PRESS ESC TO QUIT THIS SCREEN PRESS 'H' for additional Help on the Use of this Help Text Viewer BASIC INFORMATION MUST YOU FILE A TAX RETURN? Yes, if you . owe tax for 1993; . received an advance payment of your child tax credit for 1993; . disposed of capital property or had a taxable capital gain in 1993; . have to pay back part of your family allowance benefits, Old Age Security benefits (OAS) or both; . received a request by Revenue Canada, Taxation to file a return. You also have to file a return to claim a . federal sales tax credit; . refund of investment tax credit; . provincial tax credit; or . refund if you paid too much tax, or contributed too much to the Canada Pension Plan or to Unemployment Insurance. WHAT IS THE FILING DEADLINE? You must file your 1993 return by April 30, 1994 if you . owe tax for 1993; . disposed of capital property, or had a taxable capital gain in 1993; or . have to pay back part of your family allowance benefits, Old Age Security benefits, or both. TAX TIP It is not to your advantage to delay filing a return for which you are expecting a refund. Interest does not accumulate during the period between the time your return should have been filed and when you actually file it. DECEASED PERSONS If you are the legal representative (executor or administrator) of a person who died in 1993, you must file a return covering the period from January 1, 1993 to the date of death. The filing deadline is April 30, 1994 or six months after the date of death, whichever is later. There may also be other returns you will have to file. For more details, see the Deceased Persons Income Tax Guide and the T3 Guide and Trust Return. WHAT HAPPENS IF YOU FILE AFTER THE DEADLINE? Interest If you are expecting an income tax refund for 1993, it is to your advantage to file by the deadline. Interest is paid from April 30, 1994, or the date you file your return, whichever is later. If you owe tax for 1993, interest is charged at a prescribed rate on . the total unpaid balance for 1993, including the balance owing as a result of a reassessment of your return; and . late or insufficient instalment payments for 1993. Interest in compounded daily on unpaid income tax, penalties and late or insufficient instalment payments. Interest is also compounded on overpayments due to you. Penalties If you owe tax for 1993 and your 1993 return is not mailed to your taxation centre by April 30, 1994 you will be charged in penalty equal to . 5% of what you owe on April 30, 1994 plus 1% of the unpaid amount for each full month (to a maximum of 12 months) after April 30, 1994. Even if you are unable to pay the full amount you owe by April 30, 1994, you can avoid this penalty by filing your return on time. Contact the Collections Section of your district office to arrange for the payment of your balance due. Note: If you file your return late more than once in any four year period, you may be subject to larger penalties. There are also substantial penalties for trying to evade paying your taxes by not filing a return and for filing a false return. DO YOU HAVE TO MAKE INSTALMENT PAYMENTS FOR 1994? If you are an employee, you will probably pay almost all the tax you will owe for 1994 through payroll deductions. However, if you receive other income that has no tax deducted (such as investment or rental income), you may have to make instalment payments. If you are self-employed or retired, you may also have to make instalment payments. You will have to make instalment payments for 1994 if all of the following conditions apply to you: . your 1993 net federal income tax payable, including individual surtax, is more than $1,000; . your 1994 net federal income tax payable, including individual surtax, will be more than $1,000; and . you will have income tax deducted from less than three quarters (3/4) of your 1994 net income. You can reduce the amount of the total instalments you must pay for 1994 by asking the person paying you to increase the tax deducted. Give that person a completed Form TD1, Personal Tax Credit Return, and make sure that line 18 is filled in. You can also arrange to have income tax deducted from Old Age Security benefits or Canada Pension Plan payments by completing Form TD1 and giving it to your Health and Welfare Canada Income Security Programs Office. Instalment dates: Your 1994 instalment payments are due on March 15, June 15, September 15, and December 15. If you do not pay your instalment payments on time, or if you do not pay the full amount owing, you may be charged a penalty and interest. For more details, see the 1994 Instalment Guide for Individuals which is available from your district office in February. If your main source of income is from farming or fishing, you only have to make one instalment payment for the year. The 1994 payment is due by December 31, 1994. For more information, see the 1994 Instalment Guide for Farmers and Fishermen, which will be available in December 1994. WHAT RECORDS SHOULD YOU KEEP? Even if you do not have to include receipts and supporting documents for certain expense claims or income items when you file your return, you must keep them in case your return is selected for review. For example, if you are claiming a moving expense, you do not have to include your receipts with your return. However, you must keep them in case your claim is reviewed later and we want to see the receipts at that time. If you have investment income, investment losses or expenses, you must keep records of these amounts. They are used in the calculation of any capital gains deduction you may claim in the future. You may use Form T936. Calculation of Cumulative Net Investment Loss, to keep records of these amounts. This form is available from your district office. For details, see the "Cumulative Net Investment Loss" section of the