2008 Tax Thread for Canada

LaOs

So, Thanatos seems to be the man for the 2008 US Tax Thread, but what about us Northerners? Who will be our Thanatos?

I'd like if we could have a thread like the US one for Canadians, but I'm not sure if there's the knowledge-base here... hopefully I'll be proved wrong.

Generally, tips for filing electronically and doing your taxes on your own, and any hints for deductions, products to look for, or tricky situations would be appreciated. Basically, just like the other thread but for us!

Thanks for your help. I'll update this OP with appropriate information as it's posted.

wunderbar

heh, I'm not even thinking about taxes yet. I just got my T5 in the mail 3 days ago, T4's aren't even due out till February.

I just generally use quick tax and file online. even with 2 jobs, a moderate RRSP investment, and a couple other small things it usually takes me about an hour.

I *will* file as early as I can this year though. Going on a trip in april that my return will help pay for.

LaOs

wunderbar wrote: »

heh, I'm not even thinking about taxes yet. I just got my T5 in the mail 3 days ago, T4's aren't even due out till February.

I just generally use quick tax and file online. even with 2 jobs, a moderate RRSP investment, and a couple other small things it usually takes me about an hour.

I *will* file as early as I can this year though. Going on a trip in april that my return will help pay for.

Is the online filing free? How much did you (and should I) pay for Quicktax?

Basically, I'm going to file myself this year because I'm not cool with paying $99 to have my folks' accountant tell me I owe money to the Gov't. (I had some crazy part-time jobs and other crap the last two years and they didn't actually deduct enough, if at all--which I sort of didn't realise.)

I know I usually don't get my T4s until the end of February (curse those procrastinating employers!) but the US thread has me thinking about taxes and since I'll be doing my own this year, I've been anxious for the sort of advice in the American thread.

an_alt

I use ufile.ca as it's cheap ($20, iirc) and pretty easy. The hard part, as always, is tracking down all the donation receipts and other pieces of paper I meant to put away properly.

Gilbert0

Electronic submission works like the following. You can use any tax program to create your return and differnt ones have different prices (quicktax, ufile, H&R block has one now). Then you sign up for an online gov't account (free) and submit the file that your tax program creates.

All you have to pay for is the tax software, submission is free.

I like ufile online personally. Using it for last several years. Free if you make under $20,000 or are a post-seconday student (you input a code from the canadian federation of students). If you aren't one of those it's $15.95 + tax. Also, you can do your whole tax return and it will give you a summary of what you get/owe. You only pay to get the file you have to submit to the gov't of canada

Deductions to look for are Donations (Child's Play ), RRSP's, transit passes, tuition credits, student loan interest.

Senjutsu

I got QuickTax last year for cheap at costco, and then got $10 rebate on top of it. It worked well, I filed for myself, my wife, my mother, and my sister through it, I was happy, I'll probably use it again this year.

wunderbar

Gilbert0 wrote: »

Electronic submission works like the following. You can use any tax program to create your return and differnt ones have different prices (quicktax, ufile, H&R block has one now). Then you sign up for an online gov't account (free) and submit the file that your tax program creates.

All you have to pay for is the tax software, submission is free.

I like ufile online personally. Using it for last several years. Free if you make under $20,000 or are a post-seconday student (you input a code from the canadian federation of students). If you aren't one of those it's $15.95 + tax. Also, you can do your whole tax return and it will give you a summary of what you get/owe. You only pay to get the file you have to submit to the gov't of canada

Deductions to look for are Donations (Child's Play ), RRSP's, transit passes, tuition credits, student loan interest.

shit, I totally didn't even think about claiming Child's Play last year. Will definitely do that this year.

Gilbert0

Senjutsu wrote: »

I got QuickTax last year for cheap at costco, and then got $10 rebate on top of it. It worked well, I filed for myself, my wife, my mother, and my sister through it, I was happy, I'll probably use it again this year.

You'll need to go buy it again. That's how they make their money. You have to buy the new software every year. Or pay for a patch to get this years returns.

Here's a wikipedia comparison as to what's out there (30+ programs). Windows, Mac and web.

Edit: Forgot link: http://en.wikipedia.org/wiki/Comparison_of_Canadian_tax_software

Cycophant

I've been using CuteTax for the last few years and been quite happy. It sounds pretty similar to uFile, in that if you make under $20k a year or so, it's free to file. Otherwise it's $15 or so.

