Module 4: Complete a Basic Tax Return

Paul's return explained

Page 6 of 13

We will now look at Paul's return, which includes a Schedule 1, Federal Tax. We will not complete a Form 428 for this example since we will not explain provincial and territorial forms. For more information on provincial and territorial forms, see Provincial and territorial tax and credits.

For this example, we will only refer to the fields and line numbers that apply to Paul.

Lets get started!

First of all, let's look at Paul's T4s for the past year .

Paul's T4s

As we can see, Paul had two jobs last year. He worked at Dan's Vegan Emporium for part of the year and then at Sam's Shoe Store.

Paul received a T4 slip from each of his employers. On each slip we can see:

• the name of the employer
• the year in which the income was earned
• the field for Paul's name and address
• Paul's social insurance number (in box 12)
• how much income Paul had from the job (in box 14)
• how much was deducted for EI premiums (in box 18)
• how much income tax was deducted from Paul's income (in box 22)

Box 28 is marked with "X". This shows that Paul was exempt from paying CPP premiums during the past year, since he was under 18 years of age.

Next, let's look at Paul's income tax and benefit return.

Paul's return explained

Page 6 of 13