Thursday, April 26, 2007

Taxes Done and Waiting

As I previously mentioned I was expecting a big tax refund this year. Initially I estimated I would be over $5000. Since then I have filed both my wife's and my returns and now I'm waiting for my over $7000 tax refund. Yes it got that high. I'm not really happy about it and now I'm getting impatient for that money so I can pay off my furnace I installed last month.

I thought it might be useful to review where all these deductions came from and how I paid so much tax in the first place.

First off I paid too much tax due to a large bonus at my previous work place. Then with moving just after paying my CPP/EI for the year (basically I paid CPP/EI twice for the year, once at each job).

This is a few deductions I used:

-I moved over 1400 km which produced a $11,000 moving deduction
- I claimed partial northern living allowance for half the year to get another couple of thousand deducted
-My wife's business income was low enough she paid no tax and transfered the remained of her basic deduction to me
-Then the RRSP's also deducted another few thousand dollars

Overall I broke over $15,000 in deductions before I even used any tax credits to finish dropping my tax bill. Yet my biggest disappointment about filing my taxes this year was waiting for my T3 slips for my wife. I honestly got the last one on April 17th. To say I was a bit mad over the wait was a bit of an understatement. I just can't understand why they can produce T4's by the end of Feb, but I can't get a T3 until mid April!


SavingsJourney said...

Nice return! Me and my wife are expecting a big return next tax year - so far we've estimated:
- 7,000 tuition credit for her
- Approx. 16,000 return for 40,000 RRSP contribution (does that sound about right? I have about 100K in unused contribution room & plan to do a 20K spousal RRSP contrib + 20K into my own this year)

For a grand total of 23,000...I'm excited thinking about it already, but I don't know how accurate it is...hopefully it's not off by more than 1 or 2K :)

pragmatic said...

I believe the T3's take longer because the financial institution needs to get the information from the issuing company of the securities first. (ie. a third party).

T4's come faster because they come directly from your employer and they don't have to wait for another party. Same with T5's as they come directly from the financial institution.

Canadian Dream said...


Yes that would explain some of delay, but I still don't understand why the government can't move up the date for the T3 to be out to the end of Feb. At least I see my T3 an entire month earlier.

O well I suppose that's life.

Thanks for the comment,

Canadian Dream said...

Ok, one last update. I went to the bank at lunch to get some cash and almost fell over when I looked at my slip. My paycheque and tax refund went in at the same time. So for a few hours I'll have a five digit balance in my chequing account.