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Tax return filing - for Age 18 or 19? Options
Sammy_2401
Posted: April 20, 2009 4:41:43 PM
Rank: Frosh
Groups: Member

Joined: 1/19/2009
Posts: 20
Location: ontario
Hi,

I turned 18 (years old) on 25-Dec-2008.

For the tax year 2008, I was 18 years old for only 5 days.

Do I need to a file a tax return now before April 30, 2009?

Is tax filing required for 18 year olds or 19 years olds?

Any info/ advice? Thanks.

Kaylya
Posted: April 20, 2009 5:21:57 PM

Rank: Student Body President
Groups: Member

Joined: 3/4/2008
Posts: 2,575
Location: Ottawa
Whether or not you need to file taxes is based on whether you had any income (and really, whether or not you owe any taxes), not your age.

There are actually often benefits to filing even if you don't need to. Some provinces have refundable credits so you could potentially get money back even if you had no income. You can receive GST rebate cheques quarterly once you turn 19 (I believe that needs you to have at least a little bit of income, but if you have any income at all you might get a bit of money in January or so).

FAQ's:
1. Will I get in? See: electronicinfo.ca for Ontario schools. If you have a couple percent above the marks there and it's not looking at supplementary, the answer is almost certainly yes.
2. Anything else: Google it before asking.
jman99899
Posted: April 20, 2009 7:07:53 PM

Rank: Valedictorian
Groups: Member

Joined: 2/24/2009
Posts: 598
Location: Thornhill
Sammy_2401 wrote:
Hi,

I turned 18 (years old) on 25-Dec-2008.

For the tax year 2008, I was 18 years old for only 5 days.

Do I need to a file a tax return now before April 30, 2009?

Is tax filing required for 18 year olds or 19 years olds?

Any info/ advice? Thanks.



I have been filing a tax return since I have been 16 - there is no age on filing a tax return

Waiting For: Nothing

Accepted: Windsor (Business Administration, Business & Economics, Economics), Ottawa (Commerce, Economics), Carleton (Economics, International Business), York (Economics, Business & Society), Ryerson (Business Management, International Economics and Finance, ITM), UofT (First Year Studies in Business, Humanities, Poli sci/sociology), Guelph (Commerce)


Ryerson Business Management '13

Resurgam
Posted: April 20, 2009 10:17:43 PM

Rank: Senior Student
Groups: Member

Joined: 3/4/2008
Posts: 236
Location: Ontario
Sammy_2401 wrote:
Hi,

I turned 18 (years old) on 25-Dec-2008.

For the tax year 2008, I was 18 years old for only 5 days.

Do I need to a file a tax return now before April 30, 2009?

Is tax filing required for 18 year olds or 19 years olds?

Any info/ advice? Thanks.


Kaylya and jman pretty much answered your questions, but just to confirm:
1) Do I need to a file a tax return now before April 30, 2009?

It is advisable, but not mandatory. The April 30 deadline is for people who owe taxes. If you owe taxes and you file after April 30th, Revenue Canada will charge interest on what you owe. So the penalty for filing late, past the deadline, is that you will have to pay more. If you do not have to pay taxes (the first 10,000 or so in income in tax-exempt), you can file after April 30 without any penalty.

2) Is tax filing required for 18 year olds or 19 years olds?

As already mentioned by others, you must file a tax return if you owe ("have to pay") taxes. You have to calculate it in order to find out if you have to pay anything or if you get a refund. The first 10,000$ (roughly!) of your income is tax-exempt. Even if you do not owe taxes it may still be worth filing your taxes because of potential refundable tax credits. Also, once you go to university, your tuition will generate credits that you need to declare (so that you can use them in future years, when you need to pay taxes, or so that you can transfer part of your tuition credits to your parents)
jman99899
Posted: April 20, 2009 10:33:57 PM

Rank: Valedictorian
Groups: Member

Joined: 2/24/2009
Posts: 598
Location: Thornhill
Resurgam wrote:
Sammy_2401 wrote:
Hi,

I turned 18 (years old) on 25-Dec-2008.

For the tax year 2008, I was 18 years old for only 5 days.

Do I need to a file a tax return now before April 30, 2009?

Is tax filing required for 18 year olds or 19 years olds?

Any info/ advice? Thanks.


Kaylya and jman pretty much answered your questions, but just to confirm:
1) Do I need to a file a tax return now before April 30, 2009?

It is advisable, but not mandatory. The April 30 deadline is for people who owe taxes. If you owe taxes and you file after April 30th, Revenue Canada will charge interest on what you owe. So the penalty for filing late, past the deadline, is that you will have to pay more. If you do not have to pay taxes (the first 10,000 or so in income in tax-exempt), you can file after April 30 without any penalty.

2) Is tax filing required for 18 year olds or 19 years olds?

