Even if you are not required to file a tax return , it may be useful to do so in order to take advantage of certain tax credits that will allow you to grow your savings. This tax article for newcomers will guide you through the process so that you are ready to file your tax return before the deadline.
Who must file a tax return?
Filing a tax return is mandatory for both Canadian residents and newcomers, including immigrants, foreign students and temporary foreign workers. In general, the deadline for filing personal income tax returns is April 30 of the following year. You must file a Canadian tax return in a number of situations. For example :
Most newcomers will be able to file their return electronically using Electronic Filing of Returns (EFILE) or by mail. However, there are exclusions to EFILE for certain individuals and non-residents.
Income tax returns are due April 30 each year.
If you owe tax, the payment is also due on that date. If April 30 falls on a Saturday, Sunday, or statutory holiday for a given year, returns will be considered filed on time if the Canada Revenue Agency (CRA) receives them on the first business day after April 30 or if they bear the postmark of that day. You must therefore file your 2022 personal income tax return by May 1, 2023.
If you or your spouse or common-law partner is self-employed, the deadline to file your tax return is June 15. The tax payment you owe is due on April 30, 2023.
If you file your tax return late, you will have to pay interest on the amount you owe as well as a late-filing penalty. Even if you can’t afford the tax you owe, file your return by April 30 and contact the CRA about payment options.
What you must report and claim on your tax return
For a Canadian resident, while it is clear that all income from a Canadian source must be declared, it is also important to know what other financial income and tax credits must be included in your forms. For example :
Income earned abroad: If some of your income comes from another country, you must declare it in Canadian dollars on your Canadian income tax return. If you have already paid tax on income you earned outside of Canada, you may be eligible for the federal foreign tax credit.
Moving expenses: In general, you cannot deduct moving expenses incurred to settle in Canada. You can deduct moving expenses if you moved to take up employment or operate a business in a new location, or if you moved to attend, as a full-time student enrolled in a post-secondary program, a university, college, or another educational institution, and that your new residence is located at least 40 kilometers closer to your new place of work or study.
Support payments: Even if your ex-spouse or common-law partner does not live in Canada, you may be able to deduct support payments.
Documents required for filing a tax return
In addition, you will need to have the following information at hand:
Your Social Insurance Number (SIN): All newcomers to Canada need a SIN. If you applied for a SIN and are still waiting for your documents, file your tax return anyway to avoid penalties or delays in benefit payments.
T4 slips: If you work in Canada, you will receive a T4 slip from your employer, which shows your total earnings and source deductions for the year (such as Employment Insurance, pension fund and income tax).
Business Receipts: If you are self-employed, you will need to keep your business receipts and invoices in order to accurately report your income and claim deductions. It is important to keep these receipts in case the CRA has further questions.
Receipts for Child Care Expenses: These are receipts for child care expensesExternalyou pay to have someone look after an eligible child so you can work or go to school. Dependent Information: This includes basic information about your spouse, children or elderly parents.
Find free tax help
Free tax assistance is available through the Community Volunteer Income Tax Program (CVITP). Even if you’re not sure if you qualify for free CVITP help, program volunteers can help you find answers to your tax questions and tax resources for new arrivals.
I filed my tax return. What must I do now?
If you expect to receive a refund, don’t be tempted to shop around. Your tax refund is a great way to get a head start on your financial goals, like building an emergency fund.