Line 43700: Total Income Tax Deducted

Filing your personal income taxes can be confusing, with many lines to understand. However, properly calculating one line in particular – Line 43700 for total income tax deducted – can have a major impact on your tax refund.

This line reports the total income tax deducted from all your Canadian information slips for the tax year. Properly calculating and verifying Line 43700 ensures you accurately account for tax already paid on income like employment earnings, pensions, and more.

What is Line 43700?

Line 43700 is found on page 1 of your T1 General tax return, in Step 5 under “Federal Tax.” This line is titled “Total income tax deducted.”

The amount you enter on Line 43700 represents the total income tax that was deducted at source from all your Canadian information slips.

Reporting the proper amounts on Line 43700 ensures you receive credit for income tax already deducted. It also affects the calculation of your refund or balance owing.

What Information Slips Have Tax Amounts for Line 43700?

Several common information slips will have income tax deducted amounts to claim on Line 43700. These include:

You’ll need to look up the applicable “income tax deducted” boxes on these slips when tallying amounts for Line 43700.

How is Line 43700 Calculated?

The total for Line 43700 is calculated by adding up eligible amounts from the “income tax deducted” boxes on your various Canadian information slips.

For example:

Based on these sample amounts, your total for Line 43700 would be $4,200.

Special Calculation When Splitting Pension Income

The calculation changes if you are splitting eligible pension income with your spouse or common-law partner using Form T1032.

In this case, you report the result for income tax deducted from Section 5 of Form T1032 instead of the amounts from your T4A slip.

This adjusted calculation accounts for splitting the tax already withheld on the pension income between the two partners.

So, with pension income splitting, your Line 43700 amount comes directly from the T1032 form rather than your T4A slip.

Why is Line 43700 Important?

Reporting the proper amounts on Line 43700 serves two key purposes:

You Get Credit for Tax Already Paid

By claiming the tax deducted from income like T4 earnings and CPP benefits, you ensure you receive full credit for tax already remitted to CRA. This prevents double taxation and maximizes your tax refund.

Affects Your Final Tax Bill Calculation

Line 43700 is used to calculate your total payable tax. It directly impacts whether you will receive a refund when filing your return, or owe a balance.

Accurately reporting already-deducted tax avoids errors that could cost you money. Line 43700 is a key input to minimize your overall tax bill.

Where Do You Find Line 43700 on the T1 Return?

Line 43700 is found on page 1 of your T1 General tax return, in Step 5 under “Federal Tax.”

Specifically, it is located in Part B of Step 5, where you calculate your total payable federal tax. Line 43700 falls between:

• Line 43600 – Federal non-refundable tax credits
• Line 43710 – CPP contributions payable on self-employment earnings

So once you’ve accounted for your federal tax credits on Line 43600, you then claim your income tax already deducted on Line 43700. This is before calculating other amounts like CPP contributions on self-employment income on Line 43710.

Consult your T1 return to find Line 43700 in Step 5. Know where to look so you can properly account for the tax you have already deducted.

Reporting Requirements for Québec Residents

If you were a Québec resident on December 31 of the tax year, special rules apply when reporting Line 43700:

• Do not include the Québec provincial tax deducted – report this later on your Québec return.
• Only include federal tax amounts deducted on Line 43700 of your federal return.

This ensures any Québec provincial income tax withheld is properly claimed on your Revenu Québec tax return.

Verifying Your Line 43700 Calculation is Correct

To confirm that the total you entered on Line 43700 is accurate, there are several best practices you can follow:

• Review your information slips (T4, T4A, etc.) and match the amounts in the applicable “income tax deducted” boxes to your Line 43700 amount. The totals should reconcile.
• If splitting pension income, double-check that you have entered the result for tax deducted from Section 5 of Form T1032. Do not use the amounts from your T4A slip.
• Compare your Line 43700 total to your various income sources reported to determine whether the amount of tax deducted seems reasonable.
• If you have any uncertainty, have an accountant or tax professional review your return and the Line 43700 calculation. They can validate its accuracy.
• Retain all your tax information slips and forms to refer to later as documentation if needed.

Taking these steps can help detect any errors and provide assurance that your Line 43700 amount is calculated and reported correctly.

Common Line 43700 Errors to Avoid

Some frequent Line 43700 mistakes include:

• Forgetting an information slip. Double-check that all are accounted for.
• Transposing digits by mistake.
• Using provincial boxes 40-44 instead of federal Box 22.
• Not adjusting for pension splitting.
• Including the Québec provincial tax is deducted.
• Claiming boxes that have already been claimed elsewhere.
• Reporting after-tax income instead of “income tax deducted.”

Double-checking your figures can help identify and prevent these and other Line 43700 errors.

Key Takeaways on Line 43700

Some key tips to remember when reporting Line 43700:

• Line 43700 totals all income tax deducted from eligible information slips.
• Look for “income tax deducted” boxes on slips to find amounts.
• Adjust calculations if splitting pension income on Form T1032.
• Québec residents only claim the federal tax deducted.
• Properly reporting Line 43700 prevents tax errors and overpayment.
• Review slips and forms to verify accuracy.
• Consider getting professional assistance if unsure.

Taking the time to fully understand Line 43700 can lead to a smoother tax filing process, a bigger refund, and the avoidance of costly mistakes.

FAQs related to Line 43700