Glossary of terms and definitions
Use this glossary to get familiar with the definitions of various words and terms that apply to the CVITP, found throughout this learning guide and during the process of preparing a tax return.
Terms starting with the letter A
- Accumulated Income Payments
- Amounts generally paid to the subscriber of the income earned from a registered education savings plan (RESP).
- Administrator
- Volunteer who schedules appointments, makes follow-up calls, books space for tax clinics and performs other administrative tasks.
- Allowance
- A monthly non-taxable benefit available to individuals aged 60 to 64 who have a modest income, are the spouse or common-law partner of a guaranteed income supplement recipient and live in Canada. Other residency criteria and income threshold requirements must also be met. The amount received will appear in box 21 of the T4A(OAS) slip, under Net supplements paid.
Terms starting with the letter B
- Band council
- The Indian Act defines a band council as the council elected, or chosen, by a body of Indians for whose collective use and benefit lands have been set apart, or money is held by the Crown or who have been declared to be a band for the purposes of the Indian Act.
- Basic personal amount (federal)
- A non-refundable tax credit that all individuals can claim. It is on line 30000 of the tax return.
Terms starting with the letter C
- Canadian resident
- An individual is considered a resident of Canada for tax purposes when they live and have enough residential ties in Canada. Most newcomers who move to Canada with the intention of staying here are considered residents from the time they enter Canada.
- Client Data Enquiry
- An information page available to authorized representatives that allows view access to various data elements of an individual’s account. The page provides a detailed summary of a client's account, including any amounts that apply.
- Common-law
Someone who lives in a marriage-like relationship with another person but is not legally married to that person, and at least one of the following situations applies:
- the individual and their partner have lived together in a marriage-like relationship for at least 12 continuous months (including any time they were separated for less than 90 days because of a breakdown in the relationship)
- the individual is the parent of their partner's child by birth or adoption
- the individual's partner has custody and control of the individual's child (or had custody and control immediately before the child turned 19 years of age), and the child depends entirely on the individual's common-law partner for support
- CVITP Organization Identification Number (COIN)
- A unique and permanent eight-digit identification number, given to organizations that are participating in the Community Volunteer Income Tax Program (CVITP) or the Income Tax Assistance – Volunteer Program (ITAVP) in Quebec.
Terms starting with the letter D
- Date of acquisition
- Date of which the individual last acquired the property.
- Date of disposition
- Date when an individual gives up possession, control and all aspects of property ownership.
- Dependant
- Someone reliant on another individual, on a regular and consistent basis, for support. They must be one of the following persons by blood, marriage, common-law partnership or adoption:
- parent or grandparent
- child or grandchild
- brother or sister
- uncle or aunt
- neice or nephew
- Divorced
- Someone who was married and is now legally divorced from their former spouse.
- Document control number (DCN)
- A number that is generated upon EFILE transmission or upon printing the form TIS60. This number does not mean that the tax return has been successfully transmitted to the CRA.
Terms starting with the letter E
- EFILE number
- A number issued by the CRA to allow tax preparers to submit an individual's tax return electronically. Tax preparers must apply for an EFILE number and renew their existing EFILE account yearly.
- Eligible child
An eligible child (for child care expenses only) is one of the following:
- the individual or the individual’s spouse’s or common-law partner’s child
- a child who was dependent on the individual or the individual’s spouse or common-law partner and whose net income for the year did not exceed the basic personal amount on line 30000
The child must have been under 16 years of age at some time in the year. However, the age limit does not apply if the child had an impairment in physical or mental function and was dependent on the individual or their spouse or common law partner.
- Eligible dependant
Must be one of the following persons by blood, marriage, common-law partnership or adoption:
- a parent or grandparent
- a child, grandchild, brother or sister under 18 years of age
- a child, grandchild, brother or sister 18 years of age or older with an impairment in physical or mental functions
Terms starting with the letter G
- Greeter
- The individual’s first point of contact at in-person clinics.
