Lesson plan: Preparing to do your taxes – Learn about your taxes

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Learn about your taxes

Lesson plan: Preparing to do your taxes

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Overview

This lesson will help students learn what they need to get ready to do their taxes. Students will be able to test their knowledge through quizzes and practical examples.

The core question is:

  • What do you need to know before doing your taxes?

Learning objective: Students will develop an understanding of what they need to get organized so that doing their taxes is a quick and easy process. This module will help it become annual routine for them.

Skills to develop

  • Know what personal information they will need to provide
  • Keep track their information slips (like their T4)
  • Gather and keep the required supporting documents
  • Compare the different ways to file an income tax return
  • Identify the important dates for personal taxes

Background information

No matter your students’ level of experience doing their taxes, a checklist can help. It’s a way of making sure they have covered everything and didn’t miss important information. Being prepared reduces unnecessary stress and makes it easier to claim what they’re entitled to.

Learning and activities

Required materials step 1

Warm-up exercises step 2

First exercise

Step 1: Ask students if they have ever done their own taxes, and how they found the experience.

You could also ask them:

  • What do you know about tax returns?
  • How often do you need to file a tax return?
  • When do you normally file your taxes every year?

Step 2: Explain that tips from these lessons can help make doing their taxes much easier, whether they have done their taxes in the past or it is their first time.

Second exercise

Step 1: Share with students that being well-prepared before doing their taxes is the key a smooth process.

Step 2: Ask students if they know what they need to gather before doing their taxes.

Suggested answers could be:

  • information slips like a T4 slip
  • supporting documents like receipts
  • social insurance number
  • information about income there are no slips for, like tips
  • notice of assessment from the previous year

Activity

Ask students to write a checklist of the documents they need to do their taxes as they go through the lesson. Ask them to keep this in mind as they review the lesson pages. Show the key checklist at the end of the lesson to make sure they got everything they should need.

Key checklist for supporting documents


Key checklist for supporting documents


On this checklist you will find some of the documents listed in the lessons.

Keep in mind that in most situations, people may have just a few of these documents and that the others may not apply.

Personal data:

  • Social insurance number (SIN)
  • Personal information (name, address, etc.) has been updated with the CRA
  • Spousal information (their SIN and net income)

Information from previous tax years:

  • Previous year’s notice of assessment
  • RRSP details
  • NETFILE access code
  • Carryforward amounts (such as tuition amounts)

Income:

  • T4 slips (employment income)
  • T3/T5 slips (investments, interest, etc.)
  • T4A slips (scholarships, payments from RESP, etc.)
  • T4E (employment insurance benefits, tuition assistance, etc.)
  • T5007 (workers’ compensation benefits, social assistance payments, or provincial or territorial supplements)
  • Information about income not reported on a slip (tips, occasional earnings, etc.), which may include financial statements, invoices, or other records
  • Other

Deductions:

  • Receipts for RRSP contributions
  • Receipts for child care expenses
  • Receipts for eligible moving expenses
  • Receipts related to the northern residents deduction
  • Other

Non-refundable tax credits:

  • Tax receipts for tuition paid (such as a T2202, Tuition and Enrolment Certificate)
  • Receipts for eligible medical expenses
  • Other

Note: Some provinces and territories may also have other tax credits you can claim. Depending on your personal situation, you may need additional supporting documents. Always remember to check what you may be entitled to.

Walk through the lessons step 3

Read through the lesson pages with the additional guidance provided below. Students can review material individually, in groups, or as a class.

Lesson A: Documents you will need

Before starting the lesson:

Advise students that when they are doing their tax return, a key piece of personal information to have ready is their social insurance number (SIN). If they have done their taxes before, they might need to gather some more information about their tax account with the CRA. They can find these pieces of information online in My Account, on their notice of assessment from the previous tax year, or by contacting the CRA.

Activity

Have the students watch the video “The one about your documents” in Part 1 of the lesson. Ask students if they recognize any documents shown in the video. Advise them they will learn more about some of the concepts mentioned in the video, such as deductions or tax credits, in the next module: How to complete a basic tax return.

Lesson B: Different ways to do your taxes

Before starting the lesson:

Explain that we have different ways to do our taxes in Canada. The most popular way is to file electronically using certified tax software. Explain what certified tax software is and that it can help them do their taxes on their own. Tax software must be certified by the CRA. The CRA keeps a list of certified tax software you can use to confirm that your software qualifies.

After finishing the lesson:

Stress to the students that there are many free certified tax software packages available to them. However, there are also other ways to do their taxes, like free tax clinics, through tax preparers and on paper.

Activity

Separate the class by teams, and then have each team explore one of the seven ways to do their taxes outlined in the lesson. After that, have each team explain the key points of that filing method to the rest of the class, including the pros and cons. Ask the class which way they would choose to file their taxes and why.

Lesson C: Important dates for personal taxes

Before starting the lesson

Discuss with your students the important dates concerning their taxes. In this lesson, they will learn about the:

  • filing due date
  • payment deadline
  • consequences of not respecting important dates: penalties and interest
Activity

With the information they have learned in this lesson about the important dates, ask your students to find and discuss their answers to the following questions:

  • Question: What is considered a tax season?
  • Answer: Mid-February to April.
  • Question: What is the filing deadline?
  • Answer: Generally it is April 30; if you or spouse or common-law partner were self-employed, then it is June 15.
  • Question: What happens if it falls on a Saturday or Sunday?
  • Answer: Your return is considered on time if the CRA receives it or it is postmarked on the next business day.
  • Question: If you have an amount owing, by what date does the CRA need to receive the payment by?
  • Answer: Generally all individuals must pay the amount due by April 30.

Bring it all together step 4

Direct students to complete the quiz to assess their understanding.

Discuss the importance of being well-prepared to do their taxes.

Ask the students the following questions:

  • Will they do a checklist of all the documents they need to gather before doing their taxes?
    • Share with them the key checklist so they can confirm their comprehension of what documents they’ll need.
  • Where can they find their tax slips and carryforward amounts?
  • What is the benefit of doing their taxes every year, even when they may have no income?

Reiterate that the information learned will help them to better organize themselves. This helps make doing their taxes quick and easy. Like everything else, it is all in the preparation!

o Required documents


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Date modified:
2021-12-03