T2 Short Return Job Aide

The T2 Short Return is us telling the government where our money came from and how it was spent.

Tips & Info

• Our T2 return must include schedules 100, 125 and 141. We skip schedules 1 S, 8 and 50, probably because they don’t apply to us as a non-profit. We also submitted schedules 1, 24 and 101. But 24 doesn’t apply anymore, I believe because it was only for the year we incorporated.

• It’s best to fill out the forms in the following order: Schedule 125, Schedule 1, other schedules (24, 101, 100, 141) and then T2 Short Return PDF after all the schedules. (The T2 needs information from the Schedule 1. And Schedule 1 requires information on Schedule 125.)

• I have gone through our 2009 return and looked up all the codes. I’ve written down everything we need to properly represent our finances. I also wrote down what the codes mean.

• Our general ledger spreadsheet should be updated so that all transactions are associated with a specific GIFI accounting code and the end of year summary should sum each code across the spreadsheet. Every line on our general ledger should be added in to one of the line numbers we report. The treasurer should make sure we have a list of codes it should account for and Shawn can do the spreadsheet programming to automate the end of year summary.

• From time to time, we should confirm that the GIFI codes we are using as the most appropriate, using the link at the bottom of this document. Also, whenever adding a new revenue or expense category to the general ledger spreadsheet.

• To do: The general ledger spreadsheet should be updated to use these categories to make it easier to do this year’s return if any of them are different from what is reported.

• When complete, please make sure the documents are scanned for our records. I have a scanner if needed. (Shawn)

• Several returns were not filed. The 2019 return I have a copy of, but they did not provide me with notes or updates to say if this job aid is still up-to-date or not. Ideally, this document would be confirmed by someone doing the next filing.

Schedule 24

We don’t need to file 24 because it’s not our first time!

Part 1

Part 1 of what?

• 100 99 “Other”

Schedule 100* ✓

Assets

• 1000 Cash and deposits (Current Assets)
  • This should be all current money we have.
  • 2009 Return: 986

Liabilities

• We don’t have any liabilities.
• 2009 Return: “Nill” written in field.

Retained earnings

• 3660 Retained earnings/deficit - start (Retained earnings)
  • 2009 Return: 1684
  • (Balance from previous year?)
• 3680 Net income/loss (Retained earnings)
  • 2009 Return: (698)

Schedule 101 ✓

Assets

• 1000 Cash and deposits
  • 2009 Return: 1684

Liabilities

• 3139 Total current liabilities
  • 2009 Return: 0

Shareholder Equity

• 3620 Total shareholder equity
  • 2009 Return: Zero

Retained Earnings

• 3660 Retained earnings/deficit – Start
  • How much profit or losses for this year. (I think.)
  • 2009 Return: 1624

Schedule 125* ✓

Non-farming revenue

• 8226 (This must be membership but is a code no longer in use. Don’t use this.)
  • 2009 Return: 215
• 8221 Membership fees
  • Use this instead of 8226.
• 8223 Gifts (Non-profit organizations / NPO Amounts Received)
  • 2009 Return: 90
  • This is donations.
• 9999 This is used in Schedule 1 and is just the above added up.

Non-farming expenses: Cost of sales

We don’t sell stuff. Leave blank.

Non-farming expenses: Operating expenses

• 8911 Real estate rental
  • 2009 Return: 120
• 8523 Meals and entertainment
  • 2009 Return: 64
• 8862 Accounting fees / bookkeeping
  • 2009 Return: 816
  • This should be zero going forward as we don’t pay anyone.
• 8810 Office expenses
  • 2009 Return: 9
• 8710 Interest and bank charges
  • 2009 Return: (6)

Note: Schedule 140 is in the Schedule 125 PDF. Just leave this blank.

Schedule 141*

• 095 No
• 097 Yes
• 101 No (Notes)
• 108 No (Joint ventures)

Schedule 1 ✓

The top of the sheet (A) has the net return from line 9999 of Schedule 125. Everything else is blank because our finances are so basic. The very bottom shows the same number. That number is then copied to line 300 on page 3 of the T2 Short Return.

T2 Short Return

Only the following items need to be entered are below.

T2 Short E - Page 1

• 001 Business Number
• 002 Name
• 040 5 “Not For Profit”
• 060 Tax year (the calendar year from Jan-Dec)
• 061 Same as above
• 063 No (acquisition of control subsection 249(4))
• 066 Yes (year end as subsection 249(3.1))
• 067 No (no partnership)
• 070 No (Not first year)
• 071 No (No amalgamation)
• 072 No (No subsidiary)
• 076 No (No amalgamation)
• 078 No (Not final return)
• 750 Ontario
• 840 0 (Tax instalments paid)
• 894 Check (Indicate refund code)
• 085 4 (Exempt)

T2 Short E - Page 2 (I think)

• 281 No (No changes)
• 282 Monthly meetings & social gatherings
• 950, 951, 954, 955, 958 Your name (Secretary or President)
• 990 1 (English?)

Resources I used

• Revenue Agency Forms for downloading the most recent forms.
• Revenue Agency GIFI glossary for what the list of GIFI codes and what they mean.