Xref: utzoo ont.general:1016 can.general:1648 Path: utzoo!attcan!utgpu!heath From: heath@gpu.utcs.utoronto.ca (Todd Heatherton) Newsgroups: ont.general,can.general Subject: Re: The Taxman Cometh for NSERC Award Recipients Keywords: Taxes, installment, Make the poor pay! Message-ID: <1989Aug29.141200.21905@gpu.utcs.utoronto.ca> Date: 29 Aug 89 18:12:00 GMT References: <1989Aug24.111357.26686@jarvis.csri.toronto.edu> <6258@watdcsu.waterloo.edu> <11298@watcgl.waterloo.edu> Reply-To: heath@gpu.utcs.UUCP (Todd Heatherton) Distribution: can Organization: University of Toronto Computing Services Lines: 38 Checksum: 39033 In article <11298@watcgl.waterloo.edu> ksbooth@watcgl.waterloo.edu (Kelly Booth) writes: >Assuming that everyone has agreed the taxes are inevitable, I offer the >following two suggestions: stuff deleted > >2. At Waterloo, at least in CS, many if not most of the NSERC award >holders also serve as TAs at one time or another. TAs have withholding >tax taken out. There is a Revenue Canada form that you can file to have >more withholding taken out. I think (though I am not a lawyer) that an >employer must honour such a request (i.e., the University can't refuse >to do this just because it is more paperwork for them). At the extreme, >you might have all of your TA income withheld, reducing your eventual >tax payment to zero. This DOESN'T work. I tried it last year. Unfortunately, the tax man claims that they should have been paid quarterly installments on the NSERC payments and will not credit you for overpayments from another source (they view the employment income from a TA as a different source of income). Given that an NSERC is now worth 15K, it would be hard to have enough eaten up from TA tax to offset tax owed. To make a long story longer, this method ended up costing me $183. Ouch! Be sure not to use the quarterly payment method unless they WARN you to do so. They always give you a one year grace period (but you must pay after they warn you). Solution: Tax at source or reduce awards by 17% (or whatever figure) and make scholarships, fellowships non-taxable. -- ************************************************************************ Todd Heatherton Department of Psychology University of Toronto Phone: 416-978-6387 (office) Email: heath@gpu.utcs.utoronto.ca 416-482-4847 (home) or heath@psych.utoronto.ca ************************************************************************