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Taxing Matters

By William Perez, About.com Guide to Taxes

An Overview of Canadian Income Taxes

Tuesday April 21, 2009
Canadian have until April 30th to file their income tax returns. Susan Munroe, About.com's Guide to Canada Online, covers the essential information for filing a Canadian tax return, and provides tips on deductions and tax credits.

The tax return can be filed on paper tax forms or electronically using software. Here's tips on where to find a Canadian income tax package, as well as reviews of the top five Canadian tax software programs. The Canadian system requires the use of a security code found on your T1 slips to be eligible for the NETFILE service.

Canada also allows various deductions against the income tax, such as for charity and retirement savings. Charitable donations are allowed "up to 75 percent of your net income." And tax-deductible contributions of up to $19,000 can be made to Registered Retirement Savings Plan.

There's also tax credits to consider as well. One relatively new tax credit is the Children's Fitness Credit for enrolling kids under age 16 in a physical fitness program.

The Canadian Revenue Agency has online services available for taxpayers. Canadians can check the status of their refund, and obtain information about their retirement contribution limits, check their account balances, update their address, set up a payment plan, or disagree with a tax assessment using the CRA's my account services.

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