Tax Teaching Student Manual

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Teaching TaxesStudent workbook

2013

TIS17(E) Rev. 13


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Page Pag

Canadas tax system........................................ 4

Taxpayer Bill of Rights.................................. 6

Goods and services tax/harmonized salestax (GST/HST) credit................................... 9

T4 slip sample.................................................. 10

Instructions to complete Catherinesincome tax and benefit return................... 11

Tax Scenarios................................................... 1Exercise 1 High school student ................... 1Exercise 1(QC) High school student

(Quebec residents) ........................................ 1

Exercise 2 Post secondary student .............. 1Exercise 3 Employed individual with a

spouse ............................................................. 2Exercise 4 Single-parent ............................... 2Exercise 5 Aboriginal person ....................... 2

Quick reference chart..................................... 2

Your opinion counts ........................................ 2

Table of contents


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Guiding principles New tax legislationThe federal government follows these guidelines when it develops new tax legislation:

Fairness the tax system needs to ensure the tax burden is shared fairly by all taxpayers. People with

similar financial circumstances should receive the same tax treatment. Also, similar products shouldbe subject to the same rate of sales tax.

Stability the federal government needs a stable and dependable source of tax revenue so it canmanage the countrys economy.

Canadian priorities the tax system helps meet the national/provincial/territorial and economicneeds that are priorities for most Canadians.

Consultation the federal government is committed to consulting Canadians before making finallegislative proposals for tax amendments.

Federal responsibilitiesCanadas tax system has evolved over many years to accommodate the needs of an increasinglycomplex society. However, the guiding principle has always been the same: our elected Parliamentmust have ultimate control over tax legislation.

The federal Minister of Financeproposes changes in the Government of Canadas tax policy bytabling budgets in Parliament. The reasons behind such changes in tax law are explained in budgetdocuments issued by the Department of Finance Canada. After Parliament debates and approves theproposed legislation, it becomes law.

The Department of Financeinitiates tax policy, and Parliament passes laws.

The Canada Revenue Agency (CRA)administers these laws. The CRA is responsible foradministering Canadian tax laws and supporting Canadas social and economic progress.

The CRA oversees various tax credit and benefit programs, and collects:

federal, provincial (except in Quebec), and territorial income taxes;

GST/HST (except in Quebec);

Canada Pension Plan contributions; and

employment insurance premiums.

The CRA also administers Canadas international tax agreements with other countries.In the province of Quebec: Revenu Qubec collects and administers the provincial income taxes andGST/HST for Quebec. In addition, the province of Quebec does not participate in the Canada PensionPlan but administers the Quebec Pension Plan instead.

Canadas tax system


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Self-assessment principleCanadian residents and non-residents with Canadian income are responsible for making sure theyhave paid their taxes according to the Income Tax Act. Income and deductions are listed on the incometax and benefit return so both the taxpayer and the CRA can calculate the taxes the taxpayer has topay. In this way, taxpayers can check to make sure they are receiving fair and equal treatment under

the Income Tax Act. At the same time, the CRA can properly administer the tax laws.The fairness and efficiency of the federal income tax system depends on the CRA to interpret andapply the law in a uniform and impartial way, and the taxpayer to make an honest self-assessment oftheir tax payable each year.

Taxpayers are responsible for:

filing an income tax and benefit return by the deadline;

paying the correct amount of tax;

giving the CRA the necessary information to assess their return; and

giving the CRA up-to-date information in order to receive accurate benefits and to avoidunnecessary delays in sending the benefits.


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he Taxpayer Bill of Rights will make it easier for you to understand what you can expect in yourdealings with the CRA. You will be treated fairly under clear and established rules, and you can

look forward to high standards of accuracy, professionalism, and courteousness in all of yourinteractions with the CRA.

1. You have the right to receive entitlements and to pay no more and no less than what is requiredby law.You can expect to receive the benefits, credits and refunds to which you are entitled under the lawand to pay no more and no less than the correct amount required under the law.

2. You have the right to service in both official languages.You can expect us to communicate with you and provide services in the official language of yourchoice (English or French) on the Internet, by telephone, in writing, or at our designated bilingualoffices.

3. You have the right to privacy and confidentiality.You can expect us to protect the confidentiality of the information that you provide. Yourinformation will be used only for purposes allowed by law. Only those persons who are authorized

by law and who require the information to administer programs and legislation have the right toaccess your personal and financial information.

4. You have the right to a formal review and a subsequent appeal.You are entitled to a formal review of your file if you believe that we have not applied the lawcorrectly or that you have not received your full entitlements. Appeals officers who were notinvolved in the original decision will conduct a formal and impartial review. Filing an objection (anappeal in the case of assessments and rulings related to the Canada Pension Plan or employmentinsurance) will start the review by Agency appeals officers. If they do not resolve the matter toyour satisfaction, you are entitled to appeal to the courts.

5. You have the right to be treated professionally, courteously, and fairly.

You can expect we will treat you courteously and with consideration at all times, including whenwe request information or arrange interviews and audits. Integrity, professionalism, respect, andco-operation are our core values and reflect our commitment to giving you the best possibleservice. You can also expect us to listen to you, take your circumstances into account, and treat youfairly to make fair and impartial decisions in accordance with the law. We will explain our decisionand inform you about your rights and obligations with respect to that decision.

