Monday, April 14, 2008

Tax Refund

So everything arrived last week and I finally finished my taxes. As expected the refund is less than I estimated without the couple of income trust and stock distributions, but money is money. I’m getting $700 and change back.

I’m looking forward to getting the refund. I’m also looking forward to getting my Assessment so I know exactly how much limit I have for my RRSPs so I can started planning for 2008 taxes. I already have a guesstimate but I just like to be totally sure.

One more thing to add about dividends from foreign sources. Like I said before this is taxed fully unlike dividends from Canadian corporations. However, remember when you get your dividends? And sometimes there is a deduction called Withholding tax? Claim tax credit for that so you don't end up paying taxes twice.


Canadian Saver said...

Oh $700 is a really nice amount :-)

Anonymous said...

$700 means at 3% interest you lost $21 because you gave the government an interest free loan. If you max out your RRSP's every year you should adjust your base tax exemption amount by 18%.

The goal is at the end of year to owe the government -$2. The government does not collect a tax difference of 2 dollars.

Even if your calculations are off (ie you made money on the market) and have to pay. You are still better off. You just got an interest free loan from the government. You can be owe the government taxes for a couple of years only. After this they will ask you to pre pay an estimated amount quarterly.

But no matter how you slice it you are better off.....

Esme said...

Good point, anonymous.