The Mogo Blog

Tax Terms You Need To Know

As tax season intensifies (this is the only verb that accurately describes the ramp up to filing day), it’s important to make sure you’ve got your basic tax vocabulary on lock for one simple reason: making the process less painful for you. Whether you’re filing taxes for the first time, or you’re new to Canada, or you’ve never filed on your own before, it’s frustrating to pause every few minutes to Google a specific term. With any luck, we can take some of that pressure off here, with a crash course in some basic tax terminology. Your Tax DictionaryWhat is a T4?A T4 is the slip that employers use to report the income of employees. Whether you are employed full time, part time, or on contract, your company will issue a T4 for you every year. Normally, you’ll receive this document by mail. T4s, like most tax documents, come with many numbered “lines” that are used to code and record amounts of money. When doing your taxes, all you need to do is match the number affiliated with each line and fill in the corresponding amount. For example, line 23600 reports net