For the GST/HST Tax Experts
So....I feel like an idiot. For most of my life, basically until last year, most of my income was "self-employed".
Since my service earnings were more than $30,000/year, I have to collect, and submit, GST/HST. (I am in Ontario, so it's HST)
Well, somewhere along the line, when we went from GST to HST, I misread the PDF file from the CRA, which is, submission rate (for the Quick Method). So for the past 6 tax years, I've been submitting the rate in column 1, which was 10.5% (which is, earnings x 13% HST x 10.5%). I should have been doing 8.8%. I've already adjusted my 2015 and 2014 returns. Of course, I overpaid by a few thousands, but now those few thousands also turn into "Government Assistance". Also, they affect the CCTB, HST and Trillium benefits. Either way, I overpaid overall, so it's still a net gain for me.
That said, I was talking to a bookkeeper, he suggested only going 2 year back max, as if i go back further it will trigger a review. Since I technically am "employed" mostly, and not self-employed, I am wondering what are the experts thoughts on this? Most likely I overpaid by $8,000 all together. However, that means I understated my income by that amount, and was overpaid certain benefits during that timeframe. Again, it would mean a net benefit for me, probably at least $5-6,000. However, I don't want to trigger a review, just not worth the hassle.
Thoughts, anyone?
Since my service earnings were more than $30,000/year, I have to collect, and submit, GST/HST. (I am in Ontario, so it's HST)
Well, somewhere along the line, when we went from GST to HST, I misread the PDF file from the CRA, which is, submission rate (for the Quick Method). So for the past 6 tax years, I've been submitting the rate in column 1, which was 10.5% (which is, earnings x 13% HST x 10.5%). I should have been doing 8.8%. I've already adjusted my 2015 and 2014 returns. Of course, I overpaid by a few thousands, but now those few thousands also turn into "Government Assistance". Also, they affect the CCTB, HST and Trillium benefits. Either way, I overpaid overall, so it's still a net gain for me.
That said, I was talking to a bookkeeper, he suggested only going 2 year back max, as if i go back further it will trigger a review. Since I technically am "employed" mostly, and not self-employed, I am wondering what are the experts thoughts on this? Most likely I overpaid by $8,000 all together. However, that means I understated my income by that amount, and was overpaid certain benefits during that timeframe. Again, it would mean a net benefit for me, probably at least $5-6,000. However, I don't want to trigger a review, just not worth the hassle.
Thoughts, anyone?
Why can't we all just get along?