Pay Deductions [Merged]

[GAP]

As a former tax accountant, I really can't wrap my head around this one.

  ???

As a former tax accountant you mean to say none of your clients have had deductions taken off as a single person (higher), then have them claim their spouse or equivalent-to-spouse, which means their taxable income is less, thus they get a tax refund based on what they have paid in?

 

[acclenticularis]

Regardless of whether you are married or single (depending on spousal income of course)

then have them claim their spouse or equivalent-to-spouse

Whether someone gets to claim this or not is dependent on the spousal income as indirectly noted above.  I should have been more explicit.  Also, maybe some of the following applied in George's case:

Line 305 Equivalent to spouse
You may qualify for this deduction if you were single, divorced, separated or widowed "at any time" in the year and you supported a dependent.  Dependents include your children, your parents or any other relative. Adopted children need not be legally adopted.

So, it is possible to claim it when you, in fact, do not have a spouse.  Anyway, I am not questioning what was done, I said that I don't understand it.  There could be more information that would make it understandable.

 

[George Wallace]

  ???

As a former tax accountant you mean to say none of your clients have had deductions taken off as a single person (higher), then have them claim their spouse or equivalent-to-spouse, which means their taxable income is less, thus they get a tax refund based on what they have paid in?

acclenticularis

In military circles it is called KISS.

You are adding a lot of confusion to something that could be so much easier said.

As GAP pointed out, you pay single, which means you are paying the higher rate of Taxes on your pay.  In the end, you should not have to worry about that thousand or several thousand dollar cheque that you have to write the Government.  Instead you get some back.  For get the 'spouse' or 'equivalent-to-spouse' options, as in most cases they don't help much. 

Exceptions of course would be those whose spouse does not work and collects some form of Government funding (to be polite). 

Does the extra few dollars a month that may you get by claiming married or equivalent-to-spouse status save you anything in the long run?  I say no.  A good grip on your finances and budgeting does.

There are many philosophies on how and when to pay Taxes.  You make your own individual choice.  No matter what, the Government wants their money.

 

[acclenticularis]

Unfortunately, the Tax Act is not simple.  However, if it is just a matter of paying more now, collect later.  KISS it is. 

 

[George Wallace]

We could have easily told him to take out a Payroll Deduction on a Canada Savings Bond and waste his money that way.  I could never understand someone paying over $100, $1000, or whatever amount for that denomination of Bond, only to go out and cash it as soon as it came in, rather than wait the ten or so years to have it mature and give a better rate of return.  I quit getting CSBs back when the rate of returns dropped below the line that would make them a profitable investment, as opposed to other means, but that is a whole different can in the cupboard.  ;D

 

[acclenticularis]

Ahh CSBs.  I am embarrassed to admit it, but, I too took out a couple in my younger years in the CF.  And I did cash them in as soon as they matured (1 year later).  :blotto:

I hear there are some new diamond projects in Africa that need investment capital.  >

 

[GAP]

I hear there are some new diamond projects in Africa that need investment capital.  >

The Nigerian Prince trying to relaim his fortune is paying a better rate

 

[exsemjingo]

D'oh, I missed that.

Sure enough, Separation expense, 11.50 per day, for 345.00 a month, hence 2088.39 a month take home pay.

Now I feel really silly.

Don't feel silly.
I've searched though whole libraries to write one or two paragraphs in my university essays, but I still find official DND wesites difficult to navigate.
I am married with children, so $345 is the difference between being able to accept an offer (when it comes) and having to turn it down,
Thanks for the info!
I do have a question though.  During training, would I still receive the other governmental subsidies that I receive now?

 

[kincanucks]

During training, would I still receive the other governmental subsidies that I receive now?

What governmental subsidies?  If you are referring to what I think you are referring to then since you will be employed your entitlement to any "governmental subsidies" disappears.

HH

 

[George Wallace]

I do have a question though.  During training, would I still receive the other governmental subsidies that I receive now?

I do believe that Revenue Canada would consider that a case of "Fraud". 

 

[Springroll]

Unless he is referring to child tax benefit, universal childcare benefit and even GST credit.
If he considers those as subsidies(he was not specific so we can all only speculate) then yes, he would continue to collect those until June 2007. They are based on his 2005 tax return. Once he files his 2006 return, then things could change as far as qualifying for GST credit and the amounts he gets from the other two benefits.