6. You have the right to complete, accurate, clear, and timely information.You can expect us to provide you with complete, accurate, and timely information that will explainin plain language the laws and policies that apply to your situation, to help you get yourentitlements and meet your obligations.

7. You have the right, as an individual, not to pay income tax amounts in dispute before you havehad an impartial review.You are entitled to withhold payment of assessed income tax amounts that you are disputing in aformal objection, other than source deductions, until you have had a formal review by the CRA or,if you have filed an appeal, until the Tax Court of Canada has issued its decision. If you appeal to ahigher court, you will be able to provide equivalent security instead of paying the amount indispute. However, in certain circumstances that are specified in the legislation, the CRA canexercise its authority to take collection action even though an objection or appeal has been filed.

Taxpayer Bill of Rights

T


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8. You have the right to have the law applied consistently.You can expect us to apply the law consistently so everyone gets their entitlements and pays theright amount. We will take your particular circumstances into account to the extent that thelegislation we administer allows us to do so.

9. You have the right to lodge a service complaint and to be provided with an explanation of ourfindings.You can expect that if you lodge a complaint about the service you receive from us, you will be

listened to and given the opportunity to explain your situation. We will deal with your complaintpromptly, impartially, and in confidence, and we will provide you with an explanation of ourfindings.

10. You have the right to have the costs of compliance taken into account when administering taxlegislation.We recognize the need to keep to a minimum your costs, including your time and effort, that areincurred to comply with the tax and benefit legislation we administer while balancing ourresponsibility to administer the legislation efficiently and economically. We strive to make ourdealings with you as straightforward and convenient as possible.

11. You have the right to expect us to be accountable.

You have the right to expect us to be accountable for what we do. When we make a decision aboutyour tax or benefit affairs, we will explain that decision and inform you about your rights andobligations in respect of that decision. We are also accountable to Parliament, and throughParliament to Canadians, for what we do. We report to Parliament on our performance withrespect to tax services and benefit programs and the results we achieve against our publishedservice standards.

12. You have the right to relief from penalties and interest under tax legislation because ofextraordinary circumstances.You can expect us to consider your request to waive or cancel in whole or in part any penalty andinterest charges if you were prevented from complying with your tax obligations because ofcircumstances beyond your control, e.g. a disaster such as a flood or fire, or if penalty or interest

arose primarily because of erroneous actions of the CRA, e.g. material available to the publiccontained errors which led you to file incorrect returns or make incorrect payments based onincorrect information.

13. You have the right to expect us to publish our service standards and report annually.You have the right to expect us to make our service standards publicly available for you to consult.Our service standards state the level of performance that you can reasonably expect to encounter inyour dealings with us under normal circumstances. You can also expect us to measure ourperformance against our service standards and publish the results in the CRA Annual Report thatis tabled in Parliament every year.

14. You have the right to expect us to warn you about questionable tax schemes in a timely manner.You can expect the CRA to provide timely and relevant information about questionable taxschemes that the CRA intends to scrutinize so that you can recognize and avoid falling into taxschemes that could put you at odds with Canadas tax laws. We strive to provide information thatwill help you understand how to protect yourself against tax schemes and understand theconsequences you may face as a result of your participation in tax schemes.

15. You have the right to be represented by a person of your choice.You can get advice about your tax and benefit affairs from and be represented by a person of yourchoice. If you provide us with authorization, we will discuss your situation with the representativeof your choice. However, it is important for you to be aware that you are legally responsible for


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your tax and benefit affairs even if you choose to obtain assistance or have someone act on yourbehalf.

16. You have the right to lodge a service complaint and request a formal review without fear ofreprisal.You have the right to lodge a service complaint and request a formal review and to be confidentthe CRA will treat you impartially, and that you will receive the benefits, credits, and refunds towhich you are entitled, and pay no more and no less than what is required by law.


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Determining eligibility for the GST/HST creditYou are eligible to receive the goods and services tax/harmonized sales tax (GST/HST) credit if, atthe beginning of the month in which the CRA makes a payment, you are resident in Canada forincome tax purposes, and at least one of the following applies:

you are 19 years of age or older;

you have (or previously had) a spouse or common law partner; or

you are (or previously were) a parent and live (or previously lived) with your child.

If you apply for the credit when you file your 2013 tax return, and file your return with the CRA bythe due date of April 30, 2014, you will receive payments in July and October of 2014 and in Januaryand April of 2015.

Note

If you turn 19 before April 1, 2015, you can apply for the GST/HST credit when you file your 2013 taxreturn. That way, you will receive the first payment of the credit the month after your 19th birthday.For more information, go to www.cra.gc.ca/gsthstcredit, see Pamphlet RC4210, GST/HST Credit, orcall 1-800-959-1953.

