chp 5

Question 1

what’s the T1 form

Answer 1

personal income tax and benefit return
used by CRA to gather information about all taxpayers and help CRA with compliance, audit and collection
personal income tax uses self-reporting

Question 2

who must file

Answer 2

canadian residents are subject to canadian tax on their worldwide income
almost everyone should file a return - required if you have a balance owing, should file if you have a refund and or wish to claim available credits

who isn’t required to file
- individuals under 18 and have little/no income
- individuals with no income, no spouse, and do not qualify got government assistance/benefits

Question 3

what are the 2 ways to be consdiered a resident in canada

Answer 3

1. factual resident: look at residential ties
   - primary ties; house, spouse and dependents
   - secondary ties; personal property, social and economic ties
2. deemed resident: the Act may deem an individual to be a full-time resident if individual “sojourned” in canada for 183 days or more
   - any parts of a day counts as 1 day for this test
   - common exception: commuting days between canada and US

Question 4

what happens if you’re not a canadian resident how are you taxed

Answer 4

if not a canadian resident, you are a non-resident and only subject to canadian tax on canadian sourced income

Question 5

what’s the GST/HST credit

Answer 5

tax-free payment to help offset cost of gst/hst taxpayers pay

eligibility:
19+ canadian resident
low/modest income earning (less than $54,704 for a single tax payer)

file tax return to apply, but are canadian residents are required to apply separately for the credit

Question 6

what’s the ontario trillium benefit

Answer 6

tax-free payment to help offset costs of owning/renting and sales tax

eligibility
- lived in ontario on december 31
- you pay rent/property tac on your principal residence in the current taxation year
- low/modest income earner (less than $55458 for a single tax payer)

apply through tax return

Question 7

what’s the climate action incentive/canada carbon rebtae

Answer 7

a tax-free payment to help offset carbon taxes paid

eligibility - 19+ canadian resident

apply by filing your tax return - must state whether you reside outside CMA
- if yes, benefit is $672 for a single tax payer
- if no, benefit is $560 for a single taxpayer