OT: Tax Changes for this Year? Big Refund?

[NikP]

One thing to think about for 2008 is filling out a new TD1 form and giving it to your employer. This will allow your employer to build the new child tax credit into your payroll deductions. That way you take home more on your pay cheque instead of waiting for a tax return.

I have been self employed for the past 7 years. When I worked for a company, every year they gave us the TD1 to complete. I just assumed this was common practice. (Now thinking back, it might have been because I worked in the accounting department, and everyone always updated their tax deductions.) But my husband has not received one in years. When we need the TD1, I have to call his company and talk directly to the payroll person in order for him to have one sent home. It seems his deductions are never what I project. There is always room for creativity in accounting.

 

[cslittle999]

Filling out a yearly TD1 form or not seems to really depend on how active your HR/payroll department is. Where I work HR and Payroll are done at our US-based head office so almost everything about Canada is depend driven. One of my staff actually brought the information about the new child deduction to HR's attention.

 

[CanadianGuy]

Mystery Partially solved..

I checked my files with HR for the TD1 I filled out last March. That accounts for approximately 75% of my refund.. the other 25% is the tax changes.

Apparently I requested extra withholding last March .. and completely forgot about it.

YAY!

Knox

 

[trish4bruce]

Do you have to pay to use that tax tool?

 

[mousy_in_canada]

doesn't that 2K per child end up being $310 or is it more than that? Just trying to think ahead.. I get my T4 next week but it is nice to think about what I am getting..

 

[CanadianGuy]

Do you have to pay to use that tax tool?

No.. QuickTaxWeb let's you play around .. for no charge.

You just can't do and submit your final return without paying.

 

[cslittle999]

doesn't that 2K per child end up being $310 or is it more than that? Just trying to think ahead.. I get my T4 next week but it is nice to think about what I am getting..

My wife used QuickTax today and it looks like we get back around $400 per child.

 

[CanadianGuy]

TD Canada Trust customers can get 20% off QuickTax pricing.

See the TD Canada Trust website for more.

 

[tribus121]

Just tried 'QuickTaxWeb.ca and will be getting back a little over $ 3000 may be a Little more as still have to round up some deductions yet

 

[cslittle999]

TD Canada Trust customers can get 20% off QuickTax pricing.

See the TD Canada Trust website for more.

I would add that it only applies to the online version. If you prefer the having the software locally there is no discount.

 

[CanadianGuy]

I would add that it only applies to the online version. If you prefer the having the software locally there is no discount.

Yes that's correct -- thanks for adding that..

 

[SaskDisNut]

Manulife Financial also has a 20% discount for QuickTax online. You can click this link to get it. It was 25% last year.

The CRA website has a list of Netfile certified software, both web applications and software packages. I think it is updated as applications become certified.

I had used QuickTax (web version) for a few years until last year. I really like the ease of use and not having to load software on my PC. But their pricing changed so doing 2 returns for DW and myself was getting too pricey. I looked around at other software and stumbled on StudioTax. It isn't as fancy or may not cover all situations but the price was right - free! I've also heard good things about uFile but I haven't tried it myself.

 

[digskat]

This will be a nice surprize!! DH and myself always pay extra income tax and get an already hefty return...this is our secret way of saving for our annual trip to WDW....this child tax credit what are the stipulations for annual income? I hadn't heard about it until the other day. Take Care Kat

 

[cslittle999]

The details on the new child tax credit are here, http://www.cra-arc.gc.ca/agency/budget/2007/taxcredit-e.html but this is the eligibility part:

Q.2 Who will be eligible for the New Child Tax Credit?

A.2 The 2007 Budget proposes that, where the child resides with both parents throughout the year, either parent would be entitled to claim the Child Tax Credit.

Any unused portion could be transferred to that parent's spouse or common-law partner.

If the child does not reside with both parents throughout the year, the parent who is entitled to claim the amount for an eligible dependant will be able to claim the Child Tax Credit.

I saw on another government web page that the amount goes to $2038 in 2008.

 

[5boyz]

Ok I am a tax moron...I don't do my own taxes. What is this Child Tax Credit you are talking about? I have 6 kids... 3 were under 18 in 2007 and 1 turned 18 in Sept. the other 2 are older. So what does this mean for me? Also I am a stay at home mom. Thanks!!

 

[Dragonfly*Tink]

There is also a working tax credit that was raised from $250 to $1000 per person this year. Also do not forget about Public Transit passes for every family member and the fitness credit. The $2000 per child under 18, was great for me! I have already filed and received my refund. Spending some of it on my trip coming up to DLR!

 

[Dragonfly*Tink]

Ok I am a tax moron...I don't do my own taxes. What is this Child Tax Credit you are talking about? I have 6 kids... 3 were under 18 in 2007 and 1 turned 18 in Sept. the other 2 are older. So what does this mean for me? Also I am a stay at home mom. Thanks!!

It means that you should qualify for a $6000 credit for the 3 under 18. The tax programs out are so easy to use and cost less than say, HR Block. I have done my own taxes for about 8 years now and am still learning!

 

[Momto4boys]

Holy Moly!! I thought I was going to owe but I will be getting a nice little refund !!! Woo Hoo!!!! Not enough for a Disney trip but will make a nice little dent in the debt from the furniture we just bought!

 

[trish4bruce]

Does anyone know if you are once again able to go to 'Quicktaxweb' and enter all your tax information to get an estimate for your 2008 taxes?

 

[Dragonfly*Tink]

You will be able to, but not until probably the end of January/early February. The CRA has not approved any tax company as of this date for netfile, however, you can start netfile on February 9th, so I hope they have it available soon! I would check back every few days.

FYI for anyone - I use Ufile and have never had a problem with it.