Short answer
The T1 General is your annual federal income tax return. It works through four stages: reporting all income, subtracting deductions to reach net income and taxable income, calculating tax on taxable income, and applying credits and payments to find your refund or balance owing. Knowing the key line numbers helps you check your return and plan for next year.
The T1 is the form behind every method in the guide to filing a tax return in Canada, whether you use software, a volunteer clinic or paper. Your T-slips feed most of the income lines; the tax slips and documents hub explains each slip.
T1 structure: four stages
| Stage | Line range | What happens |
|---|---|---|
| Step 1: Income | 10100 to 14600 | Report all income from all sources |
| Step 2: Deductions from total income | 20400 to 23600 | Subtract RRSP, child care, employment expenses and so on to reach net income |
| Step 3: Deductions from net income | 24400 to 26000 | Apply carry-forwards and special deductions to reach taxable income |
| Step 4: Tax and credits | 40400 to 48500 | Calculate federal tax, apply credits, subtract withholdings to reach a refund or balance |
Key T1 line numbers
Income lines (step 1)
| Line | Income type | Source |
|---|---|---|
| 10100 | Employment income | T4 Box 14 |
| 10400 | Other employment income | Tips, gratuities |
| 11300 | OAS pension | T4A(OAS) |
| 11400 | CPP/QPP benefits | T4A(P) |
| 11500 | Other pensions | T4A pension income |
| 11900 | Employment Insurance benefits | T4E |
| 12000 | Taxable dividends (eligible + non-eligible) | T5, T3, T4PS |
| 12100 | Interest and other investment income | T5 Box 13 |
| 12700 | Taxable capital gains | Schedule 3 |
| 13000 | Other income | Various sources |
| 13010 | Taxable scholarships/bursaries | T4A Box 105 |
| 13500 | Net self-employment income | Form T2125 |
| 14400 | Workers’ Compensation | T5007 |
| 14600 | Net federal supplements | T4A(OAS) Box 21 |
| 15000 | Total income | Sum of all income lines |
Deduction lines (step 2: total to net income)
| Line | Deduction | Notes |
|---|---|---|
| 20700 | Registered pension plan deduction | T4 Box 20 |
| 20800 | RRSP/PRPP deduction | Based on Schedule 7 + room limit |
| 21200 | Annual union, professional dues | T4 Box 44 |
| 21300 | Universal Child Care Benefit repayment | If required |
| 21400 | Child care expenses | Form T778 |
| 21900 | Moving expenses | Form T1-M (eligible moves) |
| 22000 | Support payments made | Eligible maintenance payments |
| 22100 | Carrying charges and interest expense | Form T1-MAG |
| 22900 | Other employment expenses | Form T777 |
| 23200 | Other deductions | e.g., repaid amounts |
| 23600 | Net income | Used for benefit calculations |
Further deduction lines (step 3: net to taxable income)
| Line | Deduction | Notes |
|---|---|---|
| 24400 | Military/police deduction | Deployed personnel |
| 24900 | Security options deduction | Employee stock options, 50% |
| 25000 | Other payments deduction | Social assistance, workers comp from income |
| 25100 | Limited partnership losses (prior year) | Carry-forward |
| 25200 | Non-capital losses (prior year) | Carry-forward |
| 25300 | Net capital losses (prior year) | Carry-forward |
| 25400 | Capital gains deduction | Lifetime capital gains exemption |
| 25500 | Northern residents deduction | Form T2222 |
| 26000 | Taxable income | Federal tax calculated on this amount |
Tax calculation (step 4)
| Line | Amount | Notes |
|---|---|---|
| 40400 | Net federal tax | Based on federal tax brackets and Schedule 1 |
| 41800 | Special taxes | RRSPs, HBP repayment arrears, etc. |
| 42000 | Net federal tax payable | After federal non-refundable credits from Schedule 1 |
| 42100 | CPP contributions payable on self-employment income | Schedule 8 |
| 42120 | Employment Insurance premiums payable on self-employment | Form T1028 |
| 42800 | Provincial or territorial tax | Provincial return results |
| 43500 | Total payable | Federal + provincial + any special taxes |
| 43700 | Total income tax deducted at source | From T4 Box 22, T5 Box 16, other slips |
| 45300 | Canada Workers Benefit (CWB) | Refundable credit for low-income workers |
| 47600 | Tax paid by instalments | If you made instalment payments during the year |
| 47900 | Provincial/territorial credits | Refundable provincial credits |
| 48400 | Refund | If withholdings > total payable |
| 48500 | Balance owing | If total payable > withholdings |
How tax is worked out on line 26000
Federal tax is calculated by applying the federal brackets to taxable income (line 26000) on Schedule 1, then reduced by non-refundable credits (the basic personal amount, the age amount, the disability amount and others). The current rates and thresholds are on the federal and provincial tax brackets page, and your province’s tax is worked out the same way on its own form.
Net income vs taxable income: why net income matters
| Benefit / credit | Based on which income figure? |
|---|---|
| GST/HST credit | Net income (Line 23600) |
| Canada Child Benefit | Adjusted family net income |
| OAS clawback (repayment) | Net income (Line 23600) |
| Spousal/dependant amounts | Spouse’s net income |
| Medical expense threshold | Net income (3% of Line 23600) |
| RRSP contribution room | Earned income (a subset of total income) |
| Ontario Trillium Benefit | Adjusted net income |
| Disability tax credit eligibility | Net income |
Lowering net income (through RRSP contributions, union dues, child care and so on) can raise benefit amounts even if you have no tax balance to reduce.
Getting the T1 right
Most T1 errors come from a missing slip, a wrong marital status or a claim on the wrong line; the common tax mistakes page goes through them. Once a return is filed, any line can still be corrected: fixing a mistake on a filed return covers the ways to change it.
Bottom line
The T1 General is the foundation of Canadian personal taxation: every income, deduction and credit flows through its four-step structure. Net income (line 23600) is one of the most consequential figures on the return, affecting your refund, benefit eligibility and spousal calculations at the same time. For how the brackets, credits and deductions fit together, see how Canadian income tax works.