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nzwasp
02-23-2017, 06:08 PM
So just did my taxes today. I get a $4000 refund my wife owes $3k when we submit together will she have to pay that 3k or will they just give me 1k instead?

yipb
02-23-2017, 06:15 PM
Pretty sure she has to pay the 1k

edit: meant to say she has to pay 3k**

nzwasp
02-23-2017, 06:28 PM
You mean shes has to pay the 3k and i get back 4k regardless.

roopi
02-23-2017, 10:48 PM
Originally posted by yipb
Pretty sure she has to pay the 1k

:confused:

Sounds like something that would be said at H & R Block.


In the past I've always ended up paying and my wife will get a check.

jwslam
02-24-2017, 09:14 AM
Have you filed already or you still haven't done the NetFile?

Currently she would need to pay the $3k before you get your $4k back.
But I'm betting there are credits you can juggle around to reduce the amounts to something like $1.5k owing, $2.5k refund.

yipb
02-24-2017, 09:26 AM
Originally posted by nzwasp
You mean shes has to pay the 3k and i get back 4k regardless.

oops i messed up my original response.
i meant to say she has to pay 3k, you will get 4k refund. not sure where i got the "she pays 1k" from

swak
02-24-2017, 09:26 AM
Haven't done anything yet... anyone had issues getting their T5s before? RBC sent it to my old address lol.. and branch says they can't get em :s

triplep
02-24-2017, 09:33 AM
Originally posted by jwslam
Have you filed already or you still haven't done the NetFile?

Currently she would need to pay the $3k before you get your $4k back.
But I'm betting there are credits you can juggle around to reduce the amounts to something like $1.5k owing, $2.5k refund.

Her owing money has nothing to do with him receiving a refund. It doesn't need to be paid before he gets his refund. He will get his refund once they are done assessing his taxes, she has till April 30th to pay her taxes without additional interest or penalties.

Even though people file their taxes as a "family", the taxes get assessed separately, and the only thing that filing as a "family" does is determine eligibility for certain items (GST is one of them). Without going into to much detail, if both of them made more than the basic personal amount, had no kids, no medical expenses etc. it would make no difference if he filed his taxes on February 15th and she filed hers on April 30th.

As for the juggling of the credits, what is the point? You are going to end up in the same situation at the end of the day. The only credits that are potentially worth "juggling" are the medical expenses to the lower earning individual and one person claiming donations (there are potential other ones but I don't think there are two many retired people on beyond). Otherwise, there is no benefit to juggling credits around.

lasimmon
02-24-2017, 09:39 AM
As usual me company won't send out T4's till sometime in march and I will have to guess if I should contribute to some RRSP if I am owing or not.

ExtraSlow
02-24-2017, 10:41 AM
Wonder when the government of canada will send me the T4 for my EI so I can see how badly they screwed up the tax withholding on their own money . . .:nut:

yipb
02-24-2017, 10:47 AM
Originally posted by ExtraSlow
Wonder when the government of canada will send me the T4 for my EI so I can see how badly they screwed up the tax withholding on their own money . . .:nut:

Do you have an online account with the CRA? I think some people has it uploaded already

asp integra
02-24-2017, 10:50 AM
When you file online, you will do both you and your wives at the same time. Chances are there will be just 1 refund or pay out since they will be combined.

Also, CRA combines your incomes, so don't go off the numbers you found individually. You will probably be put in a different tax bracket combined so the owing/refund probably will be different

Swank
02-24-2017, 10:53 AM
How do people already have all of their T-slips before the deadline for mailing them out or posting them online has even passed (last day of Feb)? Maybe it's a self-employed thing? I've never had an employer who doesn't wait until like 11PM on Feb 28 to send/post anything :dunno: :nut:

suntan
02-24-2017, 11:04 AM
Accountants now have electronic access to slips, so I was able to do my taxes early this year. Rather than wait for my wife's T4 in the mail, CRA already had it.

nzwasp
02-24-2017, 11:25 AM
All my slips with the exception of my T4 from most recent employer was on my account on CRA website.

Even though its technically a net gain of 1k from both of us my wife hated the notion of giving anything to the CRA so she is now putting in 9k in rrsps in order to not have to give them anything and i get my 4k return. I wish she would just get taxed correctly by her company so we wouldnt have to go through this BS every friggin year.

Everytime at taxes she always owes like 2k+ to CRA and everytime she has to put in 5-10k for RRSPs so hers get massive mine do not get any bigger than my existing contributions as I always get the refund (due to having lesser income and the daycare break)

403ep3
02-24-2017, 11:38 AM
Paying taxes = technically the better option because you got a loan of $3k at 0% (kind of)


whereas, getting a refund means you just gave a 0% loan to the government.

triplep
02-24-2017, 11:39 AM
Originally posted by asp integra
When you file online, you will do both you and your wives at the same time. Chances are there will be just 1 refund or pay out since they will be combined.

