With different lines on tax returns, filing your taxes may seem complicated. But it doesn’t have to be.
Line 15000 tax return is one of the many tax lines with unclear descriptions.
As a result, many Canadians like you are asking: What is the Line 15000 tax return? Who can file the Line 15000 tax return? How do I calculate the Line 1500 tax return?
This post answers all the above questions and more, helping you understand what the Line 15000 tax return entails and what is expected of you.
What is Line 15000 on Tax Return?
This refers to a tax line that contains your total income or gross income prior to a tax deduction.
Formerly known as Line 150, this tax line comprises all your working income and others before tax deductions.
However, not all incomes qualify to be in Line 15000. As you continue reading, you will learn about the qualifying incomes and those that are not.
Thus, the Line 150 tax return will determine your net income after tax deduction according to your income tax bracket and total income.
What Constitutes the Total Income?
As mentioned previously, the Line 15000 tax return comprises your total income before tax deduction.
So what constitutes your total income? These refer to your:
- Employment income
- Employment commissions
- Employment insurance
- Gratuities and bonuses
- Benefits from pension plans (such as Canadian Pension Plan)
- Rental incomes
- Capital gains
- Self-employment income
- Allowances (such as grants and scholarships)
- Universal Child Care Benefit
- Workers compensation benefits
- Federal supplements
- Social assistance payments
Thus, the above incomes are calculated to determine your net income after tax deduction.
Non-Taxable Incomes in Your Line 1500 Tax Return
The following incomes are not included in your taxable income, even though you are required to report them:
- Canada child benefit (CCB) and GST/HST
- Government compensation for vehicle accidents or crime victims
- Most inheritances and gifts
- Disability or death benefit
- Strike payment
- Workers’ compensation benefits
- Most lottery winnings
- Scholarships and bursaries for elementary and secondary school
- Some bursaries, scholarships and fellowships, for post-secondary school
- Tax-free savings account (TFSA) income
However, you will be required to file any interest or income you earn from the above incomes in your Line 1500 tax return.
How Do I Calculate Line 15000 on My Tax Return?
You need to add all your income under part 2 of your tax return to calculate Line 15000 on your tax return.
Here are the major incomes that you must add (if you have) when calculating your tax return:
Employment Income (Line 10100)
This refers to the Statement of Remuneration on your T4 slip.
Employment Income Not Included Your T4 Slip (Line 10400)
This includes gratuities, tips and bonuses that are not reported on your T4 slip.
OAS Benefits (Line 11300)
OAS stands for Old Age Security. This benefit, along with OAS allowance and Guaranteed Income Supplement (GIS), constitutes your total income.
CPP or QPP Benefits (Line 11400)
This refers to your Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits.
Other Pensions and Superannuation (Line 11500)
Other pensions and superannuation are also included in your Line 15000 tax return.
Elected Split-Pension Amount (Line 11600)
Elected Split-Pension refers to the money you received upon dividing the pension of your spouse or common-law partner.
Employment Insurance (EI) and Other Benefits (Line 11900)
Line 11900 refers to your employment insurance and other benefits reported on your T4E slip.
Taxable Amount of Dividends from Canadian Corporations (Line 12000)
This refers to the dividend income you received from a corporation upon holding a share or a whole corporation.
Interest and Other Investment Income (Line 12100)
Your interest and other investment income, such as the T3 slip, are also included in the Line 15000 tax return.
Net Partnership Income (Line 12200)
Your net income from a limited or non-active partnership also constitutes your total income (Line 15000 tax return).
Registered Disability Savings Plan Income (Line 12500)
Your Registered Disability Savings Plan (RDSP) income reported on T4A is also included in your total return.
Rental Income (Line 12600)
Any income you received from your rented property listed under Line 12600 adds up to your total income.
Taxable Capital Gains (Line 12700)
This refers to any profit you make from the sale of a property or any investment.
Support Payments Received (Line 12800)
Any taxable amount you received from spousal support and child support is also considered part of your income, hence added to your Line 15000 tax return.
RRSP Income (Line 12900)
This refers to your Registered Retirement Savings Plan (RRSP) income
Other Income (Line 13000)
Other income refers to the rest of your income that is not listed in any tax return or tax slip.
Artists, Fellowships, Scholarship, Bursaries, and Project Grants (Line 13010)
This refers to any taxable income from scholarships, grants, fellowships, or artist and bursary income.
Self-Employment Income (Lines 13500 to 14300)
Any income you make from business, fishing, farming, professional work or commission is calculated in your total income.
Worker’s Compensation Benefits, Social Assistance and Net Federal Supplements (Line 14700)
Finally, your income from Worker’s Compensation Benefits (Line 14400), Social Assistance (Line 14500) and Net Federal Supplements (Line 14600) also determine your total income.
However, you’re not required to include the above sources of income more than once in your Line 15000 tax return.
Also, you may need to attach evidence to most of these sources of income with forms and schedules.
Who is Required to File a Line 15000 Tax Return in Canada?
It’s not every Canadian that is expected to file the Line 15000 tax return. Those that are required to file this tax line are people who:
- Tax authorities charged to file tax returns.
- Have income tax on the previous tax year.
- Have to pay part of their Old Age Security or Employment Insurance benefits.
- Disposed or sold their properties.
