Canadian Income Tax Guide 2018
Those who need to file on paper and haven't received a guide and forms book from the CRA by February 26, 2018, can order what they need by going to. The most you can order is nine packages. This order limit ensures all Canadians will have access to what they need this tax season.
When ordering a tax and benefit package, individuals should allow up to 10 business days for delivery so they don't miss the filing deadline. For most individuals, the filing deadline is April 30, 2018. For those who don't want to wait or need more than nine packages, starting January 8, 2018, they can access and print the forms and guide directly from. In the future, paper filers will only get tax packages directly from the CRA.
However, to ease the transition to this new service, a limited quantity of tax packages will still be available in both official languages at Canada Post, Service Canada and most Caisse populaire Desjardins outlets starting February 26. Canadians will also find information to order these products by phone or online in the language of their choice in case packages are no longer available. This is all part of the CRA's commitment to making it easier for Canadians to do their taxes, no matter how they choose to file. This is good news for paper filers, particularly those with mobility challenges or living far from a bank or post office, because they no longer have to deal with the inconvenience of finding their own tax and benefit packages.
Note: You may not have to file on paper. To file online, visit the CRA's webpage for tax tips, a guide on how to file, and information on certified tax software, including some that is free.
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Individuals and families – The eligibility for the exemption has been enhanced under certain conditions to include scholarships and bursaries received for occupational skills courses that are not at the post secondary level. – The Canada caregiver amount has replaced the family caregiver amount, the amount for infirm dependants age 18 or older (line 306), and the caregiver amount (line 315). You could be entitled to claim this amount in the calculation of certain non refundable tax credits if the person you are making the claim for has an impairment in physical or mental functions.
– As of January 1, 2017, the federal education and textbook amounts have been eliminated. The eligibility criteria for the tuition amount has been enhanced under certain conditions to include fees paid for occupational skills courses that are not at the post-secondary level.
– Individuals who need medical intervention to conceive a child are eligible to claim the same expenses as individuals with medical infertility. You can also request an adjustment to claim such medical expenses on any income tax return for the 10 previous calendar years. – A gift of ecologically sensitive land cannot be made to a private foundation after March 21, 2017. There are also a number of changes to the Ecological Gifts Program. For more information, see “Gifts of ecologically sensitive land,” in. – As of July 1, 2017, this amount has been eliminated. Children’s arts amount (line 370) – As of January 1, 2017, this amount has been eliminated.
Children’s fitness tax credit (lines 458 and 459) – As of January 1, 2017, this credit has been eliminated. Disability tax credit (DTC) certification – As of March 22, 2017, nurse practitioners have been added to the list of medical practitioners who may certify eligibility of a person for the DTC.
Interest and investments Investment tax credit – Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2018. In addition, as of March 22, 2017, expenses for the creation of child care spaces are no longer eligible for the investment tax credit. Labour-sponsored funds tax credit – As of January 1, 2017, the tax credit for the purchase of shares of federally registered labour-sponsored venture capital corporations (LSVCC) has been eliminated. The tax credit for provincially registered LSVCC can still be claimed on lines 413 and 414. To complete your return:.
Read. Determine if you have to file. Make sure you have the correct forms book and guide. Make sure you file on time.
Follow the instructions in this guide for each line on the return that applies to you. Look on the back of your information slips to find instructions on where to report an amount. Note If your situation is the same as last year, you may want to use your 2016 income tax and benefit return to help you complete this year’s return. The return has been divided into six steps. Complete each step before going on to the next.
Step 1 – Identification and other information – Provide information about yourself and your spouse or common-law partner, as well as other information required to process your return. Step 2 – Total income – To determine your total income at line 150, report your income from all sources. Step 3 – Net income – To determine your net income at line 236, claim any deductions that apply to you. Step 4 – Taxable income – To determine your taxable income at line 260, claim any deductions that apply to you. Step 5 – Federal tax and provincial or territorial tax – To calculate your federal tax, complete. To calculate your provincial or territorial tax, complete Form 428.
Note If you resided in Quebec on December 31, 2017, you must file a provincial income tax return for Quebec instead of completing Form 428 to calculate your provincial tax. Step 6 – Refund or balance owing – To determine your refund or balance owing, calculate your total payable and claim any refundable credits that apply to you. If you are filing electronically keep all your documents in case we ask to see them later. If you are filing a paper return, attach only the documents (schedules, information slips, forms, or receipts) requested in the guide to support the credits you claim and deductions you make.
