T1 Personal Tax Return Preparation for Self-Employed Professionals and Business Owners in Ontario
Adian Professional Corporation CPA prepares T1 personal income tax returns for self-employed individuals, incorporated business owners, shareholder-managers of CCPCs, and professionals throughout Mississauga and the Greater Toronto Area. Our focus is on clients with complex tax situations — those where a simple TurboTax return leaves money on the table or creates compliance risk.
If you own an incorporated business, receive salary and dividends from your corporation, have investment income, rental income, or employment expenses, your T1 is not a straightforward return. The decisions made on your T1 — particularly around the salary/dividend mix, RRSP contributions, and capital gains reporting — directly affect your corporate and personal tax integration. We prepare T1 returns with that full picture in mind.
Who We Prepare T1 Returns For
We specialize in T1 returns for individuals with complexity beyond simple employment income. Our typical T1 clients include:
| Client Type | Tax Situations We Handle |
|---|---|
| Shareholder-Manager of a CCPC | Salary vs. dividend mix, T4 from own corporation, dividends (eligible and non-eligible), personal integration with T2. |
| Self-Employed Individual (unincorporated) | Business income on T2125, home office expenses, vehicle expenses, CCA on business assets, GST/HST reporting obligations. |
| Medical or Dental Professional | Professional income, professional corporation integration, locum income, CME expense deductibility. |
| Real Estate Investor | Rental income on T776, CCA on rental properties, principal residence exemption, capital gains on property dispositions. |
| Employee with Significant Deductions | T2200 employment expenses, home office deduction, vehicle expenses, stock options, deferred compensation. |
| Individual Receiving Foreign Income | Foreign income reporting, foreign tax credits (Form T2209), FBAR and FATCA considerations for US-connected individuals. |
| Newcomer to Canada or Departure Return | Part-year residency, deemed disposition on departure, treaty income, entry-year elections under the Income Tax Act. |
T1 Filing Deadlines for Ontario Taxpayers
Filing your T1 on time avoids CRA late-filing penalties of 5% of the balance owing plus 1% per complete month late. For self-employed individuals, the deadline is later — but the balance owing is still due April 30.
| Taxpayer Type | T1 Filing Deadline | Balance Owing Due Date |
|---|---|---|
| Employed individual (T4 income only) | April 30 | April 30 |
| Self-employed individual or spouse of self-employed | June 15 | April 30 |
| Shareholder-manager receiving salary from own corporation | April 30 | April 30 |
| Shareholder-manager receiving dividends only | April 30 | April 30 |
| Deceased taxpayer (date of death Jan 1 – Oct 31) | 6 months after date of death | 6 months after date of death |
| Taxpayer with US filing obligations (Form 1040) | June 15 (with automatic extension to Oct 15) | April 15 (US deadline — separate from CRA) |
Important: Self-employed individuals often misunderstand this deadline. While the T1 can be filed as late as June 15, any balance owing is still due April 30. Filing late after April 30 when there is a balance owing triggers interest from May 1 — regardless of the June 15 filing extension.
What Is Included in Your T1 Engagement
Our T1 personal tax preparation service includes review, preparation, and electronic filing of the following as applicable to your situation:
- T1 General — federal return including all applicable schedules
- Schedule 1 — Federal Tax calculation and non-refundable tax credits
- Schedule 3 — Capital Gains and Losses (securities, real estate, business dispositions)
- Schedule 7 — RRSP/PRPP Unused Contributions and Transfers
- Schedule 9 — Donations and Gifts
- Schedule 11 — Tuition and Education Amounts
- T776 — Rental Income and Expenses (with CCA schedule)
- T2125 — Business and Professional Income for self-employed individuals
- T2209 — Federal Foreign Tax Credits
- T1032 — Joint Election to Split Pension Income
- Ontario ON428 — Ontario Tax calculation
- Ontario ON-BEN — Ontario Benefit applications (OEPTC, OSTC, OSHPTG)
- RC381 — Interprovincial calculation for CPP if applicable
Salary vs. Dividend — Getting the Mix Right for CCPC Owners
If you own an incorporated business, the most significant personal tax decision each year is how to extract income from your corporation — salary, dividends, or a combination. This decision affects your personal T1 and your corporate T2 simultaneously.
