Personal Tax Return Frequently Asked Questions

All residents of Canada, including students, international students, those residing in Canada on a work visa, and who are 18 years or older, must file their tax declaration annually. This is to ensure that an appropriate amount of GST has been collected and for distribution of benefits such as GST and CCB.

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 your documents and files electronically and e-file your taxes. 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 authorizations 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 the 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.

    Deadlines & Filing

    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 several 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.

    If you are missing a slip (T4, T5, T3, or others), follow these steps:


    1. 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.


    2. 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.


    If a slip arrives after you’ve filed, we can amend your return or 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 or benefit claims

    • Where to access it:


  • Sent by mail or available online through CRA My Account

    • Update your address or other personal info with CRA so correct notices are sent to you and you get your refunds or credits. This can be done on your CRA My Account or by calling the CRA at general line +800 959 8281.

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


    Types of foreign property include:


  • Bank accounts, stocks, bonds, 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.

    • How to report:


  • Complete Form T1135 and submit it with your T1 personal tax return.
  • Report the cost amount, not the current market value.
  • If you had multiple foreign properties, you must report each one.

    • Tip for newcomers:


  • Even if you did not earn income from foreign property, you may still need to file T1135.
  • 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.

    • 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.

    • Provincial Tax Rates and Credits:


  • Each province has different tax brackets and non-refundable tax credits.
  • Moving may affect eligibility for provincial benefits like Alberta Family Employment Tax Credit, Ontario Trillium Benefit, or Quebec credits.

    • 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.
  • Some provinces may require additional forms if you moved during the year.

    • Tips for Newcomers:


  • 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. Responding promptly and accurately usually resolves the review without complications. Reviews are usually for specific items on your tax return, such as income, deductions, or credits. This is not necessarily an audit; audits are more detailed and thorough.


    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, helping to resolve reviews smoothly.

    Deductions, Credits & Benefits

    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.


    Schedule of Payments: Benefits are usually paid monthly.


    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).


    Newcomers should complete RC151 to provide CRA with up-to-date information about income, family members, and residency. The RC151 form provides CRA with your personal, family, and income information so they can calculate your benefits accurately. Completing RC151 ensures that you can request benefits starting from your arrival date in Canada.


    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 – Donations to registered charities, including online giving receipts.


    3. RRSP Contributions – Contributions made up to 60 days after year-end can still be applied to the previous tax year.


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


    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 under specific conditions), including carry-forward and transferable credits.


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


    8. Home Office Expenses – Utilities, internet, office supplies, and a portion of rent or property costs for remote workers.


    9. Employment Expenses – Costs required by your employer and supported by a T2200 form, such as tools or vehicle expenses.


    10. Disability Supports – Expenses for guide dogs, support workers, specialized equipment, and accessible vehicle modifications.


    11. Interest on Student Loans – Interest paid on government student loans for a non-refundable tax credit.


    12. Investment Expenses – Fees paid for investment advice, account management, or interest on investment loans.


    13. Political Contributions – Donations to registered political parties or candidates.


    14. Northern Residents Deductions – Travel, relocation, and residency expenses for eligible northern or remote residents.


    15. Adoption Expenses – Eligible costs related to adopting a child, including agency fees and travel.


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

    RRSPs, TFSAs & Investments

    Both RRSPs and TFSAs are tax-advantaged accounts, but they serve different purposes:


    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.
  • Taxes are paid when you withdraw funds, usually in retirement when income may be lower.

    • 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.

    • Canada taxes different types of income differently. Understanding whether your income is a capital gain or business income affects how much tax you pay.


    Capital Gains:


  • Occur when you sell or dispose of a capital asset (like stocks, real estate, or investments) for more than its purchase price.
  • Only 50% of the gain is taxable.
  • Losses from selling capital assets can offset capital gains in the current or future years.

    • Business Income:


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

    • 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 to avoid issues with CRA.

    • Reporting:


  • Rental income and expenses are reported on Form T776 – Statement of Real Estate Rentals when filing your T1 personal tax return.

    • How Tax Calgary Can Help:


  • We can help calculate allowable deductions, prepare Form T776, and ensure your rental income is reported accurately and optimally.

    • Selling a rental property in Canada can trigger capital gains tax, because the property is considered an investment, not your principal residence.


    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.

    Reporting:

  • Report the sale on Schedule 3 – Capital Gains of your T1 personal tax return.
  • If the property was partially your principal residence, only the investment portion may be taxable.

    • Depreciation / CCA:


  • If you claimed Capital Cost Allowance (CCA) on the property in previous years, you may have a recapture, which is fully taxable.
  • Recapture happens when the depreciation claimed reduces the property’s value for tax purposes, but the actual sale price is higher.

    • How Tax Calgary Can Help:


  • We can help calculate your capital gain or recapture, prepare Schedule 3 accurately, and plan to minimize taxes on the sale.

    • 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 suggested installment amounts and due dates: usually March, June, September, and December.
  • Making timely installments can help avoid interest charges on late payments.

    • GST/HST Instalments:


  • Businesses registered for GST/HST may need to make quarterly or monthly installment payments if their net tax owing is above a certain threshold.
  • CRA provides a schedule for installment due dates based on your reporting frequency (monthly, quarterly, or annually).
  • Paying on time helps avoid interest or penalties for late GST/HST remittances.
  • CRA calculates suggested installments automatically, but you can adjust the amount if your income or business activity changes during the year.