WHAT IS A T1 GENERAL?
The T1 General is the document that your Accountant files to CRA when they do your income taxes. The Full T1 general is typically a 40-page document used in Canada by individuals to file their personal income tax returns. Individuals with tax payable during a calendar year must use the T1 to file their total income from all sources, including employment and self-employment income, interest, dividends, and capital gains, rental income, and so on. The T1 summary document is 4 pages typically.
After applicable deductions and adjustments, the net income and taxable income are determined, from which the federal tax and the provincial or territorial tax are calculated to give the total payable. Subtracting total credits, which include the tax withheld, the filer will either receive a refund or have a balance owing, which may be zero. The T1 and any balance owing for each year are generally due by the end of April of the following year.
WHY DO LENDERS REQUIRE T1 GENERALS?
If you are self-employed, get pension income, RIF income, annuity income, etc. traditional lenders normally require 2 years T1 General Tax Returns to confirm that you are filing taxes and confirming the numbers. For self-employed individuals, the full T1 general will be required and usually can allow us to “add back” certain expenses into your income in order to better qualify you for financing.
WHERE CAN I FIND MY T1 GENERAL?
T1 general should be in your tax file but can also be received or completed through an accountant, tax company (ie H&R Block) or by the individual that submitted your taxes.
Note: these documents are NOT on the CRA website and CAN NOT be obtained by logging in to CRA.