Instructions to complete Catherine s income tax and benefit return

Transcription

1 Instructions to complete Catherine s income tax and benefit return The General Income Tax and Benefit Guide provides line-by-line instructions on how to complete a tax return. If you need information on any area of the return, read the corresponding area of the guide. Page 1 Identification Enter Catherine s name and address. Information about your residence Enter your province or territory of residence. Information about you Enter Catherine s SIN and date of birth, and select the language of choice. Marital status Tick the box that applies to Catherine s marital status. Elections Canada In this section, taxpayers can give the CRA permission to give their name, address, date of birth, and citizenship to Elections Canada to update the National Register of Electors. GST/HST credit application To receive the GST/HST credit, including any related provincial credits, you have to apply for it, even if you received it last year. Catherine will not be eligible for the GST/HST credit because she will not be 19 before April 1, Page 2 Please answer the following question Tick No as Catherine does not have foreign property. Review the Total income section. Enter amounts on the following lines for Catherine. Line 101 Employment income Enter the total of amounts shown in box of Catherine s T4 slips. Line 104 Other employment income Enter the amount of tips Catherine received while working at Mario s Pizzeria. Line 150 Total income Since Catherine does not have any other income, enter the total of lines 101 and

2 Page 3 Review the deductions available in the Net income and Taxable income sections. Line 150 Total income Copy the amount from line 150 on page 2. Line 234 Net income before adjustments Since none of the deductions of lines 206 to 232 apply to Catherine, enter the amount from line 150. Line 236 Net income Since Catherine does not have an amount on line 235, enter the amount from line 234. Line 260 Taxable income Since none of the deductions of lines 244 to 256 apply to Catherine, enter the amount from line 236. Note Before completing page 4 of the return, calculate Catherine s federal tax on Schedule 1. Schedule 1, Federal Tax Complete Schedule 1 to calculate the non-refundable tax credits and the federal tax on taxable income. Step 1 Federal non-refundable tax credits Non-refundable tax credits reduce your federal tax. However, if the total of these credits is more than your federal tax, you will not get a refund for the difference. Review the non-refundable tax credits available in this section. Line 300 Basic personal amount Claim the federal basic personal amount. Line 308 CPP or QPP contributions CPP or QPP contributions are normally shown in boxes 16 or 17 of the T4 slip. You have to be at least 18 years of age to contribute to CPP or QPP. Since Catherine was not 18 years of age, she was exempt from paying CPP or QPP contributions. Therefore, box 28 of her T4 slips is marked with an X. Line 312 Employment insurance premiums Enter the total of amounts shown in box 18 of Catherine s T4 slips. Line 375 Provincial parental insurance plan (PPIP) premiums paid (QC only) For students using Exercise 1(QC) only: Enter the total of amounts from box 55 of Catherine s T4 slips. Line 363 Canada employment amount Since Catherine has employment income, enter the amount she is entitled to. Lines 335 to 350 Calculate the amounts for lines 335, 338, and 350 by following the line-by-line instructions. Step 2 Federal tax on taxable income Copy Catherine s taxable income from line 260 on page 3 of the return to line 38 (line 41 for residents of Quebec). Since Catherine s taxable income is not more than $43,561, complete the first column. 12

3 Step 3 Net federal tax Enter the applicable amounts on lines 46 and 49 (lines 49 and 52 for residents of Quebec). Follow the line-by-line instructions to calculate amounts for lines 48, 53, 54, 56, 62, and 65 (lines 51, 56, 57, 59, 65, and 68 for residents of Quebec). Page 4 Complete the Refund or balance owing section to find out whether Catherine has to pay additional taxes or if she is entitled to a refund. Line 420 Net federal tax Enter the net federal tax you calculated in Step 3 of Schedule 1. Line 428 Provincial or territorial tax (other than Quebec) Calculate Catherine s provincial or territorial tax using Form 428 for your province or territory of residence. Line 435 Total payable Enter the total of lines 420 and 428. Line 437 Total income tax deducted Enter the total of amounts from box 22 of Catherine s T4 slips. Line 440 Refundable Quebec abatement (QC only) For students using Exercise 1(QC) only: Calculate this amount. Line 479 Provincial or territorial credits Provincial or territorial credits may be available for some provinces or territories. See the information sheet for your province or territory to learn about the credits available to you. Line 482 Total credits Enter the total of lines 437 to 479. Refund or balance owing Subtract the amount on line 482 from the amount on line 435. If the result is negative you have a refund. Enter the amount on line 484. If the result is positive, you have a balance owing. Enter the amount on line

