INCOME TAX $ 16000 nope it was just not enough taken off.for the goverment end
 

got a phone call from Tammy " Hi there whats going on"
" Mike are you sitting down"
why this is not funny
All I thought about was My dad or mom passed away"
Ya I told her I said tell me its not Mom or dad
Nope they are alright well what is so bad.
We got our income tax back oh ya right on
Nope we own $16,000

WTF AFG#%^^#Q%Y$^^#^
hold on
how can I hold on!!!!! what the hell happened
I guess that she didnt take enough off for income taxes she did so good last year making $80,000 and did nt take enough off now that she wa sin the %50 tax bracket
there goes alot of stuff to pay this off.
not to mention is it worth it to sell the complete system.

I have til the end of APril to pay this talk about a messed up goverment

WOW

Ugly.
They will give you time if you ask for it

about three years ago I got a bill for $8800 from the criminals that are called the goverment. I was ****ed off because H&R block messed up on my RRSP.

I owe similar to this yearly as well mate, you should give every single penny *up to the maximum* to your favorite charities instead of paying it to the government... Ya know if you are into it.

Call the CRA and ask how much you are eligible to give and the maximum you can give to each charity.

Yeah, I hate this time of year....I don't know what I'm waiting for but I always wait till the last minute before I make my donation to our elected thieves in Ottawa.

Bummer dude. See, this is my love hate relationship with my work. I get paid so little as a PhD student that I get all of my taxes back. I wish I made enough money that I had to pay $16k in taxes... Then again your taxes are like 70% if my income, so ummmmm... Kinda glad I don't owe that.

I've had friends in this situation before. Usually if you ask nice they'll give you more time.

I feel for you...between my wife and myself we paid 47 000 in income tax alone this year hate being in the middle class make decent money but have no deductions bracket. The good news for us is we still pay so much student loan interest we do get a bit of a refund every year for what seems like forever until they are paid off......

that does suck to find out about that all of a sudden.

Something must have been awry though because income tax on 80,000 in MB should be just over 22k. Not nearly 50% either....in any case I know that you are ticked off right now and someone messed up.

Sorry to hear about that, I hope things work out.

the government will never give you a break. you can take your time to pay, but with interest and some sort of penalties also, so keep that in mind.

If H&R Block did your taxes, aren't they liable for some kind of damage? I mean this is a pretty huge oversight by someone who's been paid to do your taxes.

Politicians are like hookers, they bother pretend to like you while they're F@#$^%$ you and taking your money!

most are so arrogant they don't even pretend.

As for the 16000 have you gone to an accountant, they might be able to squeeze some more back

I'm confused how you could possibly screw up to the point of owing $16K more than expected. Provincial tax over there is the same for anything over $67K and if you messed up on the Federal by estimating a lower bracket you should only be seeing a 4% increase which is only $3200 on $80K. Even at the highest bracket $16K in taxes would mean you didn't claim close to $40,000 in income.

Shoot me a PM if you need some help checking this, at $80K you should have to only pay a total of $22,780 in total income tax and that's before using any credits or deductions. Your average tax rate is only 28.48%, 43% is the marginal but you don't pay that on all the income. Also if you're close to a tax bracket consider putting some money in the old rrsp.

Personally I never recommend H&R Block... They are not even real accountants, just trained people with very little to no knowledge of taxation. I went there once years back, and they wouldn't even allow me to write off the previous years accountant fees. I was self employed and allowed to. But they said no, so I left... Never again.

I wish you luck on working this out, as that is a big chunk of change.

Oh, I am by no means recommending H&R Block. Asmodeus just said they did his taxes and messed up pretty bad. I see no reason he can't go to them to see what they can do. At the very least, he should get a refund on the services as they were paid for something they didn't do correctly.

um, you don't have to the end of april to pay it back, you can make installment payments. if you owe over 3000.00 you can spilt it in to 4 payments one evey 3 months.

here is the info http://www.cra-arc.gc.ca/E/pub/tg/p110/p110-e.html


Steve

i'm checkng in to this folks Im trying to figure out what is happening and what theheck went wrong. We did take out a loan for 10,000 for RSP's and have to pay that back and im getting back 4200 and that will be used for that money. She is also a realtor and is self employed that is how they work. SO i guess that she made 80,000 last year and with the deductions she got it to 46,000 and so she paid taxes on 46,000 which works out to 11,300 something like that . plus the GST that she has to pay.
so it adds up so i guess the we are going to use the 4200 that i got to off set the money. i may take that and put it back into RSP to help it out .

i told her that she shopuld get someone else to check it this lady is a accountant for the firm that she works at.

