How to File an Income Tax

Return

Welcome Everyone!

Let’s introduce ourselves to each other!• What is your name?

• What do you think of if you hear the word “tax”?

• Tell us one thing you want to learn from this workshop.

Content Objectives:

At this workshop, you will learn:

about the Canadian tax system;

about the process of filing a tax return;

and

how to ask for help or find more

information about income tax refund.

Vocabulary for Tax

• a refund

• to file a tax return

• CRA

• to levy tax

• taxable

• T4 or T4A

• slips

• tax revenue

• deductions

• tax credits

• 2014 tax year

Types of Taxes

Taxes you pay in Canada

• Sales Taxes

• Income Taxes

• Property Taxes

Provincial (PST) & Federal (GST)

Provincial & Federal

Municipal

Discussion

1. What kind of taxes do people pay in your

home country?

2. Who pays the taxes?

3. How do people pay taxes in your country?

What happens if they don’t pay taxes?

Why do we pay taxes in

Canada?

Federal Provincial Municipal

Clipart Source: https://openclipart.org

Types of Common Benefits

Source: http://www.cra-arc.gc.ca/tx/ndvdls/dctrs/lrn-tx/lrn-smpl-eng.htmlOttawa Photo by Justin Swan https://www.flickr.com/photos/118304891@N02/13700235425/ shared under CC-BY-SA

Social Services:Old Age Security, Employment Insurance, Canada Child Tax Benefit, Universal Child Care Benefit, Working Income Tax Benefit

Public Services: roads, bridges, garbage

collection, recycling, snow removal, parks, libraries and

playgrounds

Healthcare Services: ambulance, healthcare, and

hospital

Educational Services: schools, daycares, libraries

How much income tax do we pay?

• Taxable Income

=Total amount of income - deductible expenses

Examples:• Employment • Investments• Rental property • EI• CPP

Examples:• Childcare expenses• Moving costs due to

job relocation • Medical expenses • RRSP Contribution

Source: http://www.wikihow.com/Calculate-Federal-Taxes-in-Canadahttp://turbotax.intuit.ca/tax-resources/tax-deductions/personal-income-tax-deductions-in-canada.jsp

How much income tax do we

pay? (cont’d)

• Tax Bracket

Manitoba Income Tax Brackets & Rates

(2014 Tax Year)

Tax Brackets Income Tax Rates

Up to $31,000 10.80 %

$ 31,001 - $67,000 12.75 %

$ 67,001 – and Over 17.40 %

Source: http://www.tax-services.ca/manitoba-tax-brackets-mb-income-tax-rates/

How much income tax do we

pay? (cont’d)

• Tax Bracket

Federal Tax Brackets & Rates (2014 Tax Year)

Tax Brackets Income Tax Rates

Up to $43,953 15%

$ 43,954 – $87,907 22 %

$87,908 - $136,270 26 %

Over $136,270 29 %

Source: http://www.tax-services.ca/canadian-tax-brackets-2014-income-tax-rates/

How much income tax do we

pay? (cont’d)

• Tax Bracket

MB Tax combined with Federal Income Tax

(2014 Tax Year)

Taxable Income Income Tax Rates

Up to $43,561 26 %

$ 43,562 - $87,123 34 %

$ 87,124 - $135,054 43.40 %

$135,055 – and Over 46.40 %

Source: http://www.tax-services.ca/manitoba-tax-brackets-mb-income-tax-rates/

Filing a Tax Return

• Who needs to file a tax return?

“Anyone who has a residential tie to Canada for tax and benefits purposes”

• Why?

Make an adjustment between the estimated income tax that was already withdrawn from your paycheque in the tax year and the total amount of income tax you need to pay

Filing a Tax Return

• How?

Applying online Applying on paper Hiring an accountant

Baby photo http://www.publicdomainpictures.net/ Shared under CCPaper work photo by Phil Parker: http://www.flickr.com/photos/45131642@N00/5508313347/ Shared under CC-BY Cat photo by Found Animals Foundation https://www.flickr.com/photos/foundanimalsfoundation/8055190879/ Shared under CC-BY

Filing a Tax Return

• By When?

Midnight April 30, 2015

Clock photo by Jonathan Bliss https://www.flickr.com/photos/jonathan_bliss/3402567108/ Shared under CC-BY-SA

Filing a Tax Return

• How often?

Calendar Photo by Caillum Smith https://www.flickr.com/photos/woodypine/15175622674/ shared under CC-BY

Once a year

How to get a tax package

1. Download Online

Go to http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html and click your own province.

2. Order Online

Go to http://www.cra-arc.gc.ca/cgi-bin/puborder.cgi?lang=en and fill out necessary forms.

3. Order by Phone

Call 1-800-959-8281 (from Canada and the USA)

Call 1-613-940-8495 (from outside of Canada and the USA)

4. Pick up in Person

Search your nearest Service Canada office at http://www.servicecanada.gc.ca/cgi-bin/sc-srch.cgi?app=hme&ln=eng

Source: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/gttng/menu-eng.html

Process of Filing a Tax Return

Online

Step 1: Get prepared

• Collect necessary information and records such as receipts and TF slips

• Set up an online account with RCA

Step 2: Submit your information

• Get certified software

• Enter your information using the software

Step 3: Send your return and receive a refund (or make

payments)

• Keep your CRA confirmation number

• Set up your online direct deposit account

Source: http://www.cra-arc.gc.ca/gncy/t1gtrdy/menu-eng.html

Step 1: Getting prepared

• Things you need to collect:

T4 slips Receipts Copy of tax return from

previous year

Step 1: Getting prepared

• Create your online account with the

CRA.

