Reference — Canadian Personal Tax Return Preparation (T1)
All dollar figures are tax year 2026 unless noted — verify at canada.ca before use.
Contents
- Slip map
- Deductions vs credits (the core distinction)
- Credit table
- Deadline calendar
- Penalty and interest structure
- Instalments
- Worked mini-examples
- Gotchas
Slip map
| Slip | What it reports | T1 destination |
|---|---|---|
| T4 | Employment income, CPP/EI, tax withheld | Employment income lines |
| T4A | Pension, self-employment box 048, scholarships | Varies by box — box 048 → T2125 |
| T5 | Interest, dividends (eligible/other) | Investment income; dividends are grossed-up then credited |
| T3 | Trust/mutual-fund distributions, capital gains | Investment income / Schedule 3 |
| T5008 | Securities dispositions | Schedule 3 — needs adjusted cost base from your records |
| T2202 | Tuition | Tuition credit (transferable in part) |
| RRSP receipts | Contributions (incl. first-60-days) | RRSP deduction |
| T4E | EI benefits | Other income; possible clawback |
| T4A(P) / T4A(OAS) | CPP / OAS | Pension lines; OAS clawback above the recovery threshold |
| T5013 | Partnership income | Per-box mapping |
Deductions vs credits (the core distinction)
- 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.
- 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.
- Donations are two-tier federally: low rate on the first $200, high rate above.
- Refundable credits/benefits pay out even with zero tax: GST/HST credit, Canada Workers Benefit, provincial credits — filing is worthwhile even with no income.
Credit table
| Credit | Notes |
|---|---|
| Basic personal amount | Indexed annually; reduced at very high income — verify current value |
| 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 |
| Tuition (T2202) | Student claims first; up to $5,000 transferable to parent/spouse; rest carries forward |
| Disability (DTC) | Requires approved T2201; opens RDSP and other doors |
| Donations | Two-tier; can pool spouses and carry forward 5 years |
| Home buyers' amount | First-time buyers; fixed amount |
| Canada caregiver | For dependants with impairment |
Deadline calendar (for tax year 2026)
| Date | Event |
|---|---|
| Feb (late) 2027 | NETFILE opens; slips due to you by end of Feb |
| ~Mar 1, 2027 | RRSP/FHSA deadline for deducting against 2026 |
| Apr 30, 2027 | Filing + payment deadline (all balances, incl. self-employed) |
| Jun 15, 2027 | Filing deadline if you or spouse are self-employed (payment was Apr 30) |
| Mar 15 / Jun 15 / Sep 15 / Dec 15 | Instalment due dates when required |
Penalty and interest structure
- 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).
- Interest: compounds daily on balances from May 1 at the CRA prescribed rate.
- Repeated failure to report income: federal/provincial penalty when income is omitted twice within 4 years.
- T1135 failure: $25/day (min $100, max $2,500) and up — flag foreign property early.
Instalments
Required 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.
Worked mini-examples
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.
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.
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.
Gotchas
- CRA slip-matching is automatic — a forgotten T5 of $60 still triggers reassessment; use Auto-fill my return.
- 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.
- First-60-days RRSP receipts belong on the prior year's return (reported, even if deduction deferred).
- TFSA contributions are never deductible and withdrawals re-add room only the next January 1 — re-contributing the same year over-contributes.
- Self-employed June 15 deadline is filing-only; interest on any balance runs from May 1.
- Provincial credits differ widely (rent credits, political donations) — check the province's schedule before declaring the return complete.
- Capital gains need your own ACB records; T5008 often lacks or misstates cost basis.