Goods and services tax/harmonized sales tax(GST/HST) credit


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Employer's account number / Numro de compte de l'employeur

Employee's QPP contributions line 308Cotisations de l'employ au RRQ ligne 308

Employee's CPP contributions line 308Cotisations de l'employ au RPC ligne 308

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18

RPP contributions line 207Cotisations un RPA ligne 207

20

52

Employee's PPIP premiums see overCotisations de l'employ au RPAP voir au verso

55

Pension adjustment line 206Facteur d'quivalence ligne 206

Employee's EI premiums line 312Cotisations de l'employ l'AE ligne 312

16

Employer's name Nom de l'employeur

YearAnne

54

Employment income line 101Revenus d'emploi ligne 101

22

Income tax deducted line 437Impt sur le revenu retenu ligne 4

24

EI insurable earningsGains assurables d'AE

Union dues line 212Cotisations syndicales ligne 2

RPP or DPSP registration numNd'agrment d'un RPA ou d'un R

Employment codeCode d'emploi

29

10

Province of employmentProvince d'emploi

56

PPIP insurable earningsGains assurables du RPAP

50

46

Charitable donations line 34Dons de bienfaisance ligne 3

44

26

CPP/QPP pensionable earningsGains ouvrant droit pension RPC/

14

12

Box Case

Box Case

Box Case Amount MontantAmount Montant

Amount Montant Amount Montant

Amount Montant

Amount MontantBox CaseBox Case

T4Statement of Remuneration Paid

tat de la rmunration paye

Employee's name and addressNom et adresse de l'employ

Last name (in capital letters) Nom de famille (en lettres moules) First name Prnom Initial Initiale

Other information(see over)

Autresrenseignements(voir au verso)

ExemptExemption

T4(13)

Protected

Bw

hencompleted/ProtgBun

efoisrempli

CPP/QPP

RPC/RRQ

Box Case

EI

RPAP

PPIP

AE

Social insurance numberNumro d'assurance sociale

81 Placement or employment agencyworkers

82 Taxi drivers and drivers of otherpassenger-carrying vehicles

83 Barbers or hairdressers

Gross incomeSee Form T2125.Do not enter on line 101.

77 Workers' compensation benefits repaid to the employer Enter on line 229.

85 Employee-paid premiums for private health services plans See line 330in your tax guide.

84 Public transit pass See line 364 in your tax guide.

87 Volunteer firefighter exempt amount Report this amount onlyif you areclaiming an amount on line 362. See lines 101 and 362 in your tax guide.

75 Past service contributions for 1989 or earlier years while not acontributor See line 207 in your tax guide.

78 FishersGross income

80 FishersShareperson amount

79 FishersNet partnership amount See Form T2121.Do not enter on line 101.

72 Section 122.3 incomeEmployment outside Canada See Form T626.

74 Past service contributions for 1989 or earlier years while a contributor

73 Number of days outside Canada See Form T626.

86 Security options election

88 Indian (exempt income) Self-employment

30 Board and lodging

32 Travel in a prescribed zone

34 Personal use of employer's automobile or motor vehicle

40 Other taxable allowances and benefits

70 Municipal officer's expense allowance

71 Indian (exempt income) Employment

69 Indian (exempt income)Non-eligible retiring allowances

68 Indian (exempt income)Eligible retiring allowances

33 Medical travel assistance

31 Special work site

36 Interest-free and low-interest loans

38 Security options benefits

Do not report these amounts on your tax return. For Canada Revenue Agency use only.(Amounts in boxes 30, 32, 34, 36, 38, 40, and 86 are already included in box 14.)

Report these amounts on your tax return.

14 Employment income Enter on line 101.

37 Employee home-relocation loan deduction Enter on line 248.

39 Security options deduction 110(1)(d) Enter on line 249.

41 Security options deduction 110(1)(d.1) Enter on line 249.

46 Charitable donations See line 349 in your tax guide.

42 Employment commissions Enter on line 102.This amount is already included in box 14.

44 Union dues Enter on line 212.

43 Canadian Forces personnel & police deduction Enter on line 244.This amount is already included in box 14.

52 Pension adjustment Enter on line 206.

17 Employee's QPP contributions See line 308 in your tax guide.

18 Employee's EI premiums See line 312 in your tax guide.

20 RPP contributions Includes past service contributions.See line 207 in your tax guide.

22 Income tax deducted Enter on line 437.

16 Employee's CPP contributions See line 308 in your tax guide.

55 Provincial Parental Insurance Plan (PPIP) Residents of Quebec, seeline 375 in your tax guide. Residents of provinces or territories other than

Quebec, see line 312 in your tax guide.

66 Eligible retiring allowances See line 130 in your tax guide.

67 Non-eligible retiring allowances See line 130 in your tax guide.

Privacy Act, personal information bank numbers CRA PPU 005 a


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The General Income Tax and Benefit Guideprovides line-by-line instructions on how to complete a taxreturn. If you need information on any area of the return, read the corresponding area of the guide.

Page 1

IdentificationEnter Catherines name and address.

Information about your residenceEnter your province or territory of residence.

Information about youEnter Catherines SIN and date of birth, and select the language of choice.

Marital statusTick the box that applies to Catherines marital status.

Elections Canada

In this section, taxpayers can give the CRA permission to give their name, address, date of birth, andcitizenship to Elections Canada to update the National Register of Electors.