There is no universal right answer; the optimal mix depends on several factors:
| Factor | Why It Matters for Salary vs. Dividend Decision |
|---|---|
| RRSP contribution room | Salary creates earned income for RRSP room — dividends do not. If RRSP contribution room is a priority, salary has a distinct advantage. |
| CPP contributions | Salary requires CPP contributions (both employee and employer share paid by the corporation). Dividends do not attract CPP — an advantage or disadvantage depending on your retirement strategy. |
| Small Business Deduction grind | Passive investment income above $50,000 in the corporation reduces SBD-eligible income. Extracting income via salary reduces retained earnings and passive income accumulation. |
| Corporate tax rate differential | Leaving income in the corporation at the 12.2% CCPC rate and taking dividends later may be advantageous — or may defer a larger personal tax bill. Integration analysis required. |
| Ontario surtax and health premium | At certain income levels, personal Ontario tax — including the health premium and surtax — makes dividends less efficient than they appear at first glance. |
| Spouse income splitting | Non-eligible dividends to a spouse through a discretionary dividend structure can reduce combined household tax — subject to TOSI (Tax on Split Income) rules. |
We review the salary/dividend split on every shareholder-manager T1 we prepare — and we flag it proactively if the prior year’s mix was suboptimal. This is not a tax planning engagement; it is part of our standard T1 preparation process. If a deeper tax planning analysis is warranted, we will recommend our tax planning service separately.
Frequently Asked Questions
T1 Personal Tax Return
What is the difference between a T1 and a T2?
A T1 is the personal income tax return filed by an individual with the CRA. A T2 is the corporate income tax return filed by a corporation. If you own an incorporated business, you file both — the T2 for your corporation, and your personal T1 for your salary, dividends, and any other personal income. We prepare both, and coordinate them to ensure proper integration.
I only receive dividends from my corporation — do I still need to file a T1?
Yes. Every Canadian resident is required to file a T1 personal return if they owe tax or if CRA requests one. Dividends received from your corporation are reported on a T5 slip and included in your T1. Eligible and non-eligible dividends are grossed up and a dividend tax credit is applied — the mechanics of which can significantly affect your effective personal tax rate. This is not something to leave to self-serve software.
Can you prepare my T1 if I have rental properties?
Yes. Rental income is reported on Form T776, which includes a detailed schedule of rental revenues, expenses, and CCA claims. We handle multi-property rental situations, co-ownership arrangements, and the interaction between rental CCA and future capital gains on sale. We also address the principal residence exemption where a property has been both a principal residence and a rental property.
I am self-employed and have never filed a T1. What do I need to provide?
For self-employed T1 preparation, we need: your annual revenue and expenses (QuickBooks, a spreadsheet, or bank statements work), any T4, T5, or other slips you received during the year, vehicle log if claiming vehicle expenses, and prior year T1 if available. If you have not filed for multiple years, we can prepare and file all outstanding returns and liaise with CRA to address any penalties or balances.
Do you prepare T1 returns for newcomers to Canada?
Yes. Newcomers to Canada file a part-year T1 covering only the period from their date of arrival to December 31. Entry-year elections — such as the deemed acquisition of foreign property at fair market value on arrival — can be valuable and are time-sensitive. We also advise on treaty benefits, foreign income reporting, and TFSA/RRSP eligibility for new residents.
What documents do I need to provide for my T1 return?
- All CRA slips received: T4 (employment), T5 (dividends, interest), T3 (trust income), T4A (other income), T4E (EI), T4RSP (RRSP withdrawals)
- RRSP contribution receipts (March 2 of the prior year to March 1 of the current year)
- Charitable donation receipts
- Medical expense receipts (if claiming the medical expense credit)
- Prior year’s Notice of Assessment (for RRSP room, capital loss carryforwards)
- For rental income: rent received, mortgage interest, property tax, insurance, repairs, utilities, and CCA schedule
- For self-employment: income and expense summary or QBO file
- For capital gains: adjusted cost base and proceeds on all securities or property disposed of during the year
Get Your T1 Personal Tax Return Prepared by a CPA
Contact Adian Professional Corporation CPA to engage us for your T1 personal income tax return. We specialize in returns for self-employed professionals, incorporated business owners, and shareholder-managers in Mississauga, Brampton, Oakville, Burlington, and the Greater Toronto Area.
Call us at 647-715-2156 or schedule a free consultation online. Tax season books quickly — we recommend reaching out early for January through April returns.