ARCHIVED - General Income Tax and Benefit Guide - 2014 - General Information

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Is this guide for you?

This guide will help you complete your 2014 income tax and benefit return. It is important to use the package for the province or territory where you lived 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?.

Find out why everybody else is handling their tax matters online

Save time: Go online

Most Canadians are filing their tax returns online. Why aren’t you?

It’s quick, easy and secure. The CRA uses the same high levels of security that your financial institution uses to protect your banking information. There are several free certified software products available for taxpayers to file their income tax return online.

When you combine online filing with direct deposit, you may receive your refund in as little as eight business days.

For more information, go to Get ready to file your 2014 income tax return.

Want money in your pocket faster? Sign up for direct deposit.

Did you know... that the Government of Canada is switching to direct deposit for payments that it issues?

Direct deposit is a faster, more convenient, reliable, and secure way to get your income tax refund and your credit and benefit payments directly into your account at a financial institution in Canada.

For more information, go to Direct deposit.

Need to make a payment to the CRA? Do it online!

You can enjoy the convenience of online payments any time, anywhere, plus you get immediate confirmation of your payment!

To make an online payment to the CRA, use your financial institution’s telephone or Internet banking services or, the CRA’s My Payment service. For more information on electronic payments and other payment methods, go to Make a payment.

Want instant access to your CRA records? Sign up for online mail!

When you register for online mail, you’ll have instant access to your tax records anytime, anywhere. Choose to receive an email notification that your notice of assessment or reassessment is available online.

Provide us with an email address on your T1 return or register directly online at My Account for Individuals.

Go to Get ready to file your 2014 income tax return today.

What's new for 2014?

We list the major changes below, including announced income tax changes that have not been made law at the time of printing. If they become law as proposed, they will be effective for 2014 or as of the dates given. For more information about these and other changes, see the areas outlined in this guide.

Manage online mail – When you register for online mail, the CRA will no longer mail your notices to you. Instead, you will receive an email notification that there is mail for you to view on the My Account secure online service at My Account. Have your tax record in a secure place – online!  For more information, see Email address and Manage online mail.

Family tax cut (line 423) – You may be able to claim a non refundable tax credit of up to $2,000 to reduce your federal income tax.

Emergency services volunteers (line 101) – The rules for the $1,000 exemption for emergency services volunteers have changed.

Lifetime capital gains exemption (line 254) – For dispositions of qualified small business corporation shares and qualified farm and fishing property made after 2013, the lifetime capital gains exemption limit has increased to $800,000. For more information, see Guide T4037, Capital Gains.

Adoption expenses (line 313) – The maximum amount of eligible expenses for each child has increased to $15,000.

Medical expenses (lines 330 and 331) – Costs for the design of personalized therapy plans for persons eligible for the disability tax credit and costs for service animals used to help manage severe diabetes are now eligible as medical expenses. For more information, see Guide RC4064, Medical and Disability Related Information.

Ecological gifts (line 342) – The carry-forward period for gifts of ecologically sensitive land made after February 10, 2014, has been extended to 10 years.

Cultural gifts (line 342) – For donations of certified cultural property made after February 10, 2014, special rules will apply when the property was acquired through a gifting arrangement that is a tax shelter. For more information about these new rules, see Pamphlet P113, Gifts and Income Tax.

Children’s fitness amount (line 365) – The maximum amount of eligible fees for each child has increased to $1,000.

Search and rescue volunteers’ amount (line 395) – As a search and rescue volunteer, you may be able to claim an amount of $3,000.

Investment tax credit (line 412) – Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2015.

GST/HST credit – You no longer have to apply for the GST/HST credit. When you file your return, the CRA will determine your eligibility and tell you if you are entitled to receive the credit.

Amateur athlete trust (AAT) – Income contributed to an AAT now qualifies as earned income in calculating the registered retirement savings plan (RRSP) contribution limit of the trust’s beneficiary. For more information see line 22.

Elections Canada

National Register of Electors (the Register)

The Register contains the name, sex, date of birth, address, and unique identifier of eligible electors (Canadian citizens who are 18 years of age or older) and is used to produce electoral lists and to communicate with electors for federal elections or referendums. Note that inclusion in the Register is at the option of the elector. Consenting to provide your information to Elections Canada will help ensure you are correctly registered.

Elections Canada will only use the information you provide for purposes permitted under the Canada Elections Act. The Canada Elections Act allows for the electoral lists produced from the Register to be shared with provincial/territorial electoral agencies for uses permitted under their respective legislation. The Canada Elections Act also provides for electoral lists that do not include date of birth information to be shared with members of Parliament, registered political parties and candidates at election time.

