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-   -   Income tax thread (https://www.revscene.net/forums/693164-income-tax-thread.html)

twitchyzero 03-10-2014 06:43 PM

Quote:

Originally Posted by bobbinka (Post 8430821)
The onus is on you to file your taxes correctly on time, which would've been last year. Since you are only doing/fixing it now, you can't really blame anyone else. It's tax time right now, for 2013 taxes. Your 2012 return has no priority.

Just because it's one form doesn't mean they just slip it into a folder under your name and call it a day. Your entire return is redone. The credits from your tuition don't just affect that year's tax return, but also future tax returns.

Identity fraud. That's why. I don't even know why this would need to be explained.

I file my taxes correctly and on time every year... I suspect I get audited each year because my tution was significantly more than the average...happened to all of my classmates but most other students didn't seem to be affected. I got fed up and didn't send supporting documents for a reassessment in a timely manner...regardless I'm surprised things aren't processed on a first come, first serve basis.

I get that they are trying to make the system safer, but really, 5-10 business day just to get a login? If they are so worried why not let people go in-person to a Service Canada centre to setup? Banks have information equally sensitive yet they don't have this delay.

Forgive my ranting...I'm just frustrated at some of the system we have in place in Canada. For example, an admissions exam that I'm writing...in Canada it's offered twice a year only, results take 8 weeks...scheduled at the worst times in the year (midterm season). Get to exam 30 min early..yet it starts an hour late (apparently it's normal). US equivalent is offered daily and results are given at end of the exam. :fulloffuck:

winson604 03-10-2014 07:49 PM

Quote:

Originally Posted by twitchyzero (Post 8432970)
I file my taxes correctly and on time every year... I suspect I get audited each year because my tution was significantly more than the average...happened to all of my classmates but most other students didn't seem to be affected. I got fed up and didn't send supporting documents for a reassessment in a timely manner...regardless I'm surprised things aren't processed on a first come, first serve basis.

I get that they are trying to make the system safer, but really, 5-10 business day just to get a login? If they are so worried why not let people go in-person to a Service Canada centre to setup? Banks have information equally sensitive yet they don't have this delay.

Forgive my ranting...I'm just frustrated at some of the system we have in place in Canada. For example, an admissions exam that I'm writing...in Canada it's offered twice a year only, results take 8 weeks...scheduled at the worst times in the year (midterm season). Get to exam 30 min early..yet it starts an hour late (apparently it's normal). US equivalent is offered daily and results are given at end of the exam. :fulloffuck:

LOL I hear ya about the 5 business day for a login code being mailed to you. I was going to make an account to check the status with my claim and when it said I gotta wait for a piece of mail first I just opted to wait instead. One of these years I'll wait haha

Volvo-brickster 03-10-2014 08:44 PM

cra even lists all the free software out there

NETFILE - Certified Software for the 2014 NETFILE Program (2013 tax return)

3rd year using studio tax

for shit and giggles i tried 2 different programs last year, they were within $0.50 of each other, so pretty accurate

bobbinka 03-10-2014 09:05 PM

Quote:

Originally Posted by twitchyzero (Post 8432970)
I file my taxes correctly and on time every year... I suspect I get audited each year because my tution was significantly more than the average...happened to all of my classmates but most other students didn't seem to be affected. I got fed up and didn't send supporting documents for a reassessment in a timely manner...regardless I'm surprised things aren't processed on a first come, first serve basis.

It sucks, but at the end of the day you had your chance!

Quote:

I get that they are trying to make the system safer, but really, 5-10 business day just to get a login? If they are so worried why not let people go in-person to a Service Canada centre to setup? Banks have information equally sensitive yet they don't have this delay.
Well, first off, Canada Revenue Agency and Service Canada are two different things, so that doesn't work. Second, money money money. Not sure if anyone's paid attention in the last year or two, but there were budget cuts that led to a large cut in Government jobs. The effect it had on CRA included the shut down of all front offices, meaning you can no longer walk in to talk to somebody. So, they can't afford to do it.

Yes, there are lots of companies that have sensitive information as well, but the difference is that you're their client and they want you to stay with them so they can make money off of you. If spending more money to pay for services and technology that will make your life more convenient, helps keep you as a customer and brings more customers in, then why not? It's an investment.

For the government, it's different. Unless you choose to move to a different country, you have no choice but to pay tax. Spending dollars on something that already works would mean not being able to spend elsewhere. No matter what they do, someone else will complain, it's a lose-lose situation. You want someone at the counter for you to go pick up an online code, someone else will think that it's a waste of money when you can just wait 5 days for the mail and complain the government is spending money on useless things (which i'm sure we can all relate to).