GST/HST credit applicationTo receive the GST/HST credit, including any related provincial credits, you have to apply for it, even ifyou received it last year. Catherine will not be eligible for the GST/HST credit because she will notbe 19 before April 1, 2015.

Page 2

Please answer the following questionTick Noas Catherine does not have foreign property.

Review the Total income section. Enter amounts on the following lines for Catherine.

Line 101 Employment incomeEnter the total of amounts shown in box 14 of Catherines T4 slips.

Line 104 Other employment incomeEnter the amount of tips Catherine received while working at Marios Pizzeria.

Line 150 Total incomeSince Catherine does not have any other income, enter the total of lines 101 and 104.

Instructions to complete Catherines income taxand benefit return


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Page 3

Review the deductions available in the Net income and Taxable income sections.

Line 150 Total incomeCopy the amount from line 150 on page 2.

Line 234 Net income before adjustmentsSince none of the deductions of lines 206 to 232 apply to Catherine, enter the amount from line 150.

Line 236 Net incomeSince Catherine does not have an amount on line 235, enter the amount from line 234.

Line 260 Taxable incomeSince none of the deductions of lines 244 to 256 apply to Catherine, enter the amount from line 236.

NoteBefore completing page 4 of the return, calculate Catherines federal tax on Schedule 1.

Schedule 1, Federal Tax

Complete Schedule 1 to calculate the non-refundable tax credits and the federal tax on taxableincome.

Step 1 Federal non-refundable tax credits

Non-refundable tax credits reduce your federal tax. However, if the total of these credits is more thanyour federal tax, you will not get a refund for the difference.

Review the non-refundable tax credits available in this section.

Line 300 Basic personal amountClaim the federal basic personal amount.

Line 308 CPP or QPP contributionsCPP or QPP contributions are normally shown in boxes 16 or 17 of the T4 slip. You have to be at least18 years of age to contribute to CPP or QPP.

Since Catherine was not 18 years of age, she was exempt from paying CPP or QPP contributions.Therefore, box 28 of her T4 slips is marked with an X.

Line 312 Employment insurance premiumsEnter the total of amounts shown in box 18 of Catherines T4 slips.

Line 375 Provincial parental insurance plan (PPIP) premiums paid (QC only)For students using Exercise 1(QC) only: Enter the total of amounts from box 55 of CatherinesT4 slips.

Line 363 Canada employment amountSince Catherine has employment income, enter the amount she is entitled to.

Lines 335 to 350

Calculate the amounts for lines 335, 338, and 350 by following the line-by-line instructions.

Step 2 Federal tax on taxable income

Copy Catherines taxable income from line 260 on page 3 of the return to line 38 (line 41 for residentsof Quebec). Since Catherines taxable income is not more than $43,561, complete the first column.


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Step 3 Net federal tax

Enter the applicable amounts on lines 46 and 49 (lines 49 and 52 for residents of Quebec). Follow theline-by-line instructions to calculate amounts for lines 48, 53, 54, 56, 62, and 65 (lines 51, 56, 57, 59,65, and 68 for residents of Quebec).

Page 4

Complete the Refund or balance owing section to find out whether Catherine has to pay additionaltaxes or if she is entitled to a refund.

Line 420 Net federal taxEnter the net federal tax you calculated in Step 3 of Schedule 1.

Line 428 Provincial or territorial tax (other than Quebec)Calculate Catherines provincial or territorial tax using Form 428 for your province or territory ofresidence.

Line 435 Total payableEnter the total of lines 420 and 428.

Line 437 Total income tax deducted

Enter the total of amounts from box 22 of Catherines T4 slips.

Line 440 Refundable Quebec abatement(QC only)For students using Exercise 1(QC) only: Calculate this amount.

Line 479 Provincial or territorial creditsProvincial or territorial credits may be available for some provinces or territories. See the informationsheet for your province or territory to learn about the credits available to you.

Line 482 Total creditsEnter the total of lines 437 to 479.

Refund or balance owing

Subtract the amount on line 482 from the amount on line 435. If the result is negative you have arefund. Enter the amount on line 484.

If the result is positive, you have a balance owing. Enter the amount on line 485.


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X

Based on the information given, complete Catherine's tax return.

To complete this return, you will need the following:


T1 General, Income Tax and Benefit Return

If province of residence is Quebec: use Exercise 1(QC) High school student (Quebec residents).

Catherine Casey is a high school student who lives at home with her parents. She was born on November 13, 1996 and sheworks part time at Best Bookstore and Mario's Pizzeria.

In February, her employers sent her the attached T4 information slips.

Last year, she earned $300.00 in tips (not indicated on T4) at Mario's Pizzeria.