Keep all other supporting documents in case we ask to see them later. Getting started Gather all the documents you need to complete your return, this includes:. all information slips that you have received (such as, and slips);.
all supporting documents for any deductions you make or credits you plan to claim; and. your most recent notice of assessment or reassessment for carry-forward amounts or other amounts you may need to complete your return. As you see lines on the return that apply to you, refer to this guide or see the back of your information slips for more instructions. You can file electronically or file a paper return. No matter how you file, see 'What do you do with your slips, receipts and other supporting documents?
What if you are missing information? If you have to file a return for 2017, file it even if some slips or receipts are missing. You are responsible for reporting your income from all sources to avoid possible interest and/or penalties that may be charged. If you know you will not be able to get the missing slip by the due date and if you have registered for My Account, you may be able to view your tax information slips online by going to. Otherwise, attach a note to your paper return stating the payer’s name and address, the type of income involved, and what you are doing to get the slip. You can use your pay stubs or statements to estimate your income and any related deductions and credits you can claim. Enter the estimated amounts on the appropriate lines of your return.
Attach a copy of the pay stubs or statements to your paper return and keep the original documents. If you are filing electronically, keep all your documents in case we ask to see them later. Do you have to file a return? You must file a return for 2017 if:. You have to pay tax for 2017. We sent you a request to file a return. You and your spouse or common-law partner elected to split pension income for 2017.
See lines,. You received working income tax benefit advance payments in 2017.
You disposed of capital property in 2017 (for example, if you sold real estate, your principal residence, or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed income to you or you are reporting a capital gains reserve you claimed on your 2016 return). You have to repay all or part of your old age security or employment insurance benefits.
You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or the Lifelong Learning Plan. For more information, go to or see.
You have to contribute to the Canada Pension Plan (CPP). This can apply if for 2017 the total of your net self‑employment income and pensionable employment income is more than $3,500. You are paying employment insurance premiums on self‑employment and other eligible earnings. Even if none of these requirements apply, you should file a return if:. You want to claim a refund. You want to claim the for 2017.
You want to receive the (including any related provincial credits). For example, you may be eligible if you turn 19 before April 2019. You or your spouse or common‑law partner want to begin or continue receiving payments, including related provincial or territorial benefit payments.
You have incurred a non-capital loss (see ) in 2017 that you want to be able to apply in other years. You want to transfer or carry forward to a future year the unused part of your tuition fees. You want to report income for which you could contribute to an RRSP or a pooled registered pension plan (PRPP) to keep your for future years current. You want to carry forward the unused investment tax credit on expenditures you incurred during the current year. Which forms book should you use? Generally, you have to use the on December 31, 2017.
However, there are exceptions, such as in another place. See the list of and also. If you resided in Quebec on December 31, 2017, use the forms book for residents of Quebec to calculate your federal tax only. You must also file a. Residential ties – These ties include your home (owned or leased) and personal property, your spouse or common‑law partner, and dependants. Other relevant ties may include social ties, driver’s licence, bank accounts, credit cards, and provincial or territorial hospitalization insurance. For more information, see.
Exceptions In the following situations, use the forms book or tax guide specified:. If on December 31, 2017, you had in more than one province or territory, use the forms book for the province or territory where you have your most important residential ties.
For example, if you usually reside in Ontario but were going to school in Alberta or Quebec, use the forms book for Ontario. If you are filing a return for a person who died in 2017, use the forms book for the province or territory where that person resided at the time of death.
If you emigrated from Canada in 2017, use the forms book for the province or territory where you resided on the date you left. Mail your paper return, to the designated tax centre provided in one of the charts below. If you resided outside Canada on December 31, 2017, but kept significant with Canada, you may be considered a factual resident of Canada. Use the where you kept your residential ties.
You also have to complete, and attach it to your return. Mail your paper return to the designated tax centre provided in one of the charts below. If, under a tax treaty, you are considered to be a resident of another country, this may not apply. Generally, if you are not considered to be a factual resident of Canada (see the previous section), and on December 31, 2017, you resided outside Canada and were a government employee, a member of the Canadian Forces or their overseas school staff, or working under a Canadian International Development Agency program, you may be considered a deemed resident of Canada.
