In mid-March I prepared my 2007 taxes and Netfiled them to the Government of Canada. Typically it only takes three weeks before I hear back from them, since my taxes are usually quite simple. Except two weeks ago I received a letter from the government asking me to send in my T4s (those are the slips that your company sends out stating your income for the year.)
GULP
I don’t know about you, but I always get nervous whenever the government asks for “proof” of anything, whether that’s at a border crossing and they ask for my passport, or when someone asks to see my photo I.D. But this, this could be extremely nerve-wracking!
But since I knew that the real reason they were asking for the proof was that I had made more last year than the previous year, what with my raise, my severance pay and my new job, I knew I would be all right. And sure enough, I was!
How was I all right?
I actually got my income tax return last Thursday. Yes, for one glorious day, my bank account was doing the Happy, Happy, Joy, Joy song. The planets even aligned last week so that I had both my income tax return AND my bi-weekly pay deposited into my account on the same day. Oh, it was a heady time, seeing all those numbers in my chequing account. I admit that I left all the money in my account for a day just to see all those numbers.
Of course reality set in the next day when I had to disperse all the money:
- 10% went into my fun money savings account (either my travel fund, or my new tv fund, I haven’t decided yet.)
- 90% went into my debt repayment, divided up between a couple of the accounts.
How are you going to use your income tax refund (if you’re getting one)? Are you going to be bad and spend it on something frivolous that you haven’t been able to buy? Or are you being responsible and paying off some of your debt?
Unfortunately, no tax refund for me. Due to my contractual status and being incorporated (and taking my sweet time to do all the taxes for that) I owe the gvt some money. I am investing in accountants for next year!