TAX TIPS
Feel free to submit your tax-related questions to us about your Canadian personal income tax and benefit return.
WHEN IS MY 2023Â PERSONAL INCOME TAX AND BENEFIT RETURN (T1 RETURN) DUE IN CANADA?
Generally, your 2023 personal income tax return has to be filed on or before April 30, 2024.
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Exception - Last year, since April 30 fell on a Sunday, you were able to file your tax return by May 1, 2023 without penalty.
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For self-employed persons, your 2023 income tax and benefit return (which includes form T2125) has to be filed on or before June 15, 2024.
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If your tax return results in a balance owing, you must pay that balance to the Canada Revenue Agency on or before April 30, 2024.
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Tax Fact: In the 2020 calendar year, as a response to the unprecedented COVID-19 pandemic, your return for the 2019 tax year didn't have to be filed until June 1, 2020.
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Adapted from: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/important-dates-individuals.html
HOW LONG SHOULD I KEEP MY CANADIAN TAX RETURN RECORDS AND SUPPORTING DOCUMENTATION FOR?
Generally, you must keep all required records and supporting documents for a period of six years from the end of the last tax year they relate to.
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If you file an income tax return late, you must keep your records for six years from the date you file that return.
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Please note that in some situations, you must retain your records for a different period of time.
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WHAT IS THE DIFFERENCE BETWEEN DEDUCTIONS FROM INCOME, NON-REFUNDABLE TAX CREDITS, AND REFUNDABLE TAX CREDITS?
Deductions - You can deduct certain expenses and other adjustments from your total income to get your taxable income. These deductions reduce the amount of income you pay tax on, so they reduce your overall income tax. The more deductions that apply to you, the less your taxable income becomes. Deductions from taxable income are listed on lines 24400 to 25600 of the T1 form.
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Non-refundable tax credits - Each government allows taxpayers to claim a percentage of their non-refundable total tax credits, and reduce their taxes payable by that amount. The federal government allows taxpayers to claim 15 percent of their non-refundable tax credits.
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Because these credits are non-refundable, you don't receive a tax refund if they total an amount larger than the taxes you owe.
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Refundable tax credits - Refundable tax credits are credits that will be paid to you if you are eligible. Often the federal or provincial government pays them to you in a series of payments through the year to assist with living expenses.
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Adapted from: https://www.canada.ca/en/financial-consumer-agency/services/financial-toolkit/taxes/taxes-3.html
I PAID INTEREST ON MY STUDENT LOANS. DO I NEED SOME SORT OF RECEIPT FOR MY TAX RETURN?
Yes! Just like any other eligible amount / credit / deduction that you may be able to claim, you'll need supporting documentation.
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Interest paid on your student loans will be reported on line 31900 of your Canadian income tax and benefit return as a non-refundable tax credit.
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You may be eligible to claim an amount for the interest paid on your student loan in the current tax year, or the preceding 5 years for post-secondary education.
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If you paid interest on a national student loan in 2020, your tax receipt and your annual statement should be available in your secure inbox if you have an online National Student Loans Service Centre (NSLSC) Account. You may be able to login using your GCKey or SecureKey (if you have one). Instructions for provincial or territorial student loan online accounts will vary by province or territory.
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You may also be able to access the interest paid on your student loan amounts by calling the National Student Loans Service Centre (NSLSC) at 1-888-815-4514, and if you're a resident (and student) in Alberta, you'll also want to call the Alberta Student Aid at 1 855 606-2096 | Option 3. You will need to provide personal information when talking to the agents.
IF I'M IN A RELATIONSHIP AND DON'T WANT TO FILE MY TAX RETURN AS "COMMON-LAW", CAN I JUST FILEÂ AS "SINGLE"?
No! You don't get to choose your marital status. You have to report your marital status as of December 31st of the tax year.
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Here are the marital statuses defined by the CRA:
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Married - means you have a spouse. This applies only to a person to whom you are legally married.
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Common-law - means you are living with a person who is not your spouse, but with whom you have a conjugal relationship, and to whom at least one of the following situations applies:
They have been living with you in a conjugal relationship for at least 12 continuous months (includes any period you were separated for less than 90 days because of a breakdown in the relationship).
They are the parent of your child by birth or adoption.
They have custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent them person for support.
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Separated - means that you have been living apart from your spouse or common-law partner because of a breakdown in the relationship for a period of at least 90 days and you have not reconciled. Once you have been separated for 90 days because of a breakdown in the relationship, the effective day of your separated status is the day you started living apart.
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Widowed - means that you had a spouse or common-law partner who is now deceased.
Divorced - means that you have legally been divorced from your former spouse.
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Single - should be chosen when none of the other marital status options apply to you.
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I'M SELF-EMPLOYED. CAN I DEDUCT PREMIUMS PAID TO A PRIVATE HEALTH SERVICES PLAN (PHSP)?
Self-employed people may be able to deduct health insurance premiums from their income (as opposed to claiming them as a medical expense), and this can offset the costs of their premiums.
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If you're self-employed, you can deduct premiums paid to a private health services plan (PHSP) if you meet certain conditions (available in the CRA T4002 guide).
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If you don't meet the conditions, you may be able to claim premiums paid to a private health services plan as an eligible medical expense on your tax return. Premiums paid to private health services plans (including medical, dental, and hospitalization plans) can be claimed as a medical expense, as long as 90% or more of the premiums paid under the plan are for eligible medical expenses.
This page was last updated February 1, 2024. If you have questions about your Canadian personal income tax and benefit return that aren't answered here, feel free to reach out to us.