INCOME TAX $ 16000 nope it was just not enough taken off.for the goverment end - Page 2

Strickland_673 · #11 03-16-2011, 11:41 AM

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

mark · #12 03-16-2011, 12:45 PM

Quote:

Originally Posted by Strickland_673

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

sphelps · #13 03-16-2011, 01:24 PM

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.

globaldesigns · #14 03-16-2011, 03:10 PM

Quote:

Originally Posted by TheMikey

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.

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.

TheMikey · #15 03-16-2011, 04:01 PM

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.

StirCrazy · #16 03-16-2011, 04:58 PM

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

Skimmerking · #17 03-16-2011, 05:22 PM

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.

cwatkins · #18 03-16-2011, 05:46 PM

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.

Bblinks · #19 03-16-2011, 06:13 PM

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.

globaldesigns · #20 03-16-2011, 06:36 PM

Quote:

Originally Posted by TheMikey

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.

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