Summary
Filing your taxes may feel overwhelming if you don't exactly know how to do it and what exactly you need to file. So we created a checklist to make it easier for you.
Tax Return Checklist
you need to file an income tax return if:
- You have to pay tax during the year
- CRA sent you a request to file a return
- You and your spouse or common-law partner elected to split pension income for
- You received working income tax benefit advance payments
- You disposed of capital property (for example, if you sold real estate, your principal residence, or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed income to you, or you are reporting a capital gains reserve you claimed on your previous year return)
- You have to repay any of your old age security or employment insurance benefits
- You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or the Lifelong Learning Plan
- You have to contribute to the Canada Pension Plan (CPP). This can apply if for the tax year the total of your net self-employment income and pensionable employment income is more than $3,500
- You are paying employment insurance premiums on self-employment and other eligible earnings
Even if none of these requirements apply, you should file a return if:
- You want to claim a refund
- You want to claim the working income tax benefit
- You want the goods and services tax/harmonized sales tax (GST/HST) credit (including any related provincial credits). For example, you may be eligible if you turn 19
- You or your spouse or common-law partner want to begin or continue receiving Canada Child Benefit payments, including related provincial or territorial benefit payments
- You have incurred a non-capital loss that you want to be able to apply in other years
- You want to report income for which you could contribute to an RRSP and/or a pooled registered pension plan (PRPP) to keep your RRSP/PRPP deduction limit for future years current
- You want to carry forward the unused investment tax credit on expenditures you incurred during the current year
- You receive the guaranteed income supplement or allowance benefits under the old age security program. You can usually renew your benefit by filing your return by April 30. If you choose not to file a return, you will have to complete a renewal form
rRSP
tFSA
contribution room
rRSP
18% of previous year’s earned income, less any pension adjustment
tFSA
$5,000 / year, subject to inflation adjustment after 2009 as stated by Revenue Canada
carry forward of unused contribution room
rRSP
Unused contribution room carried forward until the year the contributor turns 71
tFSA
Unused contribution room carried forward indefinitely
require earned income to contribute
rRSP
Yes
tFSA
No
age qualifications to make contributions
rRSP
Any age until you reach 71
tFSA
Must be over 18 and no maximum age
are contributions tax Deductible
rRSP
Yes – reduces taxable income
tFSA
No
tax implications on income growth
rRSP
Tax deferred (not taxed until withdrawn)
tFSA
Tax free (never taxed)
tax implications on withdrawals
rRSP
Withdrawals are added to your taxable income in the year funds are withdrawn
tFSA
Withdrawals are tax free
can i withdraw savings for any reason
rRSP
Yes – but depending on kind of investment. Tax will be withheld at time of withdrawal
tFSA
Yes – but depending on kind of investment. No tax will be withheld at time of withdrawal
am i required to change my plan at a certain age
rRSP
Yes – RRSP must be converted to RIF or an annuity by end of the year you turn 71 or you can choose to close the plan
tFSA
No
are there over-contribution penalty tax?
rRSP
Yes – excess contributions are subject to a penalty tax of 1% per month. Penalty tax only applies if you exceed the $2,000 lifetime over-contribution amount
tFSA
Yes – excess contributions are subject to a penalty tax of 1% per month
