Xref: utzoo ont.general:1010 can.general:1630 Path: utzoo!utgpu!watmath!maytag!watdcsu!djohnson From: djohnson@watdcsu.waterloo.edu ( DOUG JOHNSON - GEOGRAPHY ) Newsgroups: ont.general,can.general Subject: Re: The Taxman Cometh for NSERC Award Recipients Summary: Ha. Tell me about it! Keywords: Taxes, installment, Make the poor pay! Message-ID: <6258@watdcsu.waterloo.edu> Date: 26 Aug 89 03:44:37 GMT References: <1989Aug24.111357.26686@jarvis.csri.toronto.edu> Reply-To: djohnson@watdcsu.waterloo.edu ( DOUG JOHNSON - GEOGRAPHY ) Distribution: can Organization: U. of Waterloo, Ontario Lines: 37 In article <1989Aug24.111357.26686@jarvis.csri.toronto.edu> elf@dgp.toronto.edu (Eugene Fiume) writes (re scholarship income): >Also, you're supposed to pay tax by quarterly installments. I never >did this, and was sometimes charged interest. I think they now have >their act together and are pretty insistent about charging interest. Ha. Tell me about it. (For more details, e-mail me). Tax installments are required if 1) your net federal tax payable is > 1000 $, 2) more than 25 % of your income has no tax taken off at source, and 3) this is your second year of meeting the requirments re 1 & 2. Now, there are NO exemptions! The requirements are designed for people such as self employed businesspersons, those with rental income, etc., not students (I've written my MP on this and its now before the Minister of Revenue). Talk about a far-sighted policy (sarcasm). Students who receive an OGS (Ontario Graduate Scholarship) receive notice of such in late spring. They can start their award in May or September. Say they start in May and fall in the situation I've listed above re installment requirements. The first installment is due on the last day of March. Never mind that you don't have the scholarship yet, but you are required to pay a a tax installment BEFORE (this is not a typo) you receive any income!!!!! I don't know about anyone else, but I think this is a horrid policy and I told my MP just that. I also called Revenue Canada about this. I stated the above situation and was told that any student that APPLIES for a scholarship should base their tax considerations (i.e., to install or not to install) on the assumption that they will receive the scholarship! I could go into details regarding the monitary advantages and disadvantages of complying with this, but enough already - this tax shit never fails to piss me off every year! Arrrg. D.J.