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Frequently Asked Questions
Do I need to file taxes?
If you are a resident of Canada, you have to file an income tax return for tax
purposes and you owe tax. You should also file if you want to get a refund, claim
benefits or income tax credits.
When do I receive my T4 slip?
Employers start sending out the T4 slips 1n the month of February, they have
until the end of February to issue T4 slips.
What are the federal tax bracket in Canada?
The federal tax rates are the basis for CRA to determine the income tax you have
to pay on your taxable income. In addition, each province and territories has also
*15% on the first $45,282 of taxable income
*20.5% on the next $45,281 of taxable income (over $45,282 up to $90,563), +
*26% on the next $49,825 of taxable income (over $90,563 up to $140,388)
*29% on the next $59,612 of taxable income (over $140,388 up to $200,000), +
*33% of taxable income over $200,000
How do I pay if I owe?
There are different ways of settling your tax due depending on which method works
for you. For Individual Income Tax (T1), you may make your payment by Debit
Card, Pre-authorized debit, Online banking, Credit Card, Wire transfers for non-residents, a service provider or any Canadian financial institution.
What is a TFSA?
Tax-Free Savings Account (TFSA) is a type of registered investment account that
helps you save for your short term or long term goals. Any contributions,
investment income, capital gains, and withdrawals are tax-free.
Is there a deadline for my TFSA contribution?
Since you can carry forward your unused contribution amounts, there is no
deadline for TFSA contribution.
What is an RRSP?
Registered Retirement Savings Plans are special saving or investment accounts that
defer taxes on the amount contributed to the RRSP and is federally registered
program. RRSP’s were designed to encouraged Canadians to save for retirement.
Is the RRSP contribution tax-free?
Your RRSP contribution is tax deductible but as long as your RRSP investment stays
in the plan, your RRSP grows tax-free.