Income Tax Setbacks

Well.

I went to see my tax guy yesterday. I wasn’t sure which way it would go, but I was hopeful. I’d received pretty decent refunds the past few years.

However, it seems I have finally exhausted my tuition credits from all of those years of study. I still lost money this year on my little side bizz, but also… didn’t realize that one of my employers in 2016 was not deducting the appropriate amount of tax from each paycheque.

I had multiple employers in 2016, and when you have multiple sources of income, only one of them is supposed to take into account your Basic Personal Amount (I think ~$11,000?) when deducting tax. But apparently, one of those employers didn’t follow the rules and therefore…

I owe the Canadian government just over $2000.

Fun times!

I was super-adult about it though, which made me proud. I saw the total amount owing after he’d filled out the forms, and I said “Ok. Well. Here’s a cheque.”

(Post-dated April 30th, bien sûr)

A year or two ago, my eyes would have become saucers and I would have agonized for a month about how I was possibly going to come up with that money in time. But not this year! This year, I’ve got my shit [more] together [than last year], and while it means my student loans won’t be paid off as fast as I’d hoped, it’ll be fine. It really only sets me back one or two months in terms of paying down those debts.

Of course… that’s based on rough calculations of estimated income for April and May. So we’ll see how it goes! I’m hoping I’ll be back on track in late May.

Either way, I’m really glad I paid off my credit line the day before this meeting, or else I would have been tempted to hold off on that and use that money for the income tax. But did pay it off, so I won’t accrue even one more cent of interest on that dang credit line! Yeehaw.

Have you done your taxes yet, fellow Canadians? Do you plan for potential balances owing? How?

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3 thoughts on “Income Tax Setbacks

  1. Keego says:

    Ummmmm, I feel you there. Kotic has owed significant amounts the last two years. Which ended up being fine because I was on contract with work and got a bonus at the end of each year-long contract which just happened to coincide with tax time. But then my fun bonus money went to taxes instead of debt or something fun like that 😦 This year… after my refund of something like $1200, he STILL owes $1300… so his total is something like $2500. It’s so gross.

    It’s the pits. Hopeful that next year he’ll have only two T4s instead of 5 (!!! FIVE! Who gets FIVE t4s???) he’ll be much better off. Maybe we’ll even get some moneys! God knows we’ll probably need it with a little rugrat to keep fed and clothed!

    Like

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