T1 Personal Income Tax Return

What is a Personal Tax Return?

If you are a resident in Canada (whether permanent or temporary) and you have income from any source in Canada then you are required to file a T1 personal income tax return with the CRA. The Personal Income Tax and Benefit Return must include your income from all sources whether it is earned in Canadian sources or from foreign sources. The tax return, specifically for personal T1 tax returns filing, is filed on a calendar year basis with the CRA.

Understanding what is included in a personal tax return. It typically contains:

• Income Information: This includes all income sources, such as employment, rental income, and investment income.

• Deductions and Credits: Taxpayers can claim deductions, such as RRSP contributions or medical expenses, which help reduce taxable income.

• Tax Calculations: The return includes calculations to determine the total tax owed and any refunds or additional payments required.

Benefits of Personal Income Tax Return Filing

If you fall under the low or medium-income category, you may get several benefits from the Fed or Provincial Government based on the province you are residing.

Based on your Income declared in your return, you may be eligible for numerous refundable or non-refundable benefits or credits like Canada Workers Benefit, Canada Child Benefit, GST benefits, Climate Action Incentives payments, Canada Dental Benefit, Disability Tax credits etc. Therefore, it is of utmost importance to file your correct Income Tax Return within the stipulated due dates. Some of the other Benefits of Personal Income Tax Return are;

1) Tax Refunds

Many Canadians receive a tax refund after filing their personal tax return. This refund can provide a financial boost, allowing you to save, invest, or spend on personal needs.

2) Access to Benefits and Credits

Filing your return is essential for accessing various government benefits and credits. This includes:

• GST/HST credits

• Child benefits

• Ontario Trillium Benefit

These benefits can provide additional financial support, especially for families and low-income individuals.

3) Building a Tax Record

Filing your personal tax return creates an official record of your income and taxes paid. This record can be beneficial for securing loans, mortgages, or rental agreements, as it demonstrates your financial stability.

4) Avoiding Penalties

Filing your return on time helps you avoid penalties and interest charges from the CRA. Timely filing ensures you comply with tax laws and maintain a good standing with the tax agency.

How Do You File a Personal Income Tax Return in Canada?

Filing your personal income tax return in Canada may seem daunting, but it can be straightforward with the right approach. Here’s a step-by-step guide to help you through the process:

1. Gather Your Documents: Collect all necessary documents like T4 slips from employers, T5 slips for investment income, Receipts for deductions (e.g., medical expenses, charitable donations), and any other relevant tax documents

2. Tax Professional: Hiring a personal tax return filing consultant can simplify the process and ensure accuracy throughout the process.

3. Complete Your Return: Follow the instructions provided by your Personal Tax Consultant for calculating your income and deductions.

4. Submit Your Return: After completing your personal tax return, submit it by the due date, which is usually April 30th for most individuals. Ensure Personal Income tax filing before the deadline to avoid penalties.

5. Keep Records: After Personal Tax Return filing, retain copies of your tax return and any supporting documents for at least six years. This is important in case the CRA requires additional information or conducts an audit.

How Account Tax Pros Can Help You

We at Account Tax Pros, with our extensive knowledge of various Tax treaties of Canada with other countries, help our non-resident clients in T1 Personal Income Tax Return Filing and get the maximum advantage under the tax treaties and other compliances.

Account Tax Pros T1 Tax return filing consultant team not only files our client’s T1 Tax Returns filing but also does complete handholding by assisting and representing our clients before CRA during Audits.

Self-Employed / Own Business Individuals

Our T1 tax return filing consultant team specialise in personal T1 tax return filing of self-employed individuals like Consultants, Freelancers, Contractors, Professionals, Uber Drivers, Uber Delivery individuals etc. We ensure that your Personal Tax Return filing is done correctly in compliance with laws and get the maximum benefit in line with the CRA framework.

T1 Personal Income Tax Return of Student

In Canada, apart from other benefits/credits available to most Income Tax filers, the students get additional benefits like Tuition Tax Credit @ 15% subject to certain rules/provisions. Not only students, the benefit of the Tuition Tax Credit may be transferred to eligible parents. Besides these students are also eligible for GST Tax Credit payments, Climate Action Incentive and other payments based on their eligibility. Therefore, it is important to properly file the T1 personal income tax return of the students to avail the maximum benefits.

Personal Tax Return Filing for Salaried/Employed

We at Account Tax Pros help you with personal tax return filing, ensuring maximum credits/benefits available to you while complying with CRA regulations. We at Account Tax not only file your T1 personal income tax return but also assist you in explaining your return and benefits. Our T1 tax return filing consultant team's goal is to provide complete satisfaction to our clients by providing timely and quality services at the best affordable prices.

Personal Tax Return Filing for New Immigrants

Canada always welcomes newcomers whether you are Permanent Residents, Temporary Residents or Refugees. As soon as you land in Canada, you establish relations/ties with Canadian land, you become a Resident of Canada under Income Tax provisions.

Even before filing your first T1 personal income tax return, newcomers in Canada are eligible for Canada Child Benefit, GST/HST Credit, and Climate Action Incentive payments. However, once you start receiving these benefits under any one or more schemes of the Canadian government, then you need to file your T1 personal income tax return so that you continue to get these benefits in the future.

Personal Tax Return Filing Non-Residents

The non-residents have an obligation to pay taxes on the income earned from any source in Canada. In most cases, passive income payments to Non-Residents are made after withholding income tax from the amounts payable to them. On the other hand, if the non-resident carries any business or earns income from the rental of any property or makes some gain on the disposal/transfer of property in Canada then a non-resident has to make the payment of taxes on such income.