Canadian tax slips and accounts, in plain language.
What is it? A summary of your earnings and the taxes (Income Tax, CPP, EI) your employer already deducted and sent to the CRA during the year.
Who issues it? Your Employer.
Why it matters? This is your proof of “Tax Paid.” Filing your T4 is the primary way to get a Tax Refund.
What is it? For self-employed contractors, freelancers, or recipients of scholarships/grants.
Who issues it? Your Clients (for freelancers), Pension providers, or University (for grants).
Why it matters? Usually, no tax was deducted from this money. You might owe the CRA when you file this.
What is it? The master return that summarizes your entire tax year and reconciles slips, deductions, and credits.
Who issues it? Generated by you or your Accountant via tax software.
Why it matters? It is the package filed with the CRA to settle your accounts for the year.
What is it? Issued for income earned from mutual funds or trusts in non-registered accounts.
Who issues it? Trust managers or Mutual Fund companies.
Why it matters? It’s passive income. CRA treats this growth as taxable income.
What is it? Issued if you earned more than $50 in interest from bank accounts or non-registered investments.
Who issues it? Your Bank or Investment Broker.
Why it matters? CRA taxes your interest just like your salary.
What is it? Records the buy/sell prices of stocks or crypto on Canadian exchanges.
Who issues it? Your Investment Broker or Crypto Exchange.
Why it matters? Used to calculate Capital Gains (taxable profit) or Capital Losses (tax savings).
What is it? Records the tuition paid to your College/University.
Who issues it? Your College or University.
Why it matters? These are “Tax Credits” that reduce the tax you owe now or can be saved for future years.
What is it? A bucket where any investment growth (interest, dividends, or capital gains) is 100% Tax-Free.
Why it matters? Any money you make inside this bucket is yours to keep. The government cannot touch it.
What is it? Contributions are deducted from your taxable income this year, giving you an immediate tax break.
Why it matters? It lowers your current tax bill. You only pay tax when you withdraw it in retirement.
What is it? A registered account for first-time homebuyers: contributions can be tax-deductible (like an RRSP), and qualifying withdrawals for a home purchase can be tax-free (like a TFSA), within CRA rules and limits.
Why it matters? It helps you save for a down payment with tax advantages—if you qualify, it can shrink today’s tax bill while keeping your home savings growing efficiently.
What is it? The government agency that collects your taxes.
Why it matters? They are the ultimate authority. Always file on time to keep them happy.
What is it? The CRA’s official response after processing your tax return.
Why it matters? You need this for mortgages, car loans, and family sponsorship.
What is it? Having refunds or benefits sent straight to your bank account instead of by cheque.
Why it matters? You get money faster, with fewer lost-mail risks—set it up with the CRA once your banking details are on file.
What is it? When the CRA sends back the extra tax you paid during the year.
Why it matters? It’s your hard-earned money coming back to you.