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Understanding T1 Adjustment:
Simplified Explanation for Taxpayers


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Tax season can be a confusing time for taxpayer, especially when it comes to understanding the different terms and processes involved in making tax return. One such term is “T1 adjustment.”


What is T1 Adjustment?

T1 adjustment refers to a correction made to individual’s previously filed Canadian income tax return using a T1 Adjustment Request form.

It allows taxpayer to make changes to their tax return after they submitted it to CRA. 

This adjustment is typically necessary when a taxpayer discover errors or omissions in thier original return or when a taxpayer receive new information that affects their tax situation.


Reasons for T1 Adjustment:

There are many reasons why a taxpayer might need to make a T1 adjustment in their previos submitted tax return:

  • Correcting errors :

If an individual made mistakes or accidentally omitted important information on their original tax return, a T1 adjustment can rectify those errors.

  • Updated information :

If an individual receive new information after filing their tax return, such as a revised T4 slip or an overlooked deduction, a T1 adjustment can help incorporate these changes.

  • Carry-forward amounts:

If an indivual have unused credits, deductions, or losses from previous years that were not claimed in their original return, a T1 adjustment can carry them forward to the current tax year.


How to Request a T1 Adjustment :

To request a adjustment? A taxpayer need to follow these four steps :

Obtain a T1 Adjustment Request form :

Tax filer can download the form from the CRA’s website or request a copy by contacting them directly.

Complete the form :

Fill out the necessary sections of the form, providing accurate information about the changes the tax filer want to make.

Gather supporting documents :

If tax filer’s adjustment involves updated information or additional deductions, ensure that filer must have the necessary supporting documents, such as receipts or revised slips.

Submit the form :

Once a taxpayer filled out the tax form and gathered the required documents, they have to send completed package to CRA for processing. Taxpayer must sure to keep a copy of their tax records.


Impact of T1 Adjustment:

When the CRA receives Adjustment Request form, they will review the changes and recalculate your tax liability accordingly. 

If the adjustment results in a higher tax liability, tax return filer may need to pay the additional amount owed. Conversely, if the adjustment reduces your tax liability, taxpayer may be entitled to a refund.