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Taxes (pg. 3)
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| StereoPrincess |
| quote: | Originally posted by ahlamalek
i don't know... to the contrary... I had all these school deductions cumulated over the years. Now I can cash them!! :D |
i was fine in undergrad, got every penny plus more back. but for grad school, they pay you a minimum amount but they don't take taxes off your scholaships and stuff so you get ed in the end. |
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| ahlamalek |
| quote: | Originally posted by StereoPrincess
i was fine in undergrad, got every penny plus more back. but for grad school, they pay you a minimum amount but they don't take taxes off your scholaships and stuff so you get ed in the end. |
oh right... those scholarships, you need to planify things early... not easy when you have all that money handy :) |
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| Rocco |
i have no choice... must give back whatever i make to my parents so they can pay off my loans.
fudge fudge and fudge. |
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| ahlamalek |
| quote: | Originally posted by jenna_rae
I got $3000 back last year because of school credits. This year will be nothing or I may have to pay yuck!
When are they due by? |
march 31st |
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| MarkT |
getting a refunds is sweet if you're bad at saving money (like me!).
HOWEVER...here's another way to think of it:
If you get back a ton of cash, you've effectively loaned YOUR money to the Gov't INTEREST FREE during the year. What you should try to do is only pay the necessary amount of tax (or better yet none, if you're self-employed) and invest that money. That way, at the end of the year, instead of just getting YOUR money back from the gov't, you'll have interest from your investments :)
Having said that, I always only get a small refund...but if you're a student with lots of tuition to claim, for example, you know you're going to get a refud...so you could arrange to pay less tax with your employer during the year and put that money aside and invest it (or use it...just don't loan it to the gov't for free!) |
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| Skipper |
| If you owe money, the deadline is March 31st. If you are getting a refund, they won't care if you never file! :p |
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| ahlamalek |
| quote: | Originally posted by MarkT
getting a refunds is sweet if you're bad at saving money (like me!).
HOWEVER...here's another way to think of it:
If you get back a ton of cash, you've effectively loaned YOUR money to the Gov't INTEREST FREE during the year. What you should try to do is only pay the necessary amount of tax (or better yet none, if you're self-employed) and invest that money. That way, at the end of the year, instead of just getting YOUR money back from the gov't, you'll have interest from your investments :)
Having said that, I always only get a small refund...but if you're a student with lots of tuition to claim, for example, you know you're going to get a refud...so you could arrange to pay less tax with your employer during the year and put that money aside and invest it (or use it...just don't loan it to the gov't for free!) |
i always wanted to do that... but try explaining that to the lady at the HR...
I hate those HR people!!!! |
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| Crazy Serb |
| quote: | Originally posted by Skipper
and the only way to live a comfortable retirement! |
rrrrriiiigghhhhttt....
RRSPs = BAD :whip: :whip: :whip: |
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| paul d engineer |
| quote: | Originally posted by maxtuh
WHAT?
I PAID ALMOST 7000$ on taxes alone last year? how did you manage that |
RRSPs |
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| Skipper |
| quote: | Originally posted by Crazy Serb
rrrrriiiigghhhhttt....
RRSPs = BAD :whip: :whip: :whip: |
why would you say that? |
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| rabbitjoker |
| quote: | Originally posted by Skipper
If you owe money, the deadline is March 31st. If you are getting a refund, they won't care if you never file! :p |
Actually they do care - even if they owe you money.
One year I skipped filing because I had a refund. After a few years I got a record demanding I file - or see me in court.
There is NO point in not filing. You might as well build up your RRSP contribution room. Even if you make $100 - file.
18% of your gross income (to a maximum of $13.5k [rising this year I believe]) can be contributed and unused portions get carried forward forever. I've been filing taxes since I was 10 - and by the time I started actually making enough money to be able to contribute to my RSP I had about $5k in contribution already built up. |
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| MarkT |
| quote: | Originally posted by Crazy Serb
rrrrriiiigghhhhttt....
RRSPs = BAD :whip: :whip: :whip: |
I agree with the first part...RRSP aren't the ONLY answer...but they're not bad.
If I might be so bold, I'm assuming Crazy Serb is saying that there are other ways to have a comfortable retirement than having a massive RRSP. Basically, you need to have more monthly income than monthly expenses, right? You could have a business, you could have rental properties, you can have a huge RRSP, etc.
Figuring out what works best for you is the hard part ;)
It funny that we've always been taught that you must save save save...it's one way...but not the only way! |
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