spb/ultra-sharp-agent-skills Public

1<!--2Author: Simon-Pierre Boucher3Contact: contact@spboucher.ai4-->56# Reference — Canadian Personal Tax Return Preparation (T1)78All dollar figures are **tax year 2026** unless noted — verify at [canada.ca](https://www.canada.ca/en/revenue-agency.html) before use.910## Contents11- Slip map12- Deductions vs credits (the core distinction)13- Credit table14- Deadline calendar15- Penalty and interest structure16- Instalments17- Worked mini-examples18- Gotchas1920## Slip map2122| Slip | What it reports | T1 destination |23|---|---|---|24| T4 | Employment income, CPP/EI, tax withheld | Employment income lines |25| T4A | Pension, self-employment box 048, scholarships | Varies by box — box 048 → T2125 |26| T5 | Interest, dividends (eligible/other) | Investment income; dividends are grossed-up then credited |27| T3 | Trust/mutual-fund distributions, capital gains | Investment income / Schedule 3 |28| T5008 | Securities dispositions | Schedule 3 — needs adjusted cost base from your records |29| T2202 | Tuition | Tuition credit (transferable in part) |30| RRSP receipts | Contributions (incl. first-60-days) | RRSP deduction |31| T4E | EI benefits | Other income; possible clawback |32| T4A(P) / T4A(OAS) | CPP / OAS | Pension lines; OAS clawback above the recovery threshold |33| T5013 | Partnership income | Per-box mapping |3435## Deductions vs credits (the core distinction)3637- **Deduction** reduces taxable income — worth your **marginal rate**. RRSP/FHSA contributions, union/professional dues, child-care expenses (lower-income spouse, with limits), moving expenses (40 km closer to work/school), carrying charges.38- **Non-refundable credit** reduces tax at the **lowest federal rate** (14% in 2026) regardless of income — basic personal amount, age amount, medical, tuition, disability (DTC), Canada employment amount.39- **Donations** are two-tier federally: low rate on the first $200, high rate above.40- **Refundable credits/benefits** pay out even with zero tax: GST/HST credit, Canada Workers Benefit, provincial credits — filing is worthwhile even with no income.4142## Credit table4344| Credit | Notes |45|---|---|46| Basic personal amount | Indexed annually; reduced at very high income — verify current value |47| Medical expenses | Only above min(3% of net income, indexed floor); pick any 12-month period ending in the year; pool family expenses on the lower-income return |48| Tuition (T2202) | Student claims first; up to $5,000 transferable to parent/spouse; rest carries forward |49| Disability (DTC) | Requires approved T2201; opens RDSP and other doors |50| Donations | Two-tier; can pool spouses and carry forward 5 years |51| Home buyers' amount | First-time buyers; fixed amount |52| Canada caregiver | For dependants with impairment |5354## Deadline calendar (for tax year 2026)5556| Date | Event |57|---|---|58| Feb (late) 2027 | NETFILE opens; slips due to you by end of Feb |59| ~Mar 1, 2027 | RRSP/FHSA deadline for deducting against 2026 |60| Apr 30, 2027 | Filing + payment deadline (all balances, incl. self-employed) |61| Jun 15, 2027 | Filing deadline if you or spouse are self-employed (payment was Apr 30) |62| Mar 15 / Jun 15 / Sep 15 / Dec 15 | Instalment due dates when required |6364## Penalty and interest structure6566- **Late filing:** 5% of balance owing + 1% per full month late (max 12). Repeat offenders (late in prior 3 years with demand): 10% + 2%/month (max 20).67- **Interest:** compounds daily on balances from May 1 at the CRA prescribed rate.68- **Repeated failure to report income:** federal/provincial penalty when income is omitted twice within 4 years.69- **T1135 failure:** $25/day (min $100, max $2,500) and up — flag foreign property early.7071## Instalments7273Required when net tax owing exceeds **$3,000** (Quebec residents: $1,800) in the current year **and** either of the two preceding years. Three CRA calculation options (no-calc reminders, prior-year, current-year); paying the amounts on CRA's instalment reminders is safe-harbor even if too low.7475## Worked mini-examples7677**Example 1 — deduction vs credit value.** Income $120,000 (26% federal bracket + province). A $5,000 RRSP deduction saves ≈ $5,000 × (26% + provincial rate). A $5,000 medical *credit base* saves only ≈ $5,000 × 14% federally — never present credits as if they were deductions.7879**Example 2 — dividends.** T5 shows $1,000 eligible dividends → gross up to taxable amount, then apply the dividend tax credit; effective rate depends on province and bracket — compute, don't guess.8081**Example 3 — instalments.** Owed $4,200 in 2025 and expects $4,500 for 2026 → both years above $3,000 → quarterly instalments required for 2026; missing them accrues instalment interest.8283## Gotchas84- CRA slip-matching is automatic — a forgotten T5 of $60 still triggers reassessment; use Auto-fill my return.85- RRSP **contribution room** ≠ **deduction claimed**: you may contribute now and deduct in a later, higher-income year; over-contribution beyond the $2,000 cushion costs 1%/month.86- First-60-days RRSP receipts belong on the **prior** year's return (reported, even if deduction deferred).87- TFSA contributions are never deductible and withdrawals re-add room only the **next** January 1 — re-contributing the same year over-contributes.88- Self-employed June 15 deadline is filing-only; interest on any balance runs from May 1.89- Provincial credits differ widely (rent credits, political donations) — check the province's schedule before declaring the return complete.90- Capital gains need your own ACB records; T5008 often lacks or misstates cost basis.91