As already mentioned by others, you must file a tax return if you owe ("have to pay") taxes. You have to calculate it in order to find out if you have to pay anything or if you get a refund. The first 10,000$ (roughly!) of your income is tax-exempt. Even if you do not owe taxes it may still be worth filing your taxes because of potential refundable tax credits. Also, once you go to university, your tuition will generate credits that you need to declare (so that you can use them in future years, when you need to pay taxes, or so that you can transfer part of your tuition credits to your parents)


You only file a tax return if you are making income and it doesnt matter your age. In terms of the date, yes they have to be filed by that day (April 30, 2009)

Waiting For: Nothing

Accepted: Windsor (Business Administration, Business & Economics, Economics), Ottawa (Commerce, Economics), Carleton (Economics, International Business), York (Economics, Business & Society), Ryerson (Business Management, International Economics and Finance, ITM), UofT (First Year Studies in Business, Humanities, Poli sci/sociology), Guelph (Commerce)


Ryerson Business Management '13

Sammy_2401
Posted: April 21, 2009 7:23:39 AM
Rank: Frosh
Groups: Member

Joined: 1/19/2009
Posts: 20
Location: ontario
Thanks for all your replies.

Can you please explain me the following - (taken from one of hte responses)


"Also, once you go to university, your tuition will generate credits that you need to declare (so that you can use them in future years, when you need to pay taxes, or so that you can transfer part of your tuition credits to your parents) "


What is a tax credit? If I pay a tuition fee of 8000 $ in a year in the university, does it generate some tax credit, how does it work, could you please explain?

Thanks.
karla
Posted: April 21, 2009 1:16:23 PM

Rank: Student Body President
Groups: Member

Joined: 6/5/2008
Posts: 6,357
Basically you get credit for taxes you have to pay. There's not point in you using it now because you don't have enough taxable income likely, but in the future it basically means you get a refund on a portion of the taxes that you have to pay. You can also forward the credit to your parents
Resurgam
Posted: April 21, 2009 11:23:04 PM

Rank: Senior Student
Groups: Member

Joined: 3/4/2008
Posts: 236
Location: Ontario
Sammy_2401 wrote:
Thanks for all your replies.

Can you please explain me the following - (taken from one of hte responses)


"Also, once you go to university, your tuition will generate credits that you need to declare (so that you can use them in future years, when you need to pay taxes, or so that you can transfer part of your tuition credits to your parents) "


What is a tax credit? If I pay a tuition fee of 8000 $ in a year in the university, does it generate some tax credit, how does it work, could you please explain?

Thanks.

It's like Karla said.
Basically a credit will lower the taxes you have to pay. There are two kind of tax credits. "Refundable" and "non-refundable" tax credits. Non-refundable tax credits can only be used to reduce your taxes to zero. Some non-refundable tax credits can be carried over to future years (the education and tuition amount is such a credit). Refundable tax credits will be paid out even if you do not owe taxes. Most credits (in my limited experience) are non-refundable.
Regarding the tuition fee of 8000$, the university will give you a T2022 slip. You will have to use the values in that slip to calculate your credit. Since taxes are calculated per year, your first T2022 will show only (roughly) half of your tuition, namely for September-December.
Up to 5000$ of your education, tuition and textbook amount (per year) can be transferred to a parent. The rest can be carried over for your own use. Of coures, you do not have to transfer anything and carry eveything over. Once an amount is carried over, it cannot be transferred anymore and also you must use it in the first year in which you have to pay taxes.
Sammy_2401
Posted: April 22, 2009 4:49:38 AM
Rank: Frosh
Groups: Member

Joined: 1/19/2009
Posts: 20
Location: ontario
Thanks a lot for all this information and your time. It indeed helps me a lot in my planning. Thanks once again.
LaVitaeBella
Posted: May 7, 2009 10:25:53 PM

Rank: Student Body President
Groups: Member

Joined: 11/21/2008
Posts: 1,708
who would I contact re: a Potential error in my taxes?

I turned 18 last year, worked part time, but definitely made under 10, 000$ (i made around 2600$). However, none of my CPP and EI deductions (which amounted to around 110$) were refunded to me when i did the tax estimate thingy. this does not make sense since my employer said that if i made under something like 8000$ ALL my CPP/EI deductions would be returned, which was the case for my other friends who made around the same as me.

Also, anyone else notice that if you are born from July-December of the year you get only about a quarter of what you would if you were born in the first half of the year? argh this makes me angry.

since taxes are a federal AND provincial thing, who would i contact about it?
Resurgam
Posted: May 7, 2009 11:07:48 PM

Rank: Senior Student
Groups: Member

Joined: 3/4/2008
Posts: 236
Location: Ontario
LaVitaeBella wrote:
who would I contact re: a Potential error in my taxes?

I turned 18 last year, worked part time, but definitely made under 10, 000$ (i made around 2600$). However, none of my CPP and EI deductions (which amounted to around 110$) were refunded to me when i did the tax estimate thingy. this does not make sense since my employer said that if i made under something like 8000$ ALL my CPP/EI deductions would be returned, which was the case for my other friends who made around the same as me.

Also, anyone else notice that if you are born from July-December of the year you get only about a quarter of what you would if you were born in the first half of the year? argh this makes me angry.

since taxes are a federal AND provincial thing, who would i contact about it?