This is completely incorrect.


Originally posted by asp integra
Also, CRA combines your incomes, so don't go off the numbers you found individually. You will probably be put in a different tax bracket combined so the owing/refund probably will be different

You are taxed individual in Canada for income tax purposes. There is no combining of income to determine how much you owe at the end of the year or bumping you up or down tax brackets.

If someone made $25,000 and their spouse made $25,000, they would both get taxed individual on the $25,000 not their combined household income of $50,000. However, your income could be combined for the calculation of other things, like GST, but not how much tax you owe.

sabad66
02-24-2017, 11:41 AM
Originally posted by lasimmon
As usual me company won't send out T4's till sometime in march and I will have to guess if I should contribute to some RRSP if I am owing or not.
You can look at your last pay stub of 2016 to get your numbers. If you don't know how to transpose them into the boxes on your t4, grab your last pay stub from 2015 and your 2015 t4 to see how it works.

even if you don't get them exactly right you should be pretty close and will give you a rough idea if you're owing/will get a refund

realazy
02-24-2017, 11:43 AM
Originally posted by nzwasp


I wish she would just get taxed correctly by her company so we wouldnt have to go through this BS every friggin year.



Just get her to submit a new TD1 form to her employer. You can request the company to deduct any amount you want.

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/hwpyrllwrks/stps/hrng/td1/menu-eng.html

nzwasp
02-24-2017, 11:49 AM
When your company taxes you though, how do they determine what tax rate to tax you at. I.e if you make $125k per year and then got a 50k bonus about now would your company tax you as if you were making 175k or at 125k i think thats where the problem starts because as soon as you go over that $142k threshold sometime in the year they are still taxing you as if you only made 125k but you are really getting taxed to little.

nickyh
02-24-2017, 11:52 AM
When I get my bonus, I automatically put 1/4 into RRSP's to offset any extra taxes consequences I have the next year.

suntan
02-24-2017, 11:54 AM
Originally posted by nzwasp
When your company taxes you though, how do they determine what tax rate to tax you at. I.e if you make $125k per year and then got a 50k bonus about now would your company tax you as if you were making 175k or at 125k i think thats where the problem starts because as soon as you go over that $142k threshold sometime in the year they are still taxing you as if you only made 125k but you are really getting taxed to little. Typically, the company will tax the bonus at the employee's highest tax rate (not even their marginal).

nickyh
02-24-2017, 11:55 AM
Originally posted by lasimmon
As usual me company won't send out T4's till sometime in march and I will have to guess if I should contribute to some RRSP if I am owing or not.

Legally they need to be prepared by the last day of Feb. Mailing them out obviously takes a little time but I somehow think they need to be in your hands on the last day of Feb.


I had an issue with my 2014 T4, i notified my company of the error, and i had to wait 2.5 weeks to get it corrected.

I called CRA to find out what the rules were and when my company was not responding to my questions, I told them I called CRA and then they very quickly re-submitted.

realazy
02-24-2017, 11:57 AM
Originally posted by nzwasp
When your company taxes you though, how do they determine what tax rate to tax you at. I.e if you make $125k per year and then got a 50k bonus about now would your company tax you as if you were making 175k or at 125k i think thats where the problem starts because as soon as you go over that $142k threshold sometime in the year they are still taxing you as if you only made 125k but you are really getting taxed to little.

If you anticipate such a bonus, you can up the regular deductions to make up for that.

But as someone else said, paying taxes is a better than getting a return if you factor in the time value of money.

I believe the normal deductions are done so at a per pay basis but annualized. So if a semimonthly gross paycheck is at $5000, then the deduction is based off of the effective rate for $5000x24 = $120000. If the next paycheck is $50,000, then the deduction for that paycheck is based off the effective tax of $50,000x24 = $600,000.

realazy
02-24-2017, 12:01 PM
What's everyone's rush to get taxes done so early?

You have 2 years to file if you don't owe taxes.

suntan
02-24-2017, 12:04 PM
^ Has never gotten a big bonus before.

lasimmon
02-24-2017, 12:08 PM
Originally posted by realazy
What's everyone's rush to get taxes done so early?

You have 2 years to file if you don't owe taxes.

I owe pretty much every year so I have to get them done.

jwslam
02-24-2017, 12:11 PM
Originally posted by suntan
^ Has never gotten a big bonus before.
:rofl:

I have the issue where my employer doesn't tax the Stock Savings matching portion. So whenever that vests, every year I owe like half of it to Rachel and Justin

suntan
02-24-2017, 12:36 PM
Originally posted by jwslam

:rofl:

I have the issue where my employer doesn't tax the Stock Savings matching portion. So whenever that vests, every year I owe like half of it to Rachel and Justin Wut.

