ensure you've paid the correct amount of income tax.You may also have to calculate the tax you owe and send a payment to the CRA.Įach year, you should file a tax return with the CRA to: Income tax is commonly taken off your pay by your employer, or off your pension, and sent directly to the CRA. How income tax worksįederal and Ontario income taxes are paid to the Canada Revenue Agency ( CRA), which is part of the federal government. For example, the basic personal amount, a non-refundable tax credit, allows every Canadian resident to earn more than $10,000 each year before any income tax is payable. You can reduce or eliminate the amount of income tax you need to pay by claiming tax credits and certain expenses. The amount you pay is based on how much income you earn in a year. You can also apply by filing a paper tax return and accompanying forms. Most tax return software will automatically prompt you with questions to apply for tax credits and benefits.

You need to file a tax return to apply for tax credits and benefits. The Low-Income Workers Tax Credit provides up to $850 each year in Ontario personal income tax relief to low-income workers, including those earning minimum wage.įind benefits and other programs How to apply for tax credits and benefits It applies to eligible child care options, including care in centres, homes and camps. With the Ontario Child Care Tax Credit, you could get back up to 75% of your eligible child care expenses. Read the Canada Revenue Agency's ( CRA's) General Income Tax and Benefit Guide and Forms Book to learn more about which tax credits you can claim.

refundable tax credits can reduce the amount of tax that you owe but are also available even if you don't owe any tax, such as the Ontario Energy and Property Tax Creditīenefits can help with various living expenses, such as raising children, housing, loss of income and medical expenses.

non-refundable tax credits can reduce the amount of tax that you owe, for example you may receive a tax credit for donations and gifts.

You may be eligible for tax credits and benefits to help you with living costs.

Income tax return file copy download