Module 4: Complete a Basic Tax Return

Paul's tax return explained - Page 4

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Paul is almost finished completing his tax return. All he needs to do is complete and sign page 4.

This is the part of the tax return where Paul calculates all federal (and provincial or territorial) credits and taxes payable to determine if he will receive a refund or have a balance owing.

He starts by entering his net federal tax of zero (from Schedule 1) on line 420 on page 4 of his tax return. The provincial or territorial tax is calculated using provincial or territorial Form 428, and is entered on Line 428 of the tax return. His provincial or territorial tax is determined (by his uncle) to be zero and so his total payable (entered on line 435) is also zero.

Paul had income tax deducted at source last year. He enters the total from box 22 on his T4 slips, $202.00, on line 437.

For more information, see Line 437 - Total income tax deductions.

Next, he enters an amount on line 479 and then adds that amount to the amounts on lines 437 to 476. He enters the result on line 482. This is the amount of Paul's total credit.

For more information on provincial or territorial credits, see Line 479 - provincial or territorial credits.

However, since the amounts calculated and entered on lines 479 and 482 vary for each province and territory, we cannot show a specific amount in this example.

If Paul did calculate amounts for lines 479 and 482, he would then subtract the amount shown on line 482 from the amount on line 435 (which is zero). This would allow him to determine if he owes money (an amount to be entered on line 485) or if he will receive a refund (an amount to be entered on line 484).

In the case of a refund, Paul might complete the box called Direct deposit - start or changeto have his refund deposited to his Canadian bank account.

For more information on direct deposit, see How to arrange for direct deposit or change your information.

Paul is almost finished and ready to file his tax return. He signs it, writes the date and his telephone number, and he is finished.

Paul will mail his tax return to the appropriate tax centre. His postal code determines which tax centre to use.

Tip

To find out which tax centre to send your paper tax return to, see our Web site at www.cra.gc.ca/tso.

Paul's tax return explained - Page 4

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