What Is a T1 Tax Form and Who Needs to File One?
Understand the T1 tax form's role in Canada's tax system. Learn how individuals use it to report annual income and fulfill their filing obligations.
The T1 General is the primary personal income tax form in Canada, used to report all sources of income and calculate taxes owed. While most Canadian residents who owe tax are required to file, it can also be beneficial to file to claim refunds or benefits. After filing, the Canada Revenue Agency (CRA) issues a Notice of Assessment (NOA), which summarizes the processed return and provides information like RRSP contribution limits.
Who Must File a T1 Tax Return
An individual must file a T1 tax return with the Canada Revenue Agency (CRA) if they have taxes payable for the year. The requirement to file also extends to individuals who have received a formal request from the CRA to do so, regardless of whether they owe any tax.
Self-employed individuals face a specific filing obligation. If their net self-employment income exceeds a certain threshold, they are required to contribute to the Canada Pension Plan (or Quebec Pension Plan). Filing a T1 is the mechanism through which these contributions are calculated and paid. This applies even if their overall income situation would not otherwise require a return to be filed.
Even when not legally required, filing a T1 return is advantageous. A return must be filed to claim a refund if more tax was deducted from income than what was actually owed. Filing is also necessary to apply for certain tax credits and benefits, such as the GST/HST credit, the Canada Child Benefit, and other provincial or territorial programs.
The deadline for most individuals to file their T1 return and pay any outstanding balance is April 30. For self-employed individuals and their spouses or common-law partners, the deadline to file is extended to June 15. If this date falls on a weekend or public holiday, the deadline moves to the next business day. This extension only applies to the filing of the return itself; any balance owing is still due on April 30.
Information and Documents Needed to Complete Your T1
Personal Information
The most important item is your Social Insurance Number (SIN), which is the primary identifier used by the Canada Revenue Agency (CRA). You will also need your full name, date of birth, and current mailing address.
Your marital status as of December 31 is required, as it affects credit calculations and determines if you must provide information about your spouse or partner, including their SIN and net income. You will also need the names, dates of birth, and SINs of any dependents to claim related benefits.
Income Slips
The most common information slip is the T4, Statement of Remuneration Paid, which you receive from your employer and details your employment income and any deductions withheld at the source. If you received income from pensions, annuities, or other sources like research grants, this will be reported on a T4A slip, Statement of Pension, Annuity, and Other Income.
Investment income is reported on separate slips. A T5 slip, Statement of Investment Income, is issued by financial institutions for interest, dividends, and certain foreign income. Income from trusts, such as mutual fund trusts, is reported on a T3 slip. If you received social assistance payments or workers’ compensation benefits, these amounts are shown on a T5007, Statement of Benefits.
Deductions and Credits
Contributions made to a Registered Retirement Savings Plan (RRSP) are a common deduction, and you will need your official RRSP contribution receipts. For charitable donations, you must have official receipts from registered charities that include the organization’s registration number.
Medical expense receipts for yourself, your spouse, and your dependents should be compiled. These can include payments to medical practitioners, prescription costs, and premiums paid to private health service plans. If you or a dependent attended a post-secondary institution, you will need Form T2202, Tuition and Enrolment Certificate, to claim tuition fees. Receipts for childcare expenses, including the SIN of the caregiver, are also needed to claim these costs.
Methods for Filing Your T1 Return
One of the most common methods for individuals filing their own taxes is NETFILE. This electronic service allows you to securely transmit your prepared tax return directly to the CRA using certified tax software.
Another electronic option is EFILE, which is used by professional tax preparers. When you hire an accountant or a tax preparation service, they will use this system to submit your return on your behalf. This method is distinct from NETFILE because it is a service offered by authorized tax professionals.
For those who prefer a non-digital approach, filing by mail remains an option. This involves printing a physical copy of the T1 General Income Tax and Benefit Return and all related schedules. The completed paper return must be mailed to the specific tax centre that serves your geographic area.
Understanding Your Notice of Assessment and Post-Filing Actions
After the Canada Revenue Agency (CRA) processes your submitted T1 tax return, they will issue a Notice of Assessment (NOA). The NOA summarizes the CRA’s review of your return. It confirms the amounts you reported and shows any changes the CRA made during their assessment. You should review the NOA to verify the final refund amount or balance owing.
The NOA provides your updated RRSP deduction limit for the upcoming year, which tells you the maximum amount you can contribute to your Registered Retirement Savings Plan and deduct on your next return. The notice will also detail any unused tuition and education credits that can be carried forward. Keeping your NOA serves as proof of income for loan or mortgage applications.
If your NOA indicates a refund is due, the CRA issues payment within a few weeks of processing, especially for electronically filed returns. You can receive your refund via direct deposit, which is the fastest method, or by a cheque mailed to the address on file. If you have a balance owing, the NOA will state the amount and the payment deadline. Payment can be made through online banking, the CRA’s My Payment service, or at a Canadian financial institution.
You must wait until you receive your NOA before you can make any changes to your return. To correct a return, you can use the “Change my return” service available through your CRA My Account online portal. Alternatively, you can complete and mail a T1-ADJ, T1 Adjustment Request form, detailing the specific changes you need to make. The CRA allows you to request adjustments for returns filed within the last ten calendar years.