Taxes1

Canadian Taxes

Students will be able to:

understand the basics of the Canadian Tax System
fill out a basic tax return for a high school student and for a post secondary student which includes tutition fees deductions

Timeline: 1/2 class

Revenue Canada Lesson Plans for Teachers

Information Slips (T4, T4A, T4E, T5007)

Supporting Documents

Common Tax Terms

Schedule 11 (tuition deduction)

BC Provincial Taxes Form BC428

Part 1: Your Documents
- watch movie
- view examples of all 3
Part 2: Tax Rates
- watch movie
- Fill out make a copy of Tax Rates google sheet
Part 3: Doing Your Taxes
- see below

T4 Jonah Smith

Part 1: Your Documents

T4: Earnings

Blank T4 Link
Example T4 to the left

T4E: Statement of Employment Insurance and Other Benefits

T4A: Other Income: For you most likely scholarships or bursaries

Pension, Retirement, Annuity, and Other Income
T4A Links

Part 2: Tax Rates

Watch the movie
Open the make a copy google sheet where you will need to find the Federal & BC taxes owing before tax credits on 4 fictitious individuals
- watch second video to show you how to complete the google sheet
- Do with a partner or by yourself
  - if you are working with a partner share the sheet with them
Hand in to google classroom

Tax Rates Google Sheet Instruction

I Do question #1 with you.
Make sure you listen to the video, not just watch

Canada Federal Tax Rates

15% on the first $50,197 of taxable income, plus
20.5% on the next $50,195 of taxable income (on the portion of taxable income over 50,197 up to $ 100,392), plus
26% on the next $55,233 of taxable income (on the portion of taxable income over $100,392 up to $155,625), plus
29% on the next $66,083 of taxable income (on the portion of taxable income over 155,625 up to $221,708), plus
33% of taxable income over $221,708

British Columbia Provincial Tax Rates

5.06% on the portion of your taxable income that is $45,654 or less, plus
7.7% on the portion of your taxable income over $45,654 up to $91,310, plus
10.5% on the portion of your taxable income over $91,310 up to $104,835, plus
12.29% on the portion of your taxable income over $104,835 up to $127,299, plus
14.7% on the portion of your taxable income over $127,299 up to $172,602, plus
16.8% on the portion of your taxable income over $172,602 up to $240,716, plus
20.5% on the portion of your taxable income over $240,716

Part 3: Doing Your Taxes

Watch Video
Go over basic sections of the Federal Tax Return and have a look at a blank one
Go over basic sections of the Provincial BC Tax Return and have a look at a blank one
Work in a group of 2
- one person completes Tax return lesson Jonah Smith
- one person complets Tax Return Lesson Terry Lee
Take a screen shot of your finished work and hand in to google classroom or show your teacher
Pair / share with your partner to compare the differences in the two tax returns

Sections of the Tax Return

Step 1: Identification and other Information
- name, address, SIN
Step 2: Total Income
Step 3 Net Income
- total income - deductions
- common deductions - pension, union dues, CPP, child care benefit, child care expenses,
Taxable Income
Federal Tax
- A: Federal Tax on Taxable Income
- B: Federal Non-Refundable Tax Credits
  - includes tuition (parents or students can claim this)
- C: Net Federal Tax
Refund or Balance Owing
- includes provincial tax which is a different form (Form BC428)

BC Provincial Tax Form

Part A: BC Tax on Taxable Income
Part B: BritisColumbia Non-refundable tax credits
Part C: British Columbia Tax

BC Provincial Taxes Form BC428 PDF fillable available on this page

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