Anyone here a Chartered Accountant in Canada? I Have a question for you!
- Thread starter StageLeft
- Start date
What's your question? I'm not a CA but I have some friends who are. Heck, I took some accounting in University ... which hardly makes me a CA but I would love to hear your question anyways.
- Sep 29, 2000
- 70,150
- 5
- 0
Michael on the board helped me out, here is the question I posed - neither of us are quite sure exacty of the answer:
----------------------------------------------
I'm currently living in Canada and here is the question:
---
In January of this year I finished a technical diploma and the tuition was $23,600 for 9 months. I had no income for that year (was at school) and so I transferred $5k worth of my $23,600 to my mother so that she could claim it on her taxes. She claimed that and got some taxes back (she pays around half her income in taxes and got back $2500 out of that $5k tuition). This leaves me with $18,600 that I can claim for this tax year.
My tax bracket now means I'm paying 21.7% income tax. Over the tax year this will be something like $7-8k in taxes (started working as soon as school was done). If I claim the full $18,600 how much should I get back? A friend of mine mentioned that regardless of my current income tax I cannot claim higher than a 17% tax rate on this $18,600. However my mother claimed (legally) much higher, and so I'm figuring that at 21.7% tax rate I would have had to make about $23,750 to have the $18,600. Thus my reasoning is that I should be able to get back about $5,150 in taxes.
----------------------------------------------
I'm currently living in Canada and here is the question:
---
In January of this year I finished a technical diploma and the tuition was $23,600 for 9 months. I had no income for that year (was at school) and so I transferred $5k worth of my $23,600 to my mother so that she could claim it on her taxes. She claimed that and got some taxes back (she pays around half her income in taxes and got back $2500 out of that $5k tuition). This leaves me with $18,600 that I can claim for this tax year.
My tax bracket now means I'm paying 21.7% income tax. Over the tax year this will be something like $7-8k in taxes (started working as soon as school was done). If I claim the full $18,600 how much should I get back? A friend of mine mentioned that regardless of my current income tax I cannot claim higher than a 17% tax rate on this $18,600. However my mother claimed (legally) much higher, and so I'm figuring that at 21.7% tax rate I would have had to make about $23,750 to have the $18,600. Thus my reasoning is that I should be able to get back about $5,150 in taxes.
Skoorb,
I'm not a CA, but it sounds like this guy has about 3 questions rolled into one and it makes no sense to me. I don't know where he's getting the 21.7% tax rate from. I think on the tuition, he can only claim $200.00 for each month of a full time program, with certain conditions applying. The amount he can claim should be on the tax form his school gave him. Here's the site for the info you need. If you need more, just refer back to the main menu, on the same site.
Revenue Canada tax guide
Edit: if the page opens in the middle, just scroll back to "line 323".
I'm not a CA, but it sounds like this guy has about 3 questions rolled into one and it makes no sense to me. I don't know where he's getting the 21.7% tax rate from. I think on the tuition, he can only claim $200.00 for each month of a full time program, with certain conditions applying. The amount he can claim should be on the tax form his school gave him. Here's the site for the info you need. If you need more, just refer back to the main menu, on the same site.
Revenue Canada tax guide
Edit: if the page opens in the middle, just scroll back to "line 323".
- Sep 29, 2000
- 70,150
- 5
- 0
That person is me - I made the question
My 21.7% tax rate is gathered from my income. Excluding canada pension plan and employment insurance I am paying 21.7% taxes on every dollar I make. I actually went through that site last ngiht but it still didn't give me a complete answer ;(
PS - i just clarified a bit in my post...
My 21.7% tax rate is gathered from my income. Excluding canada pension plan and employment insurance I am paying 21.7% taxes on every dollar I make. I actually went through that site last ngiht but it still didn't give me a complete answer ;(
PS - i just clarified a bit in my post...