14




1728

18


20

52


55



16


YearAnne

54


22


24



RPP or DPSP registration numbeNd'agrment d'un RPA ou d'un R


29

10


56


50

46


44

26

CPP/QPP pensionable earningsGains ouvrant droit pension RPC/R

14

12

Box Case

Box Case



Amount Montant








ExemptExemption

T4(13)

Prote

cted

Bw

hencompleted/Protg

Bu

nefoisrempli

CPP/QPP

RPC/RRQ

Box Case

EI

RPAP

PPIP

AE


123 Main StreetCity, Province X0X 0X0

CASEY Catherine

3,600 00 150 00

BEST BOOKSTORE

123 456 789

67 68

0 00

2013

Exercise 1High school student


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X




1728

18


20

52


55



16


YearAnne

54


22


24





29

10


56


50

46


44

26


14

12

Box Case

Box Case



Amount Montant








ExemptExemption

T4(13)

Protected

Bw

h

encompleted/ProtgBu

nefois

rempli

CPP/QPP

RPC/RRQ

Box Case

EI

RPAP

PPIP

AE



CASEY Catherine

2,600 00 101 00

MARIO'S PIZZERIA

123 456 789

48 88

0 00

2013


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Based on the information given, complete Catherine's tax return.




Catherine Casey is a high school student who lives at home with her parents. She was born on November 13, 1996 and sheworks part time at Librairie Bouquinez and Pizzeria di Mario.

In February, her employers sent her the attached T4 information slips.

Last year, she earned $300.00 in tips (not indicated on T4) at Pizzeria di Mario.

16

Exercise 1(QC)High school student (Quebec residents)

X




1728

18


20

52


55



16


YearAnne

54


22


24





29

10


56


50

46


44

26


14

12

Box Case

Box Case



Amount Montant








ExemptExemption

T4(13)

Protec

ted

Bw

hencompleted/ProtgBu

nefoisrempli

CPP/QPP

RPC/RRQ

Box Case

EI

RPAP

PPIP

AE


123, rue PrincipaleCity, Quebec X0X 0X0

CASEY Catherine

3,600 00 150 00

LIBRAIRIE BOUQUINEZ

123 456 789

54 72

0 00

2013

20 12 3,600 00



X



Employee's CPP contributions line 308

Cotisations de l'employ au RPC ligne 308

1728

18


20

52


55



16


YearAnne

54


22


24

EI insurable earnings

Gains assurables d'AE




29

10

Province of employment

Province d'emploi

56


50

46


44

26


14

12

Box Case

Box Case



Amount Montant








ExemptExemption

T4(13)

Protected

Bw

henc

ompleted/ProtgBu

nefoisrem

pli

CPP/QPP

RPC/RRQ

Box Case

EI

RPAP

PPIP

AE


123, rue Principale

City, Quebec X0X 0X0

CASEY Catherine

2,600 00 101 00

PIZZERIA DI MARIO

123 456 789

39 52

0 00

2013

14 53 2,600 00


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Based on the information given, complete Sue's tax return.

Sue Brown attends a post-secondary institution. She was born on August 2, 1993 and is single.

During the year, she received a scholarship of $3,500 from her post-secondary institution, Town University. This amount isshown on the attached T4A information slip.

Sue moved to her parents' home for the summer months (a distance of 500 kilometres) and got a job there at Streamers. Shecompleted Form T1-M, Moving Expenses Deduction, listing her expenses of $300 for the move, and determined that she canclaim the expenses on her tax return.

The attached T2202A information slip that the post-secondary institution gave her shows she paid tuition fees of $2,500 for thcourses she took last year. According to the slip, she can claim the education and textbook amounts for eight months. Shewants to carry forward any amount she cannot use this year.

She earned $12,300 at Streamers during the summer. They sent her the attached T4 information slip.

She earned $52 interest in her savings account at the North Bank. The bank sent her the attached T5 information slip.

Last year, Sue paid $720.00 for her public transit passes ($60 a month).



Schedule 4, Statement of Investment Income

Schedule 11, Tuition, Education, and Textbook Amounts


18

Exercise 2 Post-secondary student




1728

18


20

52


55



16


YearAnne

54


22


24





29

10


56


50

46


44

26


14

12

Box Case

Box Case



Amount Montant








ExemptExemption

T4(13)

Protected

Bw

henco

mpleted/ProtgBu

nefoisremp

li

CPP/QPP

RPC/RRQ

Box Case

EI

RPAP

PPIP

AE



BROWN SUE

12,300 00 1,995 00

STREAMERS

123 456 789

231 24

2013

435 60

12,300 00



Box CaseAmount Montant

Box Case Amount Montant



013

Recipient's account numberNumro de compte du bnficiaire

012


Self-employed commissionsCommissions d'un travail indpendant

Pension or superannuation line 115Prestations de retraite ou

autres pensions ligne 115

Lump-sum payments line 130Paiements forfaitaires ligne 130

AnnuitiesRentes

018

Fees for servicesHonoraires ou autres sommes

pour services rendus


Recipient's name and addressNom et adresse du bnficiaireLast name (in capital letters) Nom de famille (en lettres moules) First name Prnom Initials Initiales

Other information (see over)Autres renseignements (voir au verso)

T4AStatement of Pension, Retirement, Annuity,

and Other Incometat du revenu de pension, de retraite, de rent

ou d'autres sources

YearAnne

Amount MontantBox Case Amount MontantBox Case




061 Payer's account number / Numro de compte du payeur

T4A(13)

