What is a T1 General?

The T1 General is a key document filed with the Canada Revenue Agency (CRA) by you or your trusted Accountant when they prepare your income tax returns. This document consists of approximately 40 pages and is used by individuals in Canada to file their personal income taxes. It captures a wide range of income sources, including employment and self-employment income, interest, dividends, capital gains, rental income, and more. Alongside the full T1 General, there is also a concise 4-page T1 summary document available.

After accounting for applicable deductions and adjustments, the T1 General determines your net income and taxable income. Based on these figures, federal and provincial/territorial taxes are calculated to determine your total tax payable. By subtracting total credits, including tax withheld, you may receive a refund or have a balance owing, potentially amounting to zero. Generally, the T1 General and any outstanding balances are due by the end of April of the following year.

Why Do Lenders Require T1 Generals?

Lenders often require 2 years of T1 General Tax Returns to confirm that you have been diligently filing your taxes and to verify your financial figures. For individuals who are self-employed or receive pension income, RIF income, annuity income, and similar sources, the full T1 General is particularly important. It allows us to assess your income by considering certain expenses that can be “added back” to provide a more accurate picture of your financial situation. This, in turn, helps us determine your eligibility for financing options.

Where Can I Find My T1 General?

You can typically find your T1 General document in your tax file. However, there are alternative avenues for obtaining or completing it as well. Consider reaching out to your accountant, a reputable tax company such as H&R Block, or the individual who prepared and filed your taxes.