Income Tax Pay Day 2020 is on Wednesday, April 15, 2020: how does an income tax refund work?


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how does an income tax refund work?

The income tax refund works to keep people happily paying taxes. With payroll deductions throughout the year, people loose track of how much of their money the government takes away. Then when they get a check in April they think its Christmas. People start looking forward to tax day instead of examining how much of their money the government is confiscating throughout the year. By sending out checks each Spring the government distracts people into thinking they just got a visit from Santa. The money you get back from the IRS is simply payment on an intrest free loan you made to the government. They are not doing you a favor, they are screwing you. Tax preparation organizations further exploit people's ignorance. Look at all the comercials that come out each April telling people how they can get their tax refund back FAST. The bigger the refund you get from the IRS, the bigger patsy you are. Thats how the income tax refund works, and, unfortunately, it works pretty well.

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Income tax?

Income tax?

Actually, not correct.

In Canada, there is no lower age limit that exempts you from paying income taxes. In fact there are provisions in the Income Tax Act that subject you to MORE taxes if a parent or grand-parent tries to place investments or businesses in your name in order to save themselves from paying income tax (see tax on Split Income Form T1206)

In your situation, the only saving grace you have by being under age eighteen is that you don't have to pay premiums to the Canada Pension Plan.

You will have to pay EI Premiums at a rate of 1.71% for 2008. This rate is lower if you live in Québec, but there you will also have to pay premiums to Québec's Parental Insurance Plan.

At $2200 per month, your income will be about $26400 for the year. Federal tax would be 15% of the amount higher than 9,600. So your Federal Tax obligation would be about $2,520.

You haven't said which province you're living in, but you would also be subject to Provincial/Territorial Taxes on your income as well. These rates can and do vary from one province to the next. But there is no doubt that you would be subject to theser taxes as well.

Is the last pay day your total income for tax year or is it the last working day?

Is the last pay day your total income for tax year or is it the last working day?

The pay you make after the last 2012 paycheck is on your first 2013 paycheck, and is considered as 2013 income and will be on your 2013 W-2

Also on this date Wednesday, April 15, 2020...