Filing Taxes in Canada: A Guide for New Immigrants

What is Tax Filing?

Tax Filing is the submission of your annual tax return to the Canada Revenue Agency (CRA), which details your income, tax deductions, benefits, and other information needed to calculate taxes and government benefits.

What is an Income Tax Return?

An Income Tax Return is an annual tax return for an individual. Based on this, the CRA determines whether additional taxes are owed or if the taxpayer is entitled to a refund and government benefits.

Do new immigrants need to file a tax return?

In many cases — yes. Even if you had little or no income, filing a return may be necessary to receive government benefits and tax credits.

Who is considered a new immigrant for tax purposes?

The CRA considers a new immigrant to be a person who has become a tax resident of Canada for the first time. Special rules apply to these taxpayers when filing their first return.

Is it mandatory to file a tax return if there was no income?

In many cases, it is recommended. Filing a return helps you receive benefits and tax credits you may be entitled to.

Do I need to file a return in my first year living in Canada?

Yes, if you became a tax resident of Canada and meet the filing requirements. The first return also allows access to a number of government benefits.

Why file a tax return if no tax is owed?

Filing a return allows the CRA to determine your eligibility for various federal and provincial benefits and tax credits.

Who should file a tax return?

Generally, a return should be filed by individuals who earned income, owe taxes, or wish to receive a tax refund, benefits, or tax credits.

Do foreign workers need to file a return?

Yes. If a foreign worker is a tax resident of Canada or is required to file for other reasons, they must meet the CRA's requirements.

Do foreign students need to file a return?

In many cases — yes. Even if the student did not work, filing a return may be needed to access certain benefits and allowances.

Do refugees and new permanent residents need to file a return?

Yes. If a person has become a tax resident of Canada, the general rules for tax reporting apply.

When does the tax year end in Canada?

The tax year for individuals runs from January 1 to December 31.

When do I need to file a tax return?

For most individuals, the deadline for filing a return is April 30 of the year following the tax year.

Is there a different deadline for self-employed individuals?

Yes. For some self-employed individuals, the filing deadline may be extended, however, if there is a tax balance owed, it must usually be paid earlier.

What happens if I file my return late?

If you owe taxes, there may be penalties and interest for late filing.

How do I file taxes in Canada?

You can file your return online using certified software, send it by mail, or use the services of a tax preparation specialist.

Can I file online?

Yes. Most Canadian residents file their returns electronically using software that supports the NETFILE system.

Can I mail my return?

Yes. The CRA accepts paper tax returns.

Can I consult an accountant?

Yes. Many taxpayers use the services of accountants or licensed tax preparation specialists.

Can I fill out my return myself?

Yes. The CRA supports self-filing using certified software.

Documents for Filing

What documents are needed to file a tax return?

The required documents depend on the situation, but generally, income documents, tax withholdings, expenses, and other forms related to the tax year are used.

Is a SIN required to file a return?

Yes. A Social Insurance Number is typically used to identify the taxpayer when filing a return.

Do I need a CRA My Account before filing for the first time?

No. In most cases, you file your first return first, and after receiving the Notice of Assessment, you can register for CRA My Account.

What is a Notice of Assessment?

A Notice of Assessment is an official notice from the CRA regarding the results of processing your tax return, including the amount of refund, balance owing, or other tax