Posted on: 15-02-07 16:07:52
Tax whizzards---few questions
I am going to file my tax soon. My questions is as follows:
My husband was not working last year except 2 last months, and his income is very less compared to me as he was completing his education in canada.
Now in my turn I have work the whole year with an income bracket over $50K. what i would like to know how can i claim more tax returns???
Should my husband file seperate becoz he receive less income and can earn more returns and i file seperate by transfering his tuition fees on my income??/
Or
Should we file together?
Pls advice in order i can go ahead for filing my tax
regards
mashu
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the killer
Quote:
Originally posted by ashakeel
Tax whizzards---few questions
I am going to file my tax soon. My questions is as follows:
My husband was not working last year except 2 last months, and his income is very less compared to me as he was completing his education in canada.
Now in my turn I have work the whole year with an income bracket over $50K. what i would like to know how can i claim more tax returns???
Should my husband file seperate becoz he receive less income and can earn more returns and i file seperate by transfering his tuition fees on my income??/
Or
Should we file together?
Pls advice in order i can go ahead for filing my tax
regards
mashu
You cannot claim more tax returns (if that's what your question means)!
1. You cannot file a joint tax return (filing tax together as you have asked in your post) in Canada.
2. You both have to file separete returns and include your spouse on your return.
3. If you have paid the tuition fees for your spouse, I think you get some educational credits for that - the tax experts will be able to give you details on this.
Good Answers by Cdn_Dude.
You can only minimize your tax liability by using legal tax strategies available to every one thus increasing your tax refunds.
You should probably see a tax professional who would optimize tax refunds by properly claiming education and tuition credits for your husband and transfer the remaining amount subject to some limits on your tax return to increase your tax refunds.
If this is not your first year of tax filing in Canada and you have RRSP contribution room then you can contribute money in RRSP which will get you more tax refund. If you do not have money to put in RRSP, you can still borrow and prime -1% and put in RRSP and pay back the loan from the tax refunds or in installments over a couple of years.
If you need help in any of these matters, you can pm me.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
oops...
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Originally posted by Pramod Chopra
Good Answers by Cdn_Dude.
Do you really think so Pramodji??? I find the anwers a bit confusing.
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Originally posted by ashakeel
Tax whizzards---few questions
I am going to file my tax soon. My questions is as follows:
My husband was not working last year except 2 last months, and his income is very less compared to me as he was completing his education in canada.
Now in my turn I have work the whole year with an income bracket over $50K. what i would like to know how can i claim more tax returns???
Should my husband file seperate becoz he receive less income and can earn more returns and i file seperate by transfering his tuition fees on my income??/
Or
Should we file together?
Pls advice in order i can go ahead for filing my tax
regards
mashu
File a joint return. You can claim spousal deduction and education and tution credits for unused portion of your husband's education exp. You can go for RRSP if room allows you. Contact a tax professional or you may also conatct me for taxes and RRSP.
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416-305-0080
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Quote:
Originally posted by chandresh
Quote:
Originally posted by Pramod Chopra
Good Answers by Cdn_Dude.
Do you really think so Pramodji??? I find the answers a bit confusing.
Chandresh
What's wrong with his answers, Chandresh ji? I did not find them confusing, may be I missed some thing. Please accept my apologies.
I though He is right when he says that you can not claim more tax returns what are legally due to you. I clarified that he can 'optimize' his tax situation by using legal tax strategies.
Secondly, he wrote that you can not file joint tax return in Canada which is right as here spouses file individual tax returns and not as a family even though they have to report each others income in their indivdual tax returns. They also get individual tax refunds, however, certain claims can be transferred to each other while others can be claimed by any one spouse.
I thought that his answers were simple enough to be understood by the OP, and if there was any clarification needed, he/she could have asked.
However, please let us know if there is any thing wrong with his answers or what you found confusing which confused a 'Tax Wizard" like you.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