4 Exercise 1 High school student Catherine Casey is a high school student who lives at home with her parents. She was born on November 13, 1996 and she works part time at Best Bookstore and Mario's Pizzeria. In February, her employers sent her the attached T4 information slips. Last year, she earned $ in tips (not indicated on T4) at Mario's Pizzeria. Based on the information given, complete Catherine's tax return. To complete this return, you will need the following: T1 General, Income Tax and Benefit Return Schedule 1, Federal Tax If province of residence is Quebec: use Exercise 1(QC) High school student (Quebec residents). T4 (13) Protected B when completed / Protégé B une fois rempli Employer's name Nom de l'employeur Employer's account number / Numéro de compte de l'employeur Exempt Exemption CPP/QPP EI PPIP 28 X Employee's name and address Nom et adresse de l'employé Year Année Province of employment Province d'emploi Employment code Code d'emploi 29 Last name (in capital letters) Nom de famille (en lettres moulées) First name Prénom Initial Initiale Other information (see over) Autres renseignements (voir au verso) BEST BOOKSTORE Social insurance number Numéro d'assurance sociale CASEY 123 Main Street City, Province X0X 0X0 RPC/RRQ AE RPAP Catherine Employee's CPP contributions line 308 Cotisations de l'employé au RPC ligne Employee's QPP contributions line 308 Cotisations de l'employé au RRQ ligne Employee's EI premiums line 312 Cotisations de l'employé à l'ae ligne RPP contributions line 207 Cotisations à un RPA ligne Employment income line 101 Revenus d'emploi ligne , Pension adjustment line 206 Facteur d'équivalence ligne 206 Employee's PPIP premiums see over Cotisations de l'employé au RPAP voir au verso 55 T4 Statement of Remuneration Paid État de la rémunération payée Income tax deducted line 437 Impôt sur le revenu retenu ligne 437 EI insurable earnings Gains assurables d'ae CPP/QPP pensionable earnings Gains ouvrant droit à pension RPC/RRQ Union dues line 212 Cotisations syndicales ligne 212 Charitable donations line 349 Dons de bienfaisance ligne 349 RPP or DPSP registration number N d'agrément d'un RPA ou d'un RPDB PPIP insurable earnings Gains assurables du RPAP

5 T4 (13) Protected B when completed / Protégé B une fois rempli Employer's name Nom de l'employeur Employer's account number / Numéro de compte de l'employeur Employee's name and address Nom et adresse de l'employé X Year Année Province of employment Province d'emploi Employment code Code d'emploi 29 Last name (in capital letters) Nom de famille (en lettres moulées) First name Prénom Initial Initiale Other information (see over) Autres renseignements (voir au verso) MARIO'S PIZZERIA Social insurance number Numéro d'assurance sociale CASEY 123 Main Street City, Province X0X 0X0 Exempt Exemption CPP/QPP EI PPIP 28 RPC/RRQ AE RPAP Catherine Employee's CPP contributions line 308 Cotisations de l'employé au RPC ligne Employee's QPP contributions line 308 Cotisations de l'employé au RRQ ligne Employee's EI premiums line 312 Cotisations de l'employé à l'ae ligne Employment income line 101 Revenus d'emploi ligne , RPP contributions line 207 Cotisations à un RPA ligne 207 Pension adjustment line 206 Facteur d'équivalence ligne 206 Employee's PPIP premiums see over Cotisations de l'employé au RPAP voir au verso 55 T4 Statement of Remuneration Paid État de la rémunération payée Income tax deducted line 437 Impôt sur le revenu retenu ligne 437 EI insurable earnings Gains assurables d'ae CPP/QPP pensionable earnings Gains ouvrant droit à pension RPC/RRQ Union dues line 212 Cotisations syndicales ligne 212 Charitable donations line 349 Dons de bienfaisance ligne 349 RPP or DPSP registration number N d'agrément d'un RPA ou d'un RPDB PPIP insurable earnings Gains assurables du RPAP 15