past experience, you may even end up with left over tuition credits for next year.

Try using a tax/RRSP calculator to maximize it.

10k isnt my income.... its the ytd tax deduction that I received already. I'm already way above 18k if your talking about gross

Do you think H&R Block or My Bank will help me calculate?

4444 · 08-22-2011, 12:03 PM

you'll likely have leftover credits at this rate (hard to know based on what you've said)

i wouldn't be putting into an RRSP yet on the basis that your income should start increasing significantly, so why get 20% of your RRSP contributions back when in a couple of years you'd get a 40% back (as your marginal rate would be 40% when you earn $$$)

put any money into a TFSA first... if you MUST invest, you can always put money into an RRSP (once you've maxed out the TFSA), but you don't HAVE to take the deduction in the year - you can defer (is it sch 7? think so) if you know you'll pay a higher marginal rate in the next year or two (depends on your time value of money/needs)

SumAznGuy · 08-22-2011, 01:42 PM

Quote:

Originally Posted by Plush

10k isnt my income.... its the ytd tax deduction that I received already. I'm already way above 18k if your talking about gross

Do you think H&R Block or My Bank will help me calculate?

Sorry, I mis-read your post.
H&R might not, but there are plenty of RRSP calculators available online.

hirevtuner · 08-22-2011, 02:15 PM

best bet is to consult an accountant if you want a straight answer

xmisstrinh · 08-22-2011, 04:03 PM

Nope. You will not get a full refund of the 10k taxes paid YTD.
Taxes credits do not work as a dollar for dollar refund. If you have a tax accountant, take it to him. If not, I do these kinds of services.

Pro Tip By: D & G Consulting Services - Accounting | Personal Tax | Startup Strategy

*Disclaimer: This is not an offering for service. Any such service must be requested by PM.

adrnlnrush00 · 09-06-2011, 02:06 PM

Quote:

Originally Posted by Plush

Hello Folks,

Just finished school last December and started working full time last January 2011. I do have a 25,000 worth of tax credit 10,000 for national and 15,000
for BC. I'm wondering if I could get a full refund next year since I do have tones of credit or I need to buy RSP to balance it out. My current Federal Income Tax (T4) YTD Deduction is aprox 7k and would be 9-10k hopefully more by the end of the year.

Would I get a full refund when tax season comes?

Thanks

OP, you'll need to provide more information than this.

What's your anticipated total earnings in 2011 from all sources including interest, investments, etc.

What are your deductions ie. RRSP contributions?

You've indicated that you've finished school but will you be attending any other post-secondary education in 2011? If yes, how many full-time or part-time months will you attend in 2011?

What's your marital status? Single, married, or common law? If you're married or common law, will your spouse earn more than $11K in 2011?

I do commend you for considering your tax planning options now as opposed to February 28 when most people are in a panic to do some tax planning. Ideally, tax planning would be an ongoing process that should wrap-up prior to December 31 of each year.

Provide more info as described above and I, and perhaps other RS accountants, should be able to provide you with a tax estimate.

Feel free to PM if you'd like to keep your information confidential.

Ferra · 09-17-2011, 11:18 AM

Quote:

Originally Posted by Plush

Hello Folks,

Just finished school last December and started working full time last January 2011. I do have a 25,000 worth of tax credit 10,000 for national and 15,000
for BC. I'm wondering if I could get a full refund next year since I do have tones of credit or I need to buy RSP to balance it out. My current Federal Income Tax (T4) YTD Deduction is aprox 7k and would be 9-10k hopefully more by the end of the year.

Would I get a full refund when tax season comes?

Thanks

What type of tax credit do you have? FYI, your 25K of tax credit is most likely the gross amount (e.g. the amount of tuition fees you actually paid, or donation you made..etc)

This amount is usually multiplied by 15% to give you the actual tax credit amount.

considering your tax deduction (9-10k/yr) I guess you are making roughly 50-55k per year
your tax payable without any tax credit is roughly 9k (which unsurprisingly, should be close to your payroll tax deduction)

So this is your likely scenario:
Tax Payable: $9000
Tax Deducted: -$9000
Tax Credit: -$3750 ($25,000 x 15%)

Net Tax Refund: $3750

dasuperstar · 09-26-2011, 07:30 PM

Quote:

Originally Posted by Ferra

What type of tax credit do you have? FYI, your 25K of tax credit is most likely the gross amount (e.g. the amount of tuition fees you actually paid, or donation you made..etc)

This amount is usually multiplied by 15% to give you the actual tax credit amount.

considering your tax deduction (9-10k/yr) I guess you are making roughly 50-55k per year
your tax payable without any tax credit is roughly 9k (which unsurprisingly, should be close to your payroll tax deduction)

So this is your likely scenario:
Tax Payable: $9000
Tax Deducted: -$9000
Tax Credit: -$3750 ($25,000 x 15%)

Net Tax Refund: $3750

Wow Ferra you make things so simple..... lol

IDK why but im making approx 45k but my comp tax me a lot. So Far before this October ends they already deducted me 7.5k. In my estimate
it would be aprox 9-10k this year... does this mean I will get the 10k credit pls be an angel

BTW I do have a tax credit when I went to school. If I remember it correctly its 10k Federal and 15k BC

Thanks for all you guys help