Canadian Income Tax Returns and
Benefits
A Tax Base Amount - ✔✔ correct answer A total amount of assets or income that can be taxed by a
taxing authority, usually by the government. Typically, different tax rates will apply to the portion of
taxable income over each portion of your income.
The Canada Revenue Agency's mission - ✔✔ correct answer To administer tax, benefits, and related
programs and ensure compliance on behalf of governments across Canada, thereby contributing to the
ongoing economic and social well-being of Canadians.
The 4 taxpayer's resposibilities - ✔✔ correct answer 1. Tax returns are filed on time
2. Any income tax owed is paid by the filing deadline
3. The infomration declared is accurate and complete
4. The CRA is notified of any changes o their personal information
True or False: Quebec taxpayers have to file a separate provincial income tax return. - ✔✔ correct
answer True
The sources of total income - ✔✔ correct answer Employment income, interest income, pension income,
social assistance income, and self-employment income.
True or False: The income from all sources, both inside and outside of Canada. - ✔✔ correct answer True
Non-taxable income - ✔✔ correct answer The income which is not subject to be reported on the income
tax and benefit return.
True or False: Lottery winnings, gifts and inheritances are taxed in Canada. - ✔✔ correct answer False
Deductions - ✔✔ correct answer The amounts that reduce an individual's income and, as a result, may
lower the amount of income tax that an individual has to pay.
True or False: Deductions include annual union dues and child care expenses. - ✔✔ correct answer True
,Canadian Income Tax Returns and
Benefits
Net income - ✔✔ correct answer The amount remaining once all allowable deductions have been
subtracted from the total income. Net income is used to determine eligibility and calculate entitlement
amounts for most federal and provincial/territorial credits and benefits.
Non-refundable tax credit - ✔✔ correct answer The amounts that an individual can claim to help reduce
or eliminate their tax payable.
True or False: If the total of non-refundable tax credits exeeded the tax owed, there will be a refund for
the difference. - ✔✔ correct answer False
The determinors of non-refundable tax credits - ✔✔ correct answer Inflation, basic personal amount,
age amount, disability amount (for self), tuition education, texbook amounts, contributions, and
employment insurance premiums.
Refundable tax credits - ✔✔ correct answer Tax credits that can be paid to eligible individuals, such as
the Climate action incentive. These credits are issued by the federal and/or provincial government in a
series of payments throughout the year.
An individual personal identification information - ✔✔ correct answer Name, address, date of birth,
social insurance number (SIN), martial status, information about their spouse/common-law partner
Married - ✔✔ correct answer Someone who has a spouse and who is legally married.
Common-law - ✔✔ correct answer Someone who lives in a marriage-like relationship with another
person but is not legally married to that person.
True or False: Does the following situation make you qualify as a common-law partner? - The individual
and their partner have lived together in a marriage-like relationship for at least 6 months in a row
(including any time they were separated for less than 90 days because of a breakdown in the
relationship). - ✔✔ correct answer False
, Canadian Income Tax Returns and
Benefits
True or False: Does the following situation make you qualify as a common-law partner? The individual
has a child with their partner by birth or adoption. - ✔✔ correct answer True
True or False: Does the following situation make you qualify as a common-law partner? The individual's
partner has custody and control of the individual's child (or had custody and control immediately before
the child turned 19 years of age), and the child depends entirely on the individual's partner for support. -
✔✔ correct answer True
Separated - ✔✔ correct answer An individual has been living separately and apart from their spouse or
common-law partner because of a breakdown in their relationship for a period of at least 90 consecutive
days.
True or False: A couple who obtained a legal separation through Family Court is still considered married
or common-law if they continue to reside in the same residence, and should report as such on their tax
return until they no longer live together for at least 90 consecutive days. - ✔✔ correct answer True
Widowed - ✔✔ correct answer Someone whose spouse or common-law partner is deceased and has not
entered into a new union.
Divorced - ✔✔ correct answer Someone who is legally divorced, living separate and apart from their ex-
partner, and is not in a new union.
Single - ✔✔ correct answer The martial status chosen when none of the other marital status options
apply.
