Personal Tax Return Frequently Asked Questions

All residents of Canada, including students, international students, and work permit holders, who are 18 years or older must file a tax return each year. Filing ensures you remain eligible to receive all government benefits and credits you may be entitled to.

Please complete the Intake Form which includes a list of everything you need to prepare for your tax filing.

Yes, with your authorization, we can access and review the slips available in your CRA My Account. A tax advisor will then call you to discuss any missing information, possible deductions, and ensure everything is accurate. Once confirmed, your return is filed electronically, and a copy is provided to you. To get started, please complete the Intake Form.

Registering for a CRA My Account gives you secure, online access to your personal or business tax information. Having a CRA account helps you stay informed, manage your taxes efficiently, and ensures you don’t miss important deadlines or benefits. You can:

• Check your notice of assessment and tax balance.
• • View and track benefit payments like GST/HST credits or Canada Child Benefit.
• • Update personal information, such as address, marital status, or direct deposit details.
• • Access previous tax returns and slips.
• • Submit certain requests or forms online, saving time and avoiding paper delays.

Providing access allows us to prepare your taxes accurately and efficiently while reducing the risk of errors or missing information. We request CRA authorization to:

• • Retrieve official tax slips, notices of assessment, and carry-forward amounts securely.
• • Verify past filings and available credits to ensure accurate tax preparation.
• • Submit or e-file your tax return directly with the CRA.
• • Respond quickly to any CRA inquiries or adjustments on your behalf.

The process begins when you complete the Intake Form and authorize Tax Calgary as your representative with the CRA. We then:

1. Review your information and request any additional details if needed.

2. Create your client file and discuss your tax return through your preferred method: phone, Google Meet, email, or in-person.

3. Once all information is confirmed, we send your invoice and the T183 consent form for signature. For in-person appointments, this step is completed during your meeting.

4. After the form is signed and the invoice is paid, we file your tax return and provide you with a copy of your T1.

The timeline depends on how quickly information is provided, but the process is straightforward once we have all of the required details.

You can set up direct deposit in two ways:

Through your bank:

• • Log in to online banking.
• • Find CRA Direct Deposit (usually under “Payments” or “Tax services”).
• • Enter your SIN and account details.
• • Submit — your bank sends the info securely to the CRA.

Through CRA My Account:

• • Log in to CRA My Account.
• • Go to Profile → Direct Deposit.
• • Enter your banking information.
• • Save changes — it’s usually active within a few days.

Update your info right away if you change bank accounts to avoid payment delays.

Installment payments are required when your tax balance is high enough that CRA expects you to pay in advance throughout the year, instead of waiting until the regular filing deadline.

Personal Taxes (T1 Installments):

• • If your net tax owing is over $3,000 in the current or previous year, CRA may require installments.
• • CRA sends a reminder notice with installment amounts and due dates: usually March, June, September, and December.
• • Making timely installments helps you avoid interest charges and penalties.

GST/HST Instalments:

• • Businesses registered for GST/HST may need to make quarterly installment payments if their net tax owing is above $3,000 threshold.
• • Paying on time helps avoid interest or penalties for late GST/HST remittances.

Update your info right away if you change bank accounts to avoid payment delays.

Common deductions include salaries, rent, utilities, business insurance, vehicle expenses, professional fees, advertising, and depreciation (CCA) of assets. If you are self-employed, you can deduct reasonable expenses you incur to earn business income. Common deductions include:

• • Home office expenses (portion of rent, utilities, internet, property tax, mortgage interest)
• • Vehicle expenses (fuel, insurance, maintenance, lease/loan interest, portion of depreciation)
• • Supplies, tools, and equipment
• • Advertising and marketing
• • Professional fees (legal, accounting, tax preparation)
• • Bank charges and interest
• • Meals and entertainment (50% limit applies)
• • Insurance (business-related)
• • Salaries, wages, or subcontractor payments
• • Training, licenses, and professional dues

Keep in mind that all deductions must be reasonable and directly related to earning income. It’s important to maintain receipts and proper records in case of a CRA review.

