Tax day in the USA..

[January Guy]

Originally Posted by Mercy

Tax day was not kind to us this year. I wrote two very large checks... with more to follow

As I always say...it is good to be paying a lot of taxes, as it means you must be making a lot of money. Not always true, but you know what I mean.

My best buddy is a successful dentist and I'd gladly trade my tax bill (and income) for his.

[Rissask]

It's also good to have a creative accountant and put lots into mutual funds/RRSPs (by saving in addition to your pension plans).

Hubby got just under $8000 back and I got $5000. Woot woot.

[January Guy]

Originally Posted by Rissask

It's also good to have a creative accountant and put lots into mutual funds/RRSPs (by saving in addition to your pension plans).

Hubby got just under $8000 back and I got $5000. Woot woot.

Is married filing separately more common in Canada? Most file jointly in the US.

[Babaloo]

Originally Posted by Rissask

It's also good to have a creative accountant and put lots into mutual funds/RRSPs (by saving in addition to your pension plans).

Hubby got just under $8000 back and I got $5000. Woot woot.

$13,000 that could have been collecting interest

[Rissask]

Originally Posted by January Guy

Is married filing separately more common in Canada? Most file jointly in the US.

For personal income tax, each person who earns income files as an individual, regardless of gender or marital status.


Income taxes in Canada - Wikipedia, the free encyclopedia


It's not that complicated. Don does our taxes, actually. We have a financial advisor though.

[Rissask]

Originally Posted by Babaloo

$13,000 that could have been collecting interest

Actually it was, all year in our money market accounts, as we added to it every two weeks. Then we wrote checks to our financial guy in January and got the slips from him by the end of February.



What's with the rolly eye guy?

[beer_dude]

Originally Posted by Rissask

Actually it was, all year in our money market accounts, as we added to it every two weeks. Then we wrote checks to our financial guy in January and got the slips from him by the end of February.



What's with the rolly eye guy?

Better than a Hairy Eyeball!

[Rissask]

Originally Posted by beer_dude

Better than a Hairy Eyeball!

not much different, really

[user 6507]

If we get a refund it will just be used to pay other taxes...property...maybe we'll have enough left for a pizza...

[Babaloo]

Originally Posted by Rissask

Actually it was, all year in our money market accounts, as we added to it every two weeks. Then we wrote checks to our financial guy in January and got the slips from him by the end of February.



What's with the rolly eye guy?

It was meant to be a wink.
So the $13000 refund you got back was collecting interest?

[Rissask]

Originally Posted by Babaloo

It was meant to be a wink.
So the $13000 refund you got back was collecting interest?

I see what you saying.

We didn't get a 'tax refund', per se.

We got back a big chunk of the money that we were saving throughout last calendar year to invest into RRSPs/retirement savings, in addition to our pension plans that are automatic through payroll at work.


If we had not invested that money, we would have broke about even.


ETA: Americans can do that too, right??

[Rissask]

Maybe you don't have the same thing?


What is a Registered Retirement Savings Plan (RRSP)? | RRSPs (for retirement) | Investor Education Fund

How much can I put into my RRSP?

There are rules about how much you can contribute each year. You can put more money into your RRSP as your job income grows. To find out how much you can contribute this year, look at the statement you got back from the government when you did your income taxes last April.

How do I reduce my taxes?


When you put money into your RRSP account, you get a receipt proving how much you contributed. You don’t pay income tax on this amount at tax time if it stays in your RRSP. You only pay the tax when you take the money back out of the plan.

1. How do I make my savings grow?
   You use the money in your RRSP account to buy investments. You can choose from many kinds of investments. The money you make on your investments is not taxed, until you take it out of the plan.
2. Can I spend the money in my RRSP before I retire?
   
   The answer is yes, but you will have to pay the tax you owe unless you borrow the money to:
   • Buy a first home: You can use up to $20,000 from your RRSP for a down payment on your first home.
   • Pay for education: You can use some of the money in your RRSP to help you or your spouse go back to school. There are rules about how much you can take out each year.

If you borrow money from your RRSP for a home or education, you will have to pay it back, but you will have a number of years to do so.

Remember: The main reason to get an RRSP is to save for retirement. For many Canadians, RRSPs will be an important part of their retirement income.

I should add we also invest in tax free savings accounts, not only RRSPs. And that this year we have set up auto deductions to go to our investment accounts instead of saving ourselves.

[kathy.web]

Here are some corporations freeloading on taxpayers.

[January Guy]

Originally Posted by Babaloo

$13,000 that could have been collecting interest

People ask me all the time whether getting a big refund is bad because they could have been earning interest. I think for the vast majority of people, it is better to get a bigger refund as they will put it to good use, compared to if they had it in every paycheck, it would get spent on little things that they don't value as much.

Certainly the best economical answer is to budget and pay in the max amount without getting penalized at the end of the year, but most folks don't operate that way financially.

[equinenut]

Originally Posted by kathy.web

Here are some corporations freeloading on taxpayers.

Yep, includes my employer

Not a lot of jobs added where I work and we MADE big money for the business in 2010.