What Is Line 23400 on a Tax Return?

What line 23400 means

Line 23400 is net income before adjustments on the T1. It sits after total income and after the deductions that come before the social-benefit and other adjustments. It is a step on the way to the net income figure that follows it. It is not line 15000, and it is not taxable income.

Where to find line 23400

On the T1 it is the line numbered 23400, below total income and below deductions such as the RPP deduction. A tax program calculates it. On paper, you reach it by subtracting those deductions from total income and then stopping before the next block of adjustments.

Why line 23400 matters

Some credits look at net income rather than total income. Quoting line 15000 when a form asks for net income is a different number. When a notice of assessment shows a change, compare line 23400 on your copy with the notice before you assume the whole return was rejected.

Checking line 23400 on your notice of assessment

When the notice of assessment arrives, compare this line with your copy of the return. A different figure means the CRA changed a slip or a deduction. Bring the notice and the slips to the Scarborough office. If that year was already filed, the fix is a T1 adjustment, not a second filing of the same year. Keep the notice with the file. Ask which year the notice belongs to before you pay a balance. The firm quotes a six-year retention period for tax records, counted from the end of the last tax year they relate to.

Work with the Scarborough office

Kennedy Tax & Accounting Inc. prepares the return from its only office in Scarborough, near Kennedy Station. You can visit or send the slips. English, Bengali and Tamil are spoken. A CPA has led the firm since 2010. A simple personal return starts at $49.99 + HST. Other work is quoted first.

The personal return is prepared on the personal income tax page. A corporation uses the T2 service. Books are on the bookkeeping page.