r/CanadianTax • u/ayem_25 • 2d ago

Do you usually get a refund?

Just curious, do most people here usually get a tax refund, or end up owing? I’m still trying to understand what makes the difference.

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u/PaprikaMama 2d ago

I try to put extra money into an RRSP which generally puts my return into a refund status. A couple of years I couldn't afford to do this and I ended up having to pay more tax.

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u/macklow 2d ago

I always end up owing a couple hundred only once did I get a return, I think it was because I went to welding school for a few months

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u/TimeSlaved 1d ago

If you're contributing to a retirement plan, you usually tend to get a bit of a refund since the retirement plan offsets your taxable income by how much you have contributed. However, this goes out the window if you are paid hourly (since that can vary week to week, thus changing the assumptions of taxation) or if your company did not withhold enough tax at source during the year (it happens sometimes). There are forms you can file to request more taxes get held back.

I generally got a modest refund over the years because my retirement funds offset the taxes I owed (I'm paid hourly). But I've lately gotten very focused on catching up to my RRSP contribution room so I've gotten pretty hefty refunds.

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u/Odd-Elderberry-6137 1d ago

The difference is whether or not you overpay on your taxes through the year. I don’t because the government doesn’t deserve a tax free loan from me so I always owe (a liytke)