Taxes

Who Needs a Tax Return?

There are many situations (and benefits) which may compel you to file a tax return. You should file a return if you have to pay taxes (see Basic Personal Amount) or have a refund you want to claim. Even if you do not have any income to report, you can still file a return. Filing a tax return may be required to qualify for several government programs.


Benefits to Filing

Eligible employment income can be used to build up Registered Retirement Savings Plan (RRSP) contribution room. Any contributions can be used as a tax deduction in the current tax year, or carried forward to future years. If you are turning 19, you must have filed a tax return to begin receiving the GST/HST credit and the Canada Carbon Rebate, valued at up to $900 yearly (for single individuals with no dependents).


Important Dates

  • Jan. 01, 2025: The contribution limit for your TFSA will reset and you may begin to contribute anew.
  • Feb. 24, 2025: The NETFILE and eFILE services will open for T1 PITR filings.
  • Mar. 03, 2025: The deadline for contributing to your RRSP, if you want to claim the deduction on your 2024 PITR.
  • Apr. 30, 2025: The last day for you to file T1 PITRs without penalty (if you owe taxes).


Important Amounts

  • 18% of your income OR $32,490 (whichever is lower): The contribution limit for your RRSP in 2025.
  • $7000: The TFSA contribution limit for 2025.
  • $12,747: The Basic Personal Amount for the Ontario portion of your PITR.
  • $16,129: The Basic Personal Amount for the Federal portion of your PITR. This amount is reduced if you made over $177,882 in 2024.


Important Terms for Taxes

  • Basic Personal Amount: A non-refundable tax credit on your federal and provincial tax return claimable by all taxpayers.
  • Canada Pension Plan (CPP): A social insurance program that (generally) pays a small retirement pension to its contributors and/or their family when the contributor retires, becomes disabled, or dies. It is funded with the contributions of employees, their employers, and the self-employed.
    • Tip: If you are under 18, you are exempt from CPP contributions. If your employer deducted contributions from your paycheque, you will receive a refund on filing of your tax return.
  • Carryforward amounts: Unused tax credits or deductions carried forward to a future tax year, such as qualified tuition payments, RRSP contributions, etc.
  • Employment Insurance (EI): A form of social insurance that provides benefits to individuals whom, through no fault of their own, lose their job and are unable to find a job. This program is funded through a flat 1.66% deduction.
    • Tip: Even if you are under 18, you are NOT exempt from EI contributions. Your employer will deduct this from your paycheque accordingly.
  • Non-Refundable Tax Deductions/Credits: Tax credits/deductions that can reduce the taxes you owe, only to zero. These can not be refunded to you in the event the reduction results in a negative.
  • Non-Registered Accounts: Saving or investment accounts not registered with the government, with no tax advantaged status.
  • Notice of Assessment: An important document the CRA sends after assessing your complete tax return.
  • Paycheque/Pay stub: A document that shows you your pay and any deductions for a certain pay period (usually weekly, biweekly, or monthly).
  • Payroll Deductions: Amounts withheld by your employer from your pay and remitted on your behalf to the government. This usually includes things such as federal/provincial income tax, CPP contributions, and EI premiums.
  • Refundable Tax Deductions/Credits: Deductions/Credits that reduce the tax you pay and can be refunded to you in the event of any excess.
  • Registered accounts: Savings and investment accounts registered with the federal government that confer tax benefits. These plans are subject to pre-defined contribution limits. Consult "Important Amounts" above for more information.
  • Registered Disability Savings Plan (RDSP): A registered account meant to help people with disabilities save for the general future.
  • Registered Education Savings Plan (RESP): A registered account meant to help parents save for their child(ren)'s post-secondary education.
  • Registered Retirement Savings Plan (RRSP): A registered account meant to help people save for retirement. Contributions are tax-deductible and can be carried forward to future tax years.
  • Social Insurance Number (SIN): 9-digit number that may be used to evidence your identity, and is required to work and recieve benefits from the government. Protect this number carefully
  • T1 Personal Income Tax Return (T1 PITR): The tax form that used to file your taxes to the CRA for their adjudication and processing.
  • T4 slip: A document given to you by your employer that summarizes your employment earnings and payroll deductions for the year.
  • T5 slip: A document given to you by your financial institution or brokerage that outlines interest paid and investment income in your non-registered accounts for the tax year.
    • Tip: If your total interest paid/investment income is under $50, you will not receive a T5 slip. You must still report these amounts and pay taxes (where appliable).
  • Tax Year: Each PITR includes the information from one tax year. The tax year is synced with the calendar year (Jan 1 - Dec 31).
  • Tax Free Savings Account: A registered account that lets you save, invest, and withdraw money (generally) tax free.
  • Form TD1, Personal Tax Credits Return: 2 Forms (Provincial and Federal) that you must complete and return to your employer when you start a new job or if your tax situation changes. This form is used so your employer can deduct the right amount of taxes and pay you correctly.
    • Tip: Even if your employer deducts too much taxes, you will recieve a refund on filing of your tax return.

Email

admin@kleetax.ca

Phone

(647)-745-6048

Where and When

Anytime you want, you got it;
Anywhere you want, you got it.