Use the tax guide for non-residents and deemed residents of Canada. This may also apply to your spouse or common-law partner, dependent children and other family members. If you stayed in Canada for 183 days or more in 2017, you did not establish significant with Canada, and under a tax treaty, you were not considered a resident of another country, you will be considered a deemed resident of Canada. Use the tax guide for non-residents and deemed residents of Canada. If throughout 2017, you did not have significant with Canada and neither E nor F applies, you may be considered a non-resident of Canada for tax purposes. Use the tax guide for non-residents and deemed residents of Canada.
However, if you earned income from employment in a province or territory, or earned income from a business with a permanent establishment in a province or territory, use the forms book for that province or territory. Also complete, and attach it to your return. Other publications you may need Unless you resided in Canada all year, you also need one or more of the following publications:. If you were a non-resident and you earned income from employment or you earned income from a business with a permanent establishment in Canada, get. If you were a non-resident and you received rental income from real or immovable property in Canada, get. If you were a non-resident and you received other kinds of income from Canada (including pensions and annuities), get. If you were a newcomer to Canada in 2017, get.
If you emigrated from Canada during 2017, go to. Late-filing penalty If you owe tax for 2017 and do not file your return for 2017 within the dates we specify under, we will charge you a late-filing penalty. The penalty is 5% of your 2017 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months. If we charged a late-filing penalty on your return for 2014, 2015, or 2016, your late-filing penalty for 2017 may be 10% of your 2017 balance owing, plus 2% of your 2017 balance owing for each full month your return is late, to a maximum of 20 months. Repeated failure to report income penalty If you failed to report an amount on your return for 2017 and you also failed to report an amount on your return for 2014, 2015, or 2016, you may have to pay a federal and provincial or territorial repeated failure to report income penalty.
If you did not report an amount of income of $500 or more for a tax year, it will be considered a failure to report income. The federal and provincial or territorial penalties are each equal to the lesser of:. 10% of the amount you failed to report on your return for 2017; and. 50% of the difference between the understated tax (and/or overstated credits) related to the amount you failed to report and the amount of tax withheld related to the amount you failed to report. However, if you voluntarily tell us about an amount you failed to report, we may waive these penalties. For more information, see or go to. False statements or omissions penalty You may have to pay a penalty if you knowingly or under circumstances amounting to gross negligence have made a false statement or an omission on your 2017 return.
The penalty is equal to the greater of:. $100; and. 50% of the understated tax and/or the overstated credits related to the false statement or omission. However, if you voluntarily tell us about an amount you failed to report and/or credits you overstated, we may waive this penalty. For more information, see or go to. Cancel or waive penalties or interest The CRA administers legislation, commonly called the taxpayer relief provisions, that gives the CRA discretion to cancel or waive penalties or interest when taxpayers are unable to meet their tax obligations due to circumstances beyond their control. The CRA’s discretion to grant relief is limited to any period that ended within 10 calendar years before the year in which a request is made.
For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2018 must relate to a penalty for a tax year or fiscal period ending in 2008 or later. For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2018 must relate to interest that accrued in 2008 or later. To make a request, fill out. For more information about relief from penalties or interest and how to submit your request, go to. What do you do with your slips, receipts and other supporting documents?
If you are filing your return electronically, keep all related documentation. If you are filing a paper return, include one copy of each of your information slips. These slips show the amount of income that was paid to you during the year and the deductions that were withheld from that income.
Attach your and if you were not a resident of Quebec on December 31, 2017, also attach your Form 428 (provincial or territorial tax). Attach only the other supporting documents that are requested in the guide to support a credit or deduction. If you make a claim without the requested supporting document, we may disallow the credit or deduction you claimed. It could also delay the processing of your return.
Keep your supporting documents for six years. Even if you do not have to attach certain supporting documents to your return, or if you are filing your return electronically, keep them in case we select your return for review.
We may ask for documents other than official receipts, such as cancelled cheques or bank statements, as proof of any deduction or credit you claimed. Also keep a copy of your return for 2017, the related notice of assessment, and any notice of reassessment. These can help you complete your return for 2018. For more information about your notice of assessment, see.
Benefits for individuals and families Make sure you file your tax return on time every year to continue receiving your benefit and credit payments. If you have a spouse or common-law partner, he or she also has to file their tax return on time. You don’t want your payments to be delayed or stopped.
It’s important to keep your personal information up to date throughout the year with the CRA. This includes your address, marital status, number of children in your care and your direct deposit information. We use this information to get the right benefit and credit payments to you.
Goods and services tax/harmonized sales tax (GST/HST) credit The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay. When you file your tax return, the CRA will determine your eligibility and tell you if you are entitled to receive the GST/HST credit and any related provincial credits.
