Questions about tax filing

chrichri

Hi...

I just wonder if any of you know the difference between tax filing for individual and married couple tax filing. Do you pay more or less tax after you get married?

I know that each individual can claim up to 2500.00 student loan interest payment for tax credit, but what happens to a married couple? Would that be the same, like 2500.00 each or a total of 2500.00?

Is there a such thing called income splitting?

Thanks for answering my question...

RXKEN

1. Really depends on the income level. Married couple is no different than filing individually.
Just if one spouse is low income, you may be able to claim spousal credit (non-refundable).
Some credits will look at both your income and determine who to claim the credit (eg. Child care expense)
Likely your benefit will be lower (GSTC and CCTB) because most of the case, 2 people's income is higher than one

2. I don't see anything regarding on $2500 student loan interest.
http://www.cra-arc.gc.ca/E/pub/t ... e.html#P1272_170813
you should be able to claim whatever amount you want but CRA may ask for proof
You can also carry it forward 5 years

3. Yes. Pension income spliting. Not working income spliting

chrichri

Thanks for answering my question....

i guess I misunderstood about how the tax credit works for student loan interest payment.
I was doing some researches about it this morning online. I guess i must have read the US articles instead of the Canada ones...



By the way, what tax filing software do you guys use?
I have been using Quicktax since my 1st income tax filing.
Any other recommendations?

thanks.

tofu

two diff. types of income splitting

-  if you are retired, you can split your pension income, rif income or rrsp income under certain conditions

-if you are not retired, you can split your future retirement income by spousal rrsp,  it may benefit you or not, depend on your situation

if you have child and/or your spouse earn no/little income, you may able to get more tax cr.

$2500 - max student loan deduction???
sounds like it is the US policy.  where did you get this info.

chrichri

ya, i think i read the US policy.... oops.

any joint filing benefits for newly married couple with no kids?
i wish my tax refund would be the same or more this year.....

gianttama

i use ufile coz i get it for free

tofu

when you said you are newly married, i believe you mean you married before/on dec 31, 08.  otherwise you are still single for yr 2008.

theoretical, there are no diff. bet'n fill together or separate. unless you don't want your spouse knows the details of your t1.  anyway, you still need to put down your spouse's name, sin, income on the front page of your t1.  b/c some benefit are using family income.

if your tax return is simple, just have t4, rrsp, maybe couple t5, you can try the demo version of cantax.  cantax is the best one, but expensive.

you can get the demo version from cantax's webite for free.  it does exact the same job, but you won't able to print out the copy.  usually i just copy the calc'd amt back to a paper tax return.

quicktax offers trial version as well, but don't know is it good.

if your income is the same as last yr, you should able to get more money back.  since the personal tax cr has increase & ....
esp if your wife is not working or earning low income

btw, why toppy thinks u r new to canada

samsung

原帖由 tofu 於 2009-2-16 21:15 發表
wbtw, why toppy thinks u r new to canada...

simple, Toppy is retarded