SISIP/RETRO/TAX/SLIPS

Thanks trooper I might give it a try then so I have an idea. The no more then $200 for preperation of taxes is a damn good tip! So again thanks for this info.

No teen, I did not use ufile, I used what I had for slips , and then used the 2013 tax calculator, however ufile would be better because the personal exemption and the DTC comes into effect after you have deducted your Legal fees and  RRSP's, so ufile would give you a more accurate figure.

I'm not saying this is why but I think the no penalty is because of the t-1198. Without it then I would think there would be a penalty. I guess the t-1198 is a get out of tax penalty jail card.

Hi Sapper, and thank you for the question.
As you already know my taxes are completed, I was taxed on my retro and my total amount of income for the year 2013.
The tax that I was charged, was exactly the same as any other citizen of this country would have been charged on that amount.
Federal and provincial tax as per the normal tax guidelines is what I was charged. Absolutely no penalties.
I witness this with my own two eyes, I don't know how I can be more clear on the fact.
The Idea that we would be charged any penalties on our retro, was pure speculation, which I fully understand
Having completed my return today, and not being charged any penalties proves that very speculation.
So you can rest assure knowing that, it is now fact.
You can also do your rough figures knowing that there are no penalties.
One thing to keep in mind is that tax penalties do exist within this country, but it does not exist for us with respect to the retro we have received.
I think it is important to make this clear, as many were worried about being charged penalties.
Bottom line is this, my taxes are completed, and no penalties were charged.

Very informative post trooper. Did you try to use a tax program, like U-file, for your calculations? WoV said she did with her t-1198 and it wasn't that difficult.

Good morning Trooper and congrats on filing your taxes. First I've heard on here. Anyway, the issue of penalties....who told you that? I am hopeful we don't have any tax penalties, but all the cases I have found that relate to retro-active income have penalties. The wording of the act doesn't call them penalties though. Simply interest on potential taxes owing. And they can be quite substantial too. It basically leads to "double taxation". I hope your accountant is correct, but I believe its simply the wording of the tax act that says no penalties owing, just interest on potential taxes.
Sap

As previously mention, today is the day that I will complete and file my 2013 tax return.
I now can with some relief confirm that my 2013 tax return has been completed,
and was sent out to the CRA today via paper file.

Before I attempt to pass on the sequence of what transpired in the completion of my tax return today,
I would submit to you that I have not purchased any RRSP's to claim with this return.

As far as the Legal fees go, they submitted mine on Line 232, and produced a worksheet as per their policy.
The Legal fee invoice from MC was also attached to my return.

As far as the complexity of completing the return, as previously mention, it is a straight and forward return,
with no major obstacles involved in preparing it.
Therefor I stand by of what I have previously stated, any amount being charged of over $200,
from whoever you choose to complete your tax return, would in my view, be questionable.

It was of no surprise to me that I would have to owe tax on this return,
and it turns out, I can confirm that I do owe the tax man,
and the amount I do owe, is close to the amount that I figured.
The firm has produced and given me a voucher with the amount owing to bring to my financial institution for payment.
I have until the end of April to pay this amount.

As far as the T1198 goes, it was attached to my return as per instructions.

As far as tax penalties go, I can confirm with great accuracy, that in no way shape or form
are we being charged any penalties on our return, with respect to our retro received.

I have and appointment with a certified accountant on Monday to complete, and file my 2013 tax return.
From my own rough figures, and submitting my own numbers just to see where I stand tax wise, I have come
to the conclusion that as far as my tax filling goes, it is straight forward and easy to do, so no big deal for me.
As all the work IE slips are well prepared, and it just a matter of knowing where the numbers go, and put them in.
Now I have chosen to have a certified accountant do my taxes for me for the following reason : I want their certified stamp on it.

I came here for some fatherly advice.

I logged into U-File and entered all info, including pension splitting and the t1198e, and I do not think it will be that bad of a hit as some. Free to log in and enter numbers and info, this gives the ability to decide on an accountant or not

I received my T1198 today, and that was the last slip for me.

Both were in my name and spouse with same last name, received his last week in his name. Perhaps it was an error of calculation so they needed to send a second one. I will call on Monday as the office is closed now. Was just wondering if others had received two as well. Thanks.

Two Family Names in your file? Perhaps one is for you wife? Haven't received mine yet.
Sap

I received two separate T1198's. Is this what others received?

Navrat , I am referring to pension income , military pension for example. Form T1032 Joint Election to Split Pension Income allows a person to transfer up to 50% of their pension to their spouse's income , which their spouse thus claims as income. This helps if your spouse has no income as they have a personal exempt amount and other tax deductions that will allow you to transfer up to around $14,000 of which you will get all the tax back that was paid on that $14,000. But they do not have to have no income , you can transfer up to 50% of your pension no matter how much your spouse's income is. I hope this helps.