9.3.7 What you owe or get back

From: Financial Consumer Agency of Canada

COVID-19: Changes to taxes and benefits

Find out about Canada Revenue Agency’s new benefits and other changes that support Canadians during the COVID-19 pandemic.

Once you've entered your income and claimed any deductions or tax credits, you calculate the total taxes owing and make the final adjustments on the federal and Quebec tax returns (see illustrations). These adjustments include:

  • taxes deducted by your employer (line 43700 of the T1 return, line 451 of the Quebec TP-1.D-V return)
  • if you were self-employed, or have investment income, taxes you paid by instalments (line 47600 of the T1 return, line 453 of the TP-1.D-V return) and pension contributions due (line 42100 of the T1 return, line 445 of the TP-1.D-V return)
  • provincial or territorial taxes and credits (lines 42800, 44000, 47900 of the T1 return)
  • other adjustments.

Review the federal T1 return in the illustration and make note of any items that you think apply to you.

Step 7 - Refund or balance owing section of T1 General - Income Tax and Benefit Return for Non-Residents and Deemed Residents of Canada
Text version:  Step 7 - Refund or balance owing

Step 7 - Refund or balance owing

Line 42100 - Canada Pension Plan (CPP) contributions payable on self-employment and other earnings

Line 42200 - Social benefits repayment

Line 42800 - Provincial or territorial tax

Line 43500 - Total payable

Line 43700 - Total income tax deducted

Line 43800 - Tax transfer for residents of Quebec

Line 44000 - Refundable Quebec abatement

Line 44800 - CPP overpayment

Line 45000 - Employment insurance overpayment

Line 45200 - Refundable medical expense supplement

Line 45300 - Working income tax benefit (WITB)

Line 45400 - Refund of investment tax credit

Line 45600 - Part XII.2 trust tax credit

Line 45700 - Employee and partner goods and services tax/harmonized sales tax (GST/HST) rebate

Line 45800 - Children's fitness tax credit

Line 45900 - Children's fitness tax credit

Line 47600 - Tax paid by instalments

Line 48400 - Refund

Line 48500 - Balance owing

 

Review the Quebec TP-1.D-V return in the illustration and make note of any items that you think apply to you.

Refund or balance due section of the TP-1.D-V - Quebec
Text version: Québec's Refund or balance due

Refund or balance due

Line 451 - Québec income tax withheld at source,as shown on your RL slips or other information slips

Line 451.3 - Québec income tax withholding transferred by your spouse

Line 452 - Québec Pension Plan (QPP) or Canada Pension Plan (CPP) overpayment

Line 453 - Income tax paid in instalments

Line 454 - Transferable portion of the income tax withheld for another province

Line 455 - Tax credit for childcare expenses. Complete Schedule C.

Line 456 - Tax credits respecting the work premium. Complete Schedule P.

Line 457 - Québec parental insurance plan (QPIP) overpayment

Line 458 - Tax credit for home-support services for seniors. Complete Schedule J.

Line 459 - Québec sales tax (QST) rebate for employees and partners

Line 460 - Tax shield

Line 462 - Other credits (see the guide)(Specify: 461)

Line 466 - Financial compensation for home-support services (see the guide)

Line 476 - Refund transferred to your spouse. See the guide before entering an amount.

Line 480 - Accelerated refund (see the guide)

 

Many people celebrate getting a large refund, thinking of it as a surprise bonus. What it really means is that more of your money was collected for income taxes than necessary. Careful tax planning can help ensure that you send only the amount necessary in advance tax payments.

Tip

Some people like to think of the tax refund as a type of savings plan. If you receive a tax refund, save it—or at least most of it. It's money you have not spent through the year, so use it to pay down debt or add to your investments.

Quebec residents also contribute to certain funds through their income tax return if they have not paid through payroll deductions or other means. Payments due may include:

  • premiums payable under the Quebec Parental Insurance Plan (QPIP)
  • contributions to the health services fund
  • premiums payable under the Quebec prescription drug insurance plan (RAMQ).
  • la contribution santé

The final result of these calculations is your tax refund or the amount you owe. If your payroll deductions or instalments were too high, you'll receive a refund. If they were too low, you'll have a balance owing. You must pay a balance owing by April 30 to avoid interest.

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