Personal income tax (T1) — the basics
Lesson 1 of 4 in Canadian Tax Fundamentals for IEPs · 22 minutes
The T1 General is the personal income tax return for Canadian residents. This lesson covers the structure, key concepts, and what makes Canadian tax distinct.
What you'll learn
- Understand the T1 structure
- Distinguish federal and provincial tax
- Apply marginal tax rates correctly
- Identify common credits and deductions
From the lesson
The Canadian personal tax system is administered by the Canada Revenue Agency (CRA) and operates on a fiscal year that aligns with the calendar year (January 1 to December 31). Tax returns are due April 30 of the following year. The system is progressive — higher income is taxed at higher rates. Federal and provincial taxes are calculated separately but reported on the same T1 return.
1. The T1 General — what it is
The T1 (sometimes called 'T1 General') is the form most Canadian residents file. It includes:
• Income from all sources. • Deductions (RRSP, business losses, etc.). • Tax credits (basic personal amount, charitable donations, etc.). • Final tax owing or refund.
Most Canadians file by…