Free money!!!

The only things free in this life are smiles from the cute McDonald’s cashier and prostate exams at the doc’s office.  Everything else comes with a catch.  You know that nice “gift” you get from the government each year after filing your taxes? The one that feels like the government is finally giving you a break? If you contribute regularly to a Registered Retirement Savings Plan (RRSP), have child care or employment expenses (or have a great accountant who can make it seem like you have all of the above) then there’s no gift at all.  The mounties should be the ones thanking you, after all they did keep your money as an interest-free loan for a year.

Imagine yourself being Macaulay Culkin, after making all those “Home Alone” flicks you are just drowning in cheddar.  Each Christmas your parents return home from whichever vacation you were funding, they then “spoil” you with a great big gift (bought with your own money).  And you have to say “thank you” or you will be grounded for a week.  The Canadian government is indebted to you because your RRSPs are funding their Aruba getaways.  Of course there is a neat trick to avoid getting a lame non-gift at the end of the year and just getting the money steadily with each paycheck.

Step 1: Download and fill out the T1213 form in order to “request to reduce tax deduction at source for tax year”.  You can find the form here: http://www.cra-arc.gc.ca/E/pbg/tf/t1213/.  Ask your accountant to perform their trickery and document all of the tax deductible expenses.

Step 2: Go and see the nice lady at HR and put her at ease by letting her know that you are NOT there because of the rampant sexual harassment going on at your workplace.  Once she’s relaxed, explain that after years of abuse you are finally standing up to the mounties and kindly asking them for instant cheddar.  After this heartfelt conversation don’t forget to drop off the form.

Step 3: Wait 8 weeks.  It’s absurd that you even found out about this method let alone bothered doing it.  The mounties will need 8 weeks to comprehend the situation.

Step 4: Free money!!! Or at least extra cheddar each month that you won’t need to wait a year to see.

Taxpayer beware, you will not be receiving a big bonus at the end of the year (plan ahead).  In fact, if you overshoot on the eligible deductions you might end up having to pay the government.  Also, this nice chat with HR lady will have to be done yearly each time you want your hard earned money back.

Don’t feel bad for the Canadian government (which taxes first and asks questions later) they should be just fine.  Enjoy the extra cash!

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