You do not need to apply. On page 1 of your tax return, indicate your marital status and, if it applies, enter the information about your spouse or common-law partner (including his or her net income, even if it is zero). Either you or your spouse or common‑law partner may receive the credit, but not both of you. The credit will be paid to the person whose tax return is assessed first.
For more information, go to, or see. My Account The CRA’s My Account service is fast, easy, and secure. Use My Account to:. view your benefit and credit payment amounts and dates;.
view your notice of assessment;. change your address, direct deposit information, and marital status;. sign up for account alerts;. check your TFSA contribution room and RRSP deduction limit;. check the status of your tax return;. request your proof of income statement (option “C” print); and.
link between your CRA My Account and My Service Canada Account. How to register For information, go to. Sign up for online mail Sign up for the CRA’s online mail service to get most of your CRA mail, like your notice of assessment online.
For more information, go to. MyCRA mobile app Getting ready to file your income tax and benefit return? Use MyCRA to:. check your RRSP deduction limit;. look up a local tax preparer; and. see what tax filing software the CRA has certified.
Use MyCRA to:. check the status of your tax return; and.
view your notice of assessment. Use MyCRA throughout the year to:. view the amounts and dates of your personal benefit and credit payments;. check your TFSA contribution room;. change your address, direct deposit information, marital status;. let us know if a child is no longer in your care;. sign up for online mail and account alerts; and.
request your proof of income statement (option 'C' print). For more information, go to. Information about you and your spouse or common-law partner, if you have one (page 1 of your return) Provide information about yourself and your spouse or common-law partner, if you have one, as well as other information needed to process your return.
Incomplete or incorrect information may delay the processing of your return and any refund, credit, or benefit, such as any goods and services tax/harmonized sales tax (GST/HST) credit, the Canada child benefit (CCB), as well as provincial or territorial benefit and credit payments you may be entitled to receive. Provide an email address If you would like to get your CRA mail online, read and agree to the terms and conditions below, and enter your email address. You can also register for online mail at and selecting the “Manage online mail” service.
Terms and conditions – By providing an email address, you are registering for online mail and authorizing the CRA to send you email notifications when there is mail for you to view in My Account. To access your online mail, you must be registered for My Account. Any notices and correspondence delivered online in My Account will be presumed to have been sent on the date of those email notifications. You understand and agree that your notice of assessment and notice of reassessment, and any other correspondence eligible for online delivery, will no longer be mailed. For more information, go to and select “Receive online mail” before you access your account.
Provide information about your residence On the first line, enter the province or territory where you lived or of which you were considered to be a factual resident on December 31, 2017. We need this information to calculate your taxes and credits correctly. For more information, see. On the second line, enter the province or territory where you live now if it is different from your mailing address. We need this information to calculate provincial or territorial credits and benefits you may be entitled to receive.
On the third line, if you were self-employed in 2017, enter the province or territory where you had a permanent business establishment. On the last line, if you became or ceased to be a resident of Canada for income tax purposes during 2017, enter your date of entry or departure.
Provide information about yourself Social insurance number (SIN) Your SIN is the number that identifies you for income tax purposes under section 237 of the and is used for certain federal programs. You must give it to anyone who prepares information slips (such as T3, T4, or T5 slips) for you. Each time you do not give it when you are supposed to, you may have to pay a $100 penalty.
Canadian Income Tax Guide 2018/2019
Check your slips. If your SIN is missing or the number on your slips is wrong, tell the slip preparer. You must also give it to us when you ask us for personal tax information. For more information or to get an application for a SIN, go to. You can find the addresses and telephone numbers of their offices on their webpage.
Date of birth Enter your date of birth. Language of correspondence Tick the box for your preferred language of correspondence. You are still considered to have a spouse or common-law partner if you were separated involuntarily (not because of a breakdown in your relationship). An involuntary separation could happen when one spouse or common-law partner is away for work, school, health reasons, or incarcerated. Updating your marital status – For the purposes of the CCB, the GST/HST credit, or only, if your marital status changes during the year you must tell us by the end of the month following the month in which your status changes. However, if you are separated, do not notify us until you have been separated for more than 90 consecutive days.
