Posted on: 02-10-04 10:03:59
Hi,
I have queries regarding following matters.
Q1: I am in permanent job and getting salary after proper tax deduction.If my tax is deducted in my each salary pay after I file tax return form do I need to still pay anything more.If I need to pay more what is the calculation for that ..my thinking is as I am already paying tax per tax stucture related to my pay scale I shouldn't be paying anything more..Am I correct?
Q2: I am spending good amount of money for My wife's Masters education will I get tax rebate on that..Do I need to provide any doc with my tax return file.If YES It will be against my file or mu wife's file?
Q3: For this financial year I am receiving Full Child Tax benefit because I was out of Canada dring 2002 and 2003 and showed very low income aborad.But because I am drawing good salary for the year 2004 do I need to return back all child tax benefit for the year 2004(with my salary stucture I am supposed to get very little amount although this amount is going to my wife's account).I am spending for my child daycare etc ..can I get a Tax rebate on that
Q4: When I first landed in Canada my friends use to advice me to keep all bills for future record and I could get TAX rebate on my spending ..is this statement correct
Will appreciate any kind of feedback/info
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ani
Quote:
Orginally posted by ani70
Hi,
I have queries regarding following matters.
Q1: I am in permanent job and getting salary after proper tax deduction.If my tax is deducted in my each salary pay after I file tax return form do I need to still pay anything more.If I need to pay more what is the calculation for that ..my thinking is as I am already paying tax per tax stucture related to my pay scale I shouldn't be paying anything more..Am I correct?
Q2: I am spending good amount of money for My wife's Masters education will I get tax rebate on that..Do I need to provide any doc with my tax return file.If YES It will be against my file or mu wife's file?
Q3: For this financial year I am receiving Full Child Tax benefit because I was out of Canada dring 2002 and 2003 and showed very low income aborad.But because I am drawing good salary for the year 2004 do I need to return back all child tax benefit for the year 2004(with my salary stucture I am supposed to get very little amount although this amount is going to my wife's account).I am spending for my child daycare etc ..can I get a Tax rebate on that
Q4: When I first landed in Canada my friends use to advice me to keep all bills for future record and I could get TAX rebate on my spending ..is this statement correct
Will appreciate any kind of feedback/info
1. The employer's deduct income tax according the formula's set by CRA and most of the time, if your tax is being deducted properly, you would end up getting a refund as you get certain refundable and non refundable credits. However, the formula depends on what you told to your employer at the time of your joining or fill in the tax decleration form about the 'spousal' dependency. If you showed your spouse as dependent on you and not earning income, then they will give you credit for spousal deduction as well and would deduct less tax. But if your spouse earns some income, then you would not get that decution and may have to repay that tax which was not deducted by the employer. Of course, your final tax liability would be determined taking in to consideration of the credits mentioned above.
2. Yes you can get the credit for tution and education amounts spent on your spouse's education subject to certain conditions as follows:
You may be able to claim tuition fees paid for courses you took in 2004 at a designated educational institution. You cannot claim books or other expenses. You may also claim tuition fees paid to educational institutions outside Canada
To qualify, the total tuition fees that you paid for the year to any one educational institution must be more than $100.
Tuition fees must first be claimed by the student, even if someone else paid them. Once the student has claimed the amount required to reduce his or her federal tax to zero, any remaining amount may be transferred to a parent, grandparent or spouse.
On your 2005 return, report the tuition fees paid for courses you took in 2004. Any portion of the tuition fees and education tax credits not used up by the student and not transferred to a spouse or parent may be carried forward to subsequent years.
3. The child tax benefit amount depends on your net family income for the year 2003 and you will get the same till June 2005. Your 2004 income would determine the benefit amount from July 2005 to June 2006 and you do not have to pay any claw back for the benefit amount you receive till June 2005. You do get some rebate in taxes because of day care expenses but there are certain conditions to be met and your accountant or tax preparer would check the same for you.
4. What types of bills you are talking about? If you are in employment, you do not get tax rebates for such bills (?) but may get some if you are a commissioned employess, independect contractor or self employed. You may get some rebate on your expenses if you moved residence to a place more than 40 KMS away to start a new job. Again, I would advise you to ask your tax preparer or accountact in your specific situation if it applies to you.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks a lot Pramod
I really appreciate your help on this
Thanks
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ani
