(How) Do you pay taxes? - a question for everyone

[sheila]

It has recently come to my attention that other countries do not have a tax day like Americans.

If you don't, how do you pay taxes? Or do you pay taxes at all?

[Bev]

What do you mean tax day? The day you send in your papers to the gov't and either receive a refund or have to pay taxes?

In Canada federal and provincial taxes are deducted at source (from your paycheque, you never get that money) and then every Feb. 28th you should have all of the receipts from your employer, bank for interest charges/Registered Retirement Savings Plan deposits, charitable donation receipts, tuition, etc. Then you fill out some forms and do the math and figure out if you owe the gov't money or the gov't owes you money.

Certain things (daycare expenses, property taxes) can reduce your taxable income and if it's reduced enough through those deductions, you fall into a lower tax bracket and you get money back.

There is also a federal Goods and Services Tax (GST) that is on all goods and services and it is 5% of the cost of the item. There is also Provinical Sales Tax which is on certain items and that varies per province. In Ontario it's 8%.

Please disregard if none of that is what you were talking about. :)

[gulp!]

Bev, is there a deadline by which you have to tell the govt if you owe them or they owe you?

In the States, most (but not all) receipts from employer, banks, etc. have to be sent to you by Jan. 31st, but everyone has until April 15th to file the end result of the calculations. Or you can file an extension by 4/15 to give yourself more time. April 15th = Tax Day here.

[sheila]

Yes, Bev. That is exactly what I meant. Thanks, Stef.

[~Deborah~]

Bev, is there a deadline by which you have to tell the govt if you owe them or they owe you?



I hope it is ok to answer Bev....We have to have our taxes filed by April 30 (postmarked anyways) or you pay penalties

[LISA]

Yep,April 30th here in Canada and um we're not going to make the deadline this year :shuffle: heck, we only just filled our 06 taxes :blush:

[Becca]

:jawdrop: LISA!!! Get your butt in gear girl before they audit you!! We get a refund :D Hello new BBQ!!

[Clare]

What do you mean tax day? The day you send in your papers to the gov't and either receive a refund or have to pay taxes?

In Canada federal and provincial taxes are deducted at source (from your paycheque, you never get that money) and then every Feb. 28th you should have all of the receipts from your employer, bank for interest charges/Registered Retirement Savings Plan deposits, charitable donation receipts, tuition, etc. Then you fill out some forms and do the math and figure out if you owe the gov't money or the gov't owes you money.

Certain things (daycare expenses, property taxes) can reduce your taxable income and if it's reduced enough through those deductions, you fall into a lower tax bracket and you get money back.

There is also a federal Goods and Services Tax (GST) that is on all goods and services and it is 5% of the cost of the item. There is also Provinical Sales Tax which is on certain items and that varies per province. In Ontario it's 8%.

Please disregard if none of that is what you were talking about. :)

That's exactly how it works here (us Commonwealth countries tend to do most things the same way! :) ) except our deadline for to have your tax done is Oct 31.

[Sam W]

For what it's worth, April 15 is only the deadline if you *owe* the gov't. If you're getting a refund, there is no penalty for filing "late".
And for anyone who forgot that random donation or whatever... I believe the window to file an amended 1040 in which you would increase your refund/decrease your liability is 2 years (might be 3, but I'm pretty sure it's 2).