SISIP/RETRO/TAX/SLIPS

trooper wrote:Navrat, to the best of my reading capabilities only two members of CSAT has reported receiving the T1198 thus far.

We received the T1198 form
Looks like we do the taxes as if the income was all received in 2013 and the cra will re-do the tax calculations to see if it is better for us to file the income in this year or previous years

I will just be a little odd because you will have to fill out the tax papers as if it is all this years income and they will adjust if it is best for you.

Trust that your government will do what is in your best interest.

My joke for the day.

oldleftwinger

Just a thought for those individuals who only have the T1198 form remaining to have their taxes completed, and for whatever reason you may have, there is nothing stopping you from taking your slips to whoever is completing your taxes to get your figures, you cannot file your return until you have the T1198 to attach to your return, so you must provide this info to the person completing your taxes.
This will allow to make a decision on purchasing RRSP'S if you have not done so, and are planning on doing so.
The deadline for purchasing RRSP'S I believe is March 3rd.
Just remember not to file until you bring in your T1198.

I only had tax deducted from one T4a and one T5. The interest T4A for the interest I had nothing deducted. I hope this works out

Well only have my T4 from sisip for the back amount. but when I enter the lawyer fees I get this on turbotax

You are reporting wage loss replacement plan income from box 107 of your T4A slip. Be sure to enter contributions you made to the plan that you have not previously deduct...

Whats that about?

Navrat, to the best of my reading capabilities only two members of CSAT has reported receiving the T1198 thus far.

Just received my T4A for the (  tax gross up portion of the refund.)
Also received my ( T5 )
Just a couple notes to pass on, like Dove96 has already stated, both this T4A and the T5 arrived in the same envelope.
Also like the T4A from the gross offset amount which I received the other day, they also deducted tax from this T4A.
So tax is deducted from both T4A's.
Now I have only One slip remaining before I'm off to do my taxes. ( that would be the T1198 form )

Anyone get their form 1198

Thanks Trooper. A straight shooter for sure. The question of RRSP investment is always difficult when considering this money was already taxed at source, then sheltered, then when you need it you pay tax again when you cash it. It's like laundering money in reverse. Not always beneficial. But if you consider spousal RRSP's, you get the tax break, money goes to spouse, then in a few years she/he can take this money if in a lower income year. Works for me, but not for everyone. Get those taxes done and hopefully we all do ok. Prepare for the worst but hope for the best. No disappointment.
Sap

here we go im a 5 year retro guy that doest do thr RRSP thing ( except this year) I have enough rrsp room to bring my taxable income this year to neer zero. wow great right.

if I buy no rrsps as a 5 year guy I know almoast to a certainty the 1198 will help me because the CRA will determine I will pay less tax if they claim my retro over past years.

if I buy all the rrsps that are available to me I know to an absolute certainty that the 1198 will not help me because the CRA WILL determine I will pay less tax if I claim my retro this year.

the problem with this second option is my tax savings will be very very small while costing me a hugh purchase.

YES the 1198 is the easiest thing you are ever going to do and purchasing an rrsp the second easiest.

deciding HOW MUCH RRSPs to buy ,especially you guys in the middle years who are uncertain weather THE 1198 will help???????????????

BOYS THAT AINT EASY!!!!!!

get professional help with this !!!!!

always question authority

propat

Sapper your right, we must not forget about our personal exemption, and the DTC if it applies, we will take every asset available to us at this point.
I got so caught up in everything else, completely forgot about the personal exemption.
When members start to complete their taxes, I hope that this discussion will still be active, as I have stated in the pass, the more info passed on here, the more helpful the discussions turns out to be, as I am sure we have become more knowledgeable on the matter, we must always welcome new info.

The T1198 is straight forward and actually quite simple.
You will benefit from it, or you will not benefit from it, there's no in between, In my view anything else is clearly Irrelevant.
I have stated in one of my above post that I will not count on this T1198, that is the way I have chosen to approach it.
If I was to count on it to benefit me and it turns out not to benefit me, well I will be pissed, however If it turns out to benefit me, well that would be a welcome bonus.
So for me this approach is best suited for me.
Bottom line is clear, it will either benefit you, or it won't, there's no more to it than that.

As far as RRSP'S go, that is a personal decision that one would have to make, like teen stated it's not all that confusing, your allowable amount available for you is easy and readily available for you to access.  
It is the norm for individuals who are in a high tax bracket to purchase RRSP'S to lesson the impact from their taxes, however it is not always the case, every situation is unique in it's own way, situations will vary from one person to the next.
propat's advice to speak to a tax specialist about any such purchase is one that I agree on, speak to a accountant first than take that amount to your financial institution and purchase away, financial advisers are paid commission, for the most part they will try to have you buy more than what you need, again that would be a decision based on your financial capabilities.
In conclusion when making your decision to purchase RRSP'S ask yourself this, this will lesson the impact of the tax that I owe now, will I need these RRSP'S in the future, if borrowing for the purchase will I be comfortable making the payments, can I purchase less RRSP'S and pay the tax out of pocket, it goes on and on, that is why and accountant will be your best bet, to ensure you make the best possible decision to suite your future needs.

My Belize account is tax free   

teen RRSPs are not that confusing at all but when you are dealing with a 1198 then they can be a minefield and can in fact the single reason why some will have to take the tax hit this year and not in previous years for the reasons I stated above.

propat

yes sapper all they have is the monthly rates and they due charge the mean annual from april of the year in question to may the following year you will have to add the months and devide by 12.

then add 2% that will be the deemed tax charged to that years outstanding balance plus all the previous years outstanding balances and deemed taxes from those previous years combined.

sorry I could not find the mean annuals anywhere on short notice.

I also apologies for the crappy formatting I pulled this off a PDF so sometimes they get a little fracked when I do that but im sure you get the idea.

propat

Ay Carumba...yes propat this helps. And no Victoria....there is no Santa Claus! Are these monthly rates? I thought one would be charged annually, but I guess they have these exhorbitant rates to get you to pay up sooner rather than later. Sheesh.
Sap