ARCHIVED - General Income Tax and Benefit Guide - 2007

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General Information

On this page…

• What's new for 2007?
  • Revised income tax information
• Are you using the tax and benefit package for the correct province or territory?
• National Register of Electors
  • If you check "Yes" to both questions
  • If you check "No" (or do not make a choice)
  • Deceased persons
  • Confidentiality
  • Contacting Elections Canada
• At your service
  • What if you need help?
  • Internet services
  • Services offered by telephone
  • Publications
  • Community Volunteer Income Tax Program
• Before you start
  • Do you have to file a return?
  • What date is your return for 2007 due?
  • What penalties and interest do we charge?
  • Social insurance number (SIN)
  • Canada Child Tax Benefit (CCTB) and Child Disability Benefit (CDB)
  • Universal Child Care Benefit (UCCB)
  • Which tax and benefit package should you use?
• Getting Started
  • Filing electronically
  • Filing a paper return
  • What do you include with your return and what records do you keep?
  • What if you are missing information?
• After you file
  • What happens to your return after we receive it?
  • When can you expect your refund?
  • When will we pay interest?
  • Income tax problems?
  • What should you do if you disagree?
  • How do you change a return?
  • Can you file a return to claim a refund for a previous year?
  • What is a voluntary disclosure?
  • What should you do if you move?
  • Should you be paying your taxes by instalments?
• Identification
  • Personal label
  • Information about your residence
  • Marital status
  • Your spouse or common-law partner's net income
  • Your spouse or common-law partner's Universal Child Care Benefit
  • Your spouse or common-law partner's Universal Child Care Benefit repayment
• GST/HST credit application

What's new for 2007?

We list the major changes below, including income tax changes that have been announced but were not law at the time of printing. If they become law as proposed, they will be effective for 2007 or as of the dates indicated. For more details on these and other changes, see the areas outlined in a colour frame in this guide.

Elections Canada - A new citizenship question on page 1 of the return lets you declare your Canadian citizenship status and be added directly to the National Register of Electors. Also, if the return is filed for a deceased person, the Canada Revenue Agency will notify Elections Canada to remove the person's name from the National Register of Electors. See Elections Canada for details.

Instalment payments - For 2008 and later years, the instalment threshold for individuals has increased. See "Should you be paying your taxes by instalments?" for more details.

Pension income splitting (lines 115, 116, 129, and 210) - If you or your spouse or common-law partner received pension income that is eligible for the pension income amount, you may be eligible to split it for income tax purposes.

Taxable capital gains (see line 127 for details).

Other income (line 130) - Elementary and secondary school scholarships and bursaries are no longer taxable.

If you received an apprenticeship incentive grant, include this amount on line 130.

Self-employment income (see lines 135 to 143 for details).

Registered retirement savings plan - The age limit for contributing to an RRSP is increased from 69 to 71. Also, after March 18, 2007, new investments have been added to the list of qualified investments. See Guide T4040, RRSPs and Other Registered Plans for Retirement, for details.

Universal Child Care Benefit repayment (see line 213 for details).

Exploration and development expenses (see line 224 for details).

Other employment expenses (see line 229 for details).

Security options deductions (see line 249 for details ).

Capital gains deduction (see line 254 for details).

Northern residents deductions (see line 255 for details).

Spouse or common-law partner amount (see line 303 for details).

Amount for an eligible dependant (see line 305 for details).

Amount for children born in 1990 or later (line 367) - You can claim $2,000 for each child who is under 18 years of age at the end of the year. See line 367 for details. Also, you may be able to transfer this amount to your spouse or common‑law partner or to claim his or her amount. See line 326 for details.

Canada employment amount (see line 363 for details).

Public transit amount (see line 364 for details).

Children's fitness amount (line 365) - You can claim an amount for fees paid for registering your child in a prescribed program of physical activity. See line 365 for details

Investment tax credit (see line 412 for details).

Working income tax benefit (WITB) (line 453) - You may be able to claim this new refundable tax credit that is available to low-income individuals and families who have earned income from employment or business. See line 453 for details

Revised income tax information

On October 30, 2007, the Government of Canada announced the following proposed income tax measures that are effective January 1, 2007:

• Federal tax rate - The lowest personal income tax rate has been reduced from 15.5% to 15%.
• Basic personal amount (line 300) - The amount has increased to $9,600.
• Spouse or common-law partner amount (line 303) - The amount has increased to $9,600.
• Amount for an eligible dependant (line 305) - The amount has increased to $9,600.

