Personal Tax Returns

CRA tax instalments are quarterly tax payments the Canada Revenue Agency requires from individuals and businesses who owe more than $3,000 in net tax for the current year or either of the two prior years. The CRA sends instalment reminders in February and August each year, but the responsibility to pay on time falls on…

A CRA review letter is a written notice from the Canada Revenue Agency asking you to verify specific claims on your tax return. The CRA sends review letters after processing your T1 or T2 return when it flags certain deductions, credits, or income amounts for a closer look. A review letter is not an audit….

Medical expenses give Canadian taxpayers a non-refundable tax credit that reduces federal and provincial tax owed. The CRA allows you to claim eligible medical expenses for yourself, your spouse or common law partner, and your dependent children under 18 on line 33099 of your T1 return. You can also claim medical costs for other dependants…

Home office expenses allow Canadian employees who work from home to deduct a portion of their household costs on their personal tax return. The CRA requires your employer to sign a T2200 (Declaration of Conditions of Employment) or a T2200S (short form) confirming that you were required to work from home as a condition of…

Tuition tax credits let Canadian students reduce their federal and provincial income tax by claiming eligible tuition fees paid to a qualifying educational institution. The T2202 is the official CRA form your school issues to confirm the tuition you paid and the months you were enrolled. You do not file the T2202 with your tax…

The TFSA over contribution penalty is 1 percent per month of the highest excess amount in your account during each calendar month. No cushion exists, so a single dollar above your limit triggers it, and a partial month counts as a full one. The fix has three steps: withdraw the excess immediately, file Form RC243…

You can take any amount out of a TFSA at any time, for any reason, with no tax and no withholding. CRA sets no limit on how much or how often. What CRA does control is the timing of putting it back: money withdrawn in 2026 does not become available to recontribute until January 1,…

The TFSA contribution limit is $7,000 for , the same figure as 2025 and 2024. Anyone who turned 18 in 2009 or earlier and has lived in Canada since then holds $109,000 of cumulative room, even without ever opening an account. Unused room never expires, so the limit on your account is almost always larger…

Most T4 slips reach employees between late January and mid February, though the legal cutoff is the last day of February, which for 2026 income means March 1, 2027. CRA My Account runs behind that, so slips often do not appear there until mid March. A slip that has not arrived by the first week…

The T4 vs T4A question comes down to the relationship behind the payment. A T4 reports employment income with CPP, EI, and tax withheld at source. A T4A reports pension income, self employment fees for services, scholarships, and other amounts that fall outside an employment relationship. A T5 reports investment income such as interest and…