How to Complete an Income Tax Return in Ontario, Canada

Completing your income tax return online is fast and secure.

Canada's tax system is based on self-assessment. Each year Canadians must report their annual income to the Canadian Revenue Agency along with applicable deductions and credits, to determine taxes they owe or refunds they are owed. Income tax returns for a year ending December 31st are generally due the following April. Returns can be completed online by yourself (Netfile), by a registered filing service provider (Efile), by mail in hard-copy form, and in some instance by phone (Telefile). Online income tax returns are fast, easy and secure and they are the most common form of transmission.

Things You'll Need

• Computer
• Canadian tax preparation software certified by the Canadian Revenue Agency
• Government tax package with four digit access code
• Social Insurance Number
• Income Information slips (T3, T4, T4A, T5)
• Receipts

Instructions

1. Access the tax preparation software on your computer.

2. Fill out each section of the tax return. Report all income generated for the previous year and claim all relevant credits and deductions. Your income information slips will include much of the income you need to report, however you may also be required to report income that is not recorded on these slips such as income generated outside of Canada. Examples of credits include tuition receipts, home improvement credits and home buyers credits.

3. Use your four digit access code to send your return directly to the Canadian Revenue Agency via your computer software program and the Internet.

Tips & Warnings

• Keep a copy of your tax return for use the following the year; your return will tell you your RRSP deduction limit for the following year, your capital and non-capital loss balances and your tuition, education and textbook amounts carry-forward balance. If you are self-employed, it may be wise to consult with a licensed accountant and/or file your return with the help of a registered filing service provider.

• It is illegal to falsely report income, deductions and credits, and the Canadian Revenue Agency audits a select number of returns on an annual basis. The Canadian Revenue Agency requires that you keep the all documents and receipts supporting your tax return for a period of six years.

References

• Canadian Revenue Agency; General Income Tax and Benefit Guide -- 2009