Posted by: Daisy | November 21, 2008

How I should do my Taxes

So every year when tax time comes around, I procrastinate like everyone else.  What’s worse is it seems I no longer just do my own taxes but have to do my spouse’s too.  The bugger.  So, when I finally sit myself down to do it, I plan an entire day to do it.  I know it doesn’t take all day, but it seems that if I plan anything else for the day, then magically, the taxes just don’t get done.  The good news of course is that when it’s done, it’s found time to do other things.  Like laundry.  🙂

My family has a perfection gene which I happily did not get.  Now, if you were to ask normal people, they would still think I’m a perfectionist, however, I know the truth because I’ve seen real perfectionists in action and sometimes they scare me!  I go by the 80/20 rule and when it comes to taxes, it means that if I got a slip from a financial institution for a capital gain or an investment in dollars that are so tiny that it will hardly make a difference, I just don’t bother to fill out the form with that detail.  I don’t hide the fact that it exists because I will have the slips and include them, however, I just can’t be bothered to take the time to do the math and include the little dollars and cents into all the calculations.

Then, there’s the case of the CPP (Canada Pension Plan) and EI (Employment Insurance) overpayment that I tend to always get.  And that’s I believe another form that I need to download in order to get some of that money back.  So, do you think I do it?  Nah.  Can’t be bothered.

Here’s what I’ve learned – when you submit your taxes, the government will (eventually) just recalculate it all and make sure it makes sense and make those corrections to overpayments, credits and whatever else.  They do it all the time for me?!!  My overpayments always get corrected and lo and behold, I get a little more money than I originally expected.  Yeah for me.

Until this time.  I just got reassessed.  And a new slip came by sometime and must have slipped my mind.  But no worries because the government got it just fine and reassessed me.  I got more money from another source (not standard income things because I’m not that crazy to have missed it on purpose) and teeheehee, need to pay some more taxes on that income.

Yes CRA, right away sir, here’s your money with interest.  I ended up paying an extra $27.57 in interest since I didn’t pay this back in April when it was due, but I figure I can’t get someone to do my taxes for less than that anyway, so it is well worth the money.

So I wonder, what is the point of doing taxes when they’ll just redo it for me anyway?  Maybe for 2008 taxes I should just make the paperwork very simple, end up a few thousand dollars and credit and then just let them figure out what it really should be and pay the interest if I took too much?  What do you think?

– Daisy

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Responses

  1. don’t you get fined if you don’t do them?

    Ah, yes, I guess I wasn’t clear. You have to DO them, but the only fine you get for doing them wrong is that you are assessed interest if you owe money. So, you could even guess and choose to pay some, pay nothing, or ask for a refund and then when they do a full review, they’ll let you know the scoop. Sometimes, I just wonder why I bother. – Daisy


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