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What is a T1 Adjustment:
A Simple Tax Guide


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In Canada, the tax landscape can sometimes be confusing, especially when it comes to filing income taxes accurately. One important aspect to understand is the T1 adjustment.


What is a T1 Adjustment?

A T1 adjustment is a process that allows taxpayers to make changes to their previously filed personal tax return. It’s like a second chance to correct any mistakes or add any missed information.

This can happen if a taxpayer realize that they have made some error, received new information or forgot to claim a tax deduction or credit. By making a T1 adjustment, taxpayer can ensure that their tax return is accurate and up-to-date.


What are the Reasons for a T1 Adjustment?

There are several reasons why you might need to make a T1 adjustment:

  • Correcting Errors:

If a taxpayer made a mistake on their original tax return such as entering the wrong income amount or missing a tax credit, a T1 adjustment can help them fix that mistake.

  • Updated Information:

If a taxpayer receive new information after filing, like a missing T4 slip or a reassessment from another government agency, they’ll need to adjust their return accordingly.

  • Missed Deductions or Credits:

Sometimes, in the rush of tax season, taxpayer might forget to claim eligible deductions or credits. A T1 adjustment allows them to include these to potentially get a higher refund.

  • Changing Personal Information:

If an individual’s personal status changes like getting married or having a child, a T1 adjustment can reflect these changes on their tax return.


How to Make a T1 Adjustment?

Making a T1 adjustment is a straightforward process:

  • Obtain the Form:

Download and complete Form T1-ADJ from CRA website. Taxpayer can also request a paper copy from CRA.

  • Gather Supporting Documents :

Collect all relevant documents to support taxpayer’s adjustment such as T4 slips, receipts and any other proofs of income or deductions.

  • Fill Out the Form :

Complete T1-ADJ form accurately. Provide personal information, the adjusting tax year and the changes taxpayer is making. Double-check all details to avoid further errors.

  •  Explanation :

Include a clear and concise explanation of why you’re making the adjustment. This helps CRA understand the reason for the change.

  • Submit the Form: 

Submit the completed form along with the supporting documents to CRA by mail or through their online services. Keep copies of everything send to CRA.

  • Wait for Confirmation :

After CRA receives adjustment request, they will review it. Taxpayer might receive a Notice of Reassessment outlining changes made to their return.