Tax time can be stressful for many people, but that’s especially true if it's your first time filing taxes in Canada. Fortunately, the Canadian Revenue Agency (CRA) has plenty of resources to help newcomers file their taxes easily and accurately.
Whether you’re hiring an accountant or using tax software, we’re breaking down everything you need to know to file your taxes in Canada for the first time.
Key Takeaways
- There are 9 steps involved when filing your taxes.
- The first few steps require determining deadlines and gathering info.
- When filling out the forms, you'll need to report your income and claim deductions, credits, etc.
- The final steps involve officially submitting your return and waiting for the results.
Step 1: Gather your paperwork
The first few steps for everyone, whether it's your first time filing a tax return or not, will involve gathering paperwork and information. You may already have some of the required documentation on hand, but there will be some you'll have to ask others to help you locate.
Obtain a SIN if you don’t have one
You’ll need a Social Insurance Number (SIN) to work, file taxes, and receive benefits or credits in Canada. If you haven’t gotten a SIN yet, visit Service Canada to apply for one. You’ll need documents to verify your identity, and if you’re a newcomer to Canada, you’ll need paperwork proving your residency status, like a Permanent Resident card or a work or study permit.
If you can’t get a SIN before the tax deadline, fill out your taxes without it, and attach a letter that explains why you haven’t gotten one. If your application is approved, you’ll be given a temporary tax number (TTN) to process your taxes.
Include documents proving your identity and citizenship status
When you file taxes, you’ll need to confirm who you are and that you’re a citizen of Canada. Eligible supporting documents include:
- Canadian certificate of citizenship
- Permanent resident card
- Work permit/Employment authorization
- Study permit/Student authorization
- Notice of decision granting convention refugee or protected person status
Need to know: If your identification documents are in a language other than English or French, you’ll need to include an acceptable translation when you submit them.
Gather income statements and receipts
When you're preparing for your first time filing a tax return, the most important pieces of information are the income slips that show all the income you’ve earned during the year.
To start, you’ll want a rough idea of what types of income you earned. There are several forms required to show how much you’ve earned – this overview table can help:
| Form | Purpose/description |
|---|---|
| T3 | * Shows the income earned from a trust * Only applies to those who have trust income in the prior year |
| T4 | * Shows your employment income * Should be provided by your employer around the end of February * Employer also sends a copy to CRA |
| T5 | * Shows your investment income for the year |
| T2202 | * Shows tuition information * Only applicable to students |
You may be able to access these forms through your employer or school’s portal/intranet. If they’re mailed to you, they’ll usually arrive by the end of February.
If you had multiple employers in a single tax year, be sure you gather all of your T4 slips.
Along with the above forms, you'll need documentation for any small business income earned, including copies of invoices. Details of the costs related to the small business are necessary.
If you’re planning to claim certain tax credits or benefits, you may also need receipts for things like:
- Paying rent
- Childcare expenses
- Medical expenses
- Donations
Step 2: Decide how to prepare and file your tax return
You have several options for preparing and filing your taxes in Canada – choosing the right ones can help you get your return filed accurately and quickly.
Choose how you want to prepare your taxes
While you can certainly prepare your taxes on your own if you’d like, you do have options if you’d prefer to have help.
- On your own: Fill out a paper or digital T1, including all required documentation with tax software. There are many reasonably-priced and free options available.
- With volunteer help: If you make a low- to moderate-income and your tax situation is fairly straightforward, you may be eligible to have your taxes prepared at a free tax clinic near you.
- Hire a tax professional: If you don’t qualify for a free tax clinic or you want professional help, you can pay an accountant or tax prep expert to prepare your tax return.
Choose how you want to file
Before you start preparing your taxes, decide whether you want to file online or mail in a paper return.
If you file your taxes online using a NETFILE-certified software, your return will usually be processed in about 2 weeks. Also, most tax software will help you maximize your deductions and credits, helping you pay less in taxes (or get a bigger refund).
If you prefer, you can fill out a paper T1 form and mail it in to your tax centre. But note that if you do this, it can take 8 weeks or more to process.
Need to know: To get your refund faster, sign up for a direct deposit so it can be sent straight to your bank. If you opt for a paper cheque, it can take 6–8 weeks to arrive.
Step 3: Fill out your T1 form
To file your taxes, you’ll need to fill out a T1 General Form – also called an Income Tax and Benefit Return – to report all of the income that you earned during the year. You can get this form from your tax preparer or through the software you use to prepare your taxes.
Because the T1 is used to determine whether you’re eligible for benefits and credits, you should fill out your T1 even if you didn’t earn any income for that year.
Here’s what to do:
Fill out your personal information
When you start filing your tax return, you’ll need to include information about yourself, such as:
- Current mailing address
- Current residency and any changes to your residency in the last year
- Marital status
If you’re using tax software, this information will be used to automatically calculate any applicable tax credits. Make sure to answer all the software's questions about your personal info as accurately as possible.
