With tax season just around the corner, it’s time for many Canadians to start thinking about filing taxes. Many newcomers may wonder about the importance of taxes. While this task may seem daunting, there are many reasons why newcomers should file taxes in Canada. Continue reading to learn more about the benefits.
Who Should File Taxes?
Any individual considered a Resident of Canada should file an income tax return for the entire year. Protected persons, including refugees and individuals who received “approval-in-principle” from the IRCC, are also considered residents in this situation. If you were not living in Canada for the entire year, you should still file your tax return for the part of the year you lived in Canada.
Benefits of Filing Taxes
Simply put, the primary benefit of filing your income tax is to receive your tax refund. In other words, you will only receive a return if you follow the correct procedures. The government will often refund money to individuals who didn’t earn enough income during the year. Some individuals may pay too much in taxes without you knowing. If your employer takes too much tax from your paycheck, this situation can occur. The government will refund any money you should not have paid in the first place. Lastly, you may receive a refund based on your eligibility for tax credits that lower the amount of taxes you owe.
Here are some other benefits and credits that you may be eligible for:
- Goods and Service Tax (GST) / Harmonized Sales Tax (HST credit)
- Canada Workers Benefit
- Canada Child Benefit (CCB)
- Provincial and territorial benefits and credits
This year's taxes should be filed on or before May 1, 2023. In addition, you also need to pay any money you owe from the previous year by the same date as well. Complete the task early to avoid facing additional payments or penalties. Meeting these deadlines will also prevent disruptions to any benefits and credit payments that you may receive. Click here to learn more about due dates and payment dates.
Looking for More Support?
Recommended Webinar: Tax Filing for Newcomers (February 14, 10 AM EST)
Is this your first-time filing taxes in Canada? Newcomers can access valuable information from the Government of Canada website by clicking here. In addition, newcomers to Ontario can access free settlement and employment services from NIC Online. Speak to expert counsellors and receive guidance to make the most out of your Canadian experience!
Learn more about NIC Online and register today by clicking here.