How to File Your First Canadian Tax Return Using CRA

Filing your first Canadian tax return can feel overwhelming, especially if you're new to the country and unfamiliar with the tax system. The good news is that the Canada Revenue Agency (CRA) has made electronic filing accessible and straightforward through EFILE — a system that allows certified tax preparation software to transmit your return directly to the CRA. This guide walks you through everything you need to know to file your first Canadian tax return with confidence.

See also: First-Year Tax Filing Guide

What Is EFILE?

EFILE is the CRA's electronic filing service that allows tax preparers and individuals using certified software to submit income tax returns electronically. When you use NETFILE — the individual version of electronic filing — your certified tax software transmits your completed return directly to the CRA over a secure internet connection.

The terms are often used interchangeably in casual conversation, but technically: EFILE is used by tax professionals, while NETFILE is the service for individuals filing their own returns. Both use CRA-certified software and achieve the same result — your return is filed electronically and processed faster than a paper return.

For the official list of certified software, visit the CRA certified software page.

Do You Need to File a Tax Return?

As a newcomer to Canada, you may be wondering whether you're required to file. You must file a tax return if:

• You earned income in Canada during the tax year
• You owe taxes
• The CRA has sent you a request to file
• You received certain government benefits (like the GST/HST credit) and need to report your income

Even if you don't technically need to file, you should file a return because:

• You may be eligible for tax credits and refunds (like the GST/HST credit or Canada Child Benefit)
• Filing establishes your income history, which helps with future immigration applications, mortgage approvals, and benefit eligibility
• If you arrived mid-year, you only report income earned from your date of arrival — you may receive significant credits

What You'll Need Before You Start

Gather these documents and information before sitting down to file:

Personal Information

• Social Insurance Number (SIN): You must have a SIN to file taxes. If you don't have one yet, apply at a Service Canada office
• Date of entry to Canada: If you arrived during the tax year, you'll report this on your return
• Marital status and information about your spouse or common-law partner
• Direct deposit information (bank transit number, institution number, account number) for faster refunds

Income Documents

• T4 slip: Statement of Remuneration Paid — issued by your employer showing employment income and deductions
• T4A slip: Statement of Pension, Retirement, Annuity, and Other Income
• T5 slip: Statement of Investment Income (interest, dividends)
• T4E slip: Statement of Employment Insurance and Other Benefits
• T2202: Tuition and Enrolment Certificate (if you were a student)
• Any other income slips (freelance income, rental income, etc.)

Deduction and Credit Documents

• RRSP contribution receipts
• Charitable donation receipts
• Medical expense receipts
• Childcare expense receipts
• Moving expense receipts (if you moved more than 40 km closer to work or school)
• Public transit passes (if your province still offers this credit)

Choosing Your Tax Software

The CRA certifies several software options each year, many of which are free for simple returns. Popular free or low-cost options include:

See also: How to Get Your SIN Number in Canada

See also: Employment Insurance (EI) Benefits Guide

See also: RRSP Guide for Newcomers

• Wealthsimple Tax (formerly SimpleTax): A popular, donation-based online platform with an intuitive interface. Excellent for first-time filers.
• TurboTax Free: Offers a free tier for simple returns and step-by-step guidance.
• H&R Block Free: Another solid free option with a user-friendly interface.
• StudioTax: Free desktop software available for Windows and Mac.
• GenuTax: A free, comprehensive desktop application.

All certified software calculates your taxes, identifies credits you may be eligible for, and transmits your return to the CRA via NETFILE. The main differences are in user interface and additional features.

Step-by-Step Filing Guide

Step 1: Create Your CRA My Account

Before filing, set up your CRA My Account. This online portal allows you to view your tax information, check the status of your return, set up direct deposit, and access your Notice of Assessment after filing. You can register using your SIN and information from a previous tax return, or through a partner sign-in (using your bank's online banking credentials).