Forms affected by these measures have been revised, with changes highlighted in red.

Are you using the tax package for the correct province or territory?

It is important to use the package for the province or territory where you resided at the end of the year so that your provincial or territorial tax and credits can be calculated properly. To make sure you are using the correct package, see "Which tax package should you use?".

If you are a Canadian citizen, please check the "Yes" box next to question A ("Are you a Canadian citizen?") on page 1 of your return. If you are not a Canadian citizen, please check the "No" box next to question A.

If you are a Canadian citizen, and would like to authorize the Canada Revenue Agency (CRA) to give your name, address, date of birth, and Canadian citizenship status to Elections Canada, please check the "Yes" box next to question B ("As a Canadian citizen, do you authorize the Canada Revenue Agency to give your name, address, date of birth, and citizenship to Elections Canada for the National Register of Electors?") on page 1 of your return. If you are a Canadian citizen but do not authorize the CRA to give this information to Elections Canada, please check the "No" box next to question B.

National Register of Electors (the Register)

The Register contains the name, address, and date of birth of eligible electors (Canadian citizens who are 18 years of age or older) and is used to produce electoral lists for federal elections or referendums.

If you check "Yes" to both questions

• You authorize the CRA to give only your name, address, date of birth, and Canadian citizenship status to Elections Canada to ensure that your information is up to date.
• If you are an eligible elector who is not already in the Register, Elections Canada will accept this as your request to have your information added to it.

Notes
The CRA updates the information provided to Elections Canada every month. Your authorization remains in effect until you file your next return. Therefore, if you move during this period, and you advise the CRA of your new address, the CRA will advise Elections Canada the next time information is provided.

If, during the year, you change your mind about the CRA sending your information to Elections Canada, please contact the CRA at 1-800-959-8281 to have your consent removed. However, your information will remain on the Register. To remove your information from the Register, see "Confidentiality", below.

If you check "No" to one or both questions (or do not make a choice)

• The CRA will not give any of your information to Elections Canada.
• You will not lose your right to vote.
• Elections Canada will not remove your information from the Register if it is already there.
• If there is an election or referendum, your information may not appear or be up to date on electoral lists produced from the Register and you may not receive a voter information card. In that case, you will have to take the necessary steps to correct your information or register to vote.

Deceased persons

If the return is being completed for a person who consented to provide information to Elections Canada on his or her last return but has since died, the CRA will notify Elections Canada to remove the person's name from the Register.

Confidentiality

Information on the Register will be used only for electoral purposes as permitted under the Canada Elections Act. You can write to Elections Canada requesting not to be included on the Register, or that your information not be shared with provinces, territories, municipalities, and school boards that use it to produce their electoral lists.

Contacting Elections Canada

Telephone: 613-993-2975 or 1-800-463-6868 toll free in Canada and the United States

Teletypewriter: 1-800-361-8935 (for individuals with a hearing or speech impairment) toll free in Canada and the United States

Internet: www.elections.ca

At your service

What if you need help?

In this guide, we use plain language to explain the most common tax situations. If you need more help after reading this guide, you can contact us or use our other services.

Internet services

General information, forms, and publications are accessible by topic and by taxpayer group in our Web site. Below is a list of the most popular topics and their associated Web site addresses:

Filing electronically

A four-digit access code that may allow you to NETFILE or TELEFILE your 2007 return is printed on the label sheet in the tax package you received in the mail. You can also get an access code online for our NETFILE service.

Your EFILE service provider can complete and file your return for you.

If you complete your return using computer software, this fast, secure system lets you file it over the Internet.

My Account

My Account is a secure online service that gives you the convenience and flexibility of viewing and managing your personalized information. For more information, visit My Account on our Web site or see Pamphlet RC4059, My Account for Individuals.

Services offered by telephone

Transmitting your return

Note
If a disability prevents you from using a touch-tone phone pad for TELEFILE, please call 1-800-714-7257 , and we will help you.

Getting personal tax information

The personal information that you provide on your income tax forms is collected under the authority of the federal, provincial, and territorial income tax acts and will be used to administer and enforce these acts and their regulations. For more information, refer to Personal Information Bank Number CRA/P-PU-005 at http://infosource.gc.ca or in the Info Source book, or call us at one of the telephone numbers listed under "Contacting us".

