Essential Canadian tax terminology: Brush up on your lingo!

Only 14 per cent of Canadians are very confident in their understanding of tax-related terminology finds a poll conducted by TurboTax Canada. According to the survey findings, 27 per cent of Canadians have never heard of the term NETFILE.

This lack of clarity can lead to confusion and increased stress during filing season. More so for those who are new to Canada or with English as a secondary language.

Here is a list some of the key Canadian terms compiled by TurboTax Canada to help navigate the complexities of the tax season.

Balance Owing: The remainder when your payable amounts are higher than your credits and deductions. It means that you need to pay an additional amount of tax and can happen if your taxes weren’t properly deducted or accounted for throughout the year.

Carry Forward: When you have certain credits available during filing, but you don’t use them, you might be able to keep these credits and have them available on your account to claim in a later year. Tuition tax credits are a good example of this.

CRA: The Canada Revenue Agency, which is responsible for collecting taxes and providing different credits and benefits to Canadian citizens. They receive your tax claims, calculate your return, and send you a Notice of Assessment.