Refiling taxes -- RRSP ERROR - Page 3
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Thread: Refiling taxes -- RRSP ERROR

  1. #21
    Senior Member
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    Quote Originally Posted by peterk View Post
    Ya, Alberta has some tight tax brackets now with the new rates... Went from 36.5% last year to 42% this year, across 3 rates, but only a 20k increase in income.
    Yeah in that case 5.5% change in bracket Vs 5% interest on about a full year... close to even. Calculation seems reasonable.

    In Quebec and Ontario, 2 brackets could be close to 10%, depending on income... so rule of thumb I was thinking about higher refund.


  2. #22
    Senior Member none's Avatar
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    I once refiled my taxes a few years back when I realized that I could defensibly claim BC residency over BS scotia residency. That resulted in a $1000 refund. Crazy. and awesome.

    Anyway, just wanted to thank everyone for the helpful comments. This has been a good learning thread for me (nice to get outside of my usual wise cracking and crapping on those stumbling around in clouds of uncertainly and thinking they know what they're doing). Good times.

  3. #23
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    Quote Originally Posted by peterk View Post
    Is it really that simple? Will CRA accept this maneuver?
    What maneuver?

    How is it different than changing a return for say, under-reporting a charitable donation or forgetting to deduct an RRSP contribution?


    Quote Originally Posted by peterk View Post
    ... This seems like a blatant, in your face request that CRA is bound to reject... Though in none's damsel's case it is more believable that this was an "error".
    Unless there is a history of doing the same thing - I don't see why there would be problem.


    Cheers

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  5. #24
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    I don't believe she would be getting any penalties as her rrsp limit allowed for the contribution, however, in terms of optimizing taxes, she should have spread it out.
    on 45k of taxable income (lowest bracket) she couldve pretty much wiped out most taxes payable with credits.

    Unsure as to why people do silly things with their finances. she jumped the gun and is probably going to regret it.

  6. #25
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    ^^^^

    What I have noticed is that people get tied up learning what is in an article then stop. This means they don't take the extra step of using what they have learned to investigate any nuances.

    Case in point is the post on CMF where an article had profiled a retired person with a big pension, medium investment income and CPP being added meant a higher tax rate. The person who read the article decided to withdraw everything from their RRSP and take the tax hit now. When asked if they had used what was learned in the article to see if the scenario fit, they said no plus had no plans to check as it was more important to liquidate the RRSP.


    Pointing out that the plan might not make sense, depending on other factors made no difference.


    Cheers


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