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Help? Showing a refund but I made under 10,000 and didn't pay tax?
Hello,
Wondering if someone can point me in the right direction.
This year I was fully self employed (no day job that reports and issues T4). I made under $10,000 in Gross Revenue. I did not pay any sort of taxes monthly and have no T4 slip. I kept track of all income and expenses. My expenses were around $4,000 for my business so I made a net profit of around $6,000.
I am confused as to how I can possibly be showing a $1,682.04 tax refund? When I examine the credits area it is showing a tax credit for 453 Working income tax benefit. Is this correct? I just want to make sure this is legitimate and that I have not entered some data wrong.
On my return in the Other Employment Income Sources section, I entered in my Gross self employment income amount in the “Other Employment Income” section. I put in the “Specify” area > Freelance Business and I entered in my Gross Income amount.
I do not want to get a Tax refund only to find out I made a mistake and have to pay the Government back so I am double checking here to see if this makes any sense at all and get some guidance.
Thanks!
NB
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Troubleshooting
Hi NB,
Please take out the amount you entered in "Other Employment Income". That should be nil in your situation. The only place you need to enter your self employment income (and $4K expense) is in Business Expert Interview area.
To answer your other question, yes you are eligible for the Working Income Tax Benefit (WITB). The federal government encourages individuals to join work force, and if income is under a certain threshold you get money back as calculated in WITB worksheet. It is not a mistake and you don't need to pay this refund back, as long as you can prove your income & expenses.
(...and I must commend your style to explain in detail. Here in the forum we usually get high level generic questions with little detail. Thorough statement like yours makes our response easier)
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Troubleshooting
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Troubleshooting
Working income tax benefit is no longer available to me. Is this only for persons who are employed by a company and have a T4 but make under the Poverty limit?
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