Generally, personal returns are due by April 30. If you are self-employed, you may have until June 15 to file, but any balance owing is still due April 30.

If you owe tax and you file your return after the due date, CRA will charge you a late-filing penalty. The penalty is 5% of your balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months. Also, your CCB and GST benefits might be postponed.

You can still file for past years. CRA allows filing returns for previous years. We can help gather what’s needed and file them for you.

Contributions to a Registered Retirement Savings Plan (RRSP) can be made up to 60 days after the end of the calendar year to count for the previous tax year.

For example, contributions made by March 1, 2025 can be applied to the 2024 tax year.

Contributions reduce your taxable income for the year they are applied to.

It’s important to track your contribution limit, which appears on your CRA Notice of Assessment, to avoid over-contributing and penalties.

Please note that keeping record of all of your tax slips is tax payers responsibility. If you are missing a slip (T4, T5, T3, or others), follow these steps:

1. Check your CRA My Account — all slips should be available online through the CRA and can be downloaded directly if submitted by the issuer and processed by the CRA on time.

2. Contact the issuer (employer, bank, or other payer) to request a copy if it’s not available online.

Slips are generally issued by the end of February for most income types. If you haven’t received it by then, reach out promptly. Some investment slips may be issued later, often in March.

If a slip is received after you’ve filed, we can submit a T1 Adjustment Request to include the missing information.

A Notice of Assessment (NOA) is an official statement from the Canada Revenue Agency (CRA) sent after your tax return is processed. It summarizes your tax situation for the year.

What it shows:

• • Total income reported
• • Tax paid or owed
• • Refunds, credits, and carry-forward amounts (like tuition, RRSP, or CTC)
• • Any adjustments made by the CRA

Why it’s important:

• • Confirms your tax return has been processed
• • Shows your balance owing or refund
• • Includes information you may need for future tax filings, benefit claims. Requested by the financial institution to allow financial credit, mortgage.

Where to access it:

• • Sent by mail or available online through CRA My Account

The CRA requires you to update your address or any other personal information as soon as it changes. This can be done quickly through your CRA My Account or by calling the CRA’s general enquiries line at 1-800-959-8281.

If you own foreign property (outside Canada) with a total cost of more than CAD 100,000 at any time during the year, you must report it to the CRA using Form T1135 – Foreign Income Verification Statement.

Types of foreign property include:

• • Bank accounts, stocks, bonds, crypto, or other investments held outside Canada
• • Real estate outside Canada (excluding personal-use property like your vacation home if not rented)
• • Trusts, partnership interests, or foreign businesses

Why reporting matters:

• • CRA uses this information to ensure that all foreign income is reported on your tax return.
• • Failure to file T1135, or filing late, may result in penalties. The due date to file the T1135 is April 30.

How Tax Calgary Can Help:

• • We can review your foreign holdings, prepare T1135 based on the provided information, and ensure it’s filed on time to avoid penalties.

When you move from one province or territory to another in Canada, your provincial taxes and credits may change because each province has its own tax rates and benefits.

Residency for Tax Purposes:

• • Your province of residence on December 31 determines which provincial tax rates and credits apply for the year.
• • CRA considers your primary home, family, and ties to determine residency.



Reporting:



• • File a single T1 personal tax return for the year, reporting your total income.
• • Specify your province of residence at year-end on your return.



Tips:



• • Keep records of your move date, address changes, and moving expenses.
• • Certain moving expenses may be deductible if you moved for work or to study.



How Tax Calgary Can Help:



• We can help determine your correct province of residence, calculate provincial taxes, and claim eligible credits and deductions related to your move.

CRA may review or audit your tax return to ensure that the information reported is accurate.

What to Expect: CRA may send a review letter requesting additional information or documents. The review letter can be mailed or be available electronically by notifying. Make sure you check your CRA MY Account for new emails.

