How do I calculate tax remittance?

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Refund or Balance Owing

How do I know if I owe taxes or getting money back?

After you determine your net federal tax, and provincial tax you report them on your Income Tax and Benefit return line 42000 and line 42800 then add both amounts on line 43500. This is the amount you owe in taxes, prior to any refundable credits or overpayments.

To determine your refund or amount owing, you would add all taxes paid from different slips sources and report them on line 43700 to be subtracted from your calculated total tax payable on line 43500. Then you can apply other refundable credits such as:

• Overpayments on CPP
• Canada Workers Benefit
• Refundable Quebec abatement
• Climate Action Incentive
• Refundable Medical Expense Supplement
• Refund of investment tax credit
• Employee and partner GST/HST rebate
• Eligible educator school supply tax credit
• Tax paid by instalments
• Provincial or territorial credits on Form 479

Of course, there is the TurboTax Canada income tax calculator, to help guide you through your numbers.  Then again, if you want to know whether you are getting a refund or if you owe, you might as well just complete your return through TurboTax.  With options available ranging from doing the return completely on your own to having a TurboTax expert prepare your return for you – with options in between – why would you go elsewhere, then with Canada’s most popular tax preparation software, which has been helping Canadians since 1993.

 

For more information please visit TurboTax's blog

 

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