Capital Gains Tax Guide. For details on keeping records, get Information Circular 78-10R2, Books and Records Retention/Destruction. GETTING READY SHOULD YOU USE THE ONTARIO INCOME TAX PACKAGE? Yes, if you . lived in Ontario on December 31, 1993, . emigrated from Canada in 1993 and lived in Ontario on the date you left, . were living in a province or territory other than Ontario but were considered to be a resident of Ontario on December 31, 1993 (such as a student going to school in a province other than Ontario, but who normally lives in Ontario), . were living outside Canada but were considered to be a "factual" resident of Ontario on December 31, 1993 (see the "STEP 1 - IDENTIFICATION" section in this Guide for more information), or . are filing a return for a person who died in 1993 and that person lived in Ontario at the time of death. If you moved to Ontario from anywhere in Canada during 1993, you must report your taxable income for the whole year on the Ontario return. If you are a new Canadian or you emigrated from Canada during 1993, use the Tax Guide for New Canadians or the Tax Guide for Emigrants to find out what income you must report on this return. HOW DO YOU GET THE INCOME TAX PACKAGE YOU NEED? If you still live in the province or territory you lived in on December 31, 1993, you can get your income tax package from your district office or your local post office. If you now live in a different province or territory than the one you lived in on December 31, 1993, you can get the package you need from your district office. LIVING OUTSIDE CANADA - If you live outside Canada and are not a "factual" resident of a province or territory, you may have to calculate some of the amounts you report differently than in this Guide. The income tax package for Non-Residents and Deemed Residents will help you calculate the proper amounts. You can get one from any Canadian embassy or consulate. DO YOU NEED OTHER TAX GUIDES? For more information on certain topics, you may need one or more of our other tax guides. These guides also contain any related forms you may need. Check the following list to see if any apply to you: Business and Professional Income Tax Guide Capital Gains Tax guide Child Care Expenses Tax Guide Deceased Persons Income Tax Guide Employment Expenses Tax Guide Farming Income Tax Guide Fishing Income Tax Guide T3 Guide and Trust Return Northern Residents Deductions Tax Guide Pension and RRSP Tax Guide Rental Income Tax Guide Tax Guide for Emigrants Tax Guide for New Canadians You will receive any number of these guides separately in the mail, depending on the income you reported and the deductions or credits you claimed on your 1989 tax return. If you want any of these guides and have not received a copy by mid-March, you can get one by . sending us the order form included with this package, . calling our "Requests for Forms" telephone number listed at the back of this Guide, or . going to your district office. WHAT INFORMATION SLIPS AND RECEIPTS SHOULD YOU INCLUDE? You must include one copy of each of your information slips when you file your return. Depending on the claim, you may have to include a certificate, form or official receipt. The return, the Guide explanations or the schedules will tell you whether to include them. For example, if you are claiming charitable donations, you must send in your official receipts with your return. Note: A claim made without the required receipt, certificate or form could be disallowed or could delay the processing of your return. We will not accept a photocopy of a receipt unless the issuer has certified it as a true copy. If you are filing a return for years before 1993, you must attach receipts for all deductions and credits claimed. WHAT IF YOU DIDN'T RECEIVE YOUR RECEIPTS OR INFORMATION SLIPS? You should wait until you get all your receipts and information slips before sending in your return. It takes longer to process a return when these are missing. You should receive your information slips by mid-March. However, if you must file a return (see "Must you file a tax return?" under the heading "BASIC INFORMATION"), be sure to file it by April 30, even if some slips or receipts are missing. Attach a note to your return saying which are missing and what you are doing to get them. MISSING T4 SLIP If you have not received your T4 slip by mid-March, contact your employer. If you know that you will not be able to get your T4 slip by April 30, use your pay stubs to calculate your income and the amounts your employer has deducted (such as Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions, unemployment Insurance premiums, union dues and income tax.) If possible, attach a photocopy of your pay stubs to your return. Also, attach a note to your return . explaining the problem . giving the name and address of your employer, and . stating the amounts you have calculated. HOW TO COMPLETE YOUR RETURN . If your tax situation is basically the same as it was in 1989, you might want to take out your 1989 income tax return and use it to help you complete this year's return. . Refer to the matching line number in the Guide or see the back of your tax information slips (such as T4 or T5), for details on how to complete each line on the return. Also, the following index of the most common information slips will help you find the information you need. If you need more help, get in touch with your district office. The address and general enquiries telephone number of your district office are under the heading "GENERAL INFORMATION" in the back of this Guide. . Check the personalized label on your mailing copy carefully. If any of the information is incorrect or incomplete, the processing of your return could be delayed. Print any corrections in the area provided. . Attach to page 3 of your mailing copy your