Hello,
I am filling in the information in my software program I use for my taxes. Studio Tax.
I made a $ 12000 payment last year, cause I was suckered into one of those pharmacy pill scams, and I decided to pay then maybe be taken to court and having to pay more.
ANYWAYS..............I received a form from the CRA stating to place that $ 12000 on line 476 of my federal income tax section. Well I am getting back $ 5800 and when I enter that $ 12000 on line 476, it increased my refund to over $ 17000.
That can't be correct is it?? I mean why would I be getting back what I paid them.
Can someone tell me what is going on and this must be wrong.
HELP as I am confused about this.
Thank you Joanne
My refund went up the amount I put in line....
Re: My refund went up the amount I put in line....
Line 476 is where you enter tax installment payments which you have previously paid in advance to CRA. I am not familiar with a pharmacy pill scam but I'm sure it didn't pay any money to CRA on your behalf.
Maybe you should show your documents to someone who can help you understand what this is about.
Maybe you should show your documents to someone who can help you understand what this is about.
Re: My refund went up the amount I put in line....
Did you file T1adj for previous tax year(s) declaring income not originally reported? If so, my guess is that they haven't processed the T1adj(s) and are considering the money you sent them as an installment payment instead of tax owing from previous years.
Are you a pharmacist? Is this the story?
http://www.cbc.ca/news/canada/nova-scot ... -1.2867194
Are you a pharmacist? Is this the story?
http://www.cbc.ca/news/canada/nova-scot ... -1.2867194
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Re: My refund went up the amount I put in line....
Welcome to FWF.
Call me a bit confused with the details. Who did you pay? CRA?
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Re: My refund went up the amount I put in line....
The only thing I can think of is that CRA reassessed a past tax return or returns, and you ended up with a negative CRA account balance of -$12,000 when they were done. So even if your refund is now $17,800 instead of $5,800, once they adjust your CRA account you will only see $5,800 come back to you...and your CRA account balance will be back to 0.
-$12,000 + $17,800 = $5,800.
So whether CRA adjusts it for you or you do it on line 476, it will end up the same. Probably doing it this way, instead of them allocating the money to a previous tax return, allows them to charge an appropriate amount of interest.
The other probability, which is probably a higher one is that they took your $12,000 and allocated to the wrong account. Instead of paying it to your general CRA account they allocated it to your installment account. It would end up working out the same way, once your 2017 return is filed, except interest might still be accruing until you file this year tax return, as opposed to ending on the day they received the money.
Again, all this is just my guess. If you have access to your CRA account you can probably verify what I have said.
-$12,000 + $17,800 = $5,800.
So whether CRA adjusts it for you or you do it on line 476, it will end up the same. Probably doing it this way, instead of them allocating the money to a previous tax return, allows them to charge an appropriate amount of interest.
The other probability, which is probably a higher one is that they took your $12,000 and allocated to the wrong account. Instead of paying it to your general CRA account they allocated it to your installment account. It would end up working out the same way, once your 2017 return is filed, except interest might still be accruing until you file this year tax return, as opposed to ending on the day they received the money.
Again, all this is just my guess. If you have access to your CRA account you can probably verify what I have said.