Filing Your First Canadian Tax Return: A Newcomer's Guide

Why Should Newcomers File a Tax Return?

Many newcomers to Canada assume that if they did not earn income, they do not need to file a tax return. This is a mistake. Filing your Canadian income tax return is the key to accessing a wide range of government benefits. When you file, the Canada Revenue Agency (CRA) uses your return to determine your eligibility for the following:

• GST/HST credit: A quarterly tax-free payment of up to $519 per year for a single person ($680 with a spouse and one child) in 2024-2025.
• Canada Child Benefit (CCB): Up to $7,787 per child under 6 per year.
• Canada Workers Benefit (CWB): Up to $1,518 for single workers or $2,616 for families earning low wages.
• Provincial and territorial credits such as the BC Climate Action Tax Credit, Ontario Trillium Benefit, and Alberta Climate Leadership Adjustment.

Without a filed tax return, the CRA has no way to calculate these benefits for you, and you will not receive them.

Key Tax Dates

The Canadian tax year runs from January 1 to December 31. Here are the important dates to remember:

• By the end of February: Your employer must give you a T4 slip showing your employment income and deductions.
• By the end of March: You will receive other tax slips such as T5 (investment income) and T4A (other income) if applicable.
• April 30: Filing deadline for most individuals. This is also the deadline to pay any taxes you owe.
• June 15: Extended filing deadline for self-employed individuals (but taxes owing are still due April 30).

What You Need to File

To file your first Canadian tax return, gather the following documents:

• Your Social Insurance Number (SIN). If you do not have one yet, see our SIN application guide.
• T4 slips from each employer you worked for during the year.
• T5 slips for interest earned on bank accounts.
• Receipts for tax-deductible expenses (moving expenses if you moved to Canada to work, tuition fees, child care expenses, medical expenses, charitable donations).
• Your date of entry into Canada (the date you became a resident for tax purposes).
• Information about your world income before arriving in Canada (this is reported on your return but is generally not taxed by Canada; it is used to calculate benefit eligibility).

How to File Your Tax Return

Option 1: Use Free Certified Tax Software

The CRA certifies several tax software programs each year that can be used to file your return online through the NETFILE system. Many of these are free for simple returns. Popular free options include Wealthsimple Tax, TurboTax Free, and StudioTax. Visit the CRA certified software list to find a program that works for you.

The software will guide you through the return step by step. You enter your personal information, add your income slips, claim deductions and credits, and the software calculates your refund or balance owing. Once complete, you submit the return electronically.

Option 2: Free Tax Clinics (CVITP)

The Community Volunteer Income Tax Program (CVITP) provides free tax preparation for individuals with modest income and simple tax situations. Volunteers will complete and file your tax return for free. To find a free tax clinic near you, call 1-800-959-8281 or check the CRA website starting in February each year.

Many settlement agencies and community organizations host CVITP clinics specifically for newcomers. These clinics are available in person and some offer virtual appointments. They operate from February through the end of April, with some continuing year-round.

Option 3: Hire a Tax Professional

If your tax situation is complex (for example, you have self-employment income, rental properties, or foreign assets over $100,000), consider hiring an accountant or tax preparer. Fees typically range from $50 to $300 for a personal return depending on complexity.

Understanding the T1 General Form

The T1 General is the main income tax return form for individuals in Canada. If you use tax software, you will not see the form directly, but the software fills it out behind the scenes. The return has several sections:

• Identification: Your name, address, SIN, date of birth, and marital status.
• Total income: All sources of income including employment (T4), interest (T5), self-employment, and other income.
• Net income: Total income minus deductions like RRSP contributions, child care expenses, and moving expenses.
• Taxable income: Net income minus additional deductions such as capital gains exemptions.
• Tax credits: Non-refundable credits like the basic personal amount ($15,705 in 2024), tuition, medical expenses, and charitable donations.
• Refund or balance owing: The final calculation showing whether you get money back or owe money.

Newcomer-Specific Tax Information

Your First Year in Canada

In your first year, you are considered a part-year resident. You are taxed only on income earned while you were a resident of Canada. On your tax return, you will indicate your date of entry into Canada. The basic personal amount will be prorated based on the number of days you were a resident.

Reporting World Income

Canada taxes residents on their worldwide income. However, in your first year, you only report income from the date you became a Canadian resident onward. Income earned before you arrived is generally reported on a separate schedule to determine your benefit eligibility (for the GST/HST credit and CCB) but is not taxed by Canada.

After You File

After filing your return, the CRA will send you a Notice of Assessment within 2 weeks (if filed online) or 8 weeks (if filed by paper). This notice confirms your return has been processed and shows your assessed amounts. Review it carefully. If you disagree with the assessment, you can file a notice of objection within 90 days.

Once your return is processed, the CRA will automatically begin calculating your benefit entitlements. You can expect to start receiving the GST/HST credit and CCB (if you applied) within one to two payment cycles after your return is assessed.

Setting Up CRA My Account

Register for CRA My Account to view your tax information, check benefit payments, update your address, set up direct deposit, and access your Notice of Assessment online. You can register after you have filed your first tax return and received your Notice of Assessment.

Getting More Help

Filing taxes for the first time in a new country can feel overwhelming, but there are many free resources available. WelcomeAide is here to help you through the process. Try our AI Newcomer Navigator for answers to your tax questions in your preferred language. Check out our guides on BC health insurance and the Canada Child Benefit, explore our programs, and browse our blog for more settlement resources.