Description: If you are a student, you should be filing a T-1 Canadian income tax return, even if you don’t think you have earned money in the last year. Tax credits like the GST/HST credit and the Carbon Rebate have the unique feature of being dropped directly into your bank account, versus serving to reduce your overall tax owing on your income. As well, even if you don’t need the tuition credit for this year, file anyway. This will make it much easier for you to back track and make claims when you are earning more income.

Date:  April 16, 2024

Source:  thecanadianpressnews.ca

 Link: https://www.thecanadianpressnews.ca/business/students-benefit-from-filing-a-tax-return-even-if-they-dont-make-a-lot-of/article_bb100e66-8a3b-5bfe-978e-0f3dee37fe0f.html

Discussion points:

1) Did you file a return last year? Are you planning to do so this April?

2) What did you learn from this article?

3) In Chapter 10 of Wiley’s Financial Accounting: Tools for Business Decision-Making we can see how companies account for the income tax they withhold from our pay cheques. What is the journal entry a company would make to record the eventual forwarding of our deductions to the Canada Revenue Agency?