Filing taxes in Canada is required for most individuals and families.
Even if you are not required to file taxes, it can be helpful, so that you may be able to take advantage of certain tax credits to add to your savings. This newcomer tax guide will help navigate you through the process so you can be prepared to file by the tax deadline.
Filing taxes is an obligation for both Canadian residents and newcomers including immigrants, international students, and temporary foreign workers. Generally, the due date of a personal tax return is on April 30 of the following year. For example, for calendar year 2021, the due date is April 30, 2022. You must file Canadian taxes in a number of situations. For example:
Most newcomers will be able to file electronically through EFILE or mail, though there are some EFILE exclusions for some individuals and non-residents.
If you owe taxes, the payment is also due at this time. If April 30 falls on a Saturday, Sunday or holiday that year, returns will be considered filed on time if the Canada Revenue Agency (CRA) receives them or they are postmarked on the first business day following April 30. This means for 2021 personal tax return, you need to file your return on or before May 2, 2022.
If you are self-employed, or you have a spouse or common-law partner who is self-employed, the filing deadline is June 15. The payment of taxes owing is due on May 2, 2022.
If you file late, you will be charged interest on any taxes you owe as well as a late-filing penalty. Even if you cannot afford to pay the taxes you owe, still file on or before April 30 and contact the CRA about payment options.
For a Canadian resident, while it is clear that all income earned from a Canadian source needs to be reported, it is also important to know what other financial earnings and tax credits need to be included in your forms. For example:
You will be required to provide basic information, such as your name and address. Among others, you will also need the following information handy:
Free tax help is available through the Community Volunteer Income Tax Program (CVITP). If you have a modest income and a simple tax situation. Even if you are unsure if you qualify for free help through CVITP, they can help point you in the right direction for tax questions and newcomer tax resources.
Congratulations! You filed your taxes as a newcomer to Canada.
If you are expecting a refund, don’t be tempted to go on a shopping spree. Your tax refund is an excellent way to get ahead on financial goals, like building an emergency fund.
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