You would be contacting Revenue Canada, aka CRA aka Canada Revenue Agency. There is no need to contact anyone at the provincial level. Everything goes through CRA.
But be aware that EI is not refundable in your case. EI does not equal income tax. You do not have to pay income tax for the first 10,000$. But you have to contribute to EI from the beginning, and it is not refundable.
For CPP I'm not sure. You should be CPP-exempt until you turn 18. And possibly if you do have less than 3000$ income you might get CPP contributions back in any case. Again, I'm not sure about CPP.
LaVitaeBella
Posted: May 7, 2009 11:30:04 PM

Rank: Student Body President
Groups: Member

Joined: 11/21/2008
Posts: 1,708
Resurgam wrote:
LaVitaeBella wrote:
who would I contact re: a Potential error in my taxes?

I turned 18 last year, worked part time, but definitely made under 10, 000$ (i made around 2600$). However, none of my CPP and EI deductions (which amounted to around 110$) were refunded to me when i did the tax estimate thingy. this does not make sense since my employer said that if i made under something like 8000$ ALL my CPP/EI deductions would be returned, which was the case for my other friends who made around the same as me.

Also, anyone else notice that if you are born from July-December of the year you get only about a quarter of what you would if you were born in the first half of the year? argh this makes me angry.

since taxes are a federal AND provincial thing, who would i contact about it?

You would be contacting Revenue Canada, aka CRA aka Canada Revenue Agency. There is no need to contact anyone at the provincial level. Everything goes through CRA.
But be aware that EI is not refundable in your case. EI does not equal income tax. You do not have to pay income tax for the first 10,000$. But you have to contribute to EI from the beginning, and it is not refundable.
For CPP I'm not sure. You should be CPP-exempt until you turn 18. And possibly if you do have less than 3000$ income you might get CPP contributions back in any case. Again, I'm not sure about CPP.


i tried fooling around with the tax estimator thing and i changed my birthdate to april of the same year i was born (so, just a couple months earlier)---i would get my full CPP deductions back. why does it change by the month i'm born in?
zackboomer
Posted: May 8, 2009 12:15:58 AM

Rank: Student Body President
Groups: Member

Joined: 4/7/2009
Posts: 2,000
Location: Toronto
I got a $100 tax refund today big grin


University of Guelph '13 - Bachelor of Science, Honours Major Biological Science


Resurgam
Posted: May 8, 2009 10:17:09 PM

Rank: Senior Student
Groups: Member

Joined: 3/4/2008
Posts: 236
Location: Ontario
LaVitaeBella wrote:
Resurgam wrote:
LaVitaeBella wrote:
who would I contact re: a Potential error in my taxes?

I turned 18 last year, worked part time, but definitely made under 10, 000$ (i made around 2600$). However, none of my CPP and EI deductions (which amounted to around 110$) were refunded to me when i did the tax estimate thingy. this does not make sense since my employer said that if i made under something like 8000$ ALL my CPP/EI deductions would be returned, which was the case for my other friends who made around the same as me.

Also, anyone else notice that if you are born from July-December of the year you get only about a quarter of what you would if you were born in the first half of the year? argh this makes me angry.

since taxes are a federal AND provincial thing, who would i contact about it?

You would be contacting Revenue Canada, aka CRA aka Canada Revenue Agency. There is no need to contact anyone at the provincial level. Everything goes through CRA.
But be aware that EI is not refundable in your case. EI does not equal income tax. You do not have to pay income tax for the first 10,000$. But you have to contribute to EI from the beginning, and it is not refundable.
For CPP I'm not sure. You should be CPP-exempt until you turn 18. And possibly if you do have less than 3000$ income you might get CPP contributions back in any case. Again, I'm not sure about CPP.


i tried fooling around with the tax estimator thing and i changed my birthdate to april of the same year i was born (so, just a couple months earlier)---i would get my full CPP deductions back. why does it change by the month i'm born in?

It is possible that the estimator is estimating incorrectly. smile

I tried looking it up for you and it seems that you should be getting the entire CPP amount back because
1) Your contributory period for CPP begins when you start 18 (so until you reach 18 you are CPP-exempt and any contribution should be refunded)
2) It is my understanding that during 2008 your income from salary and/or self employment was less than 3500$. In such cases no CPP is payable. Check out the following
http://www.hrsdc.gc.ca/eng/isp/cpp/contribrates.shtml
http://www.hrsdc.gc.ca/eng/isp/cpp/cppinfo.shtml#a3
http://www.hrsdc.gc.ca/eng/isp/cpp/cppinfo.shtml#a5
mattc
Posted: May 12, 2009 2:04:29 PM
Rank: Frosh
Groups: Member

Joined: 5/12/2009
Posts: 2
Location: British Columbia
It's a good idea to file a return so that you can get the GST rebate cheques four times per year. If you live in BC like me, they also sent you a "Green Energy Dividend" of $25 at the same time. Not bad just for not making much money.


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