Instructions to complete Catherine`s income tax and benefit return

Instructions to complete Catherine’s income tax
and benefit return
The General Income Tax and Benefit Guide provides line-by-line instructions on how to complete a tax
return. If you need information on any area of the return, read the corresponding area of the guide.
Page 1
Identification
Enter Catherine’s name and address.
Information about your residence
Enter your province or territory of residence.
Information about you
Enter Catherine’s SIN and date of birth, and select the language of choice.
Marital status
Tick the box that applies to Catherine’s marital status.
Elections Canada
In this section, taxpayers can give the CRA permission to give their name, address, date of birth, and
citizenship to Elections Canada to update the National Register of Electors.
GST/HST credit application
To receive the GST/HST credit, including any related provincial credits, you have to apply for it, even if
you received it last year. Catherine will not be eligible for the GST/HST credit because she will not
be 19 before April 1, 2015.
Page 2
Please answer the following question
Tick No as Catherine does not have foreign property.
Review the “Total income” section. Enter amounts on the following lines for Catherine.
Line 101 – Employment income
Enter the total of amounts shown in box 14 of Catherine’s T4 slips.
Line 104 – Other employment income
Enter the amount of tips Catherine received while working at Mario’s Pizzeria.
Line 150 – Total income
Since Catherine does not have any other income, enter the total of lines 101 and 104.
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Page 3
Review the deductions available in the “Net income” and “Taxable income” sections.
Line 150 – Total income
Copy the amount from line 150 on page 2.
Line 234 – Net income before adjustments
Since none of the deductions of lines 206 to 232 apply to Catherine, enter the amount from line 150.
Line 236 – Net income
Since Catherine does not have an amount on line 235, enter the amount from line 234.
Line 260 – Taxable income
Since none of the deductions of lines 244 to 256 apply to Catherine, enter the amount from line 236.
Note
Before completing page 4 of the return, calculate Catherine’s federal tax on Schedule 1.
Schedule 1, Federal Tax
Complete Schedule 1 to calculate the non-refundable tax credits and the federal tax on taxable
income.
Step 1 – Federal non-refundable tax credits
Non-refundable tax credits reduce your federal tax. However, if the total of these credits is more than
your federal tax, you will not get a refund for the difference.
Review the non-refundable tax credits available in this section.
Line 300 – Basic personal amount
Claim the federal basic personal amount.
Line 308 – CPP or QPP contributions
CPP or QPP contributions are normally shown in boxes 16 or 17 of the T4 slip. You have to be at least
18 years of age to contribute to CPP or QPP.
Since Catherine was not 18 years of age, she was exempt from paying CPP or QPP contributions.
Therefore, box 28 of her T4 slips is marked with an “X”.
Line 312 – Employment insurance premiums
Enter the total of amounts shown in box 18 of Catherine’s T4 slips.
Line 375 – Provincial parental insurance plan (PPIP) premiums paid (QC only)
For students using Exercise 1(QC) only: Enter the total of amounts from box 55 of Catherine’s
T4 slips.
Line 363 – Canada employment amount
Since Catherine has employment income, enter the amount she is entitled to.
Lines 335 to 350
Calculate the amounts for lines 335, 338, and 350 by following the line-by-line instructions.
Step 2 – Federal tax on taxable income
Copy Catherine’s taxable income from line 260 on page 3 of the return to line 38 (line 41 for residents
of Quebec). Since Catherine’s taxable income is not more than $43,561, complete the first column.
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Step 3 – Net federal tax
Enter the applicable amounts on lines 46 and 49 (lines 49 and 52 for residents of Quebec). Follow the
line-by-line instructions to calculate amounts for lines 48, 53, 54, 56, 62, and 65 (lines 51, 56, 57, 59,
65, and 68 for residents of Quebec).
Page 4
Complete the “Refund or balance owing” section to find out whether Catherine has to pay additional
taxes or if she is entitled to a refund.
Line 420 – Net federal tax
Enter the net federal tax you calculated in Step 3 of Schedule 1.
Line 428 – Provincial or territorial tax (other than Quebec)
Calculate Catherine’s provincial or territorial tax using Form 428 for your province or territory of
residence.
Line 435 – Total payable
Enter the total of lines 420 and 428.
Line 437 – Total income tax deducted
Enter the total of amounts from box 22 of Catherine’s T4 slips.
Line 440 – Refundable Quebec abatement (QC only)
For students using Exercise 1(QC) only: Calculate this amount.
Line 479 – Provincial or territorial credits
Provincial or territorial credits may be available for some provinces or territories. See the information
sheet for your province or territory to learn about the credits available to you.
Line 482 – Total credits
Enter the total of lines 437 to 479.
Refund or balance owing
Subtract the amount on line 482 from the amount on line 435. If the result is negative you have a
refund. Enter the amount on line 484.
If the result is positive, you have a balance owing. Enter the amount on line 485.
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Exercise 1 – High school student
Catherine Casey is a high school student who lives at home with her parents. She was born on November 13, 1996 and she
works part time at Best Bookstore and Mario's Pizzeria.
