Vincent Cheung

Vincent Cheung's Blog

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Saturday, April 15, 2006

Negative Tax Rebate!

I owe the government $2,500+ :s

I guess that's a good thing actually. Getting a tax rebate means that the government ripped you off all year long and now is apologizing by giving you your money back... without interest. So, those of your celebrating a tax rebate, you're celebrating the fact that the government is ripping you off! Congrats!

In my case, I didn't pay ANY taxes this year. Now I have to pay it, but at least I earned interest on that money in the meantime. 4% interest on $2,500 is $100!

I didn't pay any taxes on my scholarship, research assistant pay, or interest earned on savings. I paid minimal taxes (compared to Canadian tax rates) at Microsoft, none of that to the Canadian Government. I was technically only enrolled in one semester of school this year, so I get less tax credit for tuition. But then I get tax credits for RRSP, relocation (to Seattle), housing costs (in Seattle and Toronto), and donations. So, when you look at it from the perspective that I didn't pay taxes all year (ok, some to the US, but I think I get that back...), $2,500 in taxes for the whole year isn't bad at all, actually it ends up being like less than the GST rate, which is pretty damn good for income tax. Plus I didn't have to pay for EI or CPP.


Bob said...

Did a bald guy in a suit come up to you and knee your package??

Vince said...

Yes!!! Not only that, but a second bald guy with an American flag bandana took me for a second round :s

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