Quote:

Forgive my ranting...I'm just frustrated at some of the system we have in place in Canada.
I hear ya, but it is what it is. No system (here or anywhere else) is perfect. They all have their flaws and to fix all of them would cost everyone an arm, a leg, and their first born child.

Economies of scale. People tend to forgot (or don't realize) that Canada has the 2nd largest land mass in the world but with only a fraction of the population of other countries.

1 Russia - 143,420,300 population - 17,075,200.00 Sq kilometers
2 Canada - 32,805,000 population - 9,976,140.00 Sq kilometers
3 USA - 295,734,100 population - 9,629,091.00 Sq kilometers

While there are less people to "take care of", there are fixed costs that stay the same regardless of the population. Simplest example would be roads, we need them to connect us between various locations. It doesn't matter if there are 100,000 people using them or 500,000 using them, they need to be built. But for a community with only 100,000 people, that means it would have less money to spend elsewhere in comparison to a larger community. This makes it seem really inefficient, but it's just doing the best it can with what it has.

Having said that, we're all tax paying citizens and you deserve to be heard. If things aren't the way you want and you want change, you should let your MP know.

GabAlmighty 03-11-2014 10:28 AM

Looks like i'm getting about 5k back. Was gonna buy car parts but instead it's going into the buy a house fun.

Now to see if I get audited for the 4th year in a row...

twitchyzero 03-11-2014 12:48 PM

bobbinka,

how should I report temp work? I did some work for 2 days and some employers give you T4 some don't. All I have is the paystub with total amount and no clue on the actual deductions. I requested a T4 and they said they don't give them out for temps if I didn't go through temp agency.

are they wrong and jus have lazy accountants?

bobbinka 03-11-2014 07:09 PM

When to complete a T4 slip

if they didnt have to deduct anything, and it was below a certain amount paid, they may not have to issue you anything.

if you dont fall under that category, then there's a possibility it has to do with your employment type, or how the employer classifies you (employee vs contract). But for this, you're better off speaking with the Business side of CRA to try and figure out whether you are an employee or not (and therefore whether deductions should have been made).

if you know how much you earned from that pay stub, you can just include it on your return anyway (other employment income). Since they didn't issue a T4, i'm guessing no deductions were made.

hotjoint 03-11-2014 08:55 PM

fuck I owe about $1400 :(

Carl Johnson 03-11-2014 11:35 PM

Quote:

Originally Posted by hotjoint (Post 8433894)
fuck I owe about $1400 :(

that's actually a good thing

m3thods 03-12-2014 12:09 PM

"good thing"

I buy the "interest free loan" argument. But there's nothing good about having to pay them eventually. At least for me, since I'd be unaware to an extent that I'd be owing the government, I wouldn't have put whatever taxes I owe to the government to something constructive like a short-term investment account.

I probably would've blown the "loan" on random shit like hockey sticks and take-out. Otherwise known as needless things.

mr_chin 03-12-2014 02:25 PM

I just got my dental bill today and the receptionist said I can use it for next year, but since I haven't filed yet can I still claim it?

subordinate 03-12-2014 02:45 PM

Quote:

Originally Posted by mr_chin (Post 8434366)
I just got my dental bill today and the receptionist said I can use it for next year, but since I haven't filed yet can I still claim it?

When did the dental work happen? if it was in 2013, then you can claim it for 2013.

Generally speaking, if you have more dental expenses for this year, it would be advised that you defer the credit until the 2014 tax return, since the calculation of the Medical expense would be the total for any 12-month period of that year.

Selanne_200 03-12-2014 02:50 PM

If i remember correctly, medical expenses can be added together in any 12 months period as long as it ended in 2013, but in order for it for translate into a tax credit for you, you must've spent at least 2,152 or 3% of your net income, whichever is less. So basically whatever you spent on top of that amount would translate into tax credit, anything else, it doesn't do anything for you and its a waste. In other words, if you have no other medical expenses for 2013, it might be more worthwhile for you to save it for use in 2014.

subordinate 03-12-2014 02:53 PM

Quote:

Originally Posted by Selanne_200 (Post 8434384)
If i remember correctly, medical expenses can be added together in any 12 months period as long as it ended in 2013, but in order for it for translate into a tax credit for you, you must've spent at least 2,152 or 3% of your net income, whichever is less. So basically whatever you spent on top of that amount would translate into tax credit, anything else, it doesn't do anything for you and its a waste. In other words, if you have no other medical expenses for 2013, it might be more worthwhile for you to save it for use in 2014.

This, Selanne worded it much more clear than I did.

