Posted on: 12-11-04 12:27:38
when I was in the US we would get alot of tax deduction at source and end up getting alot of refund too.
I know I am not asking a very specific question here, but I just want to know if in Canada, they give you refunds for collecting from your monthly paycheck if they find that there is extra in the end or is it that they have calculated this amount and take the required amount only.
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smile ...
Quote:
Orginally posted by michelle288
when I was in the US we would get alot of tax deduction at source and end up getting alot of refund too.
I know I am not asking a very specific question here, but I just want to know if in Canada, they give you refunds for collecting from your monthly paycheck if they find that there is extra in the end or is it that they have calculated this amount and take the required amount only.
Here in Canada, the companies deduct income tax, EI premiums and CPP on source and generally you end up getting tax refunds after filing your income tax return depending on your income level, number of jobs done in a year and other refundable and non refundable tax credits to which you are entitled.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
i also heard that if you take out a mortgage or are on a student loan you can get a tax refund. pl confirm. thanks for the information.
happy divali to all out there!!! i am missing bombay for that divali feeling but unfortunately i have to work through divali!!! too bad
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smile ...
Quote:
Orginally posted by michelle288
i also heard that if you take out a mortgage or are on a student loan you can get a tax refund. pl confirm. thanks for the information.
happy divali to all out there!!! i am missing bombay for that divali feeling but unfortunately i have to work through divali!!! too bad
As mentioned earlier that you get some refundable and some non refundable credits which reduce your income tax payable and get you the refunds. If you have paid tax, the Non Refundable tax credits can only reduce your tax payable to a maximum of nil tax but do not get you any refunds but the refundable tax credits not only reduce your tax liability but may actually get you a refund even if your income tax payable is zero.
Employed people do not get any credits for interest paid on mortgages but self employed people who use their home as office can claim a part of the interest paid on mortgage in their expenses which may result in reducting their tax laibility. Interest paid on your students loan is deductable by every one and can reduce your tax payable or get you refund depending on your overall tax situation.
Your tax preparer or accountant can guide you better.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