In February, her employers sent her the attached T4 information slips.
Last year, she earned $300.00 in tips (not indicated on T4) at Mario's Pizzeria.
Based on the information given, complete Catherine's tax return.
To complete this return, you will need the following:
T1 General, Income Tax and Benefit Return
Schedule 1, Federal Tax
If province of residence is Quebec: use Exercise 1(QC) – High school student (Quebec residents).
T4
Employer's name – Nom de l'employeur
Year
Année
BEST BOOKSTORE
Statement of Remuneration Paid
État de la rémunération payée
2013
Employment income – line 101
Revenus d'emploi – ligne 101
T4 (13)
Protected B when completed / Protégé B une fois rempli
14
10
Exempt – Exemption
CPP/QPP EI
PPIP
Social insurance number
Numéro d'assurance sociale
12
28
123 456 789
Employment code
Code d'emploi
X
29
RPC/RRQ AE
씰
CASEY
150 00
16
EI insurable earnings
Gains assurables d'AE
24
Employee's QPP contributions – line 308
Cotisations de l'employé au RRQ – ligne 308
17
CPP/QPP pensionable earnings
Gains ouvrant droit à pension – RPC/RRQ
26
RPAP
Employee's EI premiums – line 312
Cotisations de l'employé à l'AE – ligne 312
Employee's name and address – Nom et adresse de l'employé
Last name (in capital letters) – Nom de famille (en lettres moulées)
22
3,600 00
Employee's CPP contributions – line 308
Province of employment
Cotisations de l'employé au RPC – ligne 308
Province d'emploi
Employer's account number / Numéro de compte de l'employeur
54
Income tax deducted – line 437
Impôt sur le revenu retenu – ligne 437
First name – Prénom
Initial – Initiale
18
Catherine
44
67 68
RPP contributions – line 207
Cotisations à un RPA – ligne 207
20
Charitable donations – line 349
Dons de bienfaisance – ligne 349
46
RPP or DPSP registration number
N° d'agrément d'un RPA ou d'un RPDB
Pension adjustment – line 206
Facteur d'équivalence – ligne 206
123 Main Street
City, Province X0X 0X0
0 00
Union dues – line 212
Cotisations syndicales – ligne 212
52
50
Employee's PPIP premiums – see over
Cotisations de l'employé au RPAP – voir au verso
55
PPIP insurable earnings
Gains assurables du RPAP
56
Box – Case
Amount – Montant
Box – Case
Amount – Montant
Box – Case
Amount – Montant
Box – Case
Amount – Montant
Box – Case
Amount – Montant
Box – Case
Amount – Montant
Other information
(see over)
Autres
renseignements
(voir au verso)
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T4
Employer's name – Nom de l'employeur
Year
Année
MARIO'S PIZZERIA
Statement of Remuneration Paid
État de la rémunération payée
2013
Employment income – line 101
Revenus d'emploi – ligne 101
T4 (13)
Protected B when completed / Protégé B une fois rempli
14
10
Exempt – Exemption
CPP/QPP EI
PPIP
Social insurance number
Numéro d'assurance sociale
12
28
123 456 789
Employment code
Code d'emploi
X
29
RPC/RRQ AE
씰
CASEY
101 00
16
EI insurable earnings
Gains assurables d'AE
24
Employee's QPP contributions – line 308
Cotisations de l'employé au RRQ – ligne 308
17
CPP/QPP pensionable earnings
Gains ouvrant droit à pension – RPC/RRQ
26
RPAP
Employee's EI premiums – line 312
Cotisations de l'employé à l'AE – ligne 312
Employee's name and address – Nom et adresse de l'employé
Last name (in capital letters) – Nom de famille (en lettres moulées)
22
2,600 00
Employee's CPP contributions – line 308
Province of employment
Cotisations de l'employé au RPC – ligne 308
Province d'emploi
Employer's account number / Numéro de compte de l'employeur
54
Income tax deducted – line 437
Impôt sur le revenu retenu – ligne 437
First name – Prénom
Initial – Initiale
18
Catherine
44
48 88
RPP contributions – line 207
Cotisations à un RPA – ligne 207
Charitable donations – line 349
Dons de bienfaisance – ligne 349
46
20
RPP or DPSP registration number
N° d'agrément d'un RPA ou d'un RPDB
Pension adjustment – line 206
Facteur d'équivalence – ligne 206
123 Main Street
City, Province X0X 0X0
0 00
Union dues – line 212
Cotisations syndicales – ligne 212
50
52
Employee's PPIP premiums – see over
Cotisations de l'employé au RPAP – voir au verso
55
PPIP insurable earnings
Gains assurables du RPAP
56
Box – Case
Amount – Montant
Box – Case
Amount – Montant
Box – Case
Amount – Montant
Box – Case
Amount – Montant
Box – Case
Amount – Montant
Box – Case
Amount – Montant
Other information
(see over)
Autres
renseignements
(voir au verso)
www.cra.gc.ca
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