2016 Tax time

[nzwasp]

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]

Pretty sure she has to pay the 1k

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

[nzwasp]

You mean shes has to pay the 3k and i get back 4k regardless.

[roopi]

Originally posted by yipb
Pretty sure she has to pay the 1k

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]

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]

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]

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]

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]

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]

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 . . .

[yipb]

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 . . .

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

[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.

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]

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

[suntan]

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]

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]

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]

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]

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]

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/tp.../menu-eng.html

[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.