Income Tax Clinic
Lynn Bennett, BComm, PMP
GD Finance, GC Financial Planning
Scholarships and Student Aid Officewww.mcgill.ca/studentaid
Offers advice on financial matters including
Budgeting
Debt management
Loan repayment
Administers 13 government aid programs
Help students determining their government aid jurisdiction
Administers University need-based programs
Frugal Scholar Money Management Pgm
Created for student by students
Promote mindful spending habits
Special events and workshops in the fall and winter
TAX Guides Available
Free paper copies for 2015
CANADA (CRA) – at POST OFFICE
QUEBEC (Revenu Quebec) – at DESJARDINS BANK
Online & Telephone Support:
CRA http://www.cra-arc.gc.ca
Revenu Québec http://www.revenuquebec.ca
TAX TIP – Guides for Students
Studentshttp://www.cra-arc.gc.ca/students/
Out of Province Studentshttp://www.revenuquebec.ca/en/citoyen/situation/nouvel-arrivant/default.aspx
International Studentshttp://www.cra-arc.gc.ca/internationalstudents/
Tax Filing 2015, Step-by-Step
1. Determine your RESIDENCY for TAX PURPOSES
2. Gather tax documents (Employment, tuition,public transit, moving, medical, banking, etc.)
3. Enter data for Income, Deductions & Credits
Result $$$: Refund or Pay ?
4. Submit Tax Return to CRA & RevQC by April 30
5. Receive Tax Assessment from CRA & RevQC
Common Income for Students
Scholarships / Bursaries (usually, non-taxable)
Research Grants (usually employment income)
Employment income (salary, commissions,tips, bonuses)
Self-employment income
RESP withdrawals
Investment Income (Interest, Dividends, etc.)
Common Tax Documents for Students
TAX FORMS & RECEIPTS to keep
• T22021 & RL-8, Tuition & Months of Study
• T4A & RL-1, Scholarships, Bursaries & OtherIncome
• T4 & RL-1, Employment Income
• RL-31, Solidarity Credit, Housing
• Public Transit receipt (STM)
• Moving expenses receipts
• Medical expenses receipts
Potential Deductions from IncomeFor Students
Moving Expenses, if eligible(carry forward avail)http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/219/menu-eng.html, CA Line 219http://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/revenu-net/ligne228.aspx, QC Line 228
Child Care Expenses, if eligible(carry forward not avail)
Professional membership & Union fees
Foreign researchers & specialists, if eligiblehttp://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/revenu-imposable/ligne297/point05.aspx
Non-Refundable Credits - For Students
Tuition
Education
TextbooksTax forms : T2202A & RL-8
- Transferable, all or part, to 1 of:Parent / Grandparent / Spouse
OR
- Carry forward to FUTURE tax year with taxpayable
Non-Refundable Credits - For Students
Student Loan Interest paid
- Carry forward for 5 years
- Only student can claim this credit
Non-Refundable Credits – For Anyone
Basic Personal Amount, ~$11,300 Living alone (QC)http://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/ligne361.aspx
Public Transithttp://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/364/lgblty-eng.html
Medical Expenseshttp://www.cra-arc.gc.ca/medical/
http://www.revenuquebec.ca/en/citoyen/credits/frais_med/
Canada Employment Amounthttp://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/363-eng.html
Non-Refundable Credits – For Anyone
Charitable Donations
1st-Time Donor's Super Credit
1st Home buyer, $5000
Non-Refundable Credits
For Families
Spouse or partner
Eligible dependant
Single parent (QC)
Family Tax Cut (2014 & 2015)
Children's arts (2015)
Medical expenses: self, spouse & dependent children(3% x Net income, max $2208)
Caregiver for impaired dependent
Adoption expenses
Other Non-Refundable Credits
Disability Credit
Volunteer Firefighter /Search and Rescue Volunteer, $3000
Political Contributions
Dividend Tax Credit
Investment Tax Credit
Refundable Credits – Low Income
Low Income Taxpayers, including eligible students
GST/HST Tax Credit (CA)http://www.cra-arc.gc.ca/bnfts/gsthst/fq_qlfyng-eng.htmlhttp://www.cra-arc.gc.ca/bnfts/gsthst/menu-eng.html
Solidarity Tax Credit (QC)Note: You may still claim for 2013 & 2014!
http://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/credit_impot_solidarite.aspx
Tax Software – some are Free!