Sorry Skoorb. I misread your post. I've been up since the middle of the night doing some CAD drawings for a vet clinic. As for your question, it's been a long time since I've been in school, so now the tax rules are much different. From what it says on the forms, the total you can deduct should be on the Form T2202 Education Amount Certificate or Form T2202A Tuition and Education Amounts Certificate that your school gave you. I always thought you could claim most of it, but line 323 in the guide says you can only claim $200.00 for each month you were enrolled as a full time student. That seems like too low of an amount.I'm not sure if there's a way you can get around that and claim the full amount. Sorry. Wish I could help.
I should also have borrowed your sig for my post.
I misread your post. I've been up since the middle of the night doing some CAD drawings for a vet clinic. As for your question, it's been a long time since I've been in school, so now the tax rules are much different. From what it says on the forms, the total you can deduct should be on the Form T2202 Education Amount Certificate or Form T2202A Tuition and Education Amounts Certificate that your school gave you. I always thought you could claim most of it, but line 323 in the guide says you can only claim $200.00 for each month you were enrolled as a full time student. That seems like too low of an amount.I'm not sure if there's a way you can get around that and claim the full amount. Sorry. Wish I could help.I should also have borrowed your sig for my post.
- Sep 29, 2000
- 70,150
- 5
- 0
I sent the link to a friend in the same boat as me and he thought that $200 was only for expenses?
If that is the case I've now narrowed down that I am able to:
- Carry all the money forward
- get at least 17% tax return as long as it doesn't bring federal taxes < 0 (which it won't).
Thus I'll get at least $3150...and if they can base it on my higher tax rate I should get as much as $4k...I hope.
If that is the case I've now narrowed down that I am able to:
- Carry all the money forward
- get at least 17% tax return as long as it doesn't bring federal taxes < 0 (which it won't).
Thus I'll get at least $3150...and if they can base it on my higher tax rate I should get as much as $4k...I hope.
Well, I can partially answer your question for you or at least give you somewhat of an idea. I may be a bit off base in certain areas though so grain of salt applies here.
Okay, you have 18,600 left for the 2000 tax year. I'm just wondering if you can carry forward your education money to this year or whether it's all over for the 1999 year. Probably under "unclaimed tuition" I'm not sure about that. But if you say that you can use the 18,600 for this year then i'll take your word for it.
What you've calculated at 21.7 percent reflects a blended tax rate. From what I remember about taxes, any monies made under approx the poverty line of 12,000 (I think) is taxed at a very low rate, some 17 percent or something like that. Every dollar after that is taxed at around 27-29 percent depending on what province you live in. It varies. It ceilings out at around 30,000 or so. Then every dollar after that will be taxed at around 42 percent depending on what province.
BTW, GST refunds work on a sliding scale working out to 200 dollars or something like that once you hit the 30,000 dollar ceiling and quickly abates after that. Once you hit around 32,000 you really get nothin'.
You will be able to claim your tuition plus 200 bucks for each month of full time enrollment less any bursaries and such.
It is not a direct one to one tax return. Ie: if you make the same amount that you are claiming then you get all your taxes back. It is a formula. If you have ever done your taxes before then you will recognize the formula that they use. It is a blended combo of your defined taxable earnings minus your non-taxable deductions. Your education amount will be multiplied by a certain factor and that will be added on to any other non-taxable deductions like charity and such.
Anyways, without a form here to figure it out for you I would estimate that with a large amount like what you have I would take approximately 60-80% of the taxes you paid for the 2000 taxation year to be refunded to you. There may be a limit to the amount that you can claim for education as I remember something in the income tax form that limits possible abuse of this deduction and/or limiting your tax refund in general. If this is the case and you are limited then make sure that you transfer if possible the rest of the amount to your mother, whomever, because they are probably in a higher tax bracket than you are since you started working only this year.
Therefore, she will get more money back and you can get reimbursed from her ... or you can wish her an early happy birthday and send her on a trip or something like that.
As for my CA friends, I probably spoke before I thought since they all work for the same family firm and have just moved to New York for the year. Silly me. Hey, I don't think of these things of where people are until the last minute!
