Do you or your corporation have to file a tax return?

Personal income tax (T1) return:

You need to file a personal (T1) return, also knows as Income Tax & Benefit return, if you:

1. Have to pay tax for the year.

2. Want to claim a refund.

3. Want to claim the Canada workers benefit (CWB).

4. Or your spouse want to begin or continue receiving the benefit payments like Canada Child Benefits, GST/HST Credit and Guaranteed income supplement (GIS) (If you have a spouse or common-law partner, they also have to file a return.)

 

Other situations where you need to file a tax return include where you:

5. And your spouse are jointly electing to split pension income.

6. Disposed of capital property (including a principal residence) or realized a taxable capital gain in the year.

7. Have to repay all or part of your old age security or employment insurance benefits.

8. Have not repaid all the amounts you withdrew from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or Lifelong Learning Plan.

9. Have to contribute to the Canada Pension Plan (CPP) for the year. This can apply if your total net self-employment income and pensionable employment income is more than $3,500.

10. Are paying employment insurance premiums on self-employment income or other eligible earnings.

11. Have incurred a non-capital loss in the year that you want to be able to apply in other years.

12. Want to transfer unused tuition fees, or carry forward unused tuition fee amounts to a future year.

13. Want to report income that would allow you to contribute to an RRSP, a pooled registered pension plan (PRPP), or a specified pension plan (SPP) to keep your RRSP deduction limit for future years up to date.

Corporation Income Tax (T2):

All resident corporations have to file a corporation income tax (T2) return every tax year even if there is no tax payable. This includes:

• non-profit organizations
• tax-exempt corporations
• inactive corporations

  

If you have any questions or any other tax and accounting issues, please feel free to reach out to Source Accounting. Source Accounting is an accounting firm in Mississauga, dedicated to small and medium size business, providing tax, accounting, bookkeeping, payroll solutions and etc. And if you find this post helpful, please let us know in your comments.

 

 Disclaimer: The above contents are provided for the general guidance only, based on information believed to be accurate and complete, but we cannot guarantee its accuracy or completeness. It does not provide legal advice; nor can it or should it be relied upon. Please contact / consult a qualified tax professional specific to your case.