Step 2: Choose and Set Up Your Software

Select a CRA-certified tax software from the list above. Create an account and begin a new return for the relevant tax year. Most software will walk you through a series of questions about your personal situation.

Step 3: Enter Your Personal Information

Input your name, SIN, date of birth, marital status, and address. If this is your first year in Canada, indicate your date of entry — this is crucial because you are only taxed on income earned from that date forward, but you may be eligible for prorated credits for the entire year.

Step 4: Report Your Income

Enter information from all your income slips (T4, T4A, T5, etc.). If you use CRA's Auto-fill feature (available through some software when linked to your CRA My Account), your slip information may be automatically imported, saving time and reducing errors.

If you had foreign income before arriving in Canada, you generally do not report it on your Canadian return for the pre-arrival period. However, if you have foreign income after your arrival date, you must report your worldwide income from your date of arrival onward.

Step 5: Claim Deductions and Credits

This is where you can save money. Common deductions and credits for newcomers include:

• Basic Personal Amount: Everyone gets this non-refundable tax credit (approximately $16,129 for 2025)
• GST/HST Credit: A refundable credit for low- and moderate-income individuals. Apply by checking the box on your return.
• Canada Child Benefit (CCB): If you have children under 18, apply through your tax return or separately through CRA
• Tuition credits: If you attended a Canadian post-secondary institution
• Medical expenses: Out-of-pocket medical costs exceeding a threshold may be claimed
• Moving expenses: If you moved within Canada to be closer to a new job or school (40+ km closer)

Step 6: Review and Submit

Most software will perform an automatic review, flagging errors or inconsistencies. Carefully review the summary before submitting. Once satisfied, transmit your return via NETFILE. You'll receive a confirmation number — save this for your records.

After You File

Notice of Assessment

Within two weeks of filing electronically, you should receive your Notice of Assessment (NOA) through CRA My Account (or by mail within 2-8 weeks). The NOA confirms the CRA has received and assessed your return and shows any adjustments, your refund amount, or taxes owing.

Refunds

If you set up direct deposit, refunds typically arrive within two weeks of your NOA date. Without direct deposit, expect a cheque within 4-6 weeks.

Keep Your Records

The CRA requires you to keep your tax records and supporting documents for at least six years from the end of the tax year to which they relate. Store your tax slips, receipts, and a copy of your filed return in a safe place.

Special Considerations for Newcomers

• First-year residents: Your first tax return covers from your date of arrival to December 31. Your personal credits may be prorated based on the number of days you were a Canadian resident.
• Foreign assets: If you own foreign property with a total cost exceeding $100,000 CAD at any point during the year, you must file form T1135 (Foreign Income Verification Statement).
• Deemed disposition: On the day you become a Canadian resident, you are considered to have acquired all your assets at their fair market value. This establishes your cost base for Canadian tax purposes.
• Tax treaties: Canada has tax treaties with many countries to avoid double taxation. If you paid tax on income in another country, you may be able to claim a foreign tax credit.

Getting Help

If you need assistance filing your return, several free resources are available:

• Community Volunteer Income Tax Program (CVITP): Free tax clinics run by volunteers who help people with modest incomes and simple tax situations. Find a clinic through the CRA CVITP page.
• CRA telephone support: Call 1-800-959-8281 for personal tax inquiries
• Settlement organizations: Many newcomer settlement agencies offer tax filing workshops and assistance

Conclusion

Filing your first Canadian tax return doesn't have to be stressful. With certified free software, clear documentation, and the guidance in this article, you can file confidently and ensure you receive all the credits and benefits you're entitled to. Remember: filing your taxes is not just an obligation — it's your gateway to benefits like the GST/HST credit, Canada Child Benefit, and building the financial history you'll need for your future in Canada.

WelcomeAide is here to help newcomers navigate all aspects of settling in Canada, including understanding the tax system. Explore our other financial guides for more tips on managing your finances in your new home.