FROM THE SUCCESS PEOPLETM
Tips for Your First Time Tax Filing in Canada
Estimates indicate that over 300,000 thousand people move to Canada every year. These individuals often choose Canada for its career opportunities, social welfare programs, and beautiful scenery.
While new immigrants to Canada enjoy many benefits, there is also a learning curve involved with becoming a Canadian citizen. For instance, new Canadians must learn how to conduct tax filing in Canada, which might be very different from their home country.
If you will be filing taxes in Canada for the first time this year, we’ve got the details you need to be successful.
Do I Need to File a Tax Return?
Some people might assume that only Canadian citizens need to file a tax return. In reality, any citizen of Canada who earns income in Canada will need to file a tax return. Even if you only lived in Canada for part of the year, you still may need to file a return.
Benefits of Filing a Tax Return
Filing your tax return in Canada will connect you with a variety of benefits through the Canadian government.
First, once your file your tax return for the first time, your information will be on file with the Canadian Revenue Agency. This will make future filing easier.
Based on your tax filing, you may qualify for other benefits. For instance, you may qualify for the Goods and Services Harmonized Tax Credit or the Canadian Child Benefit.
Also, as we mentioned earlier, many people are drawn to Canada by the generous social welfare programs. Many of these programs, however, are based on your income. Filing your taxes will ensure that you qualify for your maximum benefits.
What Do I Need to File My Return?
Once you are ready to file your tax return, you will need to gather certain documents. If you are employed in Canada, you will need the T-slip you received from your employer.
If you worked in another country during the same year that you moved to Canada, you may need information from that employer as well. If you have any other income from outside Canada, you will also need to include that information. Also, if you bring any assets with you when you move to Canada, you will need to claim these.
What About Credits and Deductions?
The credits and deductions you will be able to claim on your taxes depend on your individual tax and income situation. For instance, in Canada, you can often claim expenses for childcare or medical costs. The credits and deductions you are able to claim may also depend on the specific province of Canada that you live in.
Submitting Your Tax Return
For your first year living in Canada, you will likely need to submit a hard copy tax return. In future years, you will not need to take this step.
Get Started With Tax Filing Canada Today
With these tips in hand, you will be prepared to start tax filing Canada with no trouble at all.
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