The T1 General or T1 (entitled Income Tax and Benefit Return) is a form used in Canada by individuals to file their personal income tax returns. Individuals with tax payable during a calendar year must use the T1 to file their total income from all sources, including employment and self-employment income, interest, dividends, and capital gains, rental income, and so on. Foreign income must also be declared and included in the total income. After applicable deductions and adjustments, the net income and taxable income are determined, from which the federal tax and the provincial or territorial tax are calculated to give the total payable. Subtracting total credits, which include tax withheld, the filer will either receive a refund or have a balance owed, which may be zero.
The T1 and any balance owed for each year are generally due by the end of April of the following year. The T1 filing deadline (April 30) is extended to June 15 where the taxpayer or their spouse earn income from a business at any time during the calendar year.
There is no requirement to file a T1 return for the year if the tax balance payable for that year is $0 or negative. However, certain government benefits (such as GST/HST credit and Canada Child Tax Benefit) are only paid if a T1 return is filed for the year.
Every year Canadians are required to file personal taxes on or before April 30th. This puts a lot of pressure on public accounting firms and from January to April, a lot of hiring takes place. By completing this training you will become employable in public accounting firms.