Page 4 of the Simplified T1 General Form (continued)

You have used Schedule 1 to calculate how much federal tax you have to pay. You now know that your federal tax is worked out by subtracting your federal non-refundable tax credits from the tax percentages you worked out on your taxable income. Now you can go back to page 4 to calculate whether you will get a refund, whether you owe money to the government, or whether you have paid just the right amount.

The first thing to do is to transfer the amount you wrote on line 19 of Schedule 1 and write it on line 420 of the T1 General. This is your federal tax.

However, that isn't all the tax we pay. Taxpayers also have to pay tax to their provincial government.

The next line on the simplified T1 is line 428. Line 428 is where you enter how much provincial tax you should pay. On line 428 it tells you that you have to complete form 428. (This comes with your T1 General package.)

Form 428 is a lot like Schedule 1, and we have made a simplified version of it. (Pages 112-113). Just follow the same steps as you did for Schedule 1 when you fill in form 428. You will have to fill your taxable income in the right column and do the same calculations as you did for Schedule 1. On form 428, there are again 4 columns to choose from just as there are on Schedule 1. You will probably use the first one for people with a taxable income less than about $32,000.

You work out your non-refundable provincial tax credits on this form too. Many of them are the same as the federal tax credits, but some of the amounts are different. Go through the list of credits and circle the line numbers that affect you. Then enter the amounts you are entitled to. Make sure you enter the correct amount.

When you have worked out how much your provincial non-refundable credits come to, you can then work out how much provincial income tax you should pay. You enter this amount on line 428 of your simplified T1.

When you add these two lines together, line 420 and line 428, this is how much tax you should pay. You write this on line 435.

Now you can take away how much tax you have already paid. This will be on your T4 slips. Enter this amount on line 437.

To find out if you have any provincial tax credits (the provincial sales and property tax credits for most of you) you fill out form 479. This form also came with your income tax package. You will find a simplified version in activity 5, page 152. If you have any provincial tax credits, you enter these on line 479 of your T1. Next you have to add lines 437 (how much tax you've paid already) and line 479 (your provincial tax credits) and write the total on line 482. This is how much tax you've already paid.

Now, at last, you can find out whether the amount of tax you have paid was just right, whether you owe money, or even whether you will get a tax refund.