8.3.7 What you owe or get back 

From: Financial Consumer Agency of Canada

New tax filing and payment due dates

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 43700)
  • taxes you paid by instalments (line 47600) and pension contributions due (line 42100) if you were self-employed, or have investment income
  • provincial or territorial taxes and credits (lines 42800, 44000, 47900)
  • 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 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 47600 - Tax paid by instalments

Line 48400 - Refund

Line 48500 - 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.

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: