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Page four is dedicated to the calculation of net income. This is the page on which you tabulate the various deductions for such things as your RRSP deduction (Line 20800), child-care expenses (Line 21400) and tax-deductible interest expense (Line 22100), to name just a few. Net income, now totalled on Line 23400, is a very important number as it’s used to calculate a variety of income-tested benefits and credits. For example, if your 2019 net income was more than $77,580, part (or all) of your Old Age Security pension will be reduced.

The next page, page five, is reserved for the calculation of taxable income. At first glance, it seems as if the CRA must have forgotten something as the nine deductions on page five, such as losses carried forward from other years, take up about only about a third of the page. The rest is empty, white space.

Pages six and seven calculate federal tax and have replaced the Schedule 1. Page six calculates the various federal non-refundable tax credits available, from the basic personal amount ($12,069 for 2019) on line 30000 which every Canadian gets, to the lesser-known credits, such as the volunteer firefighters’ amount on Line 31220. Most of the federal non-refundable credits other than the donation credit (which is higher for gifts over $200 in a year) are at a rate of 15 per cent.

Page seven calculates your federal tax, starting with the five federal tax brackets in 2019, ranging from 15 per cent for 2019 income up to $47,630 all the way up to 33 per cent for income over $210,371. The non-refundable credits calculated on page six are deducted, along with various other credits like the dividend tax credit and the foreign tax credit, to arrive at net federal tax on Line 42000. Non-Quebecers still need to complete Form 428 for your province or territory of residence to calculate your provincial or territorial tax. (Residents of Quebec must fill out and complete the Quebec personal tax return.)