T1- INCOME TAX & BENEFIT RETURNS

The T1 Income Tax and Benefit Return is the annual personal return filed by every individual. Its name reflects that it is both a tax return and the application for most federal and provincial benefits. The current version has eight pages organised into steps.

STEP 1 : IDENTIFICATION AND OTHER INFORMATION

• Name, address, date of birth, social insurance number, marital status and the spouse's information.

• Province or territory of residence on December 31, and the province of self-employment if different.

• Date of entry or departure for newcomers and emigrants, and date of death for deceased persons.

• Questions on email notifications, Elections Canada consent, and Indian Act exempt income.

FOREIGN PROPERTY, PRINCIPAL RESIDENCE, AND BENEFITS

• A yes/no question about whether specified foreign property cost more than $100,000 (which triggers Form T1135).

• Questions about disposing of a principal residence and about benefit eligibility for newcomers.

• Ontario Trillium Benefit payment choice and other provincial questions.

STEP 2 : TOTAL INCOME (LINES 10100 TO 15000)

Employment income, pensions, OAS, CPP, EI, dividends, interest, partnership and rental income, capital gains, RRSP and FHSA income, support received, other income, self-employment income, workers' compensation and social assistance, ending at total income on line 15000.

STEP 3 : NET INCOME (LINES 20600 TO 23600)

Registered pension and RRSP deductions, FHSA deduction, split pension, union dues, child care, disability supports, moving, support paid, carrying charges, CPP deductions, employment expenses, other deductions, and the social benefits repayment, ending at net income on line 23600.

STEP 4 : TAXABLE INCOME (LINES 24400 TO 26000)

Armed forces and police deduction, security options, other payments, loss carryovers, capital gains deduction, northern residents deductions and additional deductions, ending at taxable income on line 26000.

STEP 5 : FEDERAL TAX

Part A calculates federal tax on taxable income by bracket; Part B lists the federal non-refundable credits (lines 30000 to 35000); Part C calculates net federal tax after the dividend tax credit, foreign tax credit and other reductions (line 42000).

STEP 6 : REFUND OR BALANCE OWING

• Adds net federal tax, CPP and EI payable on self-employment, social benefits repayment and provincial tax to get total payable (line 43500).

• Subtracts tax deducted, overpayments, refundable credits and instalments (line 48200).

• Shows the refund (line 48400) or balance owing (line 48500).

• Includes the certification, signature, and the preparer's information if paid.

WHICH PACKAGE TO USE

There is one T1 return for all provinces; Quebec residents also file a separate Quebec return. Separate packages exist for non-residents and deemed residents.