Income tax question

[bucktail]

Well sitting here trying to do my taxes.

Firsst time I have claimed the wife as a dependant, question is she made less then her personal amount, but what do i do with the income tax she has paid.

It is not much but better in my hand then therees.

 

Aldo first year with daughter in college and I have no idea if I can claim her as another dependant or should I just file her seperate.

 

Any help would be appreciated

 

 

Darren

[Dara]

Your wife has to file her own return. She will get back any tax she paid that way. You claim her as a dependant and I believe you show her income.

Your daughter files her own as well. I believe you can claim her tuition but she has to claim the rent and such if she lived away from home for school.

H&R Block is your friend...or read the book

[Gerry]

This is when you should see an accountant. You risk losing much more than the cost of a qualified professional. There are several issues here and Dara doesn't have them quite right.

Edited March 7, 2010 by Gerry

[Tdel]

I use Quick Tax Standard software to do my returns. Right now it is on sale for $29.99 at Staples and $34.98 at Future Shop. It has an Easy Step that you can follow and it will walk you through the process of filling out your return. You can do a total of 8 returns when the income is over $24000(approx) and all the ones under that amount don't count against those 8 returns.

 

Depending on how complicated your deductions and income might be you may be able to get away with just using Quick Tax Basic.

 

I was paying twice the amount that I pay for the Quick Tax Software (and sometimes more) to H&R Block or an Accountant to do the same thing the software did for me.

 

Tom.

[fisherman7]

This is when you should see an accountant. You risk losing much more than the cost of a qualified professional. There are several issues here and Dara doesn't have them quite right.

 

I have to agree. Just came from my accountant yesterday and there are so many issues we were not aware of. Software is good if you have a simple income tax to file but a professional knows (or should know) so much more.

[JohnF]

I'm a big fan of DIY in some things, but when it comes to my money I prefer to put my trust in an accountant. If you provide him/her with properly organized records and documentation it should be quite painless cost-wise. In fact I don't understand why so many folks run to a street corner short term rental office to have it done by someone who's on temporary employment when there are qualified professionals out there to do it. Part of the deal is the consistency of having one person do it regularly, someone who has your records from past years to reference. I can't count the number of times my accountant has identified something that I'd have missed, whether it was a legal deductible expense or something that I would have overlooked and perhaps run afoul of the revenooers for. YMMV

 

JF

[diggyj]

I honestly suggest you buy UFile. For the 19 bucks its worth it to DIY as already mentioned. I have been doing my taxes for my wife and I since 2006 using UFile and have never had a problem. When we got returns, they were accurate and when we owed they didn't come looking for more. Its easy to use and you can ad your wife to your return and it shows each persons amount owing or refund. I also used the Net File option for the first time this year since we are both getting returns.

 

Or you can walk in to H and R block and they will cut you a cheque on the spot if you are entitled to a refund, minus the commish of course.

 

Dirk

Edited March 7, 2010 by diggyj

[bucktail]

I was hoping we had our own tax accountant in our group here, ill bump this and let a few more people read it.

It will get much more complicated next year as wellso amybe an accountant is the way to go. Thanks for all the replies and if any one knowS a good one please feel free to post it.

[Dara]

This is when you should see an accountant. You risk losing much more than the cost of a qualified professional. There are several issues here and Dara doesn't have them quite right.

 

 

................skip it

Edited March 7, 2010 by Dara

[Tdel]

Obviously I wasted my time making a suggestion.

I will think about it twice next time.

 

Tom.

[Fisherman]

Obviously I wasted my time making a suggestion.

I will think about it twice next time.

 

Tom.

 

Don't let the door hit you in the arse on the way out.

[Dara]

Obviously I wasted my time making a suggestion.

I will think about it twice next time.

 

Tom.

 

 

Don't let it bother you. If they can't even spell, how can they add up their taxes.

[Tdel]

Don't let the door hit you in the arse on the way out.

 

That's not the first time I've been told that on this site and probably won't be the last either.

 

Tom.

[Tdel]

Don't let it bother you. If they can't even spell, how can they add up their taxes.

 

Not bothered here Dara and I can't argue with your logic either.

 

Tom

[grt1]

gee, you had a serious question.

 

I thought you'd be asking "Do I really HAVE to file" or Can I claim my boat as a dependent, since it costs me a fortune?"

[sirfish]

Don't get bent Dara, Gerry is right. If daughter lived at home and went to school,her primary residence is still home because she will be back after schools out no doubt. In school means she is still a dependent. If he is footing the bill for the schooling there are other things that can be claimed also. Once it goes beyond basic IT with resp,rrsp and such it time to let the pros do it...(no I don't work in the field)

[Dara]

Don't get bent Dara, Gerry is right. If daughter lived at home and went to school,her primary residence is still home because she will be back after schools out no doubt. In school means she is still a dependent. If he is footing the bill for the schooling there are other things that can be claimed also. Once it goes beyond basic IT with resp,rrsp and such it time to let the pros do it...(no I don't work in the field)

 

 

I was just wondering what part of what I said was WRONG.

Maybe mentioning H&R Block cause they can be pretty dumb sometimes.

Edited March 7, 2010 by Dara

[rob v]

I've used this software for the past several years and find it very helpful and easy.

 

http://quicktax.intuit.ca/tax-software/index.jsp

 

You situation isn't that complicated. Your wife and your daughter each file their own returns. Your wife will qualify to get a refund of the tax she paid. If I remember correctly she can than tranfser unused credits and deductions to you - this software will step you through it.

