tax return - newbie pensioner

[pob]

Hi,

I live in Quebec. My retirement starts in March.

I successfully applied for Quebec Pension and Old Age Security that quebeckers recieve as a federal pension part.

So I know the amounts I will receive from both. I know the tax return rate - 15% federal and 14% provincial.

I want to pay my tax return monthly (as was during working years). I can to apply for that in my web portal for each.

The question:

Would it be 15% for Old Age security and 14% for Quebec Pension or 15% applied to OAS will also be applicable to Quebec Pension sum and vise versa.

I know it sounds not logical... but who knows.

Let's put some numbers as an example...

OAS - $500/month    QPP - $800

from above :

500x0.15 =$75 Federal monthly

800x0.14 =$182  Provincial monthly

Total: $257

If my logic is correct, paying 257 from my monthly pension revenu (both sources). I will not have any tax return by the year end.

Am I correct?

I live alone. Is there a way to have some tax credit in above scenario.

Any advice if applicable  would be appreciated.

 

Thank you.

M

 

[Maggie3]

Hello pob,

We do not dispense tax advice. We are not tax advisors or accountants. Our role as a software company is to assist clients with the use of the software. 

You may call the Canada Revenue Agency  at 1-800-959-8281 to know if they would answer your inquiry. You may also make this inquiry with your financial institution or tax advisor.  

While you may cover the pension income, it will not cover other income or required contributions entered into your tax return. Example: Quebec prescription drug plan. health fund, etc...

[pob]

Thank you very much! Unfortunately, Canada Revenue Agency agent during 15 min repeated the same explanation in different words and basically told that it's Service Canada can provide the exact answer about taxation.... previously, Service Canada agent pointed me to Revenue Canada. 

I thought that somebody of UFile members who has an experience related to my question would answer.

No problem  and thank you again.

I will continue my "research".

 

Kind regards.

Loyal UFile member for at least 15 years.

[BLSM]

I am neither tax advisor, nor Ufile admin.

What we did, was enter on Service Canada to take 10% off each of our CPP and OAS.  We still got a refund at year end, because of low income and a few other things. 

Last year, we had SC cancel our voluntary tax deds altogether and if we owe a bit at tax time, I'd rather do that, that have CRA spending my money year-round.  If, however, you are in a higher tax bracket, and would owe a bunch of $$$, then it's good to pay as you go.

When you are working on your tax file this year, try a couple of different scenarios - one with tax deds. and one without.  If you don't have a separate company pension, just QPP and OAS, you may not need to pay much, if anything, due to the various basic deductions, age amount, etc..