What to Do:

• • Read the letter carefully – note the deadline to respond and the specific information requested.
• • Gather supporting documents – receipts, slips, statements, or any records relevant to the items CRA is reviewing.
• • Respond by the deadline – submit documents through CRA My Account, mail, or as instructed in the letter.
• • Keep copies of all documents and correspondence for your records.

How Tax Calgary Can Help: Tax Calgary can review the CRA letter, advise on what information is needed, and assist you in preparing and submitting your response to CRA. Our team ensures that your reply is accurate and submitted on time.

The Underused Housing Tax (UHT) is a 1% annual tax on vacant or underused residential property in Canada. It primarily applies to non-residents, temporary residents (such as work permit holders), as well as private corporations, partnerships, and trusts that own residential property.

A UHT return must be filed even if no tax is owed. The filing deadline is April 30, and penalties are steep — starting at $1,000 for individuals and $2,000 for corporations.

Benefits like the Canada Child Benefit (CCB), GST/HST credit, and provincial credits are payments provided by the government to support eligible individuals and families.

The CRA calculates your eligibility and payment amounts based on your previous year’s income.

Payments may be adjusted if your income changes or if you have changes in family circumstances (e.g., marriage, new child).

Tax Treatment: Most benefits, including CCB and GST/HST credits, are tax-free, meaning they do not need to be reported as income on your tax return.

Many taxpayers overlook deductions that could reduce their tax payable. Some of the most commonly missed deductions include:

1. Medical Expenses – Prescription drugs, dental care, eyeglasses, hearing aids, and certain therapies not covered by insurance.

2. Charitable Donations – Contributions to registered charities, including receipts for online donations.

3. RRSP Contributions – Contributions made within the first 60 days of the year can be applied to the previous tax year.

4. Union or Professional Dues – Membership fees required to maintain employment or professional standing.

5. Childcare Expenses – Daycare, after-school programs, summer camps, and certain caregiver costs.

6. Tuition Fees and Education Amounts – Tuition paid to eligible Canadian institutions (and some foreign institutions), including unused amounts carried forward or transferred.

7. Moving Expenses – Costs incurred when relocating for work or post-secondary education, if distance requirements are met.

8. Disability Tax Credit (DTC) – Available if you or a dependent have a qualifying medical condition.

9. Interest on Student Loans – Interest paid on government student loans may be deductible.

10. Investment Expenses – Fees paid for investment advice, account management, or interest on investment loans for non-registered accounts.

Tip: Keeping track of receipts and records throughout the year ensures you can claim all eligible deductions and maximize your tax refund.

If you own a rental property in Canada and earn rental income, you must report it on your tax return, but you can also deduct expenses to reduce taxable income.

Common deductible expenses include:

• • Mortgage interest (not principal payments)
• • Property taxes
• • Insurance for the rental property
• • Utilities if paid by you
• • Repairs and maintenance (routine upkeep, not major renovations)
• • Advertising for tenants
• • Property management fees
• • Accounting or legal fees related to the rental property

Important Notes:

• • Capital improvements (like adding a new roof or renovating a kitchen) are not immediately deductible but can be added to the property’s cost for capital gains purposes.
• • Keep detailed receipts and records of all expenses.
• • Always separate personal and rental expenses.

How Tax Calgary Can Help: We can help calculate allowable deductions, and ensure your rental income is reported accurately.

RRSP (Registered Retirement Savings Plan):

• • Contributions are tax-deductible, reducing your taxable income for the year.
• • Ideal if you want to lower your current taxes and save for retirement.
• • If you decide to withdraw from the RRSP, the amount will be added to your taxable income.

TFSA (Tax-Free Savings Account):

• • Contributions are not tax-deductible, but withdrawals are tax-free.
• • Ideal for short-term savings, emergencies, or flexible investing.
• • Withdrawals do not affect your taxable income or eligibility for benefits.
• • Investment income such as interest, dividends, are not taxable.