 

[exsemjingo]

I am referring to Child tax benefit, GST rebates, and the new Child-Care allowance (?) ($100/child/mo, $1200/child/year).
While I am at it, what about the line on the Income Tax form for military and police personnel?
How much is the Tax Credit?
Does it apply when wages are paid, or only at the end of the year?

 

[Springroll]

I am referring to Child tax benefit, GST rebates, and the new Child-Care allowance (?) ($100/child/mo, $1200/child/year).
While I am at it, what about the line on the Income Tax form for military and police personnel?
How much is the Tax Credit?
Does it apply when wages are paid, or only at the end of the year?

Not sure about your tax form question. I don't work for them, i just buy the tax program and fill it in where they say too...lol

You will not lose Child Tax Benefit(CTB), Universal Child Care Benefit(UCCB) or your GST. Come July, you may lose your GST since it is dependant on how much you made the previous year. CTB amount would be worked out and you may get less and the UCCB will not be adjusted until your children turn 7.

Hope this helps.

 

[Lara80a]

OK.....Another question...hope someone can help .  A single mother gets the same amount as the single rates? $1300 (take home)
And we have to pay to be at BMQ? I am soon to get sworn in....I would appreciate any answer.  I asked my recruiting center and all they sent was  information with too many abbreviations for explanations.  It was like my grade 8 greek language class.

 

[Springroll]

As a single mother, you have a dependant(or dependants) so you "should" not have to pay for rations and quarters.
Best bet is to call up the CFRC and be very specific when asking them if you pay rations and quarters.

Ask it like this:
"Do single parents pay rations and quarters when at BMQ?"

 

[Quag]

Just a quick note even though it does not pertain to those going through BMQ. 

Officer Cadets (those doing IAP, BOTP) pay no rations since they are attach posted.  The accomodations works out to roughly $90 a month at St.Jean.

Hope this helps out some new officer cadets, that might be looking at this thread.

 

[militarygirl]

If you are a single parent and you have custody of the child(ren) then you do not pay rations and quarters.  You have to make sure that there is a copy of their birth certificates on your file.  It should also state on your message that you are single with dependants.  If it not picked up that there are dependants then you may have to bring it to someone's attention in the orderly room and have it corrected, and if you have paid R & Q then you will be reimbursed these expenses.

As for the separation expense...

If you are posted or going on course and you are a single parent you can receive the separation expense if 1) you have custody of the child(ren), and 2) if they are staying at your original place of residence ie. you are not bringing them with you to course and having them stay with family or friends.

Remember that all of this is just "probable" and that each case is unique and it is very difficult to cover all senarios.  Your recruiting centre is the best place to enquire as they know your situation and don't be afraid to ask for clarification on some of the acronyms that are used.  There are so many now in place that you can actually carry on a conversation and the only full words you use will be "the", "and", "is" to name a few.  Talk about death by acronym.  :brickwall:

 

[Meridian]

Just a quick note even though it does not pertain to those going through BMQ. 

Officer Cadets (those doing IAP, BOTP) pay no rations since they are attach posted.  The accomodations works out to roughly $90 a month at St.Jean.

Hope this helps out some new officer cadets, that might be looking at this thread.

Hi Quag, if I remember this correctly, this does not apply to ALL OCdts.. only ROTP Seniors going to Civ U. (and maybe RMC). 

When I did the prep-year-> st jean leap, the deductions remained the same (though we did get the 1 year increase).

 

[Quag]

The way I understood it, as of this year (2006) ALL Ocdt.'s, receive free rations, and if they have a lease (CIVI U), then they pay no quarters.

Can anybody else help clear that up?

 

[FredDaHead]

The way I understood it, as of this year (2006) ALL Ocdt.'s, receive free rations, and if they have a lease (CIVI U), then they pay no quarters.

Can anybody else help clear that up?

I'm not sure what the breakdown is like, but during BOTP I didn't pay for at least one of those (I assume rations). From what I understand, you pay for those during IAP because you "belong" to St Jean, but once you pass IAP you belong to your unit (RMC or whatever) and when you go back for BOTP you're attach-posted, hence not paying.