- Registered for the Canada Pension Plan (CPP)
- Didn’t repay an RRSP qualified withdrawal
- Have capital gains reserves or taxable capital gain.
- Split their pension income between their spouses or common-law partners.
- Receive allowances (such as grants and scholarships).
- Receive worker’s compensation and Universal Child Care.
- Benefit from social assistance programs
- Receive federal supplements.
Click here to learn more about those that are required to file taxes in Canada.
That said, if you’re employed, your employer is required to deduct and send tax payments for each paycheque to the Canada Revenue Agency.
However, you may have to pay more tax if your employer did not deduct enough from your employment income throughout the year.
But you will get your money back upon tax filing if your employer deducts more than the required amount from your employment income.
However, even if you earn income from other sources, you will be required to include it when filing your tax return.
Overall, filing your Line 15000 tax return is one of the requirements for the following benefits:
- RRSP contributions
- Child Tax Benefit
- Goods and Services Tax, Harmonized Sales Tax (GST/HST) credit
- Tuition or educational benefit (such as RESP)
When Should You File Your Line 15000 Tax Return?
In most cases, you are required to file your taxes as they accrue during the year. If you’re employed, your employer will deduct the tax amount from your salary and send it to the CRA on your behalf.
As mentioned previously, you may have to pay more tax if your employer did not deduct enough from your employment income throughout the year.
However, you will get your money back upon tax filing if your employer deducts more than the required amount from your employment income.
Also, if you’re self-employed or have a self-employed spouse or common-law partner, you’re expected to file your taxes on or before April 30 of the following year.
What are the Implications of Late Payment or Not Filing Line 15000 Tax Return?
The Income Tax Act penalizes you for not submitting a tax return when you are obliged to or if you make false claims in filing your tax return.
Also, penalties apply if you leave out key information when filing your taxes so that you under-report your income.
Furthermore, you might face criminal charges if you commit intentional fraud or tax evasion.
Penalties for Late Tax Filing or Under Payment
Failing to submit a tax return when you’re obliged to pay attracts you a 5% penalty of the amount owed in addition to 1% per every month it is late, up to one year.
In addition, there are daily interest charges on any unpaid taxes.
However, if you cannot make a one-time payment of the whole amount owed, you can contact the Canada Revenue Agency (CRA) to work out a payment plan.
If it is discovered that you owe beyond what you calculated, you can opt for an appeal.
Penalties for Tax Evasion and Fraud
You might be penalized with a summary crime under the Income Tax Act for not filing your tax return.
Substantial fine charges and a prison sentence are some of the penalties of evading taxes in Canada.
On the other hand, if you are found guilty of tax evasion due to misleading or misrepresenting the CRA, you may be charged up to 200% of the entire evaded taxes.
Further, you could be sentenced to up to two years in prison for tax evasion and fraud.
Thus, serious offences can result in a criminal case. Tax evasion is subject to the rules and procedures of criminal law and the Criminal Code of Canada.
As a result, a tax evasion conviction will lead to a criminal record. Your failure to pay will also be reported to credit bureaus, affecting your loan qualifications in the future.
Furthermore, the CRA has the right to confiscate your wages, assets, and so on until you pay the taxes, interest, and penalties in full.
Voluntary Disclosures Program
The CRA establishes the Voluntary Disclosures Program (VDP) in order to collect tax debt while saving the expenses and time of prosecuting individuals.
As a result, VDP allows individuals to reveal any information that is incorrect, incomplete or any information that was not included on the past tax returns without any penalty.
However, the defaulters will still have to pay the tax owed and the interest. Notably, the CRA awards partial interest relief sometimes.
Summary on Line 15000 on Tax Return
Line 15000 on tax return contains your total income before tax deductions.
How much tax you need to pay and your total net income is determined by your total income filed on Line 15000 tax return.
While your income may include a non-taxable amount, you are still expected to file any interest or income you earn from the above incomes in your Line 1500 tax return.
That said, failure to file your taxes as and when due may attract substantial fine charges and a prison sentence.
However, the Voluntary Disclosures Program (VDP) could be your saving grace if you have any information that is incorrect, incomplete, or that was not included on the past tax returns.
Finally, if you’re battling with too much tax debt, don’t hesitate to contact a financial advisor for a customized solution.
FAQs on Line 15000 Tax Return 2021
Where is Line 15000 on Tax Return?
Line 15000 is the total of your income before tax deductions. So you have to add your total income before tax deduction to determine it.
Is Line 150 the Same as Line 15000?
Yes, Line 15000 was formally known as Line 150. But despite the change of name, Line 150 means the same thing as Line 15000.
What is the Income Tax Rate in Canada for 2020?
The income tax rate in Canada refers to the amount you’re expected to pay according to your income tax bracket.
Thus, the income tax rate changes annually based on inflation and other factors.
Here are the income tax rates for the 2020 tax period:
|Federal income tax brackets (2020)||Federal income tax rates (2020)|
|$48,535 or less||15%|
|$48,535 to $97,069||20.5%|
|$97,069 to $150,473||26%|
|$150,473 to $214,368||29%|
|More than $214,368||33%|
What is Considered Self Employment Income in Canada?
Self-employment in Canada refers to any business that you run alone or in partnership. This could be a profession, business, fishing, farming, commission sales etc.
Have more questions? Kindly drop them in the comment section.