Tax time

Tax season is amongst us and people are rushing to file their returns so they can get their refunds. Those who has to pay taxes are waiting until the very last moment to file. Like the previous year, I’ve filed my income tax over the internet using Net File. I had to wait a while because that service was temporarily down last month. I didn’t get notification of when it was up until a week after they’ve fixed the problem. I was afraid that I might have to mail it in which would have meant that I would have to wait a lot longer before I get a cheque in the mail. I am expecting a large portion back and with it, I intend to spend it.

This tax season isn’t quite like previous tax seasons. This year, I had to include my business’ income with my return. Last year, Project One didn’t make any income because I was busy with school and work. But now that I only have work to worry about and not school, I took up a side project to work on. This is the second year that Project One is in business and everything that we make it pretty much profit. We don’t have to worry about office space and utility bills since my business partners and I work from home. And because we work from home, we can claim some of our bills and use it towards the business.

I can claim a portion of my room as office space but I don’t know the exact calculation for that so I didn’t claim it. I use my cellular phone as a business phone so I was able to claim a portion of that. Plus there were some business expenses like my camera. I needed to get the camera to take some pictures of the clothing inventory for one of my previous clients so I can claim that as a business expense. I could probably claim gas and some other expenses but I’m not too familiar about how to claim them. My business partner and I were going to wait and have our taxes done by an accountant but I couldn’t wait that long. I had the necessary numbers so I punched that into the computer and filed my taxes before him.

I am expecting an $800 tax refund this year but I haven’t decided on what I’ll be using that money for. A good thing to do is to put that money back into my RRSP so I can prepare for next year’s tax season but I don’t want to save my tax refund. I want to use that money to buy stuff. But since I’ve been helping people with their debts, it might be best to put that money towards the bills.

But then again, I do want to get a Wii. They’re still hard to find but there are a few places that receives weekly shipments. I heard that Walmart usually gets a shipment or one or two every Tuesdays so I could probably check them out. I’m not sure how much the retail price is here in Canada but I’m assuming it’s close to $300 which doesn’t sound too bad. It’s been a while since I’ve purchased a gaming console. If I do manage to get one, I don’t think I’ll get to play it much so the purchase is mainly for my little brother.

Since I filed my taxes over the internet, the processing time it takes for a refund is fairly fast. It’s usually two weeks before I get a return. If all goes well, I should be getting the amount that was calculated on my return. If there’s a mistake, I might get less or more depending on what kind of mistake it is. I prefer that I made a mistake and get back more.