# Tax question



## supperfly17 (Apr 18, 2012)

Lets say someone works only 1 job and makes 60 000 in 2012 and is taxed 10 000.
Person #2 works 2 jobs in 2012 and makes 30 000 in each and is taxed 5000 in each job.

Does that make any difference at all for the tax return? Since the numbers are the same it shouldnt make any difference, right?


----------



## lonewolf (Jun 12, 2012)

superfly 17

I think your right it doesnt make any difference.

The only differnce could be the amount of money the employer is taking off each check. The person that is working 2 jobs if the employers for both jobs is taking off income tax based on 30,000 for each job instead of basing it on 60,000. The person with the 2 jobs would most likely owe more money @ the end of the year to the goverment then the employee that is taking off income tax based on 60,000.

The total taxed payed I think would be identical in the end. But the amount each employer took off throughout the year could be differnt.

I think the number is $3000. After so many consecitive years of owing $3000 or more @ the end of the year to the goverment. The goverment will make you pay them more throughout the year so they are not owed as much @ the end of the year.


----------



## lonewolf (Jun 12, 2012)

If the person that has the 2 jobs are doing the jobs in 2 differnt provinces the tax I think could be differnt then the person doing a job in a single province.


----------



## OptsyEagle (Nov 29, 2009)

In the end, when the tax return is filed, it all gets reconciliated and there tax situation will be equal. It does not matter, in what province they worked, only what province they lived in, on December 31st.

As a rule of thumb regarding witholding tax (remember withholding tax is just a downpayment on what you may or may not owe when you file your return), a person who has two jobs will most likely owe more money when they file their return and a person who works a lot of overtime will usually get a big refund. This is due to the fact, that in the two job case, both employers were assuming a personal exemption tax credit and therefore did not withold enough tax, since they are only entitled to one, and in the overtime case, the employer assumed each cheque would be the same as the overtime cheque and withheld too much tax on those.


----------



## lonewolf (Jun 12, 2012)

OptsyEagle

The person with 2 jobs under certain conditions maybe they have an option of which province they claim as residency ?


----------



## AltaRed (Jun 8, 2009)

lonewolf said:


> The person with 2 jobs under certain conditions maybe they have an option of which province they claim as residency ?


It is where they have their residence, their primary postal address, etc.


----------



## supperfly17 (Apr 18, 2012)

Its basically 2 part time jobs or 1 full time in the same province.

Also if they do tax different for 2 jobs, take off less, because you are making less, wouldnt the numbers at the end only matter?

Like who cares how they tax you throughout the year, if the numbers for both situations are the same.

Thanks for the responses.


----------



## financialnoob (Feb 26, 2011)

Even if the tax taken off were incorrect at one or both, it would be reconciled at the end. That's why you file a tax return. But in the hypothetical situation, it may be that more tax is owing if both employers only deducted based on part-time and in a lower bracket, so they may have only deducted say $4000 each and you'd owe $2000. Again, the end total isn't different, just how and when it is eventually settled.

People often think of a big refund as "free money" but it's really your own money that you're finally getting back. It makes people happy, but in reality, it was a 0% interest loan to the government.


----------



## OptsyEagle (Nov 29, 2009)

lonewolf said:


> OptsyEagle
> 
> The person with 2 jobs under certain conditions maybe they have an option of which province they claim as residency ?


Yes, but from a tax perspective, although you can work in two provinces at the same time, you can only live in one...and it is where you live that matters for tax purposes...not where you work...or choose to work.

and to answer the OP last point, yes, witholding taxes are not that relevant. Everything gets fixed at tax time. 

The only reason I mentioned my rules of thumb, is that way too many Canadians seem to think that every employer understands everything about their lives and when they file their tax returns at the end of a year, they get blindsided by the reality that those employers could not possibly know all those things. Be prepared.


----------



## MoneyGal (Apr 24, 2009)

Not just that every employer knows everything about their personal lives, but that (1) the employer "knows" those things without the employee explicitly telling them, and (2) the employer will take it upon themselves to communicate all relevant details to the CRA without the employee's knowledge, consent or explicit request, and then 3) CRA and the employer will adjust tax withholdings cooperative so the employee is not left with any "surprises" at tax time. 

Also: if/when the employee's personal situation changes (daycare ends! RRSP PAC begins! New medical expense!) the entire process will be re-implemented again, with no explicit input from the employee.


----------



## supperfly17 (Apr 18, 2012)

Thank you everyone for your help. 

I dont want to start a new topic, just curious i purchased a first home last year, and paid property tax on it. Can I claim property tax when doing taxes? 

I researched online, but had trouble finding the answer.


Edit - found it, I guess if you make under 30 000 you are eligible otherwise no.


----------



## AltaRed (Jun 8, 2009)

supperfly17 said:


> Thank you everyone for your help.
> 
> I dont want to start a new topic, just curious i purchased a first home last year, and paid property tax on it. Can I claim property tax when doing taxes?
> 
> ...


I imagine that is a provincial tax credit, which will vary from 0 to ? depending on the province. From a federal perspective, a principal residence does not attract capital gains, so by the same token, there is no claim on operating or maintenance expenditures or mortgage interest deductibility. The only time any of that comes into play is if you have a home office supporting self-employment, and then only on the portion of the space used for said home office.


----------



## OptsyEagle (Nov 29, 2009)

AltaRed said:


> I imagine that is a provincial tax credit, which will vary from 0 to ? depending on the province. From a federal perspective, a principal residence does not attract capital gains, so by the same token, there is no claim on operating or maintenance expenditures or mortgage interest deductibility. The only time any of that comes into play is if you have a home office supporting self-employment, and then only on the portion of the space used for said home office.


Usually, if you can afford a house you will not qualify to benefit from a property tax credit. Some seniors, who paid their mortgage off many years ago and now live on GIS, would be the exception. Here I am talking about Ontario.


----------