I make similar and ALL my taxes only add up to that.

But it sounds like the big hit is paying all the tax on the withdrawn RRSP's you took out. I'd pay that back instead and your taxes should drop like a rock.

Unless you absolutely need the RRSP money, I'd avoid touching it, unless it is through the Home Buyers Program which allows a tax free withdrawl of RRSP's for first time home buyers.

I think interest on a line of credit would be cheaper than the tax bill...

P.S. Maybe call the CRA and see what your options are? Make sure to talk to someone who actually knows something, not a temp. They have a lot of temps this time of year.

You don't have to pay it all of it back at once, I had around 4600 tax bill last year, I paid it in 4 installments at 2% interest rate. sorry to hear that. good luck.

I agree, he should go back. If they screwed up, they should stand by their work and try to fix things for him.

Doesn't sound like it's wrong. I know it sucks, but that's pretty typical when you are self-employed and make more money for the first time. The biggest problem is the CPP on the self-employed income which would be close to $4000 of the $11,300. Most of my realtor clients just send in their total GST collected and then get a refund on their input tax credits when they file. And they usually also send in about 15% of their gross earnings just so they don't have this problem. They will give you a little leeway on your taxes and charge you interest at about 7%, but they will hound you to death about your GST if you are behind. Make sure you file it on time though so you don't get hit with the penalties.

Also be prepared for them to send you a nice little present in August requesting installment payments of about $5650 on Sept 15 and Dec 15 for 2011. They only let you go one year and then you need to pay along the way again.

Yuppers, I agree with the above.

If not incorporated. Not sure if you can or not, but if you can, look into incorporating... There are benefits. First would be paying a maximum tax of 18% as the corp (I think that is the amount), then dividending the shareholders. Dividends are almost tax free to the shareholder, I say almost as there is an accountment of some on the t4'd income. Something to look into for future. many ways to pay yourself this way. Also if dividended out, then no CPP, so no worries about that money. Or you can even do partial t4'd income and dividends. Basically more options.

But don't go to H&R for this, as their heads will explode. You will need to seek a real accountant to do the books this way.

If you can work this way, basically you can keep more money, and all done the honest way.

You may have misread, I don't think he withdrew money from an RSP. He/they took out a loan to buy RSPs in order to bring taxes down.

Ah, then it really sucks :cry:

As global mentioned, maybe look into incorporating and going the dividend route. Works well for me, but I guess each case is different. Just keep in mind you wouldn't be paying into CPP or EI... So that's one downside.

Cheers.

I think and correct me if I'm wrong, but the book keeper that does the book keeping for her real estate firm did the taxes These book keepers are NOT accountants.

I would guess that the money she owes is broken down into GST owing (so many new business owners/self employed people forget that it is NOT income in their pocket) and they probably disallowed a large number of the deductions she made.

The only advice that should make any difference in this situation is she should go to an accounting firm and talk to a CA or CGA and set up a tax plan.

it works out right so in the end we owe 2000 something like that no biggy the 11 grand is in account so that is good. im going to get her to explain it to me later

I sold Real Estate in the US for years.. And am not familiar with Canadian Tax laws, but in the US I could take deductions for actually expenses such as fuel, meals, clothing, etc.. And also depreciate my vehicle.

ya she did all the deductions for gas and other thingsit came down to it was just that my wife didnt put enought away for the income tax. but it works out in the end its only costing 2000 the bummer thing is the ectra mone that she put away relly is what thatshe should have given back so ya its not that bad now

Glad its making sense... I still would really advise you to sit down with a real accountant and come up with a tax strategy. It's amazing how much money people can leave on the table without an appropriate strategy.