Income & work

11 answers

What do "average tax rate" and "marginal tax rate" mean?Average tax rate is how much tax you actually pay as a percent of your total income. Marginal tax rate is what percent of income tax you will pay on your next dollar earned.
Can I do my corporate taxes using Better Tax?No. Better Tax helps you prepare your personal tax return, but it doesn't support corporate T2 returns.
Should I file my taxes if I didn't make any money?Yes, you should almost always file a tax return, even if you have no income. It's very simple to do.
I'm a freelancer. What do I need to report on my tax return?Report all the income you earned. You can claim eligible business expenses, usually using form T2125.
What do I do if a tax slip is missing from Auto-fill?Don't worry, this is pretty common. If you already have the slip, you can enter it yourself. If not, you can wait for it to get processed or ask your employer, bank, or other slip issuer for a copy.
How do I make a subsection 45(2) or 45(3) election?Indicate that you need to file an election, then send your tax centre a letter describing the property and the election you're making.
Where do I indicate what kind of interest I earned?Identifying interest as bank, bond, or mortgage interest is optional. Better Tax prompts you about it when you review your return.
How do I report capital gains (and losses)?Report capital gains and losses in “T5008 (or other capital gains)”, even if you didn't receive a T5008 slip.
Where do I report my child's T4A(P) slip?Add the T4A(P) slip to your child's profile. Their income can affect your credits even if they don't need to file a return.
Will working overtime put me in a higher tax bracket?It might, but it will never make you worse off.
Why do I have a balance owing?No, a balance owing doesn't mean you did anything wrong. It just means the tax that you paid to the CRA during the year didn't cover your full amount owing. This happens a lot if you are self-employed or if you change jobs.