Are source deductions being made on your income?

Employment income: When paying an employee's salary, the employer must deduct several amounts at source, including federal and provincial income taxes, which are all calculated based on your family status and your income for the given period.

Investment income: Investment income is generally not subject to source deductions. Any taxes on such income are therefore paid entirely when the income is declared.

Business or professional income: These types of income are not subject to any source deductions. Although businesses have until June 15 of the following year to declare their income, their taxes must be paid no later than April 30 of the following year.

Retirement income: For pension payments, taxes are deducted at source, based on the assumption that they represent the retiree's only source of income for the year.

In contrast, the Quebec Pension Plan (QPP) and Old Age Security Pension (OASP) are not subject to any obligatory source deductions.

For withdrawals made from registered retirement savings plans (RRSPs), deductions at source vary from 21% to 31% depending on the amount withdrawn. Similar rates apply to withdrawals from registered retirement income funds (RRIFs), except they only apply to amounts exceeding the mandatory minimum withdrawal required by tax laws.

There is no deduction at source for annuities purchased using RRSP funds. The same applies for an annuity purchased with funds outside RRSPs, as only the interest portion of the annuity is taxable.

The deadline for paying taxes on all these types of income is always April 30 of the following year.