Income Tax FAQ's

[FlamesKickAss]

thanks. if I had failed I could have claimed it then because I would have to pay the company back. I'd rather pass the courses though

[jolinar of malkshor]

I think the amount the company pays for your tuition is considered taxable income. Might want to check that out.

[sixpacked]

Originally Posted by jolinar of malkshor

I think the amount the company pays for your tuition is considered taxable income. Might want to check that out.

Nope, if the course was for the company's benefit, related to the company's priamary business operations, the company will be able to expense the reinbursment, and the reimbursement will not be a taxable benefit to the employee.

[The Yen Man]

Originally Posted by sixpacked

Nope, if the course was for the company's benefit, related to the company's priamary business operations, the company will be able to expense the reinbursment, and the reimbursement will not be a taxable benefit to the employee.

Unless they reimbursed you as a part of your paycheque, in which case it is subject to income taxes. Then you can claim the tuition credits back.

[mac_gurl]

Ok, we are having issues with our RRSP's. The fiance puts $50/mo into an RRSP. It comes out the first of every month.
Doing the math, one assumes he should have $600 in RRSP to claim (50 x 12 months).
We got the RRSP t4E's from the bank, and have one for $450 and one for $100. They can't seem to explain where the other $50 is.
Does anyone know what could be the problem?

[FlamesKickAss]

nope not part of paycheque. they just paid for the course

[sixpacked]

Originally Posted by mac_gurl

Ok, we are having issues with our RRSP's. The fiance puts $50/mo into an RRSP. It comes out the first of every month.
Doing the math, one assumes he should have $600 in RRSP to claim (50 x 12 months).
We got the RRSP t4E's from the bank, and have one for $450 and one for $100. They can't seem to explain where the other $50 is.
Does anyone know what could be the problem?

I would check the timing of the transactions, there was a payment after February 29/08, then I could see it not being on the slip, because that is the last day you are able to make RRSP deductions that are eligible to be deducted for the 2007 taxation year. Based on the T4E data, you made a payment on March 1st to December 1st = 9 x $50=$450. the other slip is for deductions after Dec/07, Jan 1st and Feb 1st - 2 x $50 =$100.

[Slava]

Originally Posted by sixpacked

I would check the timing of the transactions, there was a payment after February 29/08, then I could see it not being on the slip, because that is the last day you are able to make RRSP deductions that are eligible to be deducted for the 2007 taxation year. Based on the T4E data, you made a payment on March 1st to December 1st = 9 x $50=$450. the other slip is for deductions after Dec/07, Jan 1st and Feb 1st - 2 x $50 =$100.

This is right...except that there are still 12 payments in the 2007/first 60 days of 2008, so there should still be $600 to be accounted for. You should contact whoever handles your accounts and check with them. It is quick and painless and you will get the correct slip for your taxes.

[Nabber]

Originally Posted by FireInTheHole

Can I claim my hookers and blow expenses as a tax write off?

Only if you're with work friends. As well you need a receipt from the dealer, which believe me is harder than it seems.

[Slava]

Originally Posted by fotze

What is a T slip arrives after you already filed your taxes? Do I just send an updated return?

Yes, and then you come and filter through all of my materials to make things easier for the rest of us...keener!

[albertGQ]

Originally Posted by mac_gurl

Ok, we are having issues with our RRSP's. The fiance puts $50/mo into an RRSP. It comes out the first of every month.
Doing the math, one assumes he should have $600 in RRSP to claim (50 x 12 months).
We got the RRSP t4E's from the bank, and have one for $450 and one for $100. They can't seem to explain where the other $50 is.
Does anyone know what could be the problem?

This is actually due to Leap year. Your Jan.1, Feb, 1, and Mar.1 2007 RSP contributions have been claimed on your taxes last year. So for the remaining $450 you got. Which is fine. But due to Feb.29th being the deadline, instead of Mar.1 this year, you only have two contributions in the first 60 days of 2008 as opposed to the traditional three. So she only made 11 monthly contributions.

Next tax year, she'll have 10 contributions for the remainder of 2008 plus three for 2009 (since next year's deadline will be Mar.1 2009), so she'll be able to claim $650.

Make sense?

[cSpooge]

Originally Posted by fotze

What is a T slip arrives after you already filed your taxes? Do I just send an updated return?

NO please god do not send an updated return. Just send a letter with the slip saying that it arrived after you filed and you need it added on. Sending in an update return usually just gets rejected.

[mac_gurl]

Originally Posted by albertGQ

This is actually due to Leap year. Your Jan.1, Feb, 1, and Mar.1 2007 RSP contributions have been claimed on your taxes last year. So for the remaining $450 you got. Which is fine. But due to Feb.29th being the deadline, instead of Mar.1 this year, you only have two contributions in the first 60 days of 2008 as opposed to the traditional three. So she only made 11 monthly contributions.

Next tax year, she'll have 10 contributions for the remainder of 2008 plus three for 2009 (since next year's deadline will be Mar.1 2009), so she'll be able to claim $650.

Make sense?

Makes complete sense. Thank you so much for the clarification. We had even pulled out old taxes to try and figure this out, and the bank was beyond useless helping us.

[BlackArcher101]

Originally Posted by cSpooge

NO please god do not send an updated return. Just send a letter with the slip saying that it arrived after you filed and you need it added on. Sending in an update return usually just gets rejected.

Or just go to the CRA website, change the line numbers that are different, have it reassessed the next day, and one week later have the deposit in hand.

[Finner]

Hey guys,

Income tax question for you. First time filing my own taxes.

I got a letter from the governemtn notifying me i had a couple thousand of tuition amounts that i could carry forward from 06. Now when i'm doing my taxes (using quicktax) how do i enter that?

Do i simply add the amounts and months together from 06 and my ones from last year (97) when i put it in? And how do i know how many full or part time months to put in??

Any help would be appreciated.

[OilersBaby]

is it true that in Canada your mortgage is not tax deductible? my husband and i were just wondering cuz we were thinking of investing in property there but if you can't deduct it from your taxes, that would hurt!

[Finner]

Originally Posted by OilersBaby

is it true that in Canada your mortgage is not tax deductible? my husband and i were just wondering cuz we were thinking of investing in property there but if you can't deduct it from your taxes, that would hurt!

As far as i understand (and this could be wrong) mortgage payments are not tax deductible, but the interest you pay on the mortgage is. If anyone could verify that would be great.

[calf]

Originally Posted by OilersBaby

is it true that in Canada your mortgage is not tax deductible? my husband and i were just wondering cuz we were thinking of investing in property there but if you can't deduct it from your taxes, that would hurt!

If it's an investment property generating revenues, you can deduct the interest portion of the mortgage payments. But you can't deduct your mortgage payments(interest) on your residence.

[OilersBaby]

Originally Posted by calf

If it's an investment property generating revenues, you can deduct the interest portion of the mortgage payments. But you can't deduct your mortgage payments(interest) on your residence.

so on the investment property, you can only deduct interest on the mortgage, but not the value of your mortgage (for the tax year)?

[calf]

Originally Posted by OilersBaby

so on the investment property, you can only deduct interest on the mortgage, but not the value of your mortgage (for the tax year)?

yup