Response instructions (responding to questions is optional)

If you are a Canadian citizen, tick 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, tick the "No" box next to question A.

If you are a Canadian citizen, and you would like to authorize the Canada Revenue Agency (CRA) to give your name, address, date of birth, and Canadian citizenship status to Elections Canada, tick 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 to update 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, tick the "No" box next to question B.

This information is not used by the CRA for the purpose of processing your return.

If you tick "Yes" to both questions

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, 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 Removal from the Register below.

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

Removal from the Register

You can write to Elections Canada to request to be removed from the Register, or that your information not be shared with provincial/territorial electoral agencies that use it to produce their electoral lists.

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.

For more information contact Elections Canada

Telephone:        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

General information

Before you start

Do you have to file a return?

You must file a return for 2014 if any of the following situations apply:

Even if none of these requirements apply, you can file a return if any of the following situations apply:

What date is your return for 2014 due?

Generally, your return for 2014 has to be filed on or before April 30, 2015.

Note

If you file your return after April 30, 2015, your GST/HST credit (including any related provincial credits), Canada child tax benefit payments (including related provincial or territorial payments), 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 2014 (other than a business whose expenditures are primarily in connection with a tax shelter), your return for 2014 has to be filed on or before June 15, 2015. However, if you have a balance owing for 2014, you have to pay it on or before April 30, 2015. For more information about 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 aperson who died in 2014, you may have to file a return for 2014 for that person. For more information about your filing requirements and options, and to know what documents are required, see Guide T4011, Preparing Returns for Deceased Persons, and Information Sheet RC4111, What to do following a death.

Note

If you received income in 2014 for a person who died in 2013 or earlier, do not file an individual return for 2014 for that income on behalf of that person. Instead, you may have to file a T3 Trust Income Tax and Information Return for the estate.

Exception to the due date of your return

When the due date falls on a Saturday, a Sunday, or a holiday recognized by the CRA, we consider your return to be filed on time if we receive it or it is postmarked on the next business day. For more information, go to Important dates for 2014 (Individuals).

What penalties and interest do we charge?

Late-filing penalty

If you owe tax for 2014 and do not file your return for 2014 within the dates we specify under What date is your return for 2014 due?, we will charge you a late-filing penalty. The penalty is 5% of your 2014 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months.

If we charged a late-filing penalty on your return for 2011, 2012, or 2013, your late-filing penalty for 2014 may be 10% of your 2014 balance owing, plus 2% of your 2014 balance owing for each full month your return is late, to a maximum of 20 months.

Tax tip

Even if you cannot pay your full balance owing on or before April 30, 2015, 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 if you file your return late because of circumstances beyond your control. If this happens, complete Form RC4288, Request for Taxpayer Relief: Cancel or Waive Penalties or Interest, and mail it to the intake centre responsible for your province or territory of residence (intake centre addresses are provided on Form RC4288).

For a penalty, only requests relating to tax years ending in any of the 10 calendar years before the year in which you make the request will be considered. For example, a request made in 2015 must relate to a penalty for the 2005 or a later tax year.

For interest on a balance owing or on a penalty for any tax year, the amounts that accrued during the 10 calendar years before the year in which you make the request will be considered. For example, a request made in 2015 must relate to interest that accrued in 2005 or a later calendar year.

For more information, see Information Circular IC07-1, Taxpayer Relief Provisions, or go to Taxpayer Relief Provisions.

Repeated failure to report income penalty

If you failed to report an amount on your return for 2014, and you also failed to report an amount on your return for 2011, 2012, or 2013, you may have to pay a federal and provincial/territorial repeated failure to report income penalty. The federal and provincial/territorial penalties are each 10% of the amount you failed to report on your return for 2014.

However, if you voluntarily tell us about an amount you failed to report, we may waive these penalties. For more information, see What is a voluntary disclosure? or go to Voluntary Disclosures Program.

False statements or omissions penalty

You may have to pay a penalty if you knowingly or under circumstances amounting to gross negligence, have made a false statement or an omission on your 2014 return.

The penalty is equal to the greater of:

However, if you voluntarily tell us about an amount you failed to report and/or credits you overstated, we may waive this penalty. For more information, see What is a voluntary disclosure? or go to Voluntary Disclosures Program.