Your personal information is confidential. However, you can authorize someone (such as your spouse or common-law partner) to represent you to discuss your file. See "Representatives" below. In certain cases, we give some of your information to other government bodies to administer the law. In all cases, we follow strict procedures before giving your information to anyone.

If you call us and ask for personal tax information, we will ask you to identify yourself and give information about the contents of your return to protect this information. If you call before May 1, use your return for 2006. After April 30, use your return for 2007.

Representatives

You can authorize a representative (such as your spouse or common law partner, tax preparer, or accountant) to get information on your tax matters and submit or provide information on your behalf. We will accept information from and/or provide information to your representative only after we are satisfied that you have authorized us to do so either through My Account or in writing. Your authorization will stay in effect until you cancel it, it reaches the expiry date you choose, or we receive notification of your death.

If you were the legal representative of a deceased person, see Guide T4011, Preparing Returns for Deceased Persons, to know what documents are required.

For more information, visit My Account or see Form T1013, Authorizing or Cancelling a Representative.

T.I.P.S.

For personal and general tax information by telephone, you can use T.I.P.S. (Tax Information Phone Service).

Contacting us

Our telephone and fax numbers, and our addresses, are listed on our Contact Us page and in the government section of your telephone book.

Our goal is to respond to your call within two minutes in the official language of your choice. However, you may have difficulty reaching us during peak periods.

By phone (individuals) - You can call 1-800-959-8281 . Our automated service is available 24 hours a day, 7 days a week. Agents are available Monday to Friday (except holidays) from 8:15 a.m. to 5:00 p.m. However, from mid-February to April 30, these hours are extended to 10:00 p.m. on weekdays, and from 9:00 a.m. to 1:00 p.m. on weekends (except Easter weekend).

By phone (businesses) - You can call 1-800-959-5525 . Our automated service is available 24 hours a day, 7 days a week. Agents are available Monday to Friday (except holidays) from 8:15 a.m. to 8:00 p.m.

In-person appointments - If we cannot resolve your enquiry by telephone, you can meet with an agent in person at a tax services office. Call us, and an agent can make an appointment for you.

By fax - You can send us correspondence by fax. However, because of the nature of fax services, we are not responsible for misdirected, incomplete, or illegible documents.

Teletypewriter (TTY) users - If you use a TTY because you have a hearing or speech impairment, an agent at our bilingual enquiry service at  1-800-665-0354 can assist you during the hours shown under "By phone (individuals)" above.

Publications

Throughout this guide, we mention forms, pamphlets, interpretation bulletins, information circulars, and other guides that give more details on specific tax topics.

You can get most of our publications, including the General guide and forms book, by visiting our Forms and publications page or by calling  1-800-959-2221 from 8:15 a.m. to 5:00 p.m.

Community Volunteer Income Tax Program

If you need help to complete your tax return, your income is low, and your tax situation is simple, volunteers are specially trained to help you. For more information about this free program, or if you want to become a volunteer, visit our Community Volunteer Income Tax Program page or call us at  1-800-959-8281 .

Before you start

Do you have to file a return?

You have to file a return for 2007 if any of the following situations apply:

• You have to pay tax for 2007.
• We sent you a request to file a return.
• You and your spouse or common-law partner elected to split pension income for 2007. See lines 115 and 129 for details.
• You disposed of property in 2007 (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed amounts to you, or you are reporting a capital gains reserve you claimed on your 2006 return).
• You have to repay any of your Old Age Security or Employment Insurance benefits. See line 235 for details.
• You have not repaid all of the amounts you withdrew from your registered retirement savings plan (RRSP) under the Home Buyers' Plan or the Lifelong Learning Plan. For details, see Guide RC4135, Home Buyers' Plan (HBP), or Guide RC4112, Lifelong Learning Plan (LLP).
• You have to contribute to the Canada Pension Plan (CPP). This can apply if, for 2007, the total of your net self-employment income and pensionable employment income is more than $3,500. See line 222 for details.

