Canadians: Free Income Tax Preparation for Low-Income Persons

23 years ago

The Canada Customs and Revenue Agency trains a group of Volunteers who prepare the income tax returns of low-income people, at various clinics scattered thoughout the area.

Single taxpayers with annual income under $20,000. qualify, as do couples with income under $25,000.00.

Housebound taxpayers can have their return prepared at their homes.

For further explanation, see thread in "Retirement" forum.

Learning how the tax system works is an interesting hobby - that pays well.

Good wishes for a prosperous season, all.

joyful guy Ed Baker

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Comments (5)

talley_sue_nyc
23 years ago
thanks, ed
joyfulguy
Original Author
23 years ago
Hi all,

At our Appreciation gathering, I found out that, though clinics are held in about four nearby counties, when I asked about one where I used to be a clergyperson, they said that there have been no recent clinics. One person in a village has prepared returns on an individual basis but, being employed, did not want to operate a clinic.

So I plan to try to organize about half a dozen in various towns before next year, with volunteers trained in the area, if possible.

Is such a service available in the U.S.?

Good wishes for as few tax-related hassles as possible.

By the way - now's a good time, somewhat more than half way through this year, to make plans to reduce your tax load for this and subsequent years.

Tax evasion can send (little guys) to jail - but tax avoidance should be practised by every taxpayer.

joyful guy
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Just moving it back up a bit. Some who might find it useful may not have seen it earlier. That amount that a single person can earn without being liable to pay one cent of income tax claimed above is incorrect. The correct figure was $46,345.00. in 2006 ... if solely dividends on Canadian stocks, with no other income, no income tax is payable by a single taxpayer. Have yourselves a lovely late?-winter weekend, everyone. ole joyful
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My suggestion to clients (and others - like, for example, here) was that I don't like getting tax refunds - which means that I paid too much from every payment, last year. If a person gets $1,200.00 back, it means that $100.00/mo. too much was deducted and sent to the income tax people every month last year, on which they paid no interest. Then your loan to them stayed at $1,200. from Jan. 1 till (Canada) the end of April, on which they paid no interest. It used to be that they'd start paying interest on overpaid money beginning May 1 ... but a few years ago they dropped that date back to June 15 (by which time a major part of the refunds had been sent out). If you'd like to make interest-free loans for even a short period, I'd like to stand in line to get some - where should I stand? And how soon do you want it paid back? Heck - I have to pay the bank 5.0% (or, did, until the Bank of Canada cut the Prime Rate this morning ... and most of the banks immediately followed suit - maybe it'll be 4.5% now). I like 0% better than that. When I put my money into the bank, they give me a bit over 0% ... but not much. Have a lovely week, everyone. ole joyful ... who doesn't like to either earn - or pay - interest Why not earn? Taxed too high! (Canadian dividends much lower). o j
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Some Canadians' Income 2006 $46,345.00 ... Income Tax $00.00
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Like I said - rich folks. With only one kind of income. They own quite a few Canadian stocks. Suppose the stocks pay them an income of $46,000. Suppose, now that the prices of bank shares have gone down quite a lot recently, they have about $660,000. invested that are paying 7%, to produce $46,200. last year. [Caution: I would not want to see someone with a substantial amount invested have chosen to invest it all in one company - way too risky!] When the single person calculates his/her tax load ... it'll be zero. If the "taxpayer" has a low-income spouse with some tax credits to transfer ... or makes some political contributions ... or donates some to a registered charity (and the credit is at a high rate when one contributes over $200. per year) ... or pays upwards of 5% of net income in eligible medical/dental expenses ... the tax-free amount goes even higher. You may have heard me say in some of my posts that I don't like earning interest - the number of underlying invested dollars can't grow. And the only income that it produces ... is produced now ... and it's taxed now ... at top rate. If you have stocks of Canadian companies that pay dividends and have other kinds of income, the tax-free amount reduces rather rapidly ... but you'll pay tax on the dividend portion at a much lower rate than that on most other kinds of income. If this doesn't explain it adequately, ask and I'll try again. Perhaps if you check the link and read carefully, you'll find it explained a little differently and in a way that'll be clear to you, over there. ole joyful
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Comments (1)
time for this to drop down
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joyfulguy
Original Author
15 years ago
Available again this year (for 2010, not 2002, this time) ...

limits about $25,000. single and $35,000. married.

I was pleased with myself last year, in having arranged my affairs (via substantial charitable and some political contributions) ...

... to reduce my Federal tax load to zero.

And the provincial liability was low, possibly nil, till I got down to the recently-initiated Health Levy and had to pay a few hundred for that.

But I should not complain ... as I made substantial use of the healthcare services, for nil or minimal cost, during this past year.

And I used to say that we should all be willing to pay a portion of the cost of running the country ...

... and then light fires under our legislators when we believed them to be running it/them improperly!

At least ... we can do that, most of the time, without getting banged on the head for our trouble.

Or locked up.

ole joyful
ian_bc_north
15 years ago
Hi Ed,
Good to see that you are still around.
Am still working though I am getting the "Are you retired?" question more often.
Can't use your service. In dollar terms my income has never been higher.
joyfulguy
Original Author
15 years ago
Hi again Ian,

Glad to hear that things are going well with you.

I've had a few varicose veins, and a couple of weeks after a shot to shrink one last fall was awakened early one Sunday morning with a pain - pulmonary embolism: clot to the lung.

Some tests in emerg and gave me a shot of blood thinner, got my breath better and have been pretty well back to normal since - with the assistance of a daily shot of rat poison.

Hey - maybe you could use my service, after all - how about arranging things to pay less income tax next year?

How about retiring early? Or working toward it?

One of the nice things about retirement - every day is ...

... holiday!!

Enjoy your winter - what's left of it.

ole joyful

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Canadians: Free Income Tax Preparation for Low-Income Persons

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Canadians: Free Income Tax Preparation for Low-Income Persons

Comments (5)

talley_sue_nyc

joyfulguyOriginal Author

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joyfulguyOriginal Author

ian_bc_north

joyfulguyOriginal Author

COMPANY

BUSINESS SERVICES

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joyfulguy
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joyfulguy
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joyfulguy
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