• FirefoxInstall the new Firefox »


    Why do some people owe money at tax time, while others get a refund?

    How is it that with a single income of less than 30,000 in Canada that I owe the government money? How come friends and family who make more or and some who make the same get a huge refund?
    a few seconds ago 3 Answers

    Best Answer

    Chosen by Asker
    Your employer is required to withhold taxes from your paycheque. There are formulas that determine how much tax should be withheld. The formulas are set up in such a way that if you only have a single employer and have no other sources of income you should not end up owing any taxes at the end of the year. However, if you have more than one employer or if you have other sources of income such as from investments, then it is quite likely that you would end up owing taxes at the end of the year. If this has not been your experience, then I suggest two possible causes: (1) Your employer is not following the payroll deductions formulas properly; or (2) you are not completing your tax return properly. See below for the CRA online payroll deductions calculator which you can use to test your paycheques to see if the employer is withholding the proper amounts for CPP EI and tax.
    a few seconds ago

    Other Answers

    • You should not confuse tax refunds with tax liability. Some people over pay more than others thus get a bigger refund of the amount they overpaid. You underpaid so have to pay the balance at the end of the year.

      by wartz - 7 hours ago

    • The way your filing could be it, or the way the tax is taken out. If some one can help me on here that knows what to put on your forms (W4?)when you start working to have the maximum taxes taken out...I can't remember what I marked for that. If you made any money on the side (tips, ebay $, sold an item- car..) that had no taxes taken from it (extra income)...

      by Archer87 - 7 hours ago

    Recommended Articles

    Yahoo Small Business Services