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Level 2
posted Mar 24, 2025 9:38:03 AM

T1198

I have entered my T4 and my T1198 and it is saying I owe over $7300.00! How can this be? I thought the T1198 was supposed to be helpful?

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1 Replies
Moderator
Mar 26, 2025 6:36:10 AM

The amount of tax due depends on your income. The more you earn, the higher your calculated income tax will be. This is called a progressive (or graduated) tax system. 

Income tax brackets are ranges of income on which a set rate of tax is applied.

  • Canadian taxpayers pay income tax to the federal government as well as to the government of the province/territory where they reside.
  • Credits and deductions are 2 common ways of reducing your taxes owing and/or increasing your tax refund.

Canada Taxes 2024: Federal Tax Brackets, Rates and Credits

 

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