048

020

022016

Payer's name Nom du payeur

024

Protected

Bw

hencomp

leted/ProtgBu

nefoisrempli

2013TOWN UNIVERSITY

123 456 789


BROWN SUE

3,500 00105

For information, see the back.Pour obtenir des renseignements,

lisez le verso.Recipient account

Numro de compte du bnficiaire

Currency and identification codesCodes de devise et d'identification

Foreign currencyDevises trangres

2927 28

Transit Succursale

Statement of Investment Incometat des revenus de placementT5

T5 (13)

Anne

Year

Dividends from Canadian corporations Dividendes de socits canadiennes Federal credit Crdit fdral

24 26 13 18Actual amount of eligible dividends

Montant rel des dividendes dtermins

Taxable amount of eligible dividends

Montant imposable des dividendesdtermins

Dividend tax credit for eligibledividends

Crdit d'impt pour dividendes dtermins

Interest from Canadian sources

Intrts de source canadienne

Capital gains dividends

Dividendes sur gains en capital

25

Actual amount of dividendsother than eligible dividends

Other information(see the back)

Autres renseignements(voir au verso)

Taxable amount of dividendsother than eligible dividends

Dividend tax credit for dividendsother than eligible dividends Repor t Code Recip ient identi fi ca tion number Recipient type

Type de bnficiaireNumro d'identification du bnficiaireCode du feuilletCrdit d'impt pour dividendes

autres que des dividendes dterminsMontant imposable des dividendes

autres que des dividendes dtermins

10 11 12 21 22 23

Montant rel des dividendes

autres que des dividendes dtermins

Box / Case Amount / Montant Box / Case

Payer's name and address Nom et adresse du payeur

Box / Case Amount / Montant

Recipient's name (last name first) and address Nom, prnom et adresse du bnficiaire

Amount / Montant

Privacy Act, personal information bank number CRA PPU 150 and CRA PPU 005 / Loi sur la protection des renseignements personnels, fichiers de renseignements personnels ARC PPU 150 et ARC PPU 005

Protected B / Protg Bwhen completed / une fois rempli2013

52.00

123 456 789

BROWN SUE


NORTH BANK


20/28

www.cra.gc.ca20

4

4

82,500

1,2501,25013

BROWN, SUE123 Main StreetCity, Province X0X 0X0

TOWN UNIVERSITY

Name and address of educational institution Nom et adresse de l'tablissement d'enseignement

Student number Numro d'tudiantName of program or courseNom du programme ou du cours

Session periods, part-time and full-timePriodes d'tudes temps partiel

et temps plein

From De

Y A

Number of months for

Nombre de mois :

M

CFull-tim

Tempsplein

Totals

AEligible tuition fees,

part-time and full-timesessions

Frais de scolaritadmissibles pour tudes temps partiel et temps

plein

To

BPart-time

Tempspartiel

Totaux

Y A M

Name and address of student Nom et adresse de l'tudiant

Tuition, Education, and Textbook Amounts CertificateCertificat pour frais de scolarit, montant relatif aux tudes

et montant pour manuels

Information for students:See the back of copy 1. If you want to transfer all or part of your tuition, education, and textbook amounts, complete the back of copy 2.Renseignements pour les tudiants :Lisez le verso de la copie 1. Si vous dsirez transfrer une partie ou la totalit de vos frais de scolarit et de vos montants relatifs aux tudes et pour manuels, remplissez le verso de la copie 2.

T2202A (1For student

Pour l'tudiant

Dlivrez ce certificat un tudiant qui tait inscrit, au cours de l'anne civile, un programme deformation admissible ou un programme de formation dtermin dans un tablissement postsecondacomme un collge ou une universit, ou dans un tablissement reconnu par Ressources humaines etDveloppement des comptences Canada (RHDCC).

Les frais de scolarit pays un tablissement quelconque pour une anne civile doivent dpasser 10Les frais pays un tablissement postsecondaire doivent viser des cours de niveau postsecondaire.Les frais pays un tablissement reconnu par RHDCC doivent viser des cours suivis en vue d'acquou d'amliorer des comptences professionnelles, et l'tudiant doit avoir 16 ans ou plus avant la fin del'anne.

N'inscrivez pas le cot des manuels sur ce formulaire . L'tudiant calcule les montants relatifs auxtudes etpour manuels d'aprs le nombre de moisindiqu dans les cases B ou C ci-dessous.

Issue this certificate to a student who was enrolled during the calendar year in a qualifyingeducational program or a specified educational program at a post-secondary institution, such asa college or university, or at an institution certified by Human Resources and Skills DevelopmentCanada (HRSDC).

Tuition fees paid in respect of the calendar year to any one institution have to be more than$100. Fees paid to a post-secondary institution have to be for courses taken at thepost-secondary level. Fees paid to an institution certified by HRSDC have to be for coursestaken to get or improve skills in an occupation, and the student has to be 16 years of age orolder before the end of the year.

Do not enter the cost of textbooks on this form. Students calculate the education andtextbook amounts based on the number of monthsindicated in Box B or C below.

12-345International Business

01

0913

0413

1213


21/28www.cra.gc.ca

Last year, Trevor Nowen, who is married to Ivana (SIN 987 654 321), started a job as a graphic artist at GracoDesigns. Hewas born August 2, 1987. During the year he earned $28,000 and in February his employer sent him a T4 information slip.