Even if none of these requirements applies, you still may want to file a return if any of the following situations apply:

• You want to claim a refund.
• You want to apply for the GST/HST credit. For example, you may be eligible if you turn 19 before April 2009.
• You or your spouse or common-law partner want to begin or continue receiving Canada Child Tax Benefit payments.
• You have incurred a non-capital loss (see line 236) in 2007 that you want to be able to apply in other years.
• You want to carry forward or transfer the unused part of your tuition, education, and textbook amounts (see lines 323 and 324).
• You want to report income for which you could contribute to an RRSP, in order to keep your RRSP deduction limit for future years up to date.
• You want to carry forward the unused investment tax credit on expenditures you incurred during the current year (see line 412).

What date is your return for 2007 due?

Generally, your return for 2007 has to be filed on or before April 30, 2008.

Note
If you file your return after April 30, 2008, your GST/HST credit, Canada Child Tax Benefit (including those payments from certain related provincial or territorial programs), and Old Age Security benefit payments may be delayed.

Self-employed persons - If you or your spouse or common-law partner carried on a business in 2007 (other than a business whose expenditures are primarily in connection with a tax shelter), your return for 2007 has to be filed on or before June 15, 2008. However, if you have a balance owing for 2007, you still have to pay it on or before April 30, 2008. For details of how to make your payment, see line 485.

Deceased persons

If you are the legal representative (the executor, administrator, or liquidator) of the estate of an individual who died in 2007, you may have to file a return for 2007 for that individual. See Guide T4011, Preparing Returns for Deceased Persons, and Information Sheet RC4111, What to do following a death, for details about your filing requirements and options.

Note
If you received income in 2007 for a person who died in 2006 or earlier, do not file an individual return for 2007 for that income on behalf of that person. However, you may have to file a T3 Trust Income Tax and Information Return for the estate.

Exception to due date of your return

When a due date falls on a Saturday, Sunday, or a holiday recognized by the CRA, we consider your return to be filed on time or your payment to be paid on time if we receive it or it is postmarked on the next business day. For more information, visit our Important dates page.

What penalties and interest do we charge?

Penalties

If you owe tax for 2007 and do not file your return for 2007 within the dates we specify under "What date is your return for 2007 due?" in the previous section, we will charge you a late-filing penalty. The penalty is 5% of your 2007 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if we charged you a late-filing penalty on a return for any of the three previous years.

Tax Tip
Even if you cannot pay the full amount you owe on or before April 30, 2008, you can avoid the late-filing penalty by filing your return on time.

We may waive or cancel this penalty (as well as any interest that may apply; see the next section) if you file your return late because of circumstances beyond your control. If this happens, complete Form RC4288, Request for Taxpayer Relief, and mail it to us. Only requests relating to tax years ending in any of the 10 calendar years before the year you make the request will be considered. For example, a request made in 2008 must relate to the 1998 or a later tax year to be considered.  For details, see  Information Circular IC07-1, Taxpayer Relief Provisions.

You may have to pay a penalty for any amounts you fail to report on your return for 2007. If you also failed to report an amount on your return for 2004, 2005, or 2006, you may have to pay another penalty. However, if you tell us about an amount you failed to report, we may waive these penalties. See "What is a voluntary disclosure?".

Interest

If you have a balance owing for 2007, we charge compound daily interest starting May 1, 2008, on any unpaid amounts owing for 2007. This includes any balance owing if we reassess your return. In addition, we will charge you interest on the penalties indicated in the previous section, starting the day after your return is due.

Social insurance number (SIN)

Your SIN is the authorized number for income tax purposes under section 237 of the Income Tax Act and is used under certain federal programs. You have to give it to anyone who prepares an information slip (such as a T3, T4, or T5 slip) for you. Each time you do not give it when you are supposed to, you may have to pay a $100 penalty. You also have to give it to us when you ask us for personal tax information. Check your slips. If your SIN is missing or is incorrect, advise the slip preparer.

Your SIN card is not a piece of identification, and it should be kept in a safe place. For more information, or to get an application for a SIN, contact Service Canada, or visit their Web site. You will find the addresses and telephone numbers of their offices on the Web page mentioned above or in the government section of your telephone book.

Canada Child Tax Benefit (CCTB) and Child Disability Benefit (CDB)

If you are responsible for the care and upbringing of a child who is under 18 years of age, you can apply for the CCTB for that child. To do so, submit a completed Form RC66, Canada Child Benefits Application, along with any other documents required, as soon as possible after the child is born or begins to live with you. This information is also used to apply for payments from related provincial or territorial programs. If you are a permanent resident, temporary resident, or protected person (refugee) as defined in the Immigration and Refugee Protection Act, you should apply as soon as possible after you and your child arrive in Canada.

