(Closed) Anyone know something about Canadian taxes?

posted 7 years ago in Money
Post # 3
Member
869 posts
Busy bee

@mrsbruff2b:  I’m not 100% positive, but I’m pretty sure this is how it works.  They basically go over everything once you submit your claim.  The fix any errors/oversight on your part (this can go both ways – positive or negative), and then refund you whatever the accurate balance is.  This often happens with CPP or EI overages that some people have paid (when employers continue to deduct CPP and EI, even after you’ve reached the annual max).  As far as tuition, there is a max amount you can claim each year, and anything left you can carry forward to future years, usually until it’s used up. So maybe what you’re seeing is unused tuition being carried forward from a previous year (you may have sent them the documents for this in a previous year).  That’s how it worked for me when I was in school, and after I graduated. (Things might be a bit different now, I graduated in 2005).

Post # 5
Member
1856 posts
Buzzing bee
  • Wedding: March 2013

They’re presumably using some of your unused tuition balance that you’ve told them about whenever you did your taxes as a student – you input the tuition amounts you paid, calculate what percentage can/should be claimed that tax year in order to pay down anything you owe to the government, and then the unused amount is carried forward for future years and can be used to pay off tax balances on your taxes until it’s used up.

I’ve been paying tuition for so many years that I’ve got a lovely huge balance carried forward; I never owe the federal government because of it.

Post # 8
Member
1856 posts
Buzzing bee
  • Wedding: March 2013

Basically. Do you do your taxes using a program (like Turbotax) yourself or do you send them somewhere to do it? If you’re getting an accountant or someone to do them, they likely have been inputting your carried forward amount and then it covers anything that you would have owed. The different online/PC programs do it automatically if you have it set to import your previous tax info. I just did my taxes not long ago and from what I remember, I had the option (and always have) to transfer some of that unused amount to my parents to apply to their taxes. My understanding has always been that the unused amount carries forward to basically cancel out things that you owe as a ‘benefit’ of having paid tuition amounts.

Here’s the Canada Revenue Agency website about it. Apparently, you can’t transfer once you’ve carried forward amounts, but you yourself can eep carrying forward those unused amounts indefinitely. Your notice of assessment should say something like “You have x$ amount of tuition etc to carry forward…” – that’ll let you know how much you’re carrying forward to next year; depending on your tax situation, it may help pay down your payable tax down to zero for a couple of years.

 

 

Post # 10
Member
1856 posts
Buzzing bee
  • Wedding: March 2013

@mrsbruff2b:  No problem! I keep telling my Fiance that my enthusiasm for doing my taxes will one day come in handy Tongue Out

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