In December, he contributed $1,180 to a registered retirement savings plan (RRSP) at his local bank. The bank gave him anofficial RRSP contribution slip showing this amount. Trevor has determined he has the RRSP deduction limit to claim the fullamount on his tax return.

Ivana earned $4,000 from consulting work. The payer withheld no deductions at source and Ivana had no business expenses

Based on the information given, complete Trevor's tax return.

Trevor also received $22 interest from his savings account at the bank. He did not receive a T5 information slip for this amoun


Schedule 5, Amounts for Spouse or Common-Law Partner and Dependants

Schedule 4, Statement of Investment Income



21




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20

52


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16


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54


22


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29

10


56


50

46


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Box Case

Box Case



Amount Montant








ExemptExemption

T4(13)

Protected

Bw

h

encompleted/ProtgBu

nefois

rempli

CPP/QPP

RPC/RRQ

Box Case

EI

RPAP

PPIP

AE



NOWEN TREVOR

28,000 00 3,700 00

GRACODESIGNS

123 456 789

526 40

2013

28,000 00

1,212 75

Exercise 3 Employed individual with spouse


22/28www.cra.gc.ca

During the year, she worked for 40 weeks and earned $34,790. This income, plus other relevant information, is shown on theattached T4 information slip.

Based on the information given, complete Karen's tax return.

Karen sent her child to Beacon Nursery while she was working. Karen has partially completed the attached Form T778,ChildCare Expenses Deduction for 2013, and has determined that she is entitled to claim $3,160 for child care expenses on her taxreturn.

Karen paid $9,000 in rent last year.

Karen Partridge is a single mother of a young child, Annie, born June 4, 2010. Karen's date of birth is May 15, 1979.



Schedule 5, Amounts for Spouse or Common-Law Partner and Dependants

Form T778, Child Care Expenses Deduction for 2013 (you must finish the partially completed Form T778 included)

T1 General,Income Tax and Benefit Return

She also received $950 in social assistance payments and $1,200 in Universal Child Care Benefit payments. These paymentsare shown on the attached information slips T5007, Statement of Benefits, and RC62, Statement of Universal Child CareBenefit.

22

Exercise 4 Single-parent




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29

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Box Case

Box Case



Amount Montant








ExemptExemption

T4(13)

Protected

Bw

henco

mpleted/ProtgBu

nefoisremp

li

CPP/QPP

RPC/RRQ

Box Case

EI

RPAP

PPIP

AE



PARTRIDGE KAREN

34,790 00 5,250 00

AQUANTIC

123 456 789

654 05

2013

34,790 00

1,548 85

165 00

782 50

1,565 00


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2013 1,200.00123 456 789

PARTRIDGE Karen123 Main StreetCity, Province X0X 0X0

Total benefit paid Repayment of previous-years benefits

Remboursement de prestations d'annes prcdente

UNIVERSAL CHILD CARE BENEFIT STATEMENTTAT DE LA PRESTATION UNIVERSELLE POUR LA GARDE D'ENFANTS

Year Social Insurance Number 10 12

Anne Numro d'assurance sociale Prestation totale verse

Year / Anne Amount / Montant Year / Anne Amount / MontantIssued by: Human Resources and Skills Development Canada

RC62 (10/12)

mis par : Ressources humaines etDveloppement des comptences Canada

RC6

23

T5007(13)

Recipient's name and address Nom et adresse du bnficiaire

Last name (please print)Nom de famille (en lettres moules)

12

Payer's name and addressNom et adresse du payeur

11Year

Anne Indemnits pour accidents du travailPrestations d'assistance sociale ousupplment provincial ou territorial Numro d'assurance sociale

Workers' compensation benefits Social assistance payments orprovincial or territorial supplements

Social insurance number10

Code de genrede feuillet

Report code

First namePrnom

InitialsInitiales

13

T5007Statement of benefitstat des prestations

Privacy Act, personal information bank number CRA PPU 005 and CRA PPU 150

Loi sur la protection des renseignements personnels, fichier de renseignements personnels ARC PPU 005 et ARC PPU 150

Protected B / Protg Bwhen completed / une fois rem

2013 950.00 123 456 789

PARTRIDGE KAREN



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www.cra.gc.ca24

Protected Bwhen completeChild Care Expenses Deduction for 2013

Read the attached information sheet. On the sheet we define child care expenses, eligible child, net income,earned income, andeducational program. For more information, see Income Tax Folio S1-F3-C1, Child Care Expense Deduction.

Each person claiming the child care expenses deduction must attach a completed Form T778 to his or her return.

Do not include receipts, but keep them in case we ask to see them at a later date.

If you are the only person claiming child care expenses, complete parts A and B, and, if it applies, Part D.

If there is another person(as described under "Who can claim child care expenses?" on the attached sheet) and you are the one with thelower net income, complete parts A and B.

If there is another person(as described under "Who can claim child care expenses?" on the attached sheet) and you are the one with thehigher net income, complete parts A, B, C, and, if it applies, Part D.