So, Skorb and geoff2k, i'm sorry I led you on. Skorb, you would probably be better figuring this out by walking into an accounting firm or maybe just calling H&R Block and trying to pry some answers out of them. Ie: how do they figure out Education amounts with regards to your personal situation. Our Federal website is probably a good place to go too. geoff2k, you would be better off just soliciting the same advice in the same areas or phoning up your local accounting firm or branch(es)
Good luck.
Okay, you have 18,600 left for the 2000 tax year. I'm just wondering if you can carry forward your education money to this year or whether it's all over for the 1999 year. Probably under "unclaimed tuition" I'm not sure about that. But if you say that you can use the 18,600 for this year then i'll take your word for it.
What you've calculated at 21.7 percent reflects a blended tax rate. From what I remember about taxes, any monies made under approx the poverty line of 12,000 (I think) is taxed at a very low rate, some 17 percent or something like that. Every dollar after that is taxed at around 27-29 percent depending on what province you live in. It varies. It ceilings out at around 30,000 or so. Then every dollar after that will be taxed at around 42 percent depending on what province.
BTW, GST refunds work on a sliding scale working out to 200 dollars or something like that once you hit the 30,000 dollar ceiling and quickly abates after that. Once you hit around 32,000 you really get nothin'.
You will be able to claim your tuition plus 200 bucks for each month of full time enrollment less any bursaries and such.
It is not a direct one to one tax return. Ie: if you make the same amount that you are claiming then you get all your taxes back. It is a formula. If you have ever done your taxes before then you will recognize the formula that they use. It is a blended combo of your defined taxable earnings minus your non-taxable deductions. Your education amount will be multiplied by a certain factor and that will be added on to any other non-taxable deductions like charity and such.
Anyways, without a form here to figure it out for you I would estimate that with a large amount like what you have I would take approximately 60-80% of the taxes you paid for the 2000 taxation year to be refunded to you. There may be a limit to the amount that you can claim for education as I remember something in the income tax form that limits possible abuse of this deduction and/or limiting your tax refund in general. If this is the case and you are limited then make sure that you transfer if possible the rest of the amount to your mother, whomever, because they are probably in a higher tax bracket than you are since you started working only this year.
Therefore, she will get more money back and you can get reimbursed from her ... or you can wish her an early happy birthday and send her on a trip or something like that.
As for my CA friends, I probably spoke before I thought since they all work for the same family firm and have just moved to New York for the year. Silly me. Hey, I don't think of these things of where people are until the last minute!
So, Skorb and geoff2k, i'm sorry I led you on. Skorb, you would probably be better figuring this out by walking into an accounting firm or maybe just calling H&R Block and trying to pry some answers out of them. Ie: how do they figure out Education amounts with regards to your personal situation. Our Federal website is probably a good place to go too. geoff2k, you would be better off just soliciting the same advice in the same areas or phoning up your local accounting firm or branch(es)
Good luck.
Too add some personal numbers, i've worked and gone to university before.
Working a nice government job while being a student i've made almost 25 grand gross one year. My school tuition/fees and monthly claim amounts probably amounted to some 5000 or so. I put in some 5000 in RRSPs as well. My tax return amounted to some 4300 dollars that particular year if I remember correctly. I suspect that if everything goes well you will do just fine. Remember, you have to make money and pay lots of taxes in order to get some of those taxes back.
Working a nice government job while being a student i've made almost 25 grand gross one year. My school tuition/fees and monthly claim amounts probably amounted to some 5000 or so. I put in some 5000 in RRSPs as well. My tax return amounted to some 4300 dollars that particular year if I remember correctly. I suspect that if everything goes well you will do just fine. Remember, you have to make money and pay lots of taxes in order to get some of those taxes back.
TRENDING THREADS
-
Discussion Zen 5 Speculation (EPYC Turin and Strix Point/Granite Ridge - Ryzen 9000)- Started by DisEnchantment
- Replies: 25K
-
Discussion Intel Meteor, Arrow, Lunar & Panther Lakes Discussion Threads
- Started by Tigerick
- Replies: 21K
-
Discussion Intel current and future Lakes & Rapids thread- Started by TheF34RChannel
- Replies: 23K
-
-
Facebook
Twitter