 

Same for your daughter. She'll file her own return and get a refund of any tax she paid while working her summer job etc. She can also then transfer a portion of her unused tuition credit to you - that you can then use as a deduction on your return - or she can keep that unused portion to carry forward to future returns/income she will have later. Again - this software will step you through it.

 

Or - if you're not sure - seeing a tax professional is the easiest route to take (might cost more) and lets you sleep better at night also.

 

I'm no accountant - but this software made it much easier for me to file my own returns.

Edited March 8, 2010 by Rob V

[Dutch]

First thing I will say is to NEVER, NEVER, EVER use H&R Block. In the world of tax preparation they are the Devil. Also, someone earlier mentioned about their advanced refund program - read SCAM. If you work out the effective interest rate on the two weeks you'd have to wait to get your money from CRA, the fees are extortionate.

 

Mini rant over.....

 

As far as your questions are concerned:

 

You aren't claiming your wife as a dependant, you will be transferring her non-refundable tax credits to you if certain income thresholds are not exceeded. You need to read this page.

 

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/nc...3/menu-eng.html

 

Also check out this link:

 

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/nc...6/lgbl-eng.html

 

As was mentioned earlier, you must file a return for your wife. Your daughter must also file a return. You cannot claim your daughter as a dependant based on the information in this thread. She would be able to transfer to you a maximum of $5,000 in tuition credits, if she does not need them herself.

 

In your situation, I would not reccommend a tax preparer. You return is fairly straight-forward, as are probably many of the other members on this board. There is an impression or understanding out there that taxes are difficult or that there are loopholes that someone can find that will save you taxes, in most cases this is not the case.

 

As far as tax programs go, there is a free one that works just as well as the ones you pay for. It is called studiotax, do a search if you like. As long as you understand the tax process, it is a very easy program to use, being free is all the better.

[irishfield]

You cannot claim your daughter as a dependant based on the information in this thread. She would be able to transfer to you a maximum of $5,000 in tuition credits, if she does not need them herself.

 

Be sure to do both the Provincial and Federal Tuition work sheets so both can be used, transfered and and if applicable any balances carried on!!

[PAZE]

Get an accountant, THEY KNOW MORE THEN NUMBERS, LOL, best money you'll ever spend, you will be shocked how much your loseing doing it yourself.

 

Paul

[Fisherman]

How about "read the instructions" christ it's not rocket science, all you do is plug numbers into little rectangles, add/subtract, a couple of percentage questions, oh my, wasn't paying attention in Gr 8 'rithmetic. How about getting the daughter to give a hand or is there another uh oh..math problem. At worst, if you screw it up, CRA will adjust and give the right answer. I've been doing mine for 39 years and only once used an accountant, and that's cause the company paid, never again.

[cityfisher]

i use to use QUick tax, but now i found a free one thats great.... Studio Tax... google it ... give it a go !

[torco]

First thing I will say is to NEVER, NEVER, EVER use H&R Block. In the world of tax preparation they are the Devil. Also, someone earlier mentioned about their advanced refund program - read SCAM. If you work out the effective interest rate on the two weeks you'd have to wait to get your money from CRA, the fees are extortionate.

 

Mini rant over.....

 

As far as your questions are concerned:

 

You aren't claiming your wife as a dependant, you will be transferring her non-refundable tax credits to you if certain income thresholds are not exceeded. You need to read this page.

 

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/nc...3/menu-eng.html

 

Also check out this link:

 

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/nc...6/lgbl-eng.html

 

As was mentioned earlier, you must file a return for your wife. Your daughter must also file a return. You cannot claim your daughter as a dependant based on the information in this thread. She would be able to transfer to you a maximum of $5,000 in tuition credits, if she does not need them herself.

 

In your situation, I would not reccommend a tax preparer. You return is fairly straight-forward, as are probably many of the other members on this board. There is an impression or understanding out there that taxes are difficult or that there are loopholes that someone can find that will save you taxes, in most cases this is not the case.

 

As far as tax programs go, there is a free one that works just as well as the ones you pay for. It is called studiotax, do a search if you like. As long as you understand the tax process, it is a very easy program to use, being free is all the better.

 

 

I am a Certified Management Accountant (CMA) but I will stress I am not Personal Tax Accountant. I mostly deal in the business world of accounting and not tax that said I have a pretty good background in tax as part of my education. I agree you appear to have a fairly straight forward return typical of most family with kids in college/university.

 

Depending on how comfortable you are with taxes and the tax software you can easily do all 3 returns yourself but if you are at all uncomfortable I would suggest hiring a professional tax accountant to do it for you. Please don't take it to H&R block or any other quickie place that springs up this time of year. Look for designated accountant perhaps one with a strong history in your community.

[JohnF]

How about "read the instructions" christ it's not rocket science, all you do is plug numbers into little rectangles, add/subtract, a couple of percentage questions, oh my, wasn't paying attention in Gr 8 'rithmetic. How about getting the daughter to give a hand or is there another uh oh..math problem. At worst, if you screw it up, CRA will adjust and give the right answer. I've been doing mine for 39 years and only once used an accountant, and that's cause the company paid, never again.

 

I agree that in it's simplest form income tax should be doable by the taxpayer with a program to guide him/her along. Unfortunately there are few of us any more whose income is not subject to various deductions and adjustments like CCA, dependents and secondary revenue sources and the chance of missing something that might be to your advantage is too great to risk DIY. I understand that the revenooers will point out errors but they can only correct what they know about. If you missed legitimate deductables that do not appear in the filing there's no way they'll be able to help.

 

JF