How to File Your Canadian Tax Return: A Complete Step-by-Step Guide for Newcomers and First-Time Filers

Newcomers in Canada need to file tax returns to claim certain benefits. 

A tax return is a document that you need to file with the Canada Revenue Agency (CRA). In your tax return document, you need to report your income, deductions, and credits for a given tax. Filling a tax return allows you to report your income, claim eligible deductions and credits, and ensure you comply with tax regulations. Additionally, it may provide access to important benefits like the Canada Child Benefit and GST/HST credits. Even if you don't owe tax, submitting a tax return can help you receive refunds or carry forward credits for future tax years, providing financial advantages during your stay in Canada. 

Now, let’s find out why you should file your tax return and the ways to file it properly.

Note:

• You need to file the return as a newcomer even if you have not spent a whole year in Canada.
• You have to file the return if you have earned an income through employment, investment, or other sources, and you have tax owing or want to claim a refund on a given tax.
• Filing the tax return also allows you to claim benefits like the Canada Child Benefit or the GST/HST credits.

How to File Tax Returns in Canada

You can file your tax return online or offline. You can file your tax return through certified websites. The best way to do this is through the Canada Revenue Agency website.

If you want to file your tax return offline, you can order the package online from CRA or call 1-855-330-3305 to get the package from CRA.

Here are the steps you need to follow to file a tax return in Canada: 

STEP 1: Figure out if you need to file a Canadian income tax or benefit return

• If you had Canadian income in the past calendar year, you should file, as you may be eligible for a refund of taxes deducted at the source.
• If you are a resident of Canada for tax purposes and did not earn Canadian income, you can still choose to file to be eligible for certain benefits and credits. 

STEP 2: Attend an information session to understand the Canadian tax system

• The Centre for International Experience (CIE) hosts information sessions with the CRA specifically for international students during the Winter term.
• The Hart House Finance Committee also hosts income tax information sessions throughout the year in partnership with CPA Canada. 

Attend these events to understand the Canadian tax system better 

STEP 3: Gather all the information you will need before filing  

You need to collect information on all your sources of income and any tax slips or receipts that might entitle you to tax credits, deductions, or benefits (if you are a resident of Canada for tax purposes).

The tax slips or receipts include:

• T4 tax slip from your employer
• T4A tax slip from the University (found on ACORN)
• T3 or T5 tax slip from your financial institution
• T2202 Tuition and Enrolment Certificate (found on ACORN)
• Property taxes or rent receipts
• Medical expenses receipts
• Charitable or political donations receipt

STEP 4: Choose if you want to file on your own, get help from volunteers, or pay someone

• You can use free or paid certified software using NETFILE. To use NETFILE, you must be a resident of Canada for tax purposes and have an address in Canada.
• You can get free help from volunteers at a Volunteer Income Tax Clinic (VITC). These are often organized by student unions (UTSU and APUS) in March and April, or you can find off-campus clinics through the CVITP.
• You can hire a tax preparation company or an accountant if you have a more complicated tax situation or would like additional support.  

STEP 5: Set up a "My CRA Account” 

• You will only be able to set up a My CRA Account after you have filed for the first time and received your Notice of Assessment from the CRA.
• This account is for managing your tax and benefit information online; it is not the system you use to file your return.

List of Details You Need to Provide While Filing Your Tax Returns

Here is the list of details you need to provide while filing your tax returns.

Details you need to share:

1. Name
2. Address
3. Social Insurance Number
4. Details of the spouse or common-law partner
5. Statement of remuneration paid (T4)
6. Statement of Trust income allocation and designation (T3)
7. Statement of investment income (T5)
8. Additional information about any deduction or credits you are claiming

For more details on the requirements, visit the CRA website.

Do not forget to collect your receipts. Collect and keep all the receipts for medical expenses, charitable expenses, and business expenses for at least six years after you file your tax return.

The CRA can ask to see these receipts, or you may be eligible for various deductions, such as:

1. Family, childcare, and caregiver deduction
2. Home buyer tax credits
3. Disability tax credit, etc.

Ready to Settle in Canada? Let GetGIS Help You! 

Master your Canadian tax filing and unlock permanent residency with expert guidance. GetGIS provides end-to-end support: job search strategies, Express Entry optimisation, and IELTS prep for CLB 7+ (6.0 per band).