Tips For Your First Time Tax Filing In Canada

If its Your First Time Tax Filing In Canada, here are some tips to guide you with your tax filing. Every year, approximately over 300,000 thousand people migrate to Canada. These individuals often choose Canada for its many career opportunities, social welfare programs, and beautiful scenery.

While new immigrants enjoy so many benefits in Canada, there is also a learning curve involved with becoming a Canadian citizen. For example, new Canadians must learn how to conduct tax filing in Canada which may be different from their home country.

Tips For Your First Time Tax Filling In Canada

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?

Most people may think 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. You still need to file a tax return even if you lived in Canada for part of the year.

Benefits of Filing a Tax Return

Filing your tax return in Canada will give you access to a variety of benefits through the Canadian government.

First, after filing your tax return for the first time, your information will be on file with the Canadian Revenue Agency. This will make future filing easier.

You may qualify for other benefits based on your tax filing. For example, you may qualify for the Goods and Services Harmonized Tax Credit or the Canadian Child Benefit.

Also, as we mentioned earlier, some people are drawn to Canada by the generous social welfare programs. However, many of these programs depends on your income. Filing your taxes will ensure that you qualify for your maximum benefits.

What Do I Need to File My Return?

You have to gather certain documents once you are ready to file your tax return. If you are employed in Canada, the T-slip given to you by your employer will be required.

If you worked in another country same year that you moved to Canada, you may need information from that employer as well. You will also need to include information of any income that you have outside Canada. Also, you will need to claim any assets you brought with you when you move to Canada.

What About Credits and Deductions?

Your individual tax and income situation will determine the credits and deductions you will be able to claim on your taxes. For example, you can often claim expenses for childcare or medical costs in Canada. The specific province of Canada that you live in will also determine the credits and deductions you will able to claim.

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, this step will not be required. With these tips in mind, you will be prepared to start tax filing in Canada with no trouble at all.

You can also see tax return for new permanent residents in Canada.