Benefits
List at least three benefits of doing your taxes.
Getting a refund
Getting the GST/HST tax credit
CCB
More RRSP contribution room
No penalties, yay! :)
What is a T4 slip?
A document that summarizes all the money paid by an employer to an employee during a calendar year
What is the date you generally have to file your tax return/pay any amount owing by?
April 30
What is the underground economy?
Any transactions that go unreported to the government
Name one electronic tax-filing service verified by the CRA.
UFile, TurbTax, NETFILE, eFile, etc.
What is the goods and services / GST/HST tax credit?
A tax-free payment that eligible individuals get every three months. It helps those with low or modest incomes offset the GST or HST they pay.
TRUE OR FALSE: In Canada, you only pay taxes on your income.
FALSE
Name at least two responsibilities you have as a tax-payer in Canada.
- File taxes every year by APRIL 30
- Correct tax returns if necessary
- Pay any amount owing by APRIL 30
Canada's tax system is based on the _________________ principle.
Self-assessment
When did Canadians first start paying income tax? Bonus +50 if you can name the reason.
1917, in an effort to cover wartime expenses
When Aiguo does his taxes, he does not have any amounts payable. His total credits are $500.
Is Aiguo entitled to a refund?
If you did not earn or receive any income in a tax year, are there still any reasons to do your taxes for that year? Why or why not?
YES, because you may be entitled to benefits and credits!
Your benefit and credit payment amounts can go up or down when your personal situation changes.
When should you update your personal information?
a) When you change your university program
b) When you buy a new car
c) When your marital status changes
d) When you renovate your home
C - when your marital status changes
What is Employment Insurance and why is it deducted from Canadian paycheques?
When was the "Your Rights" document originally introduced?
2007
Tessa is entitled to the GST/HST credit. She did not have any income last year, so she did not bother doing her taxes. Will she receive benefit payments?
No, because she has not done her taxes.
Which of the following income types do not need to be reported on a tax return?
a) Tips
b) GST/HST credit and Canada child benefit payments
c) Interest income
d) Employment income
B - these are tax-free benefits!
List three of the possible penalties for those convicted of tax fraud!
Pay full amount of taxes owed
Fined up to 200% on evaded taxes
Jailed for up to 14 years
Fingerprinting and travel restrictions
Name three other types of taxes besides income tax
Customs, duties, and tariffs
Health services taxes (dependent on province/territory)
Property taxes
GST/PST or HST (sales tax!)
List FOUR items/services that are exempt from GST!
Agricultural products (grain, wool, etc.)
Prescription drugs
Medical devices like hearing aids
Most goods and services provided by a charity
Bridge, road, and ferry tolls
Most dental, medical, and health services
Most food/beverages sold in an elementary or secondary school cafeteria
AND MORE!
Sophia is 17 years old and a resident of Prince Edward Island. She worked 2 part-time jobs last year. When she does her taxes, she has a total payable of $300. Her total credits are $400, which includes the taxes her employer deducted and a CPP overpayment.
Will Sophia get a refund or have a balance owing?
Refund of $100!
What are the federal tax rates for the two lowest income tax brackets?
15% and 20.5%
No, because Canada operates with a progressive tax system - you pay more taxes as your income increases BUT each tax rate only applies to the income in that bracket.
48500 and 48400 respectively.
List six things the government pays for with taxes collected.
Education and schools
Libraries
Healthcare and hospitals
Arenas and swimming pools
Healthcare and hospitals
National defence
Fire, ambulance, and police services
Roads and bridges
Garbage and recycling collection
AND MORE!