Canadian Tax - S1 - Big Pic

T1

The Canadian personal income tax and benefit return used by individuals to report income, deductions, credits, and ultimately calculate tax payable or a refund.

T1 General

The standard personal income tax return for individuals; commonly just called a “T1.”

Personal income tax return

The return an individual files with the CRA to report their income and determine their federal and provincial/territorial tax obligations and benefits.

Tax year

The calendar year for which income and tax information is being reported; for individuals, generally January 1 through December 31.

Taxpayer

The individual whose income tax return is being prepared.

CRA

Canada Revenue Agency; the federal government agency responsible for administering Canada's tax system.

Tax return

The collection of information submitted to the CRA to calculate an individual's tax position.

Tax assessment

CRA's determination of the taxpayer's tax position after processing a return.

Notice of Assessment (NOA)

CRA's statement showing the results of processing a tax return, including amounts such as refund, balance owing, assessed income, and available credits/deductions.

Reassessment

A subsequent change made by CRA to an already assessed tax return.

Amended return

A request to CRA to change information on a previously filed tax return.

Taxable income

The amount of income remaining after applicable deductions from net income; it is used to calculate income tax.

Net income

Income after certain deductions from total income; among other things, it is used in determining eligibility for various credits and benefits.

Total income

The total amount of income from the various sources that must be reported on the return before applicable deductions.

Tax payable

The amount of tax calculated as owing before subtracting applicable payments/credits that determine whether the taxpayer gets a refund or owes money.

Refund

Money CRA owes the taxpayer when the taxpayer's total payments and refundable credits exceed the final amount payable.

Balance owing

Money the taxpayer owes CRA when the final amount payable exceeds payments and applicable credits.