For my first few years filing, I used to just fill out the paper return, since I kind of liked to be able to see how the deductions and everything worked. But I find it a bit too much work now, although I still reference it now and again.

Which brings me to my next question, how do any of you manage to get any actual deductions out of charitable donations? Or do you just donate a lot? Because if I remember correctly, only 15% of the donation actually gets applied as a tax credit. Which I guess in combination with lots of other things adds up, but still. Most of the time I just don't even bother putting it down.

Gilbert0

Cycophant wrote: »

Which brings me to my next question, how do any of you manage to get any actual deductions out of charitable donations? Or do you just donate a lot? Because if I remember correctly, only 15% of the donation actually gets applied as a tax credit. Which I guess in combination with lots of other things adds up, but still. Most of the time I just don't even bother putting it down.

Even if you donate $20, it's $3 back. Every little bit helps. Overall it doesn't really make a big impact but wouldn't you rather have the $3.

Also another reason I like uFile is that it will carryover everything over from the last year. Not having to re-enter stuff is so nice.

wunderbar

Gilbert0 wrote: »

Cycophant wrote: »

Which brings me to my next question, how do any of you manage to get any actual deductions out of charitable donations? Or do you just donate a lot? Because if I remember correctly, only 15% of the donation actually gets applied as a tax credit. Which I guess in combination with lots of other things adds up, but still. Most of the time I just don't even bother putting it down.

Even if you donate $20, it's $3 back. Every little bit helps. Overall it doesn't really make a big impact but wouldn't you rather have the $3.

Also another reason I like uFile is that it will carryover everything over from the last year. Not having to re-enter stuff is so nice.

Yea, I mean, I donated $100US to childsplay this year, when the dollar was at about .75. so i spent about $125. That means I'll get roughly 18.75 back, which isn't a ton, but hey, it can make a difference. Plus, it's not like it takes a lot of effort to claim it.

Serpent

Cycophant wrote: »

Which brings me to my next question, how do any of you manage to get any actual deductions out of charitable donations? Or do you just donate a lot? Because if I remember correctly, only 15% of the donation actually gets applied as a tax credit. Which I guess in combination with lots of other things adds up, but still. Most of the time I just don't even bother putting it down.

some people sponsor children at $40 a month = $480 a year.
then add in sponsoring amnesty international at $40 a month = +$480 a year.

some people give a ton of money to religious organizations, ~10-15% of salary say which could be $5000 to $10000 a year pretty easily.

Or maybe they heavily sponsor a breast cancer foundation....

and so on and so forth.

Forar

I've vowed to myself that I'm going to file early for once, and avoid the usual 'last few weeks crush'. I've tried the online stuff, but in the past I had some error that prevented me from just submitting it electronically, so I could either go find a place with a printer, print off a pile of shit and mail it to the government, or just go to H&R Block. Since I work at a mall that has a temp H&R Block show up during tax season, and thus get a discount, I usually just go with them.

Sure, I end up paying an extra $40 or something, but the peace of mind that it's going to be done and dealt with on the spot is nice, and it gives me someone to ask questions about various things right then and there, rather than having to go hunting for answers.

I applaud anyone that successfully does the online thing. I'm told it's not a big deal, but I've decided in my old age that I'm willing to pay a bit more for convenience and a reliable second opinion.

Senjutsu

Gilbert0 wrote: »

Senjutsu wrote: »

I got QuickTax last year for cheap at costco, and then got $10 rebate on top of it. It worked well, I filed for myself, my wife, my mother, and my sister through it, I was happy, I'll probably use it again this year.

You'll need to go buy it again. That's how they make their money. You have to buy the new software every year. Or pay for a patch to get this years returns.

Well, yeah, I meant I'll probably go buy this years version from costco again.

I felt the value I got last year was good, for the money.

Senjutsu

I dunno, I've done the H&R Block thing, they're basically just mouse monkeys I'm paying a lot of money to do what I did myself with quicktax

for me, it didn't seem to be worth the money

Forar

I totally agree that H&R block aren't worth the money if you have a smooth time doing your own taxes online. I had enough trouble doing this, however, and am strangely comfortable overpaying a bit. Sure, I'd like the extra $40 or whatever I'd save by doing it online, but I usually get a reasonable return, so it's not really a big deal to me.