- Guaranteed income supplement
- Also known as GIS, it is a monthly non-taxable benefit provided to old age security (OAS) recipients who have a modest income and live in Canada. Other residency criteria and income threshold requirements must also be met.
Terms starting with the letter I
- Identification number
- A number other than a social insurance number (SIN), such as an individual tax number (ITN) or a temporary tax number (TTN), that allows individuals to file their tax return and apply for benefits.
- Interpreter
- Volunteer who facilitates communication between the individual and other volunteers by acting as a translator.
Terms starting with the letter L
- Legal representative
- An individual or organization appointed by a legal document. The limit of the actual authority is defined in the legal document.
Terms starting with the letter M
- Marital status
- The status of being married, common-law, single, widowed, divorced or separated. The marital status reported on a tax return must reflect an individual's status as of December 31 of the tax year.
- Married
- Someone legally married to a person.
Terms starting with the letter N
- Net income (net federal income)
- Net income is calculated by subtracting all eligible deductions from the total income for the year. It is used to determine eligibility and to calculate certain tax credits and federal or provincial benefits.
- Net world income
- Income from all sources, both inside and outside Canada, minus any allowable deductions. It includes income from employment, pensions, social assistance, worker’s compensation benefits and investment income.
- Non-refundable tax credit
- Non-refundable tax credits reduce the amount of tax owed but if the total of these credits is more than the tax owed, there will not be a refund for the difference.
- Non-residents
- Individuals who normally live outside of Canada, or who do not have enough residential ties with Canada and spent fewer than 183 days in Canada. Generally speaking, newcomers are non-residents until the day of their arrival in Canada.
- North American Industry Classification System (NAICS) code
- A 6-digit code that best describes the business’s main revenue-generating business activity.
Terms starting with the letter O
- Occasional earnings
- A type of employment income that may not be found on a T4 slip. All occasional earnings are taxable. Amounts earned from January 1 through December 31 must be reported on the tax return.
Terms starting with the letter P
- Power of attorney (POA)
- A legal document giving one person the power to act on behalf of another person. POA can be granted to act on behalf of an individual specifically for property and finances, specifically for health or personal care decisions, or for both. It is important to ensure that the individual has the correct authority before proceeding.
- Principal residence
- A property for which all of the following conditions apply:
- the property is a housing unit that the individual owns alone or jointly
- the individual or their spouse or common-law partner or their child lived in the property
- The individual designates the property as their principal residence
- Proceeds of disposition
- The amounts an individual received or will receive for their property. In most cases, it refers to the sale price of the property.
Terms starting with the letter R
- Refundable tax credit
- Refundable tax credits reduce the amount of tax owed and if the total of these credits is more than the tax owed, then a refund is received.
- RepID
- A unique seven-character identifier issued when registering as a representative with the Represent a Client service.
- Representative
A person, a group of people or a business that an individual authorizes to deal with the CRA on their behalf, such as:
- an accountant
- a bookkeeper
- your spouse or common-law partner
- another family member
- a friend
- a lawyer
- a customs broker
- an executor
- a power of attorney
- Reserve
- A reserve, as defined by the Indian Act, means a tract of land, the legal title to which is held by the Crown, set apart for the use and benefit of an Indian band.
Terms starting with the letter S
- Screener
- Volunteer who ensures individuals have the required paperwork and who helps organize their documents. Screeners also ensure individuals meet the program eligibility criteria.
- Separated
- An individual who has been living apart from their spouse or common-law partner because of a breakdown in the relationship for a period of at least 90 consecutive days.
- Single
- Applicable when none of the other marital status options apply.
- Subscriber
- Person who enters into the RESP contract with a promoter and names a beneficiary on whose behalf contributions are made.
Terms starting with the letter T
- Total income
- Income from all sources, both inside and outside of Canada. Some common sources of income include employment income, interest income, pension income, social assistance income and self-employment income.
- Transmission
- Means by which the tax return has been electronically sent to the CRA.
Terms starting with the letter W
- Widowed
- Someone whose spouse or common-law partner is now deceased.
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