Basic Understanding of Income Tax
What is income tax, and why do individuals need to file a tax return?
What is a percentage of income paid to the government to fund public services, and individuals file a tax return to determine if they owe taxes or are eligible for a refund?
What is the most common type of income that students must report on their tax return if they have a part-time job?
What is wages (from a job)?
What is income?
Income is the money or earnings that an individual or entity receives from various sources, such as employment, investments, or business activities.
What is the purpose of the T4 slip, and who provides it to you?
What is a T4 slip shows income earned and taxes deducted, provided by your employer?
What does CRA stand for?
Canada Revenue Agency
How does income tax help fund government services in Nova Scotia?
What is it helps fund essential services like healthcare, education, and infrastructure?
If a student receives money as a gift for their birthday, do they have to report it on their tax return?
What is no, gifts are not taxable income and don't need to be reported?
What are deductions?
Deductions refer to the specific amounts subtracted or reduced from one's income to calculate taxable income or final pay.
What date are employers supposed to have T4s mailed to their employees?
February 28th or February 29th.
How can you check if the CRA received your tax return after you’ve filed it?
What is by checking your CRA My Account online?
What is the deadline for filing an income tax return in Canada?
What is April 30th, or the next business day if it falls on a weekend?
If a student works at a summer job and earns money, do they need to report that income on their tax return?
What is yes, all income must be reported, even from a summer job?
What are examples of people in positions that have to pay professional membership dues?
Doctors and Medical Professionals, Lawyers, Engineers, Accountants, teachers and educators etc...
What is the T1 General form, and how is it used by individuals to file their taxes?
What is the T1 General is the main form used by individuals in Canada to file their personal income tax returns?
What happens if you don't file your tax return by the deadline?
What is you may incur late filing penalties and interest on any taxes owed?
What is the difference between gross income and net income?
What is gross income is the total before deductions, and net income is after deductions and taxes?
If a student earns money from a hobby, like selling homemade crafts or art, do they need to report that income?
What is yes, any income earned, even from hobbies, must be reported on your tax return?
The federal government takes off which types of taxes every pay period?
They take federal income tax, employment insurance, and Canada Pension Plan (CPP) from your paycheck every pay period.
What is the NETFILE system, and how does it help Canadians file their taxes?
What is NETFILE is an online service that allows individuals to file their income tax returns directly with the Canada Revenue Agency (CRA)?
How does the CRA contact individuals about their tax returns or assessments?
What is the CRA communicates through mail or online through the My Account portal?
Why is it important to keep your income tax records for at least six years?
What is the CRA may request them for verification or auditing purposes?
If you earn money from babysitting or freelancing, do you have to report that income on your tax return?
What is yes, any money earned from jobs, even freelance work, must be reported?
Provide an example of employer deductions and one example of government deductions.
Government Deductions:
Canadian income tax
Canada Pension Plan (CPP) Contributions
Employment Insurance (EI) Contributions
Employer Deductions:
Pension contributions
Union Dues
Employee Benefits, including:
Life insurance premiums
Short & Long-Term disability premiums
Health insurance premiums
Dental Insurance
Group retirement savings plan
Charitable donations
What is the difference between a tax return and a tax assessment?
What is a tax return is the form you file with the CRA to report income, while a tax assessment is the CRA’s evaluation of your return and the taxes you owe or are refunded?
What are the consequences of failing to report all of your income on your tax return?
What is the CRA can charge penalties, interest, and may conduct an audit to investigate unreported income?