In addition to the CCTB, you can also receive a CDB if your child meets the criteria for the disability amount and we have approved Form T2201, Disability Tax Credit Certificate, for the child.

The CCTB and CDB are based on the net income (line 236) shown on your return and, if applicable, your spouse or common-law partner's return minus any amount you or your spouse or common-law partner reported on line 117. If you or your spouse or common-law partner deducted a Universal Child Care Benefit repayment (on line 213), we will add this amount to your or your spouse or common-law partner's net income. Therefore, to qualify for these benefits, you both have to file a return every year, even if there is no income to report.

To view your CCTB account, visit My Account.

For more information regarding CCTB or CDB, see Pamphlet T4114, Canada Child Benefits, or call us at 1‑800‑387‑1193.

Universal Child Care Benefit (UCCB)

If you are responsible for the care of a child under six years of age, you may be eligible to receive $100 per month for each qualified dependant.

You do not need to apply for the UCCB if either of the following situations applies to you. The benefit will be sent to you automatically if:

• you already receive the CCTB for your children under six years of age; or
• you have applied for the CCTB for your children under six years of age and do not receive it (perhaps because your family income is too high).

If neither of these situations applies to you, then you will have to apply for the UCCB by completing Form RC66, Canada Child Benefits Application.

While the UCCB is taxable (on line 117 of the return) in the hands of the spouse or common-law partner with the lower net income, it will not be taken into account in calculating your GST/HST credit, your CCTB payments and any related provincial or territorial benefit, social benefits repayment (line 235), the refundable medical expense supplement (line 452), or the working income tax benefit (line 453).

To view your UCCB account, visit My Account. For more information about the UCCB, visit our Universal Child Care benefit page.

Which tax package should you use?

Generally, you have to use the package for the province or territory where you resided on December 31, 2007. However, there are exceptions (see next section) such as if you had residential ties (see the definition below) in another place. You should have received the package you need based on our records.

If you resided in Quebec on December 31, 2007, use the package for residents of Quebec to calculate your federal tax only. You will also need to file a Quebec provincial return.

Residential ties - These ties include where your home and personal property are, and where your spouse or common-law partner or dependants reside. Other ties that may be relevant include social ties, a driver's licence, bank accounts or credit cards, and provincial or territorial hospitalization insurance. For more details, see Interpretation Bulletin IT-221, Determination of an Individual's Residence Status.

Exceptions

In the following situations, you should use the package indicated:

How can you get the tax package you need?

You can download and print a General forms book and guide for a particular province or territory, or you can get a printed copy by calling  1-800-959-2221 . In addition, you can get the package for non-residents and deemed residents of Canada from us or any Canadian embassy, high commission, or consulate.

Other publications you may need

Unless you resided in Canada all year, you also need one or more of the following publications:

• If you were a non-resident and you earned income from employment or a business with a permanent establishment in Canada, get Guide T4058, Non-Residents and Income Tax.
• If you were a non-resident and you received rental income from real property in Canada, get Guide T4144, Income Tax Guide for Electing Under Section 216.
• If you were a non-resident and you received certain other kinds of income from Canada (including pensions and annuities), get Pamphlet T4145, Electing Under Section 217 of the Income Tax Act.
• If you were a newcomer to Canada in 2007, get Pamphlet T4055, Newcomers to Canada.
• If you emigrated from Canada during 2007, get Guide T4056, Emigrants and Income Tax.
• If you will be outside Canada for an extended period, get Pamphlet T4131, Canadian Residents Abroad.

For more information, please contact the International Tax Services Office at  1-800-267-5177 . If you are calling from outside Canada and the United States, call 613-952-3741 .

Getting started

Gather all the documents needed to complete your return. This includes your information slips (such as T3, T4, T4A, and T5 slips) and receipts for any deductions or credits you plan to claim. As you complete your return, when you come to a line that applies to you, you can look it up in this guide, or see the back of your information slips for more instructions. You can file electronically, or you can file a paper return. No matter how you file your return, see "What do you include with your return and what records do you keep?".

