Tax Basics for Newcomers to Canada
- Canada’s tax system is regulated by the Canada Revenue Agency, also called the CRA.
- The deadline for filing your personal income tax return, called a T1, is April 30th.
- The deadline for self-employed individuals to file their personal tax returns on June 15th.
- If April 30th or June 15th falls on a Saturday or Sunday, then the due date is the following Monday.
If you are considered to be a Resident of Canada or a Deemed Resident of Canada (and some Non-Residents) you should file an income tax return for either the entire tax year or part of the tax year you’ve lived in Canada. You may not be required to, but you should, for the following reasons.
If you are 19 years old or older, you may also be eligible for a larger refund from refundable credits such as;
Students who pay tuition at a qualifying post-secondary institution can also benefit from filing their taxes, even if they have no tax refund. Unlike most non-refundable credits, tuition credits can be carried forward to a future year to use when you have earned more income and need the credit, or transferred to a spouse/common-law partner or parent/grandparent.
- You become a resident of Canada for income tax purposes when you establish significant residential and social ties in Canada. Examples include having a home, or a spouse or common-law partner in Canada. You usually establish these ties the date you arrive in Canada.
- You should still do your taxes even if you have little or no income to report. By filing an income tax and benefit return, you might be able to get benefits and credits such as the goods and services tax/harmonized sales tax (GST/HST) credit and the Canada child benefit. Your spouse or common-law partner also has to do their taxes each year for you to receive benefit and credit payments that you may be eligible to receive.
March 16th, 2020