Go Back  British Expats > Living & Moving Abroad > Canada
Reload this Page >

Expected tax refund but end up owing

Expected tax refund but end up owing

Old Apr 15th 2023, 5:08 am
  #1  
BE Enthusiast
Thread Starter
 
Joined: May 2014
Posts: 328
KenA is just really niceKenA is just really niceKenA is just really niceKenA is just really niceKenA is just really niceKenA is just really niceKenA is just really niceKenA is just really nice
Default Expected tax refund but end up owing

I was expecting a refund from the tax but I was shocked to be owing !!!

My income was 136754 [Box 14]
My tax paid was 44074 [Box 22]

when I checked multiple sites calculating tax, I was getting estimates of around 39000

which means around 5000 refund

but I ended up owing around 1000!

is there something wrong?
KenA is offline  
Old Apr 15th 2023, 9:27 pm
  #2  
Forum Regular
 
Joined: Mar 2023
Posts: 48
Hemlock is an unknown quantity at this point
Default Re: Expected tax refund but end up owing

Originally Posted by KenA
I was expecting a refund from the tax but I was shocked to be owing !!!

My income was 136754 [Box 14]
My tax paid was 44074 [Box 22]

when I checked multiple sites calculating tax, I was getting estimates of around 39000

which means around 5000 refund

but I ended up owing around 1000!

is there something wrong?
Fed & provincial tax, CPP and EI, also depends on allowances you are claiming, any entitlement to tax credits, source of income (ie earnings, dividends CGT). This is why it is worth paying an accountant (not a tax filer).
Tax owing is better than a refund, you have had an interest free load for a few months.
Hemlock is offline  
Old Apr 17th 2023, 3:13 am
  #3  
Dive Bar Drunk
 
JamesM's Avatar
 
Joined: Nov 2006
Location: Toronto
Posts: 8,648
JamesM has a reputation beyond reputeJamesM has a reputation beyond reputeJamesM has a reputation beyond reputeJamesM has a reputation beyond reputeJamesM has a reputation beyond reputeJamesM has a reputation beyond reputeJamesM has a reputation beyond reputeJamesM has a reputation beyond reputeJamesM has a reputation beyond reputeJamesM has a reputation beyond reputeJamesM has a reputation beyond repute
Default Re: Expected tax refund but end up owing

Originally Posted by KenA
I was expecting a refund from the tax but I was shocked to be owing !!!

My income was 136754 [Box 14]
My tax paid was 44074 [Box 22]

when I checked multiple sites calculating tax, I was getting estimates of around 39000

which means around 5000 refund

but I ended up owing around 1000!

is there something wrong?
Yes.

The websites you checked likely gave you the provincial tax + federal tax for estimated tax.

They didn't add in CPP/EI Premiums which would be approximately $4453.

That is the discrepancy.

You can see here on Turbo Tax the number in red (Federal plus Provincial) but then a different number in total tax (Because CPP/EI is added). This is based on Ontario- not sure where you are.
JamesM is offline  
Old Apr 17th 2023, 6:42 pm
  #4  
Just Joined
 
Joined: Dec 2021
Location: Ontario
Posts: 17
Kryten is an unknown quantity at this point
Default Re: Expected tax refund but end up owing

You can use online tax software to tell you what you might get (or have to pay), and you only pay when you file.
Kryten is offline  
Old Apr 18th 2023, 6:18 pm
  #5  
BE Forum Addict
 
CanadaJimmy's Avatar
 
Joined: May 2009
Location: Langley, BC
Posts: 1,953
CanadaJimmy has a reputation beyond reputeCanadaJimmy has a reputation beyond reputeCanadaJimmy has a reputation beyond reputeCanadaJimmy has a reputation beyond reputeCanadaJimmy has a reputation beyond reputeCanadaJimmy has a reputation beyond reputeCanadaJimmy has a reputation beyond reputeCanadaJimmy has a reputation beyond reputeCanadaJimmy has a reputation beyond reputeCanadaJimmy has a reputation beyond reputeCanadaJimmy has a reputation beyond repute
Default Re: Expected tax refund but end up owing

If you can't afford the $1000 then you can call the CRA and usually pay it over 12-24 months instead.
CanadaJimmy is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.