U-FILE http://www.ufile.ca/tips-and-tools/file-for-free
TURBO-TAX https://turbotax.community.intuit.ca/questions/1190102-
can-i-file-for-free-using-turbotax (free version except QC)
H & R BLOCK https://www.hrblock.ca/online-tax-software/product-
comparison/
__________________________________________________________________________________________________________________________
CRA-approved tax software http://www.cra-arc.gc.ca/esrvc-
srvce/tx/ndvdls/netfile-impotnet/crtfdsftwr/menu-eng.html
Volunteer Tax Prep Services in Montrealhttp://www.cra-arc.gc.ca/tx/ndvdls/vlntr/clncs/montreal-qc-eng.html
CRA FAQ http://www.cra-arc.gc.ca/tx/ndvdls/fq/menu-eng.html
Income Tax and Benefit Guide 2015http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000g-15e.pdf
Do you have to file a return?http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/flng-blgtns/menu-eng.htmlhttp://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000g-15e.pdf
GST/HST Credit – New Residents of Canada http://www.cra-arc.gc.ca/E/pbg/gf/rc151/rc151-15e.pdf
Students and Income Tax 2015 http://www.cra-arc.gc.ca/E/pub/tg/p105/p105-15e.pdf
Scholarships, fellowships, bursaries, study grantshttp://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/130/schlrshp-eng.html
Scholarship Exemption – Part-time enrolmenthttp://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/130/prttmdctn-eng.html
International Students http://www.cra-arc.gc.ca/internationalstudents/
Are you an international student in Canada? http://www.cra-
arc.gc.ca/tx/nnrsdnts/ndvdls/ntl-eng.html
Determining Residence Status
CA Resident? http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s5/f1/s5-f1-c1-
eng.html
QC Resident? http://www.revenuquebec.ca/en/citoyen/situation/nouvel-
arrivant/ce-qu-il-faut-savoir/resident-et-liens.aspx
Ask the CRA !Submit an NR4 form for an opinion on your residency statushttp://www.cra-arc.gc.ca/E/pbg/tf/nr74/nr74-12e.pdf
Information slips - T4 and others http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/slps/menu-eng.html
Working Income Tax Benefit http://www.cra-arc.gc.ca/bnfts/wtb/menu-eng.html
Canada Child Tax benefithttp://www.cra-arc.gc.ca/bnfts/cctb/menu-eng.html
Persons with DISABILITIES http://www.cra-arc.gc.ca/vdgllry/ndvdls/srs-txmsrs-pwd-lnks-eng.html
List of Tax Credits http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/menu-eng.html
RESPs http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/menu-eng.html
Medical Expenses http://www.cra-arc.gc.ca/medical/
Public Transit http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/364/lgblty-eng.html
Canada Employment Amount http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/363-eng.html
GST/HST Tax Credit (CA) http://www.cra-arc.gc.ca/bnfts/gsthst/fq_qlfyng-eng.html, http://www.cra-arc.gc.ca/bnfts/gsthst/menu-eng.html
Registered Savings/Investment Accounts Approved by CRA:
TFSA / CÉLI - TAX-FREE SAVINGS ACCOUNThttp://www.cra-arc.gc.ca/gncy/bdgt/2015/qa14-eng.html
RESP / REÉÉ – REGISTERED EDUCATION SAVINGS PLANhttp://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/menu-eng.html
RRSP / REÉR – REGISTERED RETIREMENT SAVINGS PLANhttp://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/rrsps-eng.html
QC FAQ http://www.revenuquebec.ca/en/faq/default.aspx
QC Income Tax Guide http://www.revenuquebec.ca/documents/en/formulaires/tp/2015-12/tp-1.g-v(2015-12).pdf
QC Resident? http://www.revenuquebec.ca/en/citoyen/situation/nouvel-arrivant/ce-qu-il-faut-savoir/resident-et-liens.aspx
Tuition Tax Credithttp://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/ligne398.aspx Schedule T
Solidarity credithttp://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/credit_impot_solidarite.aspx
Foreign researchers & specialistshttp://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/revenu-imposable/ligne297/point05.aspx
Moving Expenses
http://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/revenu-net/ligne228.aspx
Living Alone
http://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/ligne361.aspx
Tax Credit List http://www.revenuquebec.ca/en/citoyen/credits/
Medical Expenses
http://www.revenuquebec.ca/en/citoyen/credits/frais_med/
TAX TIP – File your tax return!
“You must pay taxes. But there’s nolaw that says you gotta leave a tip.”
– Morgan Stanley advert
Additional informationfollows…………
Other Income Sources
Taxable capital gains
Business income
Rental income
Income from foreignsources
Employment Insurancepayments
Trust Income
Worker’s Compensationbenefits
Social services benefits
Universal Child CareBenefit (children < 6)
Support paymentsreceived
Other Deductions to Income
Pension plan contributions
Deduction for Workers (QC)
Support payments made
Child care expenses
RSP contributions
Capital losses that offset capital gains
Business losses
Clergy Residence
Canada Employment Amount(employment income)
CPP or QPP contributions
EI premiums
PPIP premiums
Non-Refundable Credits - For Workers
Refundable Tax Credits
For Low Income Taxpayers
Working Income Tax Benefit
Medical Expenses Supplement (if eligible)CA Line 452http://www.revenuquebec.ca/en/citoyen/situation/faible_revenu/remb_maladie.aspx
QC Line 462http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-485/452-eng.html
For Families
Children’s fitness – (2015)
Income, Deduction, Credit
Income – money you received from various sources,including foreign
Deduction – an amount you can subtract from Income,to calculate Taxable Income
Taxes Payable = Taxable Income x Tax Rate
Credit - an amount you can subtract from TaxesPayable, to calculate Refund or Pay
Types of Credit: Refundable and Non-refundable
Taxable Income Example
Income
Less
Deductions
Equals
Taxable Income
$10,000
-
$2,000
_____
$8,000
Taxes Payable Example
Taxable Income
X
Tax Rate
=
Federal TaxesPayable
$8,000
x
15%
_____
$1,200
Now, Calculate Refund or Pay Amount
Subtract Taxes already paid:
• Payroll
• Instalments
Subtract:
• Tax Credits
• Quebec Abatement, 16.5% discount
RESULT : Refund or Pay?
Refund or Pay? Example
Fed Taxes Payable
Less
Tax Paid already
Tax Credits
Equals
Refund or Pay
$1,200
-($1,500)
( $ 500)=
_____________________
Refund $800
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