Your total income is all the money you have been paid in a year. It includes employment income (if you were working), social assistance payments, pension income, bank interest, and a few other items. You have to declare all these amounts on your T1.

You don't have to declare lottery winnings or most gifts. If you invest your winnings, you have to pay tax on the money you make.

You enter your total income on Line 150 in the T1 return.

Next, there is your net income.

Your net income is your total income minus some allowable deductions. You are generally allowed to deduct any RRSP contributions you made. You can also deduct child care expenses if you pay someone to look after your child while you go to work or to school. If you had to move to a new place to get a job, you can deduct your moving expenses.

There are other deductions, but these are the most common ones.

You enter your net income on line 236 of your T1 form.