8.3.7 What you owe or get back 

From: Financial Consumer Agency of Canada

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 page 4 of the T1 tax return (see illustration). These adjustments include:

  • taxes deducted by your employer (line 437)
  • taxes you paid by instalments (line 476) and pension contributions due (line 421) if you were self-employed, or have investment income
  • provincial or territorial taxes and credits (lines 428, 440, 479)
  • other benefits and adjustments.

Review the T1 return in the illustration and make a 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 421 - Canada Pension Plan (CPP) contributions payable on self-employment and other earnings

Line 422 - Social benefits repayment

Line 428 - Provincial or territorial tax

Line 430 - Employment insurance premiums payable on self-employment and other eligible earnings

Line 432 - Yukon First Nations Tax

Line 435 - Total payable

Line 437 - Total income tax deducted

Line 438 - Tax transfer for residents of Quebec

Line 440 - Refundable Quebec abatement

Line 448 - CPP overpayment

Line 450 - Employment insurance overpayment

Line 452 - Refundable medical expense supplement

Line 453 - Working income tax benefit (WITB)

Line 454 - Refund of investment tax credit

Line 456 - Part XII.2 trust tax credit

Line 457 - Employee and partner goods and services tax/harmonized sales tax (GST/HST) rebate

Line 458 - Children's fitness tax credit

Line 459 - Children's fitness tax credit

Line 476 - Tax paid by instalments

Line 479 - Provincial or territorial credits

Line 484 - Refund

Line 485 - Balance owing

 

 

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. And save at least as much in the next year, even if you can cut back your tax deductions or instalments.

The final result of these calculations is your tax refund. 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 penalties and interest.

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