Personal Tax Return

Individuals must pay taxes on income, including wages, salaries, tips, commissions, business income, rents, dividends, alimony, capital gains, interest, RRSP distributions, unemployment benefits, etc… if the recipient’s total income exceeds a certain amount that is revised every year.

You may be eligible for tax credits and benefits.

There are two types of tax credits:

  1. Non-refundable tax credits can reduce the amount of tax that you owe (such as tax credits for donation and gifts)
  2. Refundable tax credits that are available even if you don’t owe any tax (such as Ontario energy and property tax credit)

A tax benefit is an allowable deduction on a tax return intended to reduce a taxpayer’s burden (such as Canada child benefit, Canada workers benefit, Ontario Trillium benefit).

Most personal income tax returns are due by April 30, which is the date any outstanding income tax is due. After April 30, penalties and interest start to apply to any outstanding balance owed.

If you are self-employed, the deadline for filing your return is June 15. Yet, you still must pay all tax owing by April 30.