Interest

If you have a balance owing for 2014, we charge compound daily interest starting May 1, 2015, on any unpaid amounts owing for 2014. This includes any balance owing if we reassess your return. In addition, we will charge you interest on the penalties explained in the previous sections, starting the day after your return is due.

When will we pay interest?

We will pay you compound daily interest on your tax refund for 2014. The calculation will start on the latest of the following three dates:

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 for certain federal programs. You must give it to anyone who prepares information slips (such as T3, T4, or T5 slips) for you. Each time you do not give it when you are supposed to, you may have to pay a $100 penalty. Check your slips. If your SIN is missing or is incorrect, inform the slip preparer. You must also give it to us when you ask us for personal tax information.

For more information, or to get an application for a SIN, contact Service Canada. You can find the addresses and telephone numbers of their offices on their website.

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

You no longer have to apply for the GST/HST credit. When you file your return, the CRA will determine your eligibility and tell you if you are entitled to receive the credit.

Your credit is based on the number of children you have and 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 on lines 117 and 125. If you or your spouse or common-law partner deducted an amount on line 213 and/or the amount for a repayment of registered disability savings plan income included on line 232, we will add these amounts to your or your spouse’s or common-law partner’s net income.

This information is also used to calculate any payments from related provincial programs. Net income is the amount on line 236 of a person’s return, or the amount it would be if the person filed a return.

In the “Identification” area on page 1 of your return, enter your marital status and, if it applies, the information about your spouse or common law partner (including his or her net income, even if it is zero). Either you or your spouse or common law partner may receive the credit, but not both of you. The credit will be paid to the spouse or common-law partner whose return is assessed first.

For more information, go to Child and family benefits, see Booklet RC4210, GST/HST Credit, or call us at 1-800-959-1953. To view your GST/HST credit information, go to My Account.

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. Apply as soon as possible after the child is born or begins to live with you.

You can apply by:

This information is also used to apply for payments from related provincial or territorial programs.

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

The CCTB and the CDB are based on the net income (line 236) shown on your return and, if applicable, your spouse's or common-law partner's return, minus any amount you or your spouse or common-law partner reported on lines 117 and 125. If you or your spouse or common-law partner deducted an amount on line 213 and/or the amount for a repayment of registered disability savings plan income included on line 232, we will add these amounts to your or your spouse's 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.

For more information, go to Child and Family Benefits, see Booklet T4114, Canada Child Benefits, or call us at 1-800-387-1193. To view your CCTB account, go to My Account

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.

To start receiving the UCCB, you must apply for the CCTB. For more information about how to apply, read Canada child tax benefit (CCTB) and child disability benefit (CDB).

Although the UCCB is taxable, we do not use it to calculate your GST/HST credit (including any related provincial credits), your CCTB payments (including related provincial or territorial payments), the social benefits repayment (line 235), the refundable medical expense supplement (line 452), or the working income tax benefit (WITB) (line 453). Read the instructions for line 117 to find out how to report the UCCB.

For more information go to Universal child care benefit (UCCB), see Booklet T4114, Canada Child Benefits, or call us at 1-800-387-1193. To view your UCCB account, go to My Account.

Which tax package should you use?

Generally, you have to use the package for the province or territory where you resided on December 31, 2014, but there are exceptions (see the next section) such as residential ties (see the definition below) in another place.

If you resided in Quebec on December 31, 2014, use the package for residents of Quebec to calculate your federal tax only. You must also file a provincial income tax return for Quebec.

Residential ties - These ties include where your home (owned or leased) and personal property are and where your spouse or common-law partner or dependants reside. Other relevant ties may include social ties, driver's licence, bank accounts or credit cards, and provincial or territorial hospitalization insurance. For more information, see Income Tax Foilio S5-F1-C1, Determining an Individual's Residence Status.

Exceptions

In the following situations, use the package specified:

  1. If, on December 31, 2014, you had residential ties in more than one province or territory, use the package for the province or territory where you have your most important residential ties. For example, if you usually reside in Ontario, but were going to school in Alberta or Quebec, use the package for Ontario.

  2. If you are filing a return for a person who died in 2014, use the package for the province or territory where that person resided at the time of death.

  3. If you emigrated from Canada in 2014, use the package for the province or territory where you resided on the date you left. Mail your return to the:

    International and OttawaTax Services Office
    Post Office Box 9769, Station T
    Ottawa ON K1G 3Y4
    CANADA.

