Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

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Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Ex Member on Sun 09 Feb 2014, 23:30

T4 -  Statement of Remuneration Paid
T5 -  Statement of Investment Income
T1198 - Statement of Qualifying Retroactive Lump-Sum Payment   http://www.cra-arc.gc.ca/E/pbg/tf/t1198/README.html
RC4288  ~ Request for Taxpayer Relief    (if applicable)   http://www.cra-arc.gc.ca/E/pbg/tf/rc4288/

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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Guest on Mon 10 Feb 2014, 00:48

Canadian income tax rates
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html
Better tax rate chart below in thread....


Last edited by Carver on Mon 10 Feb 2014, 15:36; edited 1 time in total

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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Trooper on Mon 10 Feb 2014, 10:43

Great thread Carver, thanks for posting it.

To all members and guest, any information you may have on the topic please post away, we are not certified accountants, but posting what you have done, and or what you have been told can certainly help. We can maybe take that info and do our own research, and discuss it in a proactive manner. Please respect the individuals who post their info, as arguing will get us nowhere. We are here to help each other, if you know or hear something post it, if you have a relative or friend who is and accountant, and they provide you with info, post it. We must understand that even the smallest bit of info may seam small to you, but may prove to benefit someone else.

Navrat has stated that he purchased RRSP's to lesson the impact of his return, propat has stated and example of deemed tax that was placed upon him in the past, Carver has provided a tax table for us to use, so these individuals have shared their info with us, therefore my point is this, don't be scared to post your info, as you may be helping your fellow vets by doing so.
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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Trooper on Mon 10 Feb 2014, 11:54

Just spoke with the CRA and asked them the following question ( how do they tax interest income for the T5 ? ) This is what I was told, they will add the interest to your total income for 2013, the example they gave me was this, Let's say 30% was withheld for taxes on your total income for 2013, and after completing your return it shows that you owe 40% for your total income, they will subtract 30 from 40 which will leave you with owing 10% of your total income. So you will pay 10% tax on your total income. Remember this was just and example, if someone has info that differs from what I have just wrote, please post it.

Also the 2014 tax rates that was posted by Carver, is not the rates that they will use, they will use the 2013 tax rates.
So not sure if you can find the 2013 rates Carver, but if you can, you can edit your post to reflect that.
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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by teentitan on Mon 10 Feb 2014, 12:25

This is the reason for Manulife holding back certain percentages for taxes depending on the amount of retro owed to you.

It looks like it will not cover all the taxes but at least it takes some of the sting out of it.

I took advantage of this "found" money and topped up RRSP's, TFSA's and paid off some bills but I will pay off the big bill after the taxes are done.
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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Guest on Mon 10 Feb 2014, 15:02

Here is another link for the tax rates 2012-2014
http://www.fin.gov.on.ca/en/tax/pit/rates.html
If you click on the original link at top of this thread it should also direct us to similar info and charts. Hope this is a more helpful link though.

Agreed trooper ~ we all have knowledge and experiences that can help each other  Very Happy

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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Guest on Mon 10 Feb 2014, 15:37

Update on the RRSP question ~ we had appointment with our TD banker today. The RRSP's were explained as follows. I am sure many know this already but hey I didn't until this morning.. Very Happy 

Spousal RRSP:

Within the Spousal RRSP there is a "Contributor" and "Policy Holder". The higher income earner should be registered as the "Contributor". The "Policy Holder" is simply that, the policy is in the person's name however the "Contributor" to the Spousal RRSP can use the RRSP amounts to reduce their tax burden however the "Policy Holder" can not.

Non Spousal RRSP:

There is a "Policy Holder" and "Contributor" however they are the same person and non transferable for tax relief purposes between partners. There is a beneficiary name within the RRSP of course.
.

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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Trooper on Mon 10 Feb 2014, 20:13

So I received my T5 slip today from my financial institution, just thought I would pass this on for those who have never received one of these.

There are 9 boxes as follows, 10, 11 12, 13, 18, 21,22, 23, and 24. My interest amount is in box 13. Box 13 heading is ( Interest from Canadian sources )

So I would expect that the T5 from Manilife would be filled out the same as the one I received today.
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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Guest on Mon 10 Feb 2014, 20:22

thanks trooper...here is also a Canada Tax Calculator ~ drop down to the 2013 calculator..it takes all Provincial et al figures into account according to the disclaimer.
http://ultimatecalculators.com/canada_tax_calculator.html

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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Trooper on Mon 10 Feb 2014, 20:38

That right there is a top notch link. That is what I was looking for, thanks for that Carver, very much appreciated.
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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Trooper on Mon 10 Feb 2014, 20:50

One thing that I am getting mixed information about is the Legal fees. Some state that they are only partially used as a deduction, some say that the full amount can be used as a deduction, some say that the CRA will reject it period. Last year I spoke with the CRA about claiming the Legal fees from our retro, what I was told at the time is that it was not cut and dry, in other words it is not and absolute, after posting this here, the response I received was that yes we could use them as a deduction. So I did not follow it any further. I am under the understanding that the Law firm looked into this, and therefore sent us a receipt with instructions to claim it when filling our return. So if anyone has anything to add to this, was told something about this by and accountant, please post it here.
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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Guest on Mon 10 Feb 2014, 21:00

trooper someone advised me that in speaking with a specialist tax accountant they were informed that if the legal fees were in ref to income replacement insurance Revenue Canada would not approve the legal fee deduction as that was seen previously by the accountant in the past. I obtained the below link and in particular the ref's from section 22 on ward give definitions however I am not a tax expert and can't quite decipher the meanings. There is also some details about RRSP investments affecting the amount of legal fees available for deductions.
http://www.cra-arc.gc.ca/E/pub/tp/it99r5-consolid/it99r5-consolid-e.html

In terms of the legal fees being deductible dollar for dollar or a portion there of is based on the line 232 of the tax form and the mathematical equation of 15% when all figures are taken into account.

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Re: Processing Retro Tax Return Defintions ~ Forms Required For 2013 Tax Returns ~ Pls Add To The List As Needed

Post by Guest on Mon 10 Feb 2014, 21:20

all I can add and its just me spitballing but from everything I have read if it was a private company holding the policy the legal fees would not be deductible. due to the fact that the private company is only the administrator and the GOC is the policy holder it will be deductible.
this falls into pension benefit ore salary under the income tax act.

propat

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