HOW MUCH FEDERAL TAX WILL YOU HAVE TO PAY?

To find out how much federal tax you will be charged, you have to copy some numbers. Our simplified Schedule 1 has far fewer lines on it than the real one does. The real schedule has many items that would not apply to you, so we have left them off the simplified form. You can take a look at the real Schedule 1 later.

The first thing you have to do is to copy the amount you entered on line 8 on the previous page of our schedule. (You are still working on Schedule 1.) Line 8 is 16% of your taxable income. This is how much tax you calculated on the money you have earned. You can use your own taxable income, or the taxable income we gave you for Jennifer Brown.

The next step is to enter the total non-refundable federal tax credits from line 350 on this page. You use this to find how much your net federal tax is.

Take line 350 (your total non-refundable tax credits) away from line 8 (the amount of federal tax you calculated). Enter the answer on line 19. This is your net federal tax.

Congratulations! When you have filled in all these details, you're ready to go back to the last page of your return!

• You have calculated how much your taxable income is.

• You have calculated what your tax credits are.

• You can now work out how much federal tax you should have paid.

Before you go back to the T1, take a look at the real Schedule 1 and circle the lines we gave you on the simplified Schedule. (You may have to scan quite closely to find all the lines!)

• Line 1 is where you enter your taxable income

• Lines 2-8 in the first column are where you work out your federal tax

• Lines 300, 301, 303, 308, 312, 323, 332, 335, 338, 349 and 350 are used to work out your non-refundable tax credits

• Line 19 is where you write your net federal tax - what you have to pay when you have deducted your tax credits

You can now go back to your simplified T1 General and turn to page 4 - but keep your Schedule 1 handy. You need to transfer information from the schedule to the T1 General.