First Time Filing Taxes for New Canadians

Filing your taxes accurately and on time avoids unwanted stress in the future. This guide will answer your questions about taxes in Canada and even show you where to get help filing them for free.

The taxes we pay each year contribute to the federal and provincial programs that everybody benefits from. Things like healthcare and education come from taxpayer dollars. The Canada Revenue Agency (CRA) oversees this. And they are at their busiest during tax season in Canada, which typically begins in late February. The deadline for most people to file their tax returns falling on April 30th. However, self-employed individuals, as well as, their spouses or common-law partners, have until June 15th to file their taxes.

*These dates are identified from the filing year of 2023.

Why should you file your taxes before the deadline?

Filing your income tax and benefit return on time is critical! Timely filing can result in financial benefits and refunds. For example, families with children who are 18 years old or younger may qualify for the Canada Child Benefit, along with other provincial and territorial programs that may also give money back to you. This can also apply for the Advanced Canada Workers Benefit, the goods and services tax/harmonized sales tax (GST/HST) credit, or the Canada Carbon Rebate.

It’s important to take advantage of these benefits by submitting your taxes on time because it can ultimately put money back in your hands. But if you miss the deadline, you may face penalties and additional interest for any debts owed to the government.

How do you file your taxes?

Most people file their taxes online. However, there are a few other options available that you may not know about. Some of these options are:

1. Use the NETFILE-certified tax software for electronic filing, which is approved by the CRA.
2. Speak with a tax preparer who can provide immediate refunds before filing your tax return.
3. Complete and file your taxes manually on a paper return.
4. Authorize a representative, such as a family member, friend, or accountant, to handle your taxes on your behalf and access your tax accounts.
5. Visit a community volunteer tax clinic for free tax filing assistance.

Visit the Government of Canada website for more information on each of these processes.

What are free tax clinics?

If you require aid with your tax filing and you want to save on the accountant fees, volunteers at a tax clinic might be able to manage your tax return for you. These clinics are typically available from March to April nationwide, although some operate year-round.

Find the right clinic for you.

To ensure volunteers can complete your tax return, you will need to provide the following materials:

1. Tax information slips
2. Receipts
3. Social Insurance Number
4. Identification

Tax slips are documents that outline your income and other financial details. They are normally provided by your employer by the end of February each year. If you have been employed throughout the year, you will receive a T4 slip from each of your employers. Other slips you may hear about:

1. T2202: You’ll receive this slip, if you have paid tuition to a university or college.
2. T4E: You’ll receive this slip, if you have received employment insurance or parental leave payments.

What happens after you submit your taxes?

Once you have submitted your taxes, the Canada Revenue Agency will send you a Notice of Assessment (NOA), which summarizes everything you submitted. This document tells you if you are getting a refund or if you owe money. If you made mistakes or forgot to claim something, no need to worry! You can fix them by adjusting your tax return.

Whether you choose to file online, seek help from tax preparers, or visit free tax clinics, there are resources available to assist you. Remember to gather all necessary documents and be aware of key dates, like the April 30th deadline for personal income tax. So, embrace this learning experience, and remember, each tax season is a step towards greater financial empowerment and stability in your new life in Canada. Happy filing!