Just because stocks vest doesn't mean you owe tax on them.

flipstah
02-24-2017, 12:55 PM
What's a bonus

jwslam
02-24-2017, 01:15 PM
Originally posted by suntan
Wut.

Just because stocks vest doesn't mean you owe tax on them.
It does because the company bought them and they become income on me.

Otherwise I have zero clue how to explain why my T4 is so much larger than my salary when there were no bonus payouts last year.

nickyh
02-24-2017, 01:38 PM
Originally posted by jwslam

It does because the company bought them and they become income on me.

Otherwise I have zero clue how to explain why my T4 is so much larger than my salary when there were no bonus payouts last year.

You probably have RSU's (Restricted Share Units) or something similar.
In that case, when they vest each year they are added to your income at year end and included in your T4, box 101, and you have the tax you "pay" included as well.

It means when you exercise them you only need to pay the capital gain.

Under stock options, nothing is reported in your income until you exercise them. Then it's the capital gain and the income you actually did earn is added to your current year income as well as the taxes and all the other fun boxes that get filled in.

sabad66
02-24-2017, 01:43 PM
Originally posted by jwslam

It does because the company bought them and they become income on me.

Otherwise I have zero clue how to explain why my T4 is so much larger than my salary when there were no bonus payouts last year.
that's how our purchase plan works - the "free/discounted" shares are actually taxable benefits so we pay taxes on them the same way as it would be income.

that said, our company does withhold taxes on this taxable benefit, but they withhold it on the same cheque as our yearly bonus - that way we don't really notice the extra taxes since we are getting an abnormally big cheque anyways.

suntan
02-24-2017, 02:02 PM
Originally posted by sabad66

that's how our purchase plan works - the "free/discounted" shares are actually taxable benefits so we pay taxes on them the same way as it would be income.

that said, our company does withhold taxes on this taxable benefit, but they withhold it on the same cheque as our yearly bonus - that way we don't really notice the extra taxes since we are getting an abnormally big cheque anyways. Well shit, CRA started requiring this in 2011.

Greedy fuckers.

mr2mike
02-24-2017, 02:02 PM
Originally posted by 403ep3
Paying taxes = technically the better option because you got a loan of $3k at 0% (kind of)

whereas, getting a refund means you just gave a 0% loan to the government.

Just don't go over that $3K or they throw you on the installment plan.

Xtrema
02-24-2017, 02:19 PM
Originally posted by nzwasp
I wish she would just get taxed correctly by her company so we wouldnt have to go through this BS every friggin year.

If you have to pay, you basically got a interest free loan from the government.

If you have a refund, you basically gave a interest free loan to the government.

eblend
02-25-2017, 11:45 AM
Originally posted by realazy
What's everyone's rush to get taxes done so early?

You have 2 years to file if you don't owe taxes.

For me it's knowing how much to put into RRSP to offset the amount of taxes I owe. My taxes are done already as I got my last slip just last night for wife's school stuff, and the last T5 from the bank.

This year sucks the most, as I closed down my corporation and paid out a large dividend.

dubhead
02-25-2017, 02:41 PM
Originally posted by suntan
Typically, the company will tax the bonus at the employee's highest tax rate (not even their marginal).

This is how my bonus is taxed

PeterGTiR
02-25-2017, 03:40 PM
Originally posted by nzwasp
I wish she would just get taxed correctly by her company so we wouldnt have to go through this BS every friggin year.



The payroll deductions are based upon the TD1 which she probably filled out when she started working. She should fill out a new TD1 if she wants more deductions for each pay period.

http://www.cra-arc.gc.ca/E/pbg/tf/td1/td1-17e.pdf

drtoohotty1
02-26-2017, 05:59 PM
Originally posted by ExtraSlow
Wonder when the government of canada will send me the T4 for my EI so I can see how badly they screwed up the tax withholding on their own money . . .:nut:

Login or set up a mycra account t4e were avaliable February 1st

My_name_is_Rob
02-27-2017, 09:55 AM
Originally posted by swak
Haven't done anything yet... anyone had issues getting their T5s before? RBC sent it to my old address lol.. and branch says they can't get em :s

I had an issue getting them a couple of years ago, but I knew what was going to be on them anyways. I basically called up the CRA and explained my situation to them, and the person on the other end told me that I didn't have to send in my copy, because essentially they also receive a copy.

I never had any issues with it, and if I have them at tax time, I always send some in, just because its probably easier for the auditors.