receipts, one copy of your information slips and one copy of any schedules you used. . Be sure to keep your working copy, a copy of the schedules and slips, and a copy of this Guide as you may need them for reference and to help you complete your next year's tax return. If you use a computer-generated return, you must follow the instructions set out in Information Circular 89-6. Guidelines For The Preparation of T1 Income Tax Returns, Including Computer- Printed T1 Returns. INFORMATION SLIP INDEX This index will help you match your income, deductions or credits to the Return and Guide items. T3 120,121,127,130,208,314,412 T4 101,102,207,212,229,308,312,340,437 T4A 104,115,207,208,314,437 T4A(OAS) 113,130,235,301,437 T4A(P) 113,114 T4RSP 129,314,437 T4U 119,232,235,437,450 T5 120,121,314 T5013 120 to 127, 135 to 143, 340,409,410,412,437 T600/T600C 121 T-BD 121,127 TFA1 118,235 ATC1 434 or 444 Note: A sixty-minute video presentation called "Stepping Through Your Tax Return" is available to help you complete your return. Watch for details in your community. If you have no income and are only filing a return to claim the child tax credit, the federal sales tax credit or to apply for the goods and services tax credit, follow these six easy steps. 1. Complete the "STEP 1 - IDENTIFICATION" section of your return and enter "0" on line 236 and line 260. Review the label to make sure the information is correct and complete. 2. If you are claiming the federal sales tax credit, complete Part A and Part C of Schedule 7 and, if it applies, the "Certification" area. Enter your credit from Schedule 7 on line 446. 3. Enter the total of your credits on line 482 and 484. 4. Keep your completed working copy for your information. If you need more help to complete Schedule 7, see the sections in this Guide that explain lines 444 and 446. HOW TO CALCULATE PERCENTAGES You may have to calculate percentages to figure out certain deductions and credits. The following example may help: When completing the federal sales tax credit schedule, Michael must calculate 5% of his income above the base amount. He does the following calculation: Method 1 Method 2 Michael's excess income $7,500 $7,500 Multiplied by x 5 x 5 $37,500 $375.00 He moves the decimal point two numbers to the left to get 5% of his income $ 375.00 STEP 1 - IDENTIFICATION Indicate your marital status, your date of birth and any other requested information. Province or Territory of Residence - Enter the province or territory where you lived on December 31, 1993. For more details, see "Should you use the Ontario income tax package?" under the heading "GETTING READY" at the front of this Guide. Self-employed - If you were self-employed in 1993, enter the province or territory where your business was located. Only show a province or territory if you had a permanent business set up there. Residence Status - If you came to Canada as an immigrant in 1993, show your date of entry. If you left Canada during 1993 and are considered an emigrant, show your date of departure. If you left Ontario before December 31, 1993 to live outside Canada but kept residential ties in Ontario, you may be a "factual" resident of Ontario. You would then enter Ontario as your province of residence. Some people who left Ontario before December 31, 1993 to live outside Canada and who did not keep residential ties in Canada are "deemed" to be residents of Canada. However, they must use the income tax package for Non-Residents and Deemed Residents, not the Ontario package. This group includes: . members of the Canadian Forces at any time in 1993; . members of the overseas Canadian Forces school staff who file returns as Canadian residents for 1993; . federal or provincial government employees, if they (a) were residents of Canada immediately before being posted abroad, or (b) received representation allowances for 1993; . people working under one of the Canada International Development Agency (CIDA) assistance programs in 1993, if they were residents of Canada at any time during the three-month period immediately before they began their duties abroad; . people who were residents of Canada in a past year and were, at any time in 1993, the spouse or dependent child of a person described here; and . people who were temporarily in Canada for a total of 183 days or more during 1993. If you need more help to determine where you lived for tax purposes, get Interpretation Bulletin IT-221R2, Determination of an Individual's Residence Status. For more details on "deemed" residents, get the Tax Guide for Canadian Forces, CIDA and Government Employees Outside Canada. WHO NEEDS YOUR SOCIAL INSURANCE NUMBER? Every person who lived or worked in Canada in 1993 and who files an income tax return must have a Social Insurance Number (SIN) and show it on the return. The Income Tax Act also requires you to give your SIN to anyone who prepares a tax information slip (such as a T3, T4, T5 or T600) on your behalf. If you do not give your SIN, you may be charged a $100 penalty each time you do not provide it. If you do not have a SIN, you may apply for one through any Canada Employment Centre. T4 slips and your SIN - Employers send copies of your T4 slips to Revenue Canada, Taxation. We pass on information from your T4 slips to Health and Welfare Canada to update your Canada Pension Plan (CPP) record of earnings. Your CPP record of earnings is kept under the SIN and surname shown on your SIN card. since the amount of CPP benefits you will eventually receive is based on these records, it is important that the information is correct. Please check that the SIN and surname on each of your T4 slips are exactly as shown on your SIN card. If your T4 slip is not correct, contact your employer right away and ask for a new one. At the same time, ask that the employer's records be corrected.