List the first and last namesand the dates of birthof all your eligible children,even if you did not pay child care expenses for all of them. Year Month Day

First name of eachchild for whompayments were made

Child careexpenses paid(see note below)

Name of the child care organizationor the name and social insurancenumber of the individual who received the payments

Number of weeks forboarding schools orovernight camps

+++

+

Total=

Note: The maximum you can claim for expenses that relate to a stay in a boarding school (other than education costs) or anovernight camp (including an overnight sports school) is $175 per weekfor a child included on line 1 in Part B, $250 per weekfor a child included on line 2, and $100 per weekfor a child included on line 3.

Enter any child care expenses included above that were incurred in 2013 for a child who was 18 or older. 6795

Part ATotal child care expenses

Number of eligible children:

Born in 2007 or later, for whom the disability amount cannot be claimed = 1Born in 2013 or earlier, for whom the disability amount can be claimed * = 6796 + 2Born in 1997 to 2006, (and born in 1996 or earlier, with a mental or physicalimpairment, for whom the disability amount cannot be claimed) = + 3Add lines 1, 2, and 3. = 4

Enter your total child care expensesfrom Part A. 5

Enter your earned income. 23

= 6

Enter the amount from line 4, 5, or 6, whichever is least. 7

If you are the person with the higher net income, go to Part C. Leave lines 8 and 9 blank.

Enter any child care expenses that the other person(as described under "Who can claim child careexpenses?" on the attached sheet) with the higher net income deducted on line 214 of his or her 2013 return. 8

Line 7 minus line 8. If you attended school in 2013 and you are the only person making a claim, also go toPart D. Otherwise, enter this amount on line 214 of your return. Allowable deduction = 9

* Attach Form T2201, Disability Tax Credit Certificate. If this form has already been filed for the child, attach a note to your returnshowing the name and social insurance number of the person who filed the form and the tax year for which it was filed.

Part BBasic limit for child care expenses

T778 E (13) (Vous pouvez obtenir ce formulaire en franais www.arc.gc.ca/formulaires ou en composant le 1-800-959-7383.)

Annie Partridge 2 0 1 0 0 6 0 4

Annie3,160.00

Beacon Nursery

3,160.00

7 000

$10,000

4 000


25/28www.cra.gc.ca

Ronald Lacroix is a single registered Indian, born on July 8, 1978. Last year, he worked as a full-time administrator for amedical clinic located on a reserve. His employer, Big Isle Health Clinic, has elected to participate in the CPP.

Ronald also works part-time for an organization dedicated to developing social programs for local youth. The organizationis located off reserve and all of Ronald's work is carried out off reserve.

Based on the information given, complete Ronald's tax return.


Schedule 1,Federal Tax

T1 General,Income Tax and Benefit Return

For assistance in completing this return, go to www.cra.gc.ca/brgnls/gdlns-eng.html.

25

Exercise 5 Aboriginal person




17

28

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29

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Amount Montant








ExemptExemption

T4(13)

Protected

Bw

hencompleted/ProtgBun

efoisrempli

CPP/QPP

RPC/RRQ

Box Case

EI

RPAP

PPIP

AE



LACROIX RONALD

BIG ISLE HEALTH CLINIC

123 456 789

651 89

2013

1,543 16 34,675 00

34,675 00

34,675 0071


26/28www.cra.gc.ca26




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Amount Montant








ExemptExemption

T4(13)

Protected

Bw

he

ncompleted/ProtgBu

nefoisrempli

CPP/QPP

RPC/RRQ

Box Case

EI

RPAP

PPIP

AE



LACROIX RONALD

5,500 00 107 27

ACTION YOUTH CENTRE

123 456 789

103 40

2013

99 00 5,500 00

5,500 00


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www.cra.gc.ca 27

Box numbers on common information slips and the related line numbers on the income tax and benefitreturn.

Quick reference chart

Slip

typeBox No. Box title Line on return

T4 Statement of Remuneration Paid14 Employment income 101

16 Employees Canada Pension Plan contributions 308

17 Employees Quebec Pension Plan contributions 308

18 Employees employment insurance premiums 312

20 Registered pension plan contributions 207

22 Income tax deducted 437

55 Employees provincial parental insurance plan (PPIP)premiums (if province of employment is Quebec)

375

T4A Statement of Pension, Retirement, Annuity, and Other Income

016 Pension or superannuation 115 and 314

018 Lump-sum payments 130

020 Self-employed commissions 166 and 139


028 Other income various

040 RESP accumulated income payments 130 and 418

042 RESP educational assistance payments 130

T5 Statement of Investment Income

25 Taxable amount of eligible dividends 120

26 Dividend tax credit for eligible dividends 425

11 Taxable amount of dividends other than eligible dividends 180 and 120

12 Dividend tax credit for dividends other than eligible dividends 425

13 Interest from Canadian sources 121

14 Other income from Canadian sources 121

15 Foreign income 121

T4E Statement of Employment Insurance and Other Benefits

7 Repayment rate 235 and 422

14 Total benefits paid 119

20 Taxable tuition assistance not entered onreturn


23 Quebec income tax deducted 437 (if not aresident ofQuebec)


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Documents

Tax Teaching Student Manual