What is INCOME?
Income is money that you receive from work or other sources.
Name 1 benefit for filing a tax return.
If you owe income tax, it is the law to file an income tax return.
Even if you don't owe tax, you may get money back.
TRUE or FALSE
1/3 of tax filers (over 9.1 million people) pay no income tax in Canada.
True!
Where does income tax money go?
The government uses the income tax money to pay for programs, services, schools, and hospitals, among other things.
What does the acronym SIN stand for? What does it mean?
Social insurance number (SIN)
A 9-digit identification number you need to work in Canada.
Your SIN allows you to receive benefits and services from the Government of Canada.
The federal organization that issues SINs is Service Canada.
What is INCOME TAX?
Income tax is money that people may pay the Canada Revenue Agency when they have income.
Name 2 barriers to filing income tax returns.
Not aware of how to file
Finding it overwhelming/confusing
Not knowing what forms you need
TRUE or FALSE
According to a 2017 report, a strange but legitimate deduction is a home swimming pool that could help with a medical condition.
True!
What income do you NOT pay taxes on?
Income that comes from social assistance or inheritance
e.g. ODSP, OW, estate of a deceased person (will)
What does CRA stand for
Canada Revenue Agency
What is an INCOME TAX RETURN?
Filing an income tax return lets the government know what your income was in the past year so they can assess whether or not you've paid the right amount of taxes.
Name 1 document you will need to file an income tax return.
social insurance number
identification
receipts
tax information slips
TRUE or FALSE
20% of those between 18-34 say they enjoy filing their taxes.
False! 52% say they enjoy filing their taxes
Name an example of a sales tax that we have to pay.
3 different kinds of sales taxes exist in Canada:
What is the typical deadline to file taxes in Canada
April 30th
June 1 2020 (due to COVID)
What is a TAX DEDUCTION?
Tax deductions reduce your taxable income, or income on which you might pay income tax.
Examples can include:
- RRSP contributions
- Child care expenses
- Tuition, education, textbook expenses
Name 1 online software you can use to file taxes.
TurboTax
SimpleTax
Ufile
TRUE or FALSE
Government of Canada offers free tax clinics.
True!
When are taxes due?
Your tax return is usually due on or before April 30 of the following year.
Can you make a claim for expenses if you'd attended a post-secondary institution (e.g., college, university) during the tax year?
Yes. Both the amount of months you were in attendance for either part-time or full-time programming.
What is a TAX CREDIT?
Tax credits reduce your taxes that you owe, or the amount of tax you are supposed to pay.
For example:
- Ontario Trillium Benefit is a tax credit where you can get money back from the government if you qualify
Name 2 ways you can file your taxes.
- online
- by phone
- at a tax clinic
- with an accountant
TRUE or FALSE
You should do your taxes every year, even if you have no income.
TRUE
Do your taxes every year, even if you have no income.
Your benefit and credit payments are calculated using information from your taxes.
It is important to do your taxes on time every year to avoid payment interruptions.
What year did Canada start the federal income tax system?
1917
What is An RESP?
Registered Education Savings Plan (for your children in preparation for attending university or college)