Go to http://www.cra-arc.gc.ca/esrvc-

srvce/tx/psssrvcs/gtnln/nfgrphc1-eng.pdf

• Check out the tax credits that you

might be entitled to.

Step 2: Submit your information

• Get a certified tax software for free. http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/netfile-

impotnet/crtfdsftwr/menu-eng.html

• Purchase a certified tax software

Step 3: Get refund or make

payment

• Keep your CRA confirmation number

• Set up your online direct deposit

account

How to set up direct deposit

1. Apply onlineSet up your direct deposit through your RCA account: http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html

2. By mailFill out an enrollment form at http://www.tpsgc-pwgsc.gc.ca/recgen/dd/form/can-eng.html

3. By PhoneCall 1-800-959-8281

Source: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/drct_dpst-eng.html

Things to keep in mind

• Tax situation varies person to person

• Look for tax credits you might be

eligible to

• Keep the CRA informed of your latest

contact information

Tax Credits:

• First-time donor’s super credit

• Children’s fitness tax credit

• Family caregiver tax credit

• Children’s art tax credit

Source: http://www.canada.ca/en/campaign/taxsavings/index.html

Tax Credits:

• First-time home buyers’ tax credit

• Pension income splitting

• Volunteer firefighter tax credit

Source: http://www.canada.ca/en/campaign/taxsavings/index.html

Tax Credits:

• Tradesperson’s tools deduction

• Family tax cut

• Universal child care benefit

Source: http://www.canada.ca/en/campaign/taxsavings/index.html

Listening:

• Videos: Tax savings working for you!

http://www.cra-arc.gc.ca/vdgllry/wtchds/menu-

eng.html?clp=wtchds/chldrnftnss14-eng&fmt=mp4

Listening: Children’s Fitness Tax

Credit1. Up to how much tax credit can Susie’s parents receive?

2. How much do Susie’s parents need to spend to receive the full credit?

3. What can be included in the claim?

4. Up to what age are children eligible for this tax credit?

5. What else does Ella qualify for besides the children’s fitness tax credit?

6. What are the conditions of the programs that qualify for this tax

credit?

7. Do the parents need to include the receipts in their tax documents?

Children’s Fitness Tax Credit

1. Up to how much tax credit can Susie’s

parents receive for Susie?

2. How much do Susie’s parents need to

spend to receive the full credit?

3. What can be included in the claim?

A: $1,000 or more

A: registrations, membership fees

A: up to $150

Children’s Fitness Tax Credit

4. Up to what age are children eligible for this

tax credit?

5. What else does Ella qualify for besides the

children’s fitness tax credit?

A: They must be under 16 at the beginning of the year

A: Disability Tax Credit

Children’s Fitness Tax Credit

6. What are the conditions of the programs that

qualify for this tax credit?

7. Do the parents need to include the receipts in their

tax documents?

A: The programs have to last at least 5 consecutive days.The programs must be supervised.

The programs must include physical activities.

A: No, they don’t. They just need to keep them in case of an audit from CRA.

Learn more about each tax

credit

Go to http://www.cra-arc.gc.ca/vdgllry/menu-eng.html

1. Choose Ads and videos: Tax savings ...

working for you!

2. Choose Videos.

Provincial Tax Credits

• Go to http://www.gov.mb.ca/finance/pcredits.html

How to ask for help

• Tax Information Phone Services (TIPS)

Info-Tax (Press 1- 4 - 2)

1-800-267-6999http://www.cra-arc.gc.ca/esrvc-srvce/tps/menu-eng.html

• Talking to an Agenthttp://www.cra-arc.gc.ca/cntct/hdsk-nd-

eng.html

Phone clipart:

How to ask for help

• Community Volunteer Income Tax

Program (CVITP)http://www.cra-arc.gc.ca/tx/ndvdls/vlntr/nd-eng.html

Follow-up Activity: How to ask

for help

Task: How to Get the Tax Information through

the TIPS

1. What do you want to know more about? Choose

the topic that is of interest from the Info-Tax list.

2. Call TIPS and listen to the automated Tax

Information.

3. Write down what you have learnt.

Source: http://www.cra-arc.gc.ca/esrvc-srvce/tps/menu-eng.html

Do you want to know more?• Canada Revenue Agency - Resources for Newcomers

(There are accessible video resources available for newcomers.) http://www.cra-arc.gc.ca/newcomers/

• Learning more about the federal tax creditshttp://www.canada.ca/en/campaign/taxsavings/index.html

• How to open an online account with CRAhttp://www.cra-arc.gc.ca/esrvc-srvce/tx/psssrvcs/gtnln/nfgrphc1-eng.pdf

• Video recorded webinar for individuals and familieshttp://www.cra-arc.gc.ca/vdgllry/menu-eng.html

• Learning more about Taxes (There is a self-study course available.)http://www.cra-arc.gc.ca/tx/ndvdls/dctrs/lrn-tx/menu-eng.html

If you need help….

• Tax Information Phone Services (TIPS)http://www.cra-arc.gc.ca/esrvc-srvce/tps/menu-eng.html

• Phone Inquiries http://www.cra-arc.gc.ca/cntct/hdsk-nd-eng.html

• Community Volunteer Income Tax Program

(CVITP)http://www.cra-arc.gc.ca/tx/ndvdls/vlntr/nd-eng.html

Questions

Thank you!