Filing electronically

You can file your return by Internet (EFILE or NETFILE) or telephone (TELEFILE). See our EFILE, NETFILE or TELEFILE pages for more information on these services.

Filing a paper return

Mail or deliver your return in the envelope contained in the forms book. Use your mail-in label if you have one, and make note of the address for future reference. If you are preparing other people's returns, mail or deliver each person's return in a separate envelope. However, if you are filing returns for more than one year for the same person, put them all in one envelope.

Note
If you have a farming business and you are participating in the Canadian Agricultural Income Stabilization Program (now the AgriStability and AgriInvest Programs), use the envelope contained in Guide RC4060, Farming Income and the AgriStability and AgriInvest Programs Guide, or Guide RC4408, Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide.

What do you include with your return and what records do you keep?

If you are filing a paper return, include one copy of each of your information slips. Make sure you attach to your return your Schedule 1 and your provincial or territorial Form 428 (unless you are a resident of Quebec on December 31, 2007). The explanations in the guide and the return, schedules, or forms will tell you when to attach other supporting documents, such as certificates, forms, schedules, or official receipts.

If a tax professional will be preparing or sending us your return, show him or her your label sheet and all of your supporting documents, such as your information slips, receipts, Notice of Assessment from last year, and instalment payments summary (on Form INNS1 or Form INNS2).

If you make a claim without the required receipt, certificate, schedule, or form, we may disallow your claim. It could also delay the processing of your return.

Even if you do not have to attach certain supporting documents to your return, or if you are filing your return electronically, keep them in case we select your return for review. You should keep your supporting documents for six years.

You should also keep a copy of your return for 2007, the related Notice of Assessment, and any Notice of Reassessment. These can help you complete your return for 2008. For example, your notice for 2007 will tell you:

• your RRSP deduction limit for 2008;
• your unused RRSP contributions for 2008;
• your capital and non-capital loss balances; and
• your tuition, education, and textbook amounts carry-forward balance (see line 323).

What if you are missing information?

If you have to file a return for 2007, make sure you file it on time even if some slips or receipts are missing. You are responsible for reporting your income from all sources to avoid possible interest and/or penalties that may be charged. If you know that you will not be able to get a slip by the due date, attach a note to your paper return stating the payer's name and address, the type of income involved, and what you are doing to get the slip. Use any stubs you may have to calculate the income to report and any related deductions and credits you can claim. Attach the stubs to your paper return. If you are filing electronically, keep all of your documents in case we ask to see them.

Note
You should have received most of your slips and receipts by the end of February. However, T3, T5013 and T5013A slips do not have to be sent before the end of March.

After you file

What happens to your return after we receive it?

Each year we conduct a number of review activities that promote awareness of and compliance with the laws we administer. These reviews are an important part of the compliance activities we undertake to maintain the integrity of, and Canadians' confidence in, the Canadian tax system.

Our various examination programs take place at different periods during the year. Therefore, if you move, it is very important to make your change of address with us as soon as possible to allow us to communicate with you. If you plan to be away for an extended period of time, you should complete Form T1013, Authorizing or Cancelling a Representative, to authorize a representative to act on your behalf.

When we receive your return, we usually review it based on the information you provided and send you a Notice of Assessment based on that review. However, we may select your return for a more detailed review before we assess it. If so, and we ask you to give us documents to verify the deductions or credits you claimed, your assessment may be delayed. We can also carry out a more detailed review after your return has been assessed to verify the income reported and the deductions or credits claimed.

When can you expect your refund?

We usually process paper returns in four to six weeks. However, we start to process returns in mid-February, so do not call before mid-March, even if you filed your return in January. If you filed your return on or before April 15, wait four weeks before you call. If you filed your return after April 15, wait six weeks before you call. We can process returns filed electronically in as little as eight business days, but wait at least four weeks before you call.

To find out about your 2007 refund, visit My Account or use Telerefund, one of our T.I.P.S. services.

When will we pay interest?

We will pay you compound daily interest on your tax refund for 2007. The calculation will start on whichever of the following three dates is latest:

• May 31, 2008;
• the 31st day after you file your return; or
• the day after you overpaid your taxes.

Income tax problems?

Our Enquiries staff is committed to resolving your tax-related problems by giving you accurate, timely, courteous, fair, and confidential answers to your questions. However, if a problem cannot be resolved, you can contact the Problem Resolution Program of your tax services office.

