Tax season is here, anyone filing their taxes will need a T1 General Form. Without it, you won’t be able to complete and submit your taxes.
Individuals who earn money from a business, are self-employed, or benefit from investments or pensions should all fill out T1 General Forms.
What Is A T1 General Form?
A T1 General Form declares all income you have earned and expense information from the last fiscal year, summarizing both what you pay and owe.
All Canadians are required to fill out this form to obtain benefits from the government, such as GST/HST or the Canada Child Benefit.
When Do You File A T1-Form?
T1 General Forms must be completed before taxes are due on April 30, 2024.
If you don’t complete this on time, you’ll be charged interest on the taxes you owe. Filling ahead of the April 30 deadline is helpful because it can provide you enough time to pay what you owe and avoid late fees. Moreover, the earlier you apply, the earlier you can receive a refund (if you’re getting one).
How To File A T1-Form
If you are filing your taxes online or utilizing a tax service, these forms will be provided for you.
If you are filing your taxes via mail, you will need to provide physical copies of this form. This is accessible online at canada.ca/get-cra-forms.
You can also get these forms from the Canada Revenue Agency (CRA), by requesting an income tax and benefit package, which includes the T1 general form and all other forms that are required to file your taxes. For the CRA to be able to share these forms with you, they will request you to share your SIN number.
What’s Included In A T1 Form?
T1 General Forms include five sections that must be filled out. This includes identification, net income, total income, taxable income, as well as refund and balance owing.
Identification
For this section, you must provide your name, address, birth date and SIN number. You must also identify if you are married or have a common law partner. These details help the CRA determine your eligibility for certain credits and benefits.
Total Income
This section requires you to provide information on all your income sources over the last fiscal year. You’ll need to explain how much you got and where you got it from. This includes employment income, passive income, investment income, rental income and income from government benefits such as employment insurance.
Net Income
Your net income differs from your total income. This is how much money you have earned minus certain expenses such as employment and business expenses, childcare expenses, union or professional dues and RRSP contributions.
Taxable Income
This income is the total amount you have earned after deductions have been subtracted. Deductions such as personal amounts and age-related credits can help lower your taxable income. The lower your taxable income, the lower your tax obligations will be and the higher your tax refund may be.
Refund or Balance Owing
This is the last part of the T1 form. Based on your taxable income, deductions and tax credits you qualify for, you’ll calculate how much you owe in taxes or how much you’ll receive as a refund. If you get a positive number, that’s how much money you’ll get back. If you get a negative number, that’s the amount you owe to the CRA.
How Does A NOA Differ From A T1-Form?
A Notice of Assessment is very similar to a T1 Form, both share quite similar information, however, these forms are not the same. The T1 form is what you will submit to the CRA when you file your tax return, and the Notice of Assessment is what the CRA will send you once your taxes have been filed and authorized.
T1 vs T4 vs T3 vs T5
Each form showcases a different stream of income. Each compiles a full report for the CRA to review all your earnings over the last fiscal year.
- T1 General Form: This form is your personal tax return form, which identifies all of your income sources over the previous fiscal year.
- T4 Slip: There are multiple types of T4 slips such as the T4, T4A and T4E. Depending on the type of income you receive, you’ll receive a certain T4 slip. T4 slips showcase your wages, salary and withheld taxes.
- T4 – You’ll get this slip when you receive income from regular employment.
- T4A – Any other income you receive that isn’t from a employer will be listed here.
- T4E – You’ll get this slip when you receive income from Employment Insurance (EI) or other EI-funded benefits.
- T3 Statements: These slips identify income from trust funds, as well as mutual funds. These statements are used alongside T1 Forms to precisely report a filer’s income.
- T5 Statements: These statements detail any income you have accumulated from investments, such as interest or dividends.
Bottom Line
T1 General Forms are an important part of filling out your taxes. Whether you’re filing them out physically, online, or seeking support from a tax filing service – the T1 General Form must be completed in order for the CRA to have an accurate view of your income over the last fiscal year.