  4. If you resided outside Canada on December 31, 2014, but maintained significant residential ties with Canada, you may be considered a factual resident of Canada. Use the package for the province or territory where you kept your residential ties. You also have to complete Schedule D, Information About Your Residency Status, (Form T1248) and attach it to your return. Mail your return to the:

    International and Ottawa Tax Services Office
    Post Office Box 9769, Station T
    Ottawa ON K1G 3Y4
    CANADA.

    If, under a tax treaty, you are considered to be a resident of another country, this may not apply. For more information, contact us.

  5. Generally, if you did not maintain significant residential ties with Canada, and on December 31, 2014, you resided outside Canada and were a government employee, a member of the Canadian Forces or their overseas school staff, or working under a Canadian International Development Agency program, you may be considered a deemed resident of Canada. Use the package for non-residents and deemed residents of Canada. This may also apply to your dependent children and other family members.

  6. If you stayed in Canada for 183 days or more in 2014, you did not establish significant residential ties with Canada, and, under a tax treaty, you were not considered a resident of another country, you will be considered a deemed resident of Canada. Use the package for non-residents and deemed residents of Canada.

  7. If, throughout 2014, you did not have significant residential ties with Canada and neither E nor F applies, you may be considered a non-resident of Canada for tax purposes. Use the package for non-residents and deemed residents of Canada.

    However, if you earned income from employment in a province or territory, or earned income from a business with a permanent establishment in a province or territory, use the package for that province or territory. Also, complete Schedule D, Information About Your Residency Status (Form T1248), and attach it to your return.

How can you get the tax package you need?

To find out how to get a guide and a forms book for your province or territory, go to Forms and publications.

Other publications you may need

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

For more information, call us at 1-800-959-8281. If you are calling from outside Canada and the United States, call 613-940-8495. We accept collect calls. An automated system will answer. You might hear a beep followed by a normal delay until your call is connected.

Getting started

Gather all the documents you need to complete your return. This includes information slips (such as T3, T4, T4A, and T5 slips) and receipts for any deductions or credits you plan to claim. Refer to the guide as you find lines on the return that apply to you, or see the back of your information slips for more instructions.

You can file electronically or file a paper return. No matter how you file, see What do you include with your return and what records do you keep?.

What if you are missing information?

If you have to file a return for 2014, 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 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 your pay stubs or statements to estimate the income to report and any related deductions and credits you can claim. Enter the estimated amounts on the appropriate lines of your return. Attach the pay stubs or statements to your paper return. If you are filing electronically, keep all your documents in case we ask to see them at a later date.

Note

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

Identification, income, and deductions

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 CCTB payments you may be entitled to receive.

Email address

After reading and agreeing to the terms and conditions below, enter the email address you want to use to be notified that your mail is available online. You can also register directly online at My Account.

Terms and conditions – By providing an email address, you are registering for online mail and authorizing the CRA to send you email notifications when there is mail for you to view on My Account. Any notices and correspondence delivered online on My Account will be presumed to have been sent on the date of that email notification. You understand and agree that your notice of assessment and notice of reassessment, and any future correspondence eligible for online delivery will no longer be mailed.

Note
Once we have processed your return, we will send you a registration email notification to the email address you have provided, confirming your registration for online mail. We usually process paper returns in four to six weeks and returns filed electronically in as little as eight business days.

For more information on this new online mail service, see Manage online mail.

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, 2014. We need this information to calculate your taxes and credits correctly. For more information, 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 this information to calculate provincial or territorial credits and benefits you may be entitled to receive.

On the third line, if you were self-employed in 2014, 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 for income tax purposes during 2014, enter your date of entry or departure.

Marital status

Tick the box that applied to your status on December 31, 2014. Tick "Married" if you had a spouse, 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. Tick one of the other boxes only if neither of the first two applied.

Note

If your marital status changes during the year, and you are entitled to any Canada child tax benefit (CCTB) payments, GST/HST credit payments, or working income tax benefit (WITB) advance payments, you must tell us by the end of the month following the month in which your status changes. However, if you are separated, do not notify us until you have been separated for more than 90 consecutive days. Let us know by going to My Account, by calling 1-800-387-1193, or by sending us a completed Form RC65, Marital Status Change.

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, with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:

  1. has been living with you in a conjugal relationship and this current relationship has lasted at least 12 continuous months;
    Note
    In this definition, 12 continuous months includes any period you were separated for less than 90 days because of a breakdown in your relationship.
  2. is the parent of your child by birth or adoption; or
  3. has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

Information about your spouse or common-law partner

You must provide us with the following information, if applicable:

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