Newcomers
Welcome to Canada!
You become resident of Canada for tax purposes when you establish significant residential ties in Canada.
Residential ties in Canada include:
- A home in Canada.
- A spouse or dependants who move to Canada to live with you.
- A driver’s licence.
- A bank account.
Newcomers to Canada may be:
- Protected persons (including refugees).
- Individuals who applied for or received permanent resident status.
- Individuals who have received “approval in principle” from Immigration, Refugees and Citizenship Canada.
Understanding your tax rights and obligations as a resident of Canada for tax purposes is crucial. We are here to help you and make your filing process smooth and stress-free.
Why should you file an income tax return?
- Report your worldwide income (CRA requirement).
- Claim possible deductions.
- Determine if you have a balance or a refund.
- You may qualify for benefits and credits.
- Filing on time will avoid paying penalties and interest.
- Start building your RRSP contribution room.
- Having your taxes filed may help you when you apply for credit.
Students
Do you have to file your taxes as an international or domestic student?
As a student, you must file your taxes if any of the following apply:
- You have to pay taxes.
- You did not repay amounts from your RRSP under the LLP plan.
- You have to contribute to the CPP (if your total income exceeds $3,500).
- You received Advanced Canada Workers Benefit (ACWB) payments.
If none of these requirements applies to you, you may want to file if:
- You have a refund to claim.
- You want to receive benefits and credits such as GST, CCB and CAIP.
- You want to transfer tuition to a spouse or a parent.
- You have income to report and want to increase your Canada training credit.
Documentation and deadline: the deadline for filing is April 30th. Check our checklist, gather your documents and let us help you through the process. Our professionals will work in your best interest to maximize your credits and refunds.
Why should you file an income tax return?
- You may claim your tuition credit.
- You may carry forward your tuition credit to use in the future.
- You may transfer your tuition credit to a spouse or a parent.
- You may qualify to receive benefits.
Seniors
Why do you have to file your taxes?
- To continue receiving CPP.
- To continue receiving OAS, if eligible.
- To receive the Guaranteed Income Supplement, if eligible.
Claim benefits and credits
- Pension income splitting.
- RRSP deduction.
- Age amount.
- Medical expenses.
Benefits and credits
- GST Credit.
- Climate Action Incentive.
- Ontario Trillium Benefit.
- Seniors Homeowner’s Property Tax Grant.
Filing an income tax return is important for seniors for the following reasons:
- Avoid suspension of your pension income.
- Allowable income splitting: as a pensioner, you may be eligible to split up to 50% of your eligible income with your spouse, to reduce taxes you may have to pay.
Self-Employed Workers
Self-employed worker income
Self-employed individuals are responsible for reporting their income accurately, including revenue from their business activities, freelance work, or any other self-employed ventures.
Tax deductions
Self-employed individuals can benefit from various tax deductions related to business expenses, home office costs, and other allowable expenditures. Keeping thorough records is essential to maximize these deductions.
Quarterly tax payments
Unlike traditional employees, self-employed individuals often need to make quarterly estimated tax payments to cover their tax liabilities throughout the year. Understanding and adhering to these payment schedules is crucial to avoid penalties.
Filing an income tax return is crucial for self-employed for the following reasons:
- Registering your activity as independent is essential to establish a business identity, comply with legal requirements and operate legally.
- Generating accurate financial records is crucial for monitoring financial performance, preparing tax returns, and meeting accounting obligations.
- Identifying and tracking deductible expenses is vital to reducing your tax burden by taking advantage of legal business expense deductions.
- When preparing income taxes, specific forms are used to reflect the nature of income and expenses related to the business.
- Paying taxes quarterly is an important practice to avoid tax surprises by ensuring that taxes are paid regularly throughout the year.