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Taxable Income
Income from all sources that is subject to federal and/or provincial tax in Canada

Tax Year
The calendar year for which taxes are assessed and payable

Gross Income
Total income before deductions or exemptions

T4 Slip
A document provided by an employer to an employee that reports the total income and deductions for the tax year

T5 Slip
A document provided by a financial institution to an individual that reports investment income for the tax year

Personal Tax Credits
A non-refundable credit that reduces the amount of taxes owed by an individual

RRSP
Registered Retirement Savings Plan – a savings plan that offers tax benefits for retirement savings

TFSA
Tax-Free Savings Account – a savings account that offers tax-free growth and withdrawals for Canadian residents

RRIF
Registered Retirement Income Fund – a retirement savings plan that is required to make minimum withdrawals each year

RESP
Registered Education Savings Plan – a savings plan to help pay for a beneficiary’s post-secondary education

EI Premiums
Employment Insurance premiums – a payroll tax paid by employees and employers to fund the Employment Insurance program in Canada

CPP Contributions
Canada Pension Plan contributions – a payroll tax paid by employees and employers to fund the Canada Pension Plan

Tax Deduction
An expense that can be subtracted from taxable income to reduce the amount of taxes owed

Tax Credit
An amount that can be directly subtracted from the amount of taxes owed

Charitable Donations Tax Credit
A tax credit for donations made to eligible charitable organizations

Medical Expense Tax Credit
A tax credit for eligible medical expenses incurred by the taxpayer or their dependants

Tuition Tax Credit
A tax credit for tuition fees paid to eligible educational institutions

Business Income
Income generated from a business or self-employment

HST
Harmonized Sales Tax – a value-added tax in Canada that combines the federal GST with provincial sales taxes

GST
Goods and Services Tax – a federal value-added tax in Canada

PST
Provincial Sales Tax – a value-added tax in certain provinces of Canada