Glossary·Personal tax

T1 return

Also written as t1.

Definition

The federal personal income tax return. Owners of a 1-person corporation file a T1 plus the corporation's T2.

Long reference

Handbook

T1 Personal Return Overview

Citations, procedures, and worked examples for t1 return.

Related terms

T2 return

The federal corporate income tax return. Every incorporated Canadian corporation files annually, even when inactive.

Salary vs dividends

The choice every 1-person corp owner makes: pay yourself via a T4 salary (creates RRSP room, CPP) or non-eligible dividend (no payroll admin, no CPP).

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