Most people and families in Canada are required to file taxes.
Even though you are not obligated to file taxes, it is beneficial to do so to maximize your savings by taking advantage of certain tax advantages.
This newbie tax guide will assist you in navigating the procedure and ensuring that you are prepared to submit by the tax deadline.
Who is required to file tax returns?
Residents of Canada and newcomers, particularly immigrants, international students, and temporary foreign employees, must file taxes. Usually, personal tax returns are due on April 30 of the following year.
For the fiscal year 2021, the due date is April 30, 2022. You are required to file Canadian taxes in a variety of circumstances. For example:
- You got income from a Canadian source.
- You have government money.
- You wish to make a refund or receive a benefit, such as the Child Canada Benefit.
- The majority of immigrants will be able to file electronically via EFILE or by mail, while some persons and non-residents will be excluded from EFILE.
Taxes deadline is April 30 every year.
Taxes are also payable at this time if you owe them. If April 30 comes on a Saturday, Sunday, or holiday, returns are deemed timely if received by the Canada Revenue Agency (CRA) or are stamped on the first working day after April 30. It implies that you must file your tax return for 2021 on or before May 2, 2022.
If you are self-employed or have a partner or prevalent law partner, the filing date is June 15. Taxes are payable on May 2, 2022.
If you file late, you will be fined interest and a late-filing fee on any taxes you owe. Even if you cannot pay your taxes, you must still file by April 30 and contact the CRA to discuss regular payments.
Documents needed to file taxes.
You will be asked to give basic information about yourself, like your name and address. Among other things, you’ll need the following information:
Social Insurance Number
The Social Security Number (SIN) is a unique id. All newcomers to Canada are required to get a SIN. If you have applied for a SIN but have not received the paperwork, you must still submit your taxes to avoid penalty fines or benefit delays.
If you work in Canada, your company will provide you with a T4 slip outlining your total salary and source expenditures for the year.
You must save company receipts and invoices to file your income and claim expenditures appropriately if you are self-employed. It is critical to save these receipts if the CRA has any follow-up queries.
Receipts for Child Care
These are invoices for child care expenditures incurred for you to work or study while someone else looks after an eligible youngster.
This section contains basic information regarding you, your partner, your kids, and your elderly parents. You may be qualified for certain tax credits.
Congratulations! As an immigrant to Canada, you submitted your taxes.
If you are awaiting a return, avoid the temptation to go shopping. Your tax refund is a wonderful method to jump-start financial goals such as emergency funds.