Let us know by going to or going to and selecting MyCRA or MyBenefits CRA by calling 1-800-387-1193, or by sending us a completed. Provide information about your spouse or common-law partner You must provide us with the following information, if applicable:.
your spouse's or common-law partner's social insurance number;. your spouse's or common-law partner's first name;. your spouse's or common-law partner's net income - enter the amount from of your spouse's or common-law partner's return, or the amount it would be if he or she filed a return. Enter this amount even if it is zero. We use this information to calculate the GST/HST credit and other credits and benefits. your spouse's or common-law partner's universal child care benefit (UCCB) – enter the amount from of your spouse's or common-law partner's return, or the amount it would be if he or she filed a return.
Although this amount is included in your spouse's or common-law partner's net income, we will subtract this amount to calculate credits and benefits;. your spouse's or common-law partner's UCCB repayment – enter the amount from of your spouse's or common-law partner's return, or the amount it would be if he or she filed a return. Although this amount is deducted in the calculation of your spouse's or common-law partner's net income, we will add this amount to calculate credits and benefits; and. your spouse or common-law partner was self-employed in 2017 – tick the box if your spouse or common-law partner was self-employed. If your spouse or common law partner carried on a business in 2017 (other than a business whose expenditures are primarily in connection with a tax shelter), your return for 2017 has to be filed on or before June 15, 2018.
Elections Canada (page 1 of your return) Ticking the “ Yes” boxes in the Elections Canada section is an easy way to keep your voter registration up to date, if you are eligible to vote. Elections Canada will use the information you provide to update the National Register of Electors (the Register), the database of Canadian citizens eligible to vote in federal elections and referendums. Elections Canada uses the information in the Register to prepare voters lists for federal elections and referendums, and to communicate with voters.
Other uses of the information, permitted under the, include providing voter information to provincial and territorial election agencies for uses permitted under their respective legislations, and providing voter information (not including birth dates) to members of Parliament, registered political parties and candidates at election time. Only persons who have Canadian citizenship and are 18 years of age or older are eligible to vote. Generally, you are a Canadian citizen either by birth or if you have obtained Canadian citizenship through the formal process of becoming a Canadian citizen (naturalization). If you are unsure about your Canadian citizenship status, refer to the Immigration, Refugees, and Citizenship Canada website. How to complete this section These questions are optional. The CRA does not use this information for the purpose of processing your return. If you have Canadian citizenship, and authorize the CRA to share your name, address, date of birth, and Canadian citizenship status with Elections Canada, tick “Yes” to both questions.
If you do not authorize the CRA to share your information with Elections Canada, tick “No” to question B. You will not lose your right to vote, regardless of whether you answer the questions or leave them blank. If you do not have Canadian citizenship, tick “No” to question A and leave question B blank. If you tick 'Yes' to questions A and B.
The CRA will share only your name, address, date of birth, and Canadian citizenship status with Elections Canada. If you are already in the Register, Elections Canada will update your information as required. If you are not yet in the Register, Elections Canada will accept this as your request to be added. They may contact you if they need more information before adding you.
Your authorization stays in effect until you file your next tax return. Until then:. If you move and provide the CRA with your new address, the CRA will share it with Elections Canada ( CRA gives information to Elections Canada every month). If during the year you change your mind about the CRA sharing your information with Elections Canada, call the CRA at 1-800-959-8281 to remove your authorization. This will not remove you from the Register. To be removed from the Register, see.
If you tick 'No' to question B. The CRA will not give any of your information to Elections Canada. You will not lose your right to vote. Elections Canada will not remove your information from the Register or from voters lists, if your name is already there. If there is an election or referendum and you are not already registered with Elections Canada, you will have to register before you vote. Removal from the Register You can contact Elections Canada to have your information removed from the Register, or to ask that your information not be shared with provincial/territorial electoral agencies that use it to prepare their voters lists. Deceased persons Do not complete this section for a deceased person.
If you are completing a return for a deceased person who consented to provide information to Elections Canada on his or her last return, the CRA will notify Elections Canada to remove the deceased person’s name from the Register. Other foreign property Shares of a non-resident corporation If you (either alone or with related persons) held 10% or more of the shares of a non‑resident corporation, you may have to complete and file. For more information, see Form T1134. Loans and transfers to non-resident trusts If in 2017 or a previous year you loaned or transferred funds or property to a non-resident trust, you may have to complete and file. For more information, see Form T1141. Beneficiaries of non-resident trusts If in 2017 you received funds or property from, or were indebted to, a non-resident trust under which you were a beneficiary, you may have to complete and file.
For more information, see Form T1142.