Total income - Deduction - ✔✔ correct answer Net income
Net income - Deductions - ✔✔ correct answer Taxable income
(Taxable income*tax bracket) - Non-refundable tax credits - ✔✔ correct answer Total payable
Benefits
A Tax Base Amount - ✔✔ correct answer A total amount of assets or income that can be taxed by a
taxing authority, usually by the government. Typically, different tax rates will apply to the portion of
taxable income over each portion of your income.
The Canada Revenue Agency's mission - ✔✔ correct answer To administer tax, benefits, and related
programs and ensure compliance on behalf of governments across Canada, thereby contributing to the
ongoing economic and social well-being of Canadians.
The 4 taxpayer's resposibilities - ✔✔ correct answer 1. Tax returns are filed on time
2. Any income tax owed is paid by the filing deadline
3. The infomration declared is accurate and complete
4. The CRA is notified of any changes o their personal information
True or False: Quebec taxpayers have to file a separate provincial income tax return. - ✔✔ correct
answer True
The sources of total income - ✔✔ correct answer Employment income, interest income, pension income,
social assistance income, and self-employment income.
True or False: The income from all sources, both inside and outside of Canada. - ✔✔ correct answer True
Non-taxable income - ✔✔ correct answer The income which is not subject to be reported on the income
tax and benefit return.
True or False: Lottery winnings, gifts and inheritances are taxed in Canada. - ✔✔ correct answer False
Deductions - ✔✔ correct answer The amounts that reduce an individual's income and, as a result, may
lower the amount of income tax that an individual has to pay.
True or False: Deductions include annual union dues and child care expenses. - ✔✔ correct answer True
,Canadian Income Tax Returns and
Benefits
Net income - ✔✔ correct answer The amount remaining once all allowable deductions have been
subtracted from the total income. Net income is used to determine eligibility and calculate entitlement
amounts for most federal and provincial/territorial credits and benefits.
Non-refundable tax credit - ✔✔ correct answer The amounts that an individual can claim to help reduce
or eliminate their tax payable.
True or False: If the total of non-refundable tax credits exeeded the tax owed, there will be a refund for
the difference. - ✔✔ correct answer False
The determinors of non-refundable tax credits - ✔✔ correct answer Inflation, basic personal amount,
age amount, disability amount (for self), tuition education, texbook amounts, contributions, and
employment insurance premiums.
Refundable tax credits - ✔✔ correct answer Tax credits that can be paid to eligible individuals, such as
the Climate action incentive. These credits are issued by the federal and/or provincial government in a
series of payments throughout the year.
An individual personal identification information - ✔✔ correct answer Name, address, date of birth,
social insurance number (SIN), martial status, information about their spouse/common-law partner
Married - ✔✔ correct answer Someone who has a spouse and who is legally married.
Common-law - ✔✔ correct answer Someone who lives in a marriage-like relationship with another
person but is not legally married to that person.
True or False: Does the following situation make you qualify as a common-law partner? - The individual
and their partner have lived together in a marriage-like relationship for at least 6 months in a row
(including any time they were separated for less than 90 days because of a breakdown in the
relationship). - ✔✔ correct answer False
, Canadian Income Tax Returns and
Benefits
True or False: Does the following situation make you qualify as a common-law partner? The individual
has a child with their partner by birth or adoption. - ✔✔ correct answer True
True or False: Does the following situation make you qualify as a common-law partner? The individual's
partner has custody and control of the individual's child (or had custody and control immediately before
the child turned 19 years of age), and the child depends entirely on the individual's partner for support. -
✔✔ correct answer True
Separated - ✔✔ correct answer An individual has been living separately and apart from their spouse or
common-law partner because of a breakdown in their relationship for a period of at least 90 consecutive
days.
True or False: A couple who obtained a legal separation through Family Court is still considered married
or common-law if they continue to reside in the same residence, and should report as such on their tax
return until they no longer live together for at least 90 consecutive days. - ✔✔ correct answer True
Widowed - ✔✔ correct answer Someone whose spouse or common-law partner is deceased and has not
entered into a new union.
Divorced - ✔✔ correct answer Someone who is legally divorced, living separate and apart from their ex-
partner, and is not in a new union.
Single - ✔✔ correct answer The martial status chosen when none of the other marital status options
apply.
Total income - Deduction - ✔✔ correct answer Net income
Net income - Deductions - ✔✔ correct answer Taxable income
(Taxable income*tax bracket) - Non-refundable tax credits - ✔✔ correct answer Total payable
