Revenue Quebec gansters in style

Today was quite an exhausting day and tomorrow will be just worst. I took 2 hours during my lunch break to have my taxes finally done and completed. I will be able to recover the one hour extra tomorrow. But I won't be able to recover from all the money I have to pay in term of taxes for 2012.

If like me you live in Montreal and would like to find a very good professional place to have your taxes done, I more than strongly recommend Impôts Ici. I had all kind of papers (employment papers, self-employed declaration, tax paper for my small business and all kind of investment tax papers you can imagine of). At a bit more than $240, I find it quite a sweet deal. I even offer a $20 tip to the accountant, but she refused. It could be seem weird to tip an accountant, but I truly had the feeling of what all the work involved in doing my 2012 tax declaration. A real pain in the ass. I had the double status of employee and self-employed, and it was also complex because I lived in New Brunswick for about half the 2012 year... This is giving you an overall of the funky situation that is mine.

I had been a long time customer of Impôts Ici. I guess I had gone there for the past 5 to 6 years at the exception of last year because as you know, last year I was in New Brunswick.

For the tax of my very small business, I got a return of $70.

I got returned of $500 from the federal.

And....

I have to pay $1 600 to Revenue Quebec!!!!

Why is that?

Well, it doesn't look like it at first, but I had made more than 50k in 2012. Nice, but helllll, I need to pay quite a few dimes to Revenue Quebec. All this hard work to pay more in taxes, its totally disgusting, I agree. I was quite impressed by the 50k mark. Its a lot of money. I did quite well on the dividend income and interest and capital gain too, so it add up quickly. I had been on unemployment, but less than 2 months, and I had my self-employed, and dividend income with that.

As the years past by, my dividend income, interest, and capital gain grow, grow and grow. And at a point, I could very easily made 60-70k per year. At this point, I begin to be more conscious about how I invest affect my income. I would be very important to take fully advantage of the TFSA. I still have contribution room available in there and I am much more tempted to maximize the TFSA rather than the RRSP.

Yes, the RRSP will provide a tax break, but its not money I will be enjoying now or even in 5 years from now. That's why I didn't invest in my RRSP in a very long time. We might be getting a tax break in the immediate, but later on, tax will be apply on every dime. I stopped investing in the RRSP when I started realize that. I have an aunt who's quite have money of her own and she confirmed that fact. Susan Brunner came here once and declared I was right all the the taught. Its really important to understand that as soon as possible in your financial life.

I won't be enjoying an exotic trip to Banff or expensive hotel room this summer... that's for sure... I am just happy to have this upcoming pay on Friday. I will be able to clear off my tax payment without to much efforts. There's nothing I can do to fight back, my tax need to get paid or interest will be charged. We all face the same challenge.

It make me realize that if at a point I am really getting enough of my full-time job, I could get something else, even just part-time, and cash out the dividend, and just stop whenever I want and leave Quebec province.

Today was a day like that.