Large Tax Refund in Canada?

Question

is it likely that the government will issue a large refund to my husband or will they pay him in installments? He took an MBA program and is claiming the amount that he paid in full at 30000.00.

Answer 1

One lump sum. One payment.

I've received refunds for over $25,000 in one payment.

The bank might ask some questions, until you show them your Notice of Assessment. We had this problem when buying a rental property after a particularily large refund. They thought it was RRSP cashing in or some illegal laundering.

Your husband did an international program, so he needs a TL11D filled out. He should also be claiming the education amount in addition to his tuition.

Hope this helps.

Answer 2

Don't count on any refund at all.

From the information you provided it seems that your husband has paid $30,000 for an MBA program. Does this include tuition and room and board for example or are you going to claim it entirely as a business expense ?

You may have problems claiming it as a business expense if it was paid to an educational institution like a University or College. Then CRA may make you claim it as tution fee.I would suggest that you read the earlier question on tuition fees. to see how this is handled.

You can try claiming it as a business expense which may or may not be allowed. An expense is something that is usually required to earn money -choosing to take a MBA course may be a good idea but cannot be directly attributed to any business deal or sale It is something that will be used byyou over the long run which is the purpose of a tution fee. Again it will only be a deduction against other income and if a business loss is created it can be applied against other "net" income in the year ( salary, investments, pension, etc--) to reduce your income to zero. If losses remain there are ways to apply it against other years.

In order to get a refund you have to have paid some tax to get money back. If you do not have any income in a year then you not have paid any tax or have had tax deducted and there will be no refund. A refund is the return of taxes paid by you No tax no refund

As explained above if there is a refund it will come in one lump sum. The canadian government is not that poor!!

Remember also the fact that you get a refund does not guarantee that it is correct. The policy now is to process returns as quickly as possible. Two things may happen - the claim may o through without question or CRA may question it before allowing and even disallow it. CRA has the right to question claims for another 4 years and the chance that this will happens increases as the refund does. Refunds over $3000 are generally looked at.in detail later on. You have a right to appeal if you disagree with a decision.

Good luck

Answer 3

The tuition and education amount your husband can claim on Line 323 is a Non-refundable Tax Credit. It only helps to reduce his tax liability and nothing else. So if he didn't work at all in 2006, he will not be able to use this amount as he doesn't have any tax liability. Besides, he can only claim a maximum amount of $5000 on Line 323 which is then multiplied by 15.25% which is about $762.50 reduction of his tax owing.

Answer 4

Hello,

The refund will be issued as a single cheque. I would expect them to question it though. If you e-file, net-file or tele-file you will likely receive a letter asking for a copy of the T2202 tuition paid slip as well as a letter from his employer stating that he has not nor will be reimbursed for any of the tuition costs. Just did this for a friend of mine.

Cheers!

Answer 5

$88 could well be right. Your refund can't be any higher than the tax that was deducted from your paycheque. If that was $88, then that's your refund.

Answer 6

iT WILL BE ONE LUMP SUM