How to fill out a tax return correctly?

In Canada, the T1 General form is the only universal document for reporting personal income; the Canada Revenue Agency (CRA) uses it to verify total earnings, determine the final tax liability, and calculate entitlement to social benefits. Every resident of Alberta who lives in the province as of December 31 submits the same package, but also has a separate provincial form, AB428, to calculate the Alberta component of the tax, which is included in the federal return. Starting February 24, 2025, NETFILE will accept returns for the 2024 tax year, with a deadline of April 30 for most employees; self-employed individuals may file an electronic return by June 16, with the final tax calculation due by the end of April. Due to recent technical issues with the CRA system, which delayed the upload of some T4 and T5 forms by employers, experts in Calgary advise not to delay gathering documents to avoid penalties of 5% of the principal amount owed and an additional percentage for each month of delay.

Preparation package: what you need to gather before opening the software

The Social Insurance Number is the initial identifier, as CRA uses this nine-digit code to assign all your earnings and deductions to you. Next, check that you have all the necessary slips — from T4 pay slips, T5 investment slips, T3 fund distributions, to T5007 social benefit slips. If you attended courses or university, you will need a T2202 to confirm your entitlement to tuition credit; if you contributed to an RRSP pension plan, you will need official receipts from the financial institution. Newcomers should add RC151 with their date of arrival to separate income earned before becoming a tax resident.

Choosing a filing method: online filing, professional service, or mail

The fastest route in Calgary is electronic NETFILE; the software package automatically connects to the CRA and issues an instant confirmation number, making it easy to check the status of your Notice of Assessment. The Auto-fill My Return feature pulls existing tax slips from the tax authorities, reducing the risk of missing a source of income. Those who are uncomfortable with online services or need advice on multiple deductions can take advantage of free CVITP volunteer clinics, which have been operating in public libraries and Rise Calgary centers since February; the average time from registration to filing is three to four weeks. Paper packages are still accepted through the Winnipeg Tax Centre, but processing takes at least six weeks, which prolongs the wait for a refund.

Completing sections of the T1 General: a logical sequence from identification to the final amount

First, the Identification section records your personal details: full name, Calgary address, date of birth, marital status, and the date you first settled in Canada in the current year; this date starts the residency count and determines how much of your worldwide income you need to report. The second section, Total Income, lists all sources: T4 salary, self-employment fees, dividends, interest, rent, as well as foreign income received after the date of residency; For each item, indicate the corresponding T1 line, for example, 10100 for employment income or 12000 for capital gains. Next, to arrive at Net Income, deduct allowable expenses: RRSP contributions, interest on student loans, or current expenses for self-employment. The result is transferred to Taxable Income, where the system applies a combination of federal and provincial rates. Federal brackets in 2025 start at 15% on the first CAD 57,375, with a top rate of 33% on amounts over CAD 253,414. Alberta, following its 2025 budget, introduced a preferential rate of 8% on the first CAD 60,000, leaving the previous ranges of 10% to 15% for higher incomes. The revised provincial tax amount is calculated using form AB428 and automatically transferred to the main form.

Note on Alberta provincial credits and tax innovations

The Nate Horner 2025 budget not only added a new 8% threshold, but also announced a Supplemental Personal Tax Credit, which effectively offsets 2% of unused federal non-refundable credits if the total base exceeds CAD 60,000. This innovation reduces the overall tax burden on the middle class and effectively lowers the first threshold, which the government claims will save up to CAD 750 per taxpayer in 2025. These credits are automatically reflected on your return if you use certified NETFILE software with updated AB428 modules.

Data processing after filing: waiting for the Notice of Assessment and correcting errors

Electronically filed returns usually receive a NOA in My Account within two weeks; paper returns take at least twice as long. If, after assessment, you owe additional amounts, the CRA will offer you the option to pay online through My Payment or Pre-authorized Debit by April 30, otherwise a five percent penalty will be charged immediately after the deadline and monthly interest on the outstanding amount until it is paid in full. Errors in the figures entered can be corrected using the ReFILE electronic function, which is available immediately after receiving the NOA; the correction does not require a paper T1-ADJ and works for the last four tax years.

Specific situations for newcomers: partial residency, open CUAET permit, and no complete slip history

Keep in mind that if you obtained resident status only in the middle of the tax year, the return is divided into two periods: before your arrival as a non-resident, you declare only Canadian income, and after your arrival, you declare all worldwide income with an adjustment for foreign tax credit if tax has already been paid abroad for the same source. Temporary residents with a SIN number starting with “9” are required to update the expiry date of their number after their work permit is extended; otherwise, the employer may apply marginal rates of withholding, and the CRA will withhold part of the refund until the database is synchronized. For Ukrainians who arrived under the CUAET, a T1 return is required from the same date of residency; this entitles them to the GST/HST credit and the Canada Child Benefit, even if their income for the calendar year was minimal.

Final steps and strategic planning for the next tax cycle

Once you receive your NOA, save an electronic PDF of your return, your NETFILE confirmation number, and all original slips for at least six years: the CRA may request confirmation at any time. Immediately after confirming the resulting amount, review the new RRSP contribution limit indicated in the RRSP deduction limit statement section of the NOA; contributions made before the beginning of March of the following year directly reduce the taxable base for the current year. If you anticipate your income increasing above CAD 60,000, consider a strategy of advance payments or a TD1 adjustment to avoid a large balance due next April. It also helps to regularly check the information in My Account so that as soon as a new T4–T5 is issued, it is automatically pulled into the system and does not get lost, as happened in the 2025 season with some employers.

Final thought: filing a tax return is not just a formal obligation, but also a financial tool

The chain of actions described above shows that filing a tax return in Calgary goes far beyond simply calculating your liabilities; it is an opportunity to optimize your tax burden through new Alberta credits, unlock federal transfers, and avoid penalties in a system that increasingly relies on digital data and auto-alignment. When you carefully collect your slips, use Auto-fill My Return, and keep an eye on Alberta budget updates, your return transforms from a long form into a strategic report that reflects not only your income but also the blueprint for your future financial decisions.