What Must I Include in My Tax Return?

The simple answer to that question is that you must declare all the income that you earned during the previous year. However, you may be wondering whether you have to declare all income earned outside of Canada.

The answer is yes! If you’re a Canadian resident for tax purposes, you must declare all income earned during the preceding year. It’s the law!

Here’s what you need to know about filing an individual income tax return. There are two types of income: taxable income and non-taxable income.

Taxable income is income on which you must pay taxes. This includes:

• Wages;
• Interest;
• Dividends;
• Pensions, etc.

Non-taxable income is income that is tax-exempt. This includes:

• Social insurance benefits;
• Scholarships;
• Donations, etc.

In order to calculate your tax bracket, you must first determine your net income, which is the difference between your total income and your deductions. Deductions are amounts that you can subtract from your total income to reduce your tax bill. They include moving expenses, RRSP contributions and employment expenses, for example.

Then you can calculate your tax on net income by applying the tax rate for your income bracket. Each level of government has a progressive taxation system, which means that higher income is subject to a higher tax rate.

There are four income brackets and four tax rates in Quebec for 2025. Click here to find out more about provincial income tax rates. For federal income tax rates, click here.

Lastly, you must add or subtract the tax credits to which you are entitled to determine your tax liability or refund. Tax credits are amounts that directly reduce your tax payable or are reimbursed if you don’t have to pay tax.

There are several types of tax credits in Quebec which include the tax credit for childcare expenses, the solidarity tax credit and the tax credit for home-support services for seniors. Complete lists of provincial and federal tax credits you may be be entitled to are available on the Revenu Québec and Canada Revenue Agency websites.

Please note:

• The deadline for filing your income tax return is April 30 each year. If you or your spouse are self-employed or a member of a partnership, you have until June 15 to file your income tax return. However, if a remittance is due on a Saturday or Sunday, the due date is extended to the following business day;
• Regardless of your tax situation, any balance due must be paid no later than April 30 or the following business day if April 30 falls on a Saturday or Sunday. After this time, the tax authorities will charge interest on any unpaid balance;
• Don’t forget to mention significant life changes so our experts can maximize the tax credits you might be entitled to.