It sounds like he got braces and instalment plan?

mr_chin 03-12-2014 07:21 PM

Quote:

Originally Posted by subordinate (Post 8434388)
This, Selanne worded it much more clear than I did.

It sounds like he got braces and instalment plan?

Thanks guys.

Got a crown done and paid 50% of it, so I guess no point claiming it. I will save it for next year.

subordinate 03-12-2014 08:03 PM

Quote:

Originally Posted by mr_chin (Post 8434598)
Thanks guys.

Got a crown done and paid 50% of it, so I guess no point claiming it. I will save it for next year.

yeah, I don't think the crown (roughly 1,100 by itself) is going to meet past the threshold to claim it as a medical expense. Unless you have glasses, etc, that are eligible to go over the bracket amount.

SpartanAir 03-13-2014 09:55 AM

Some tips:

Don't use H&R Block, they have no idea what they're doing. It's like a weekend course to be certified to work there.

Don't E-File. 80% of audits come from E-Filing.

radioman 03-13-2014 09:59 AM

^I'd agree with you on the first point.

Got anything to back up the second one? I've always heard that it wont affect your odds of being audited.

SpartanAir 03-13-2014 10:33 AM

^ I don't, other than my accountant used to work for Revenue Canada. It's an estimate based on his experience; he suggests all his clients mail their returns. Almost every audit in the past several years he dealt with came from an E-File.

If you think about it it makes sense. Revenue Canada can process far more accounts by scanning numbers electronically submitted. However if someone has to manually input the figures from mailed returns, one can only process them so quickly.

bobbinka 03-13-2014 06:54 PM

E-filing is NOT the reason why someone would be audited. The filing method does not affect your audit risk. I highly dislike the fact that some accountants or tax preparers take your money and don't even bother taking 30 seconds to explain something properly. Or maybe they do it intentionally to scare people to make sure they keep going back to them, everybody freaks out when they hear the word "audit".

When you file by paper, you include all documentation along with it. Because it's manual, it takes a longer time to assess. Hell, just mail alone, takes time.

E-filing saves everybody time but has 0 documentation. When you have an item on your return that requires documentation, you are then sent a letter at a later point in time asking to send the documentation in. This is NOT an audit. They're simply asking for documentation that you otherwise would have sent in anyway, had you paper filed it. Does this mean EVERY person who e-files will be sent a letter at some point? No, because not everything requires documentation.

If 100 out of 100 people e-filed returns that did not require documentation, then the "audit" risk is 0%. If 100 out of 100 people e-filed returns that required documentation, then the "audit" risk is 100% (I put audit in quotations cause it's not actually an audit). It's meaningless.

So do not be scared to E-file. Just keep everything like you normally would in case they ask for it and you'll be fine.

PS. if you get audited (like an actual audit, not the above stuff)... YOU'LL KNOW.

nabs 03-13-2014 07:19 PM

Just used E-file... getting heavy return :)

I do my taxes myself I just surprise myself every year, but my return has been consistent for the last 3 years though.

MelonBoy 03-13-2014 09:12 PM

I do my tax returns online every year.. but for some reason I remember always sending it in papers and documents after I fill everything out.

Oddly enough. Last year I sent in my papers with a 600ish return but when it came back they redid my papers and gave me about 800. (Does this mean they did a audit for me and found I was suppose to receive more money??) Someone be fixing my shit and giving me back more :woot2:

ImportPsycho 03-16-2014 10:36 PM

I netfiled my wife's tax last week, i forgot that she has some additional income last year.
how do I go about adjusting her income?

Selanne_200 03-16-2014 10:58 PM

Quote:

Originally Posted by MelonBoy (Post 8435323)
I do my tax returns online every year.. but for some reason I remember always sending it in papers and documents after I fill everything out.

Oddly enough. Last year I sent in my papers with a 600ish return but when it came back they redid my papers and gave me about 800. (Does this mean they did a audit for me and found I was suppose to receive more money??) Someone be fixing my shit and giving me back more :woot2:

I think there is a big misconception of what an audit is. After you file your taxes, you'll typically receive a Notice of assessment and/or a notice of reassessment, which basically means CRA went through your current tax return and whether or not they agreed with what you've reported/claimed and subsequently adjusted those amounts. An Audit on the other hand, is CRA going through your entire tax return and requiring you to support the claims you've made on your return either by mailing in copies of evidence and whatnot. Also, an audit could be done on any of your tax return for up to 7 years past.

winson604 03-16-2014 11:10 PM

Quote:

Originally Posted by ImportPsycho (Post 8437817)
I netfiled my wife's tax last week, i forgot that she has some additional income last year.
how do I go about adjusting her income?

You wait until they do your return then you submit changes.

How to change your return


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