Our goal under this program is to acknowledge receipt within 2 working days, and to resolve the problem within 15 working days. If we cannot do so (for example, if your situation is complex), a representative will contact you to confirm that we are working on the problem, to discuss it further (if necessary), and let you know when we expect to resolve it.

What should you do if you disagree?

If you disagree with your assessment or reassessment, contact us for more information. If you still disagree, you can make a formal objection by visiting My Account, or by sending a completed Form T400A, Objection - Income Tax Act, or a signed letter to the Chief of Appeals at your tax services office or tax centre on or before whichever of the following two dates is later:

• one year after the due date for the return; or
• 90 days after the date of the Notice of Assessment or Notice of Reassessment.

How do you change a return?

If you need to make a change to any return you have sent us, do not file another return for that year. You should wait until you receive your Notice of Assessment before requesting any change to a return that has not been processed. Make your request by visiting My Account or send both of the following to your tax centre:

• a completed Form T1-ADJ, T1 Adjustment Request, or a signed letter providing the details of your request (including the years of the returns you want us to change), your social insurance number, your address, and a telephone number where we can reach you during the day; and
• supporting documents for the changes you want to make and, if you have not sent them to us before, supporting documents for your original claim.

Note
Send your Form T1-ADJ or letter separately from your return for 2007.

Only requests relating to tax years ending in any of the 10 calendar years before the year you make the request will be considered. For example, a request made in 2008 must relate to the 1998 or a later tax year to be considered.

It usually takes eight weeks before we complete the adjustment and mail you a Notice of Reassessment.

Can you file a return to claim a refund for a previous year?

We will only consider a request relating to a refund for a previous tax year return that you are filing late if the return is for a tax year ending in any of the 10 calendar years before the year you make the request. For example, a request made in 2008 must relate to the 1998 or a later tax year to be considered.

If you are filing a return for a year before 2007, make sure you attach receipts for all the deductions or credits you are claiming.

What is a voluntary disclosure?

Maybe you should have filed a return for a previous year (see "Do you have to file a return?") but you did not, or you sent us an incorrect return. If so, you can voluntarily file or correct that return under the Voluntary Disclosures Program, and pay only the taxes owing (plus interest) without penalty.

Note
This program does not apply to any return for which we have started a review.

For more details, and to see if your disclosure qualifies for this program, see Information Circular IC00-1, Voluntary Disclosures Program, or call the Voluntary Disclosures Program officer in the Enforcement and Disclosures Directorate of your tax services office. If you wish, you can discuss your situation first on a no-name basis.

Be sure to indicate clearly, on any disclosure you make, that you are submitting information under the Voluntary Disclosures Program.

What should you do if you move?

If you move, let us know your new address as soon as possible. If you use direct deposit, you also have to advise us if you change your account at your financial institution.

Keeping us informed will ensure that you keep getting any GST/HST credit, Universal Child Care Benefit payments and Canada Child Tax Benefit payments to which you may be entitled (including those from certain related provincial or territorial programs). Otherwise, your payments may stop, whether you receive them by cheque or by direct deposit. We also need to know your new address to mail you your tax package for next year.

If you have registered for a Government of Canada epass and have enrolled with the My Account service, you can change your address by visiting My Account. If you do not have a User ID and Password, you have to tell us your new address by phone, or in writing.

If you are writing, send your letter to your tax centre. Make sure you sign it, and include your social insurance number, your new address, and the date of your move. If you are writing for other people, including your spouse or common-law partner, include their social insurance numbers, and have each of them sign the letter authorizing the change to his or her records.

Note
Because an individual's personal information is confidential, generally we will not provide a change of address to other government departments or Crown corporations such as Canada Post. Similarly, they do not provide such information to us.

Should you be paying your taxes by instalments?

Under proposed legislation, for 2008 and later years, the instalment threshold for individuals has increased to $3,000 ($1,800 if you were a resident of Quebec).

You may have to pay your taxes by instalments if not enough income tax is withheld from your income. To find out if you have to pay your taxes for 2008 by instalments, estimate your taxes and credits for 2008 using your return for 2007. Enter those amounts in the chart on the Federal Worksheet in the forms book. The chart contains the most common factors to consider.

If our records show that you may have to pay your taxes by instalments, we will send you an Instalment Reminder in advance, showing the amount we suggest you pay and the date the payment is due.

