Filing Taxes doesn't always mean you'll get money back !
Sometimes, you might have to pay instead. This depends on how much money you make and any investments you have.
If you're wondering why, you owe taxes this year, think about any changes that happened in your life or job.
There are a few reasons why you might have to pay taxes:
If you earn more money or work for different companies like a couple of part-time jobs, your employer might not have taken out enough tax because your employer may have no information about your different workplace. This can lead to owing taxes. If you're your own boss, like if you have your own business, you're more likely to owe taxes.
If you get extra money like a bonus or interest from investments, it adds to your total income, which might mean you owe taxes.
Big life changes like getting married, divorced, retiring, or having a baby can also change your taxes. For example, if you used to file taxes as the head of a household but now you're single, it can affect how much tax you owe and the deductions you can take. If you're married, it's important to know whether it's better to file taxes together or separately.
If your child is over 18, you might not get as much help with taxes from things like the Child Tax Credit.
If your employer didn't take out enough tax from your pay check, which you can see on your T4 form, you might owe more tax when you file.
Not putting money into special accounts for retirement, like RRSP or FHSA, maybe you will owe more taxes.
To sum it up, many things can affect whether you owe taxes or get a refund. It's important to understand your situation and get help if you need it.
By thinking about your income, investments, life changes, and how you file taxes, you can better manage your tax bill and make smart choices about your money.