Many, if not most, Canadians use tax software and TurboTax is one of the most popular and high-quality options available. Its cross-Canada availability, accuracy guarantee, and the option for paid subscriptions make it a versatile, trustworthy choice.
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Report your income
Next, enter in all of the income from the previous year. Most people simply have employment income, which is straightforward to enter using the numbered boxes in the T4 slip(s).
Be sure to include any income that you received from outside Canada for that year, both before and after you arrived. You won’t have to pay taxes on the money you earned before you came to Canada, but you may need to include it if you’re applying for benefits and credits.
Also, it’s important to get receipts for any business, rental, or other type of income received – just in case the CRA asks in the future.
Claim your deductions, credits, and expenses
Deductions and credits come next, as well as any deductible expenses you may have. If you use tax software, the program should automatically calculate all credits applicable to you.
This can include the following and more:
- Charitable donations
- Medical expenses
- Tuition credits
- RRSP contributions
Double check all information
Before filing your tax return, it’s important to review all your information to make sure it’s complete and fully accurate. If you aren’t sure, you can always call the CRA to get a copy of the slips they have on file as a starting point, but it’s your responsibility to make sure all income is reported.
Need to know: After your return is processed, you’ll be sent a Notice of Assessment (NOA) summarizing your return. Check this carefully to be sure your return was accurate.
Deadline for newcomers to file taxes in Canada
For most people, the filing deadline is at the end of April. Here's a list of the most important tax dates for you to remember:
- February 19: The first day you can file
- April 30: General tax return due date
- June 15: Tax return due date for self-employed individuals
After these dates, the CRA begins calculating interest on any amounts owing, so it’s important to file your taxes on time to avoid any interest penalties (which are non-deductible on future tax returns).
As a general rule of thumb, aim to give yourself some time before the deadline, just in case you need to call CRA with questions about your tax return.
Tax benefits and credits for Canadian newcomers
There are some tax credits and benefits that you can apply for as soon as you arrive in Canada – before you even file your first tax return. These include:
- GST/HST credit: If you have a low or modest income, you may qualify for a quarterly payment to help offset some of the taxes that you pay throughout the year.
- Canada Carbon Rebate (CCR): The CCR is a quarterly rebate payment to help offset rising anti-pollution costs.
- Canada Child Benefit (CCB): If you’re the parent of at least one child under 18, you may qualify for this monthly benefit payment.
If you think you may qualify for the GST/HST or CCR credits, fill out Form RC151 as soon as you establish residency in Canada. If you qualify for the CCB, fill out Form RC66 as well.
Need to know: Even though you can apply for these benefits and credits before filing your first tax return, you do need to file a return for all future years that you claim the credits.
You may qualify for additional credits and benefits after you’ve filed your first Canadian tax return.
Quick Guide to filing your taxes in Canada
Here’s a quick list you can reference as you start filing your taxes for the first time in Canada
| Steps | Details |
|---|---|
| 1. Determine deadlines | * Consult the list of deadlines and ensure you're filing on time |
| 2. Gather your info | * Determine which forms you need * Obtain required info from your employer * Obtain required info from your school |
| 3. Choose your filing method | * Tax software * Paper forms * Contact an accountant or tax professional |
| 4. Enter personal details | * Mailing address * Marital status * Changes in residency * Etc. |
| 5. Report income | * Employment income * Business income * Rental unit income * Etc. |
| 6. Claim deductions, credits, expenses | * Charitable donations * Medical expenses * Tuition credits * Etc. |
| 7. Double-check | * Review everything you've filled in |
| 8. File your return | * Via tax software * Via mail |
| 9. Wait for results | * Receive a refund * Receive notice of taxes owing |
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.FAQ
What are the steps for how to file taxes in Canada?
To file your taxes, prepare your documents, then fill out the required forms with your income and claiming deductions, credits, etc. After officially filing your return, you wait for either a refund or notice of taxes owing.
Are there tips for how to file your own taxes in Canada?
If you'll be filing your own taxes, our biggest tip is to be prepared. Educate yourself on which forms you'll need and how to get them, plus do some research on the various deductions, credits, and expenses you can claim.
Can you tell me how to file Canadian taxes online?
To file your tax return online, you'll need to use a NETFILE-certified form of tax software. Wealthsimple Tax and TurboTax are both popular tax software choices that make the process easy. Both also guarantee accurate results.
How can I file my taxes for free?
To put it simply, it's always free if you're doing it yourself, whether this means using tax software or filling out the paperwork by hand. Some software options don't require payment, and filling out paper forms by hand is always free.
How do you know if you need to file taxes in Canada?
If you or your spouse (or common-law partner) are considered residents of Canada, you can file income taxes starting the year that you establish residency. If you earned any income in Canada during that year, you are required to file, even if you only lived here for part of the year.
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