The FHSA is a registered savings plan designed to help first-time homebuyers save for a home. Contributions are tax-deductible (like an RRSP), and qualifying withdrawals to buy a first home are tax-free (like a TFSA). You can contribute up to $8,000 per year, with a lifetime limit of $40,000. Unused contribution room carries forward to the next year (up to $8,000).

To open an FHSA, you must be:

• • A Canadian resident (including work permit holders).
• • At least 18 years old, and
• • A first-time homebuyer (no home owned in the current or previous four years).

Capital Gains-Loss:

• • Occur when you sell or dispose of a capital asset which falls under long-term investments (like stocks, real estate, or investments).
• • Only 50% of the gain is taxable.
• • Losses from selling capital assets can be applied only against capital gains carried back or carried forward for future years.

Business Income:

• • Comes from self-employment, operating a business, or regular trading activity.
• • 100% of business income is taxable.
• • You can deduct business-related expenses (supplies, rent, utilities, wages) to reduce taxable income.

Selling a rental property in Canada can trigger capital gains or loss.

Calculating Capital Gain:

• • Capital gain = Selling price – Adjusted cost base (purchase price + capital improvements) – Selling expenses (like realtor fees).
• • Only 50% of the capital gain is taxable and must be reported on your tax return.

Yes. If you earned income, wish to apply for benefits, or want to build your tax history, you should file a return. Filing your first return also establishes your eligibility for credits and created RRSP and TFSA room.

You can register for a CRA My Account after you have filed your first Canadian tax return and it has been processed by the CRA. This usually takes a few weeks. To complete the registration, you will need information from your Notice of Assessment (NOA), which confirms that your return has been assessed.

You can register for a CRA My Account even before filing your first tax return if you use a Sign-In Partner (online banking) or a provincial partner such as Alberta.ca Account.

According to the CRA rules you can open but you cannot contribute to an RRSP in your first year in Canada before filing your first Canadian tax return.

• • Your RRSP contribution room is created only after your first tax return is filed and the CRA issues your Notice of Assessment.
• • If you contribute to an RRSP before that, you will be considered to have overcontributed, and CRA will apply penalties of 1% per month on the excess amount.
• • Once your first return is processed, the CRA will calculate and show your available RRSP contribution room in the Notice of Assessment and in your CRA My Account.

• • File your first Canadian tax return.
• • Guide you in setting up and using CRA My Account.
• • Ensure you receive all benefits and credits you qualify for.
• • Assist with world income reporting and deductions.

When you apply for benefits such as the Canada Child Benefit (CCB) or GST/HST credit, the CRA requires your world income for the year prior to your arrival in Canada, as well as for the part of the year before you became a resident. This helps the CRA calculate your benefits accurately and determine your eligibility.

• • File your tax return, even with no income.
• • Complete RC151 for GST/HST credit.
• • Complete Forms RC66 for the Canada Child Benefit (CCB). Work permit holders become eligible only after 18 months of residency.
• • Once processed, benefits are automatically paid out based on eligibility and family income.

How Tax Calgary can help: We assist newcomers by filing returns, completing the benefit forms, submitting them to the CRA, and following up to make sure your applications are processed smoothly.

You should update your address, banking details, and other personal information with the CRA as soon as any changes occur. The fastest way is through your CRA My Account, where updates take effect right away. You can also call the CRA at 1-800-959-8281.

If you own foreign property (outside Canada) with a total cost of more than CAD 100,000 at any time during the year, you must report it to the CRA using Form T1135 – Foreign Income Verification Statement.

• • Even if you did not earn income from foreign property, you may still need to file T1135.
• • Personal-use property (such as your principal residence abroad where you lived and which is not rented out) does not need to be reported.
• • Keep accurate records of purchase costs, sales, and account balances.

How Tax Calgary can help: We can review your foreign holdings, prepare T1135 accurately, and ensure it’s filed on time to avoid penalties.