LaOs

Gilbert0 wrote: »

Cycophant wrote: »

Which brings me to my next question, how do any of you manage to get any actual deductions out of charitable donations? Or do you just donate a lot? Because if I remember correctly, only 15% of the donation actually gets applied as a tax credit. Which I guess in combination with lots of other things adds up, but still. Most of the time I just don't even bother putting it down.

Even if you donate $20, it's $3 back. Every little bit helps. Overall it doesn't really make a big impact but wouldn't you rather have the $3.

Also another reason I like uFile is that it will carryover everything over from the last year. Not having to re-enter stuff is so nice.

Isn't that only the tax on three dollars that you save or "get back", not three actual dollars?

Al_wat

i used ufile last year, it was pretty easy. To tell the truth though my tax situation isn't exactly complicated, I just had my T4 and some moving expenses to put on there.

One question I have which is pretty simple (arguable stupid) though; what is the time period for which we have to file? Is it jan 08-Dec08, or does it overlap into 2009 at all?

This matters to me cause I stopped working at my last tax claimable job in May of last year, I'm wondering how much of that I can claim.

Cycophant

LaOs wrote: »

Gilbert0 wrote: »

Cycophant wrote: »

Which brings me to my next question, how do any of you manage to get any actual deductions out of charitable donations? Or do you just donate a lot? Because if I remember correctly, only 15% of the donation actually gets applied as a tax credit. Which I guess in combination with lots of other things adds up, but still. Most of the time I just don't even bother putting it down.

Even if you donate $20, it's $3 back. Every little bit helps. Overall it doesn't really make a big impact but wouldn't you rather have the $3.

Also another reason I like uFile is that it will carryover everything over from the last year. Not having to re-enter stuff is so nice.

Isn't that only the tax on three dollars that you save or "get back", not three actual dollars?

That's kind of how I thought it worked too, though I never really looked at the math to confirm. Although I did just read that you get back somewhere closer to 30% of your charitable donations above $200, so it adds up faster if you donate a lot.

Al_wat wrote: »

One question I have which is pretty simple (arguable stupid) though; what is the time period for which we have to file? Is it jan 08-Dec08, or does it overlap into 2009 at all?

This matters to me cause I stopped working at my last tax claimable job in May of last year, I'm wondering how much of that I can claim.

It's 2008, the full year. January 1st 2008 through to December 31 2008.

Jean

I bought parts in a mutual fund at the beggining of '08. Needless to say, my parts are worth less now than when I bought them. Do I have to include that in my tax files? I bought, but didn't sold a single part.

Al_wat

Awesome thanks. That means I can rely on getting some kind of a refund this year.:^:

LaOs

Cycophant wrote: »

LaOs wrote: »

Gilbert0 wrote: »

Cycophant wrote: »

Which brings me to my next question, how do any of you manage to get any actual deductions out of charitable donations? Or do you just donate a lot? Because if I remember correctly, only 15% of the donation actually gets applied as a tax credit. Which I guess in combination with lots of other things adds up, but still. Most of the time I just don't even bother putting it down.

Even if you donate $20, it's $3 back. Every little bit helps. Overall it doesn't really make a big impact but wouldn't you rather have the $3.

Also another reason I like uFile is that it will carryover everything over from the last year. Not having to re-enter stuff is so nice.

Isn't that only the tax on three dollars that you save or "get back", not three actual dollars?

That's kind of how I thought it worked too, though I never really looked at the math to confirm. Although I did just read that you get back somewhere closer to 30% of your charitable donations above $200, so it adds up faster if you donate a lot.

Al_wat wrote: »

One question I have which is pretty simple (arguable stupid) though; what is the time period for which we have to file? Is it jan 08-Dec08, or does it overlap into 2009 at all?

This matters to me cause I stopped working at my last tax claimable job in May of last year, I'm wondering how much of that I can claim.

It's 2008, the full year. January 1st 2008 through to December 31 2008.

That's just a pet peeve of mine when tax breaks and deductions and things like that are talked about... friend says he's getting $100 back because he can claim up to that much for having his taxes done/doing them, when I'm pretty sure it's just the tax on $100.