Canadian Tax Return Basics for Newcomers to Canada

As a newcomer to Canada, one important thing you may need to learn about is the Canadian tax system; including the process of filing a tax return.

A tax return is a document that you file with the Canada Revenue Agency (CRA) that reports your income, deductions, and credits for a given tax year. Filing a tax return is important because it determines your eligibility for certain benefits, credits, and refunds, as well as your tax liability.

In this article, we will discuss what a tax return is, why you may need to file one, and how to go about doing it.

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Why file a tax return in Canada?

So, you have just arrived in Canada – or plan to soon. Perhaps you are wondering why you may need to file one as a newcomer. Even if you only lived in Canada for part of the year, you may need to file a tax return if you earned income such as employment, investment or other income, and have tax owing or if you want to claim a refund.^[1] Filing a tax return may also allow you to claim benefits and credits that you may be eligible for, such as the Canada Child Benefit or the GST/HST credit.

What is the deadline for tax returns?

The deadline for filing your tax return is April 30th of each year; however, when April 30th falls on a weekend, there is an extension to the next business day.^[2] If you or your spouse or common-law partner is self-employed, the filing deadline is June 15^th. However, if you have a tax liability, your payment is due April 30.

How do I file a tax return in Canada?

There are several ways to file your tax return, including paper filing or e-filing using certified tax software. One easy and convenient way to file is through the CRA's website using the "My Account" feature. If you prefer paper filing, you can order the package online from the CRA website or by calling the CRA at 1-855-330-3305.

Personal, work, and financial information required^[3]

You will need to provide personal information such as your name, address, and social insurance number. If you are married or in a common-law relationship, you will also need to provide your partner's information.

Additional Information you will need for your tax return

To file your return, you will need to provide additional information about your income found on tax slips such as your T4 (Statement of Renumeration Paid), T3 (Statement of Trust Income Allocations and Designations), and T5 (Statement of Investment Income). You will also need to provide information about any deductions or credits you are claiming. For more details on the personal, work and financial information you may require to file your tax return, visit this page on the CRA website.

Receipts for income tax deductions

You should keep all official receipts relating to medical expenses ^[4], charitable donations ^[5] and business expenses ^[6] for six years after you file a return in case the CRA requests them later. You may be eligible to claim various deductions or credits including:

Family, childcare and caregiver deductions
Home buyer tax credits
Disability tax credit
Moving expense deductions
Employee expenses such as working from home or car expenses in certain circumstances
Various business expenses

For clarification about which deductions you qualify for it is best to consult a Canadian tax professional.

Once you have determined that you will be eligible for a refund, be sure to talk to a TD Personal Banking Associate to discuss your options including:

Setting up automatic deposit with the CRA so your tax refund can go directly to your account at TD.
Setting up TD savings or investment accounts to start earning money on your tax refund as soon as possible.

Need more information or help on filing your taxes as a new Canadian? Learn more at our TD Tax Resource Centre.

Why Choose TD?

150 years helping Canadians:

TD has a proud history of delivering financial solutions to Canadians for more than 150 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.

With over a thousand branches and a reputation for excellence in financial services, TD has become one of the largest and most trusted banks in Canada, now serving 16-million Canadians.

TD offers online support and resources of interest to newcomers on topics like banking basics, moving to Canada, credit score essentials and more. TD has more than 1,100 branches and can also serve you in more than 50 languages. TD is open longer hours for your convenience. TD has thousands of ATMs across Canada to help you take care of your everyday banking quickly and easily.

Ready to bank? Learn more about TD's New to Canada Banking Package today.

Book an appointment to talk to a TD Personal Banking Associate about the TD New to Canada Banking Package. You can book online right away, or visit the TD website to learn more.

^[1] https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html#h_4

^[2] https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/important-dates-individuals.html

^[3] https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/non-residents/5013-g/guide-non-residents-deemed-residents-canada-identification-other-information-total-income.html

^[4] https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html

^[5] https://www.canada.ca/en/revenue-agency/services/charities-giving/giving-charity-information-donors/claiming-charitable-tax-credits/what-documents-will-need-claim-charitable-tax-credits.html

^[6] https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html

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