A tax return is a formal document filed with a government tax authority—such as the Canada Revenue Agency (CRA)—that reports an individual’s or business’s income, deductions, credits, and taxes paid during a specific period, usually one calendar year. The purpose of a tax return is to determine whether additional taxes are owed or if a refund is due.

For individuals in Canada, the personal tax return is filed using the T1 General form, and it includes information such as:

• Employment income (e.g., reported on a T4 slip)

• Investment income, rental income, or self-employment income

• Deductions (e.g., RRSP contributions, childcare expenses)

• Tax credits (e.g., tuition, medical expenses, GST/HST credit)

Businesses file separate returns depending on their structure (e.g., T2 for corporations).

Filing a tax return is mandatory if your income exceeds the minimum threshold or if you owe taxes. Even if no tax is owed, filing may be necessary to claim benefits or credits. Returns are typically due by April 30 for individuals.

In summary, a tax return is an essential tool for calculating your tax obligation or refund, ensuring compliance with tax laws, and accessing government benefits and credits.