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How To File Taxes In Canada For The First Time?

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If you’re a first-time taxpayer in Canada, this blog is for you. Keep reading to know more.

Tax filing

Source: Freepik

Tax season, this term can create an environment of anxiety and fear in anybody’s mind, especially if you are doing it for the first time on your own. There is a lot to keep in mind. The paperwork can overwhelm you as an honest taxpayer.  

What if you are working in several companies? Will you be under scrutiny if you make a mistake?

If you are looking to get guidance on this topic, your search ends right here. 

CRA :

CRA stands for Canada Revenue Agency. The agency is under the administration of the Federal Government for revenue collection purposes. It is the supreme authority that passes tax laws in Canada.  

Important Questions 

1. Why is Filing Taxes Important?

  • Even if you have not made money for taxes, and are still taxed, the tax department will refund you. 
  •  The CRA holds a record of your earnings and tax payments. 
  • The tax authority can punish you with fines and interest straight away if you owe money and do not file on time. 
  • You will start receiving benefits for qualifying dependents (such as the Canada Child Tax Benefit. 

2. What is the Correct Time to File Income Tax Return? 

You can begin filing taxes as early as mid-February, and the deadline is usually in late April. If you work for yourself, you must file your taxes by the middle of June. 

The dates, of course, alter from year to year. For precise dates, go to the Canada Revenue Agency’s website Link. 

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/important-dates-individuals/filing-dates-tax-return.html

3. What are the steps to file taxes? 

Filing your taxes is simply a test of your organizational skills. The procedure includes gathering necessary tax documents, communicating that information to a tax preparer (commonly a professional, software, or manual forms), and finally delivering your income tax return to the Canada Revenue Agency (CRA). 

Once the CRA has evaluated your return, you will receive a notice of assessment (NOA). This publication contains a wealth of information, such as whether you owe the government money or expect a refund. 

Taxes
Source: Pexels

4. What is the best place for me to file my taxes? 

Canadians can file their income tax returns in one of the three different methods. The first option is to hire a tax preparation expert. Other people prefer digital help. The SimpleTax is a free income tax software package that you could use.
The last alternative is filling out paperwork by hand, which is the old-fashioned way to do things here. 

5. What documents or data will I require from my company or other sources? 

Even if you are doing it on your own, filing your taxes is relatively easy.  

All that remains is for you to fill in the blanks with the numbers from your documentation. 

Below are a few forms to keep in mind: 

  • T4: Earnings from employment (issued by your employer) 
  • T5: Investment earnings (issued by your bank, even for savings accounts) 
  • T2202A: Tuition, instruction, and textbook costs for students (issued by your university or  
    college)

It will not be as difficult as you think, no matter whatever method you used to submit your taxes. Follow the directions, carefully fill out the boxes, and be aware of where to seek help. In no time, you will be a successful first-time tax filer. If you wish to know about tips to file your taxes like a pro, refer to the link given below. 

References:
https://www.hrblock.ca/tax-scenarios/new-canadians/
https://www.manulifebank.ca/personal-banking/plan-and-learn/personal-finance/how-to-file-taxes-for-the-first-time.html
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