Tax season has officially begun, and for many who are new to Canada, filing a tax return can feel unfamiliar and overwhelming. Between new rules, paperwork and meeting deadlines, it can be a lot to take in when you’re already adjusting to life in a different country.
Below are some tips to help new Canadians file for the first time.
Understanding residency and taxes
Before you begin, it’s important to determine your residency status, as it plays an important role in how you file your taxes. In Canada, you are considered to be a resident for tax purposes if you have spent 183 consecutive days in Canada or if you have significant residential ties. Examples of significant residential ties include:
- Establishing a home in Canada
- Having a spouse or common-law partner in Canada
- Having dependants (such as children) in Canada
- A permanent job
If you moved to Canada partway through the year, you’ll still need to file a tax return for the time you were a resident.
Setting yourself up for success
Regardless of how much income you’ve earned in the previous year, filing is an essential way the government determines your eligibility for benefit and credit payments. These payments can start as soon as you arrive in Canada, even before filing your first return, but to continue receiving payments, you need to file each year, even if you have no income.
As you begin to gather all the documents and information you need, tax filing software, TurboTax, backed by 100% accuracy and a best tax outcome guarantee, has a checklist to help you keep track.
Key information you’ll need before filing includes:
- Your Canadian social insurance number (SIN)
- The date you entered Canada
- T4 slips
- Details of any income earned before arriving in Canada
- Employment income received from outside Canada after the date you relocated.
You’ll also need to report any owned foreign assetsvalued at over $100,000 on Form T1135 on your tax return.
Signing up for a CRA My Account
Now that you have determined your residency status and have all the documents you need to file, it’s important to sign up for a CRA My Account. It will allow you to check on the status of refunds, your outstanding balances, RRSP & TFSA contribution room, and keep the Canada Revenue Agency (CRA) up to date on any changes to your personal info.
Your CRA My Account can also be connected to a tax filing software like TurboTax. TurboTax provides easy-to-use software for you to file on your own, or gives you access to a team of local tax experts to support you or even submit a return on your behalf. This ensures that tax season is as efficient as possible for you, while getting the best refund possible.
File on time
Another important thing to remember is the tax filing deadlines. For most individuals, the tax deadline is April 30. Self-employed Canadians have until June 15 to file, but any outstanding balance must be paid by April 30 to avoid penalties and interest.
By filing on time, you also avoid delays or interruptions to your benefit and credit payments.
Getting support from a local expert
Filing taxes in Canada can surely feel intimidating. Instead of navigating those details alone, consider using TurboTax Expert products for extra support.
TurboTax Expert Assist allows you to do taxes with unlimited tax help and guidance from a local tax expert. Its AI-powered technology provides a done-for-you document upload experience and automatically searches for credits and deductions. A tax expert is always standing by to answer any questions and conduct a final review for added confidence and peace of mind.
Or, if you want to fully hand your return over to a professional, TurboTax Expert Full Service matches you with a local tax expert who will prepare your return from start to finish, review every detail carefully, sign, and file on your behalf. You’ll answer a few straightforward questions and securely share your documents, and then your expert takes care of the rest from there. And, the support doesn’t end after filing. Your expert will defend your return and handle correspondence with the CRA in the event of an audit, giving the ultimate peace of mind.
A confident start to your financial life in Canada
Now that tax season is officially here, understanding the process is important, but carrying the burden alone isn’t necessary. This year, give yourself the gift of being stress-free. Save it for the professionals, and begin your journey in Canada with confidence.
Ready to start? Visit turbotax.ca to learn more and start filing with confidence.
