The Tax Payoff

So I managed to do a very good job of procrastinating on finishing my taxes this year and I only finished up during the weekend (but apparently due to an error by CRA you get until May 5 to get it in).  But now it is all done I’m just waiting for my over sized tax refund which pushed past $6000, which is good because my wife owed over a $1000.

You might be wondering why on earth I got such a big refund when I tend to avoid such things?  Simple a few minor shifts in the status quo of our taxes occurred:

  • The income splitting tax credit kicked in and we took full advantage of it.
  • I made a LOT of spousal RRSP contributions last year and now it is refund time.
  • My small business had a crappy year so I had very low profit to pay taxes on.
  • My wife on the other hand had a great year and so paid a bit more than usual.

Overall I tend to think all these minor tax credits and deductions are a bit of a pain in the butt.  I would much prefer a stripped down tax system which I could file on a double sided piece of paper.  Ironically, I found out I’m not alone in that thought according to a recent study.  We haven’t had a major overhaul in the system since 1987 and with all these minor credits you have to determine which of the 120 of them apply to you.  No wonder we buy software to do taxes now!

Ironically I think my procrastination had less to do with the taxes, but more to do with having to now deal with cleaning up all my files afterwards.  I normally use the end of my taxes as my trigger to do the annual clean up.  I just pull out old records and scan them where possible, shred old files that are no longer required and assess if I can make any improvements to my file system.  It’s not particularly fun work so I, like most people, tend to avoid it.

How are you doing with your taxes?  Are you planning to use the extra time or just get it over with?

7 thoughts on “The Tax Payoff”

  1. Hi Tim;

    Consider yourself lucky, here in QC we get to file two income tax reports and the over-taxing of us Quebec Canadians is once again born out in having to send some money to Revenue QC while getting a refund from the CRA.
    As to a stripped down tax system, the only way you will get that is to do your taxes in the nude LOL
    Try is next year and let us know how it works. See if you get a rise out of it.

  2. Do you not feel the need to simply check off the little box on your tax return where you could donate that highly “unjust” amount of money your getting back from CRA and donate it back into our tax system? 🙂

    Be a good guy do the right thing here!

  3. @Paul
    This could go to help “The Duff” pay his legal expenses.
    Seeing he is a senator we are probably paying fo rit.

  4. @Ricardo
    Gas plants in Ontario are expensive too! That 6K will will be very helpful if it’s allocated appropriately here. Thanks so much Tim!

    Won’t the cost for the whole trial for the “duffer” cost way more than the questionable expenses themselves? Another great use of resources…

  5. It always surprises me how such well educated (supposedly) people can be so “honestly” naive.

  6. @RICARDO – I was almost on the floor I was laughing so hard at your image of doing my taxes in the nude. Thanks for the laugh.

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