For more information about instalment payments or instalment interest charges, see Pamphlet P110, Paying Your Income Tax by Instalments.

Identification

Follow the instructions on the return to complete this area. Incomplete or incorrect information may delay the processing of your return and any refund, credit, or benefit, such as any GST/HST credit and Canada Child Tax Benefit payments you may be entitled to receive.

Personal label

If you have a personal label, attach it to your return. If your name, address, social insurance number (SIN), or your spouse or common-law partner's SIN, is incorrect, put a line through the wrong information, and print your changes clearly on the label.

We may modify part of your address to meet Canada Post's requirements. Therefore, the address on your package, your Notice of Assessment, or other correspondence we send you may be different from the one you indicate on your return.

Information about your residence

On the first line, enter the province or territory where you lived or of which you were considered to be a factual resident on December 31, 2007. We need to know this to calculate your taxes and credits correctly. For details, see "Which tax package should you use?".

On the second line, enter the province or territory where you live now, if it is different from your mailing address. We need to know this to calculate certain provincial or territorial credits and benefits you may be entitled to receive.

On the third line, if you were self-employed in 2007, enter the province or territory where you had a permanent business establishment.

On the last line, if you became or ceased to be a resident of Canada during 2007, indicate your date of entry or departure, whichever applies.

Marital status

Check the box that applied to your status on December 31, 2007. Check "Married" if you had a spouse (see below), or "Living common law" if you had a common-law partner (see below). You still have a spouse or common-law partner if you were living apart for reasons other than a breakdown in your relationship. Check one of the other boxes only if neither of the first two applied.

Spouse

This applies only to a person to whom you are legally married.

Common-law partner

This applies to a person who is not your spouse (see above), with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:

In addition, an individual immediately becomes your common-law partner if you previously lived together in a conjugal relationship for at least 12 continuous months and you have resumed living together in such a relationship. Under proposed changes, this condition will no longer exist. The effect of this proposed change is that a person (other than a person described in b) or c) above) will be your common-law partner only after your current relationship with that person has lasted at least 12 continuous months. This proposed change will apply to 2001 and later years.

Reference to "12 continuous months" in this definition includes any period that you were separated for less than 90 days because of a breakdown in the relationship.

Your spouse or common-law partner's net income

This is the amount on line 236 of your spouse or common-law partner's return, or the amount that it would be if he or she filed a return. Enter this amount even if it is zero. We use this information to calculate the GST/HST credit and certain other credits and benefits.

Note
Even though you show this amount on your return, your spouse or common-law partner still may have to file a return for 2007.

Your spouse or common-law partner's Universal Child Care Benefit

This is the amount on line 117 of your spouse or common-law partner's return, or the amount that it would be if he or she filed a return. Although this amount is included in your spouse or common-law partner's net income, we will subtract this amount in the calculation of certain credits and benefits.

Your spouse or common-law partner's Universal Child Care Benefit repayment

This is the amount on line 213 of your spouse or common‑law partner's return, or the amount that it would be if he or she filed a return. Although this amount is deducted in the calculation of your spouse or common-law partner's net income, we will add this amount in calculating certain credits and benefits.

Goods and services tax/harmonized sales tax (GST/HST) credit application

To receive this credit, you have to apply for it, even if you received it last year. Complete the application area on page 1 of your return for 2007. Your credit is based on your net income added to the net income of your spouse or common-law partner, if you have one, minus any amount you or your spouse or common-law partner reported for Universal Child Care Benefit (on line 117), as well as the number of children you have. If you or your spouse or common-law partner deducted a Universal Child Care Benefit repayment (on line 213), we will add this amount to your or your spouse or common-law partner's net income. This information is also used to calculate any payments from certain related provincial programs. Net income is the amount on line 236 of a person's return, or the amount that it would be if the person filed a return.

Make sure you enter, in the Identification area on page 1 of your return, your marital status and, if it applies, the information concerning your spouse or common-law partner (including his or her net income, even if it is zero). Otherwise, your application may be delayed. Either you or your spouse or common-law partner can receive the credit, but not both. No matter which one of you applies, the credit will be the same.

To view your GST/HST credit account, visit My Account. For more information on the GST/HST credit, visit our Child and Family Benefits page, see Pamphlet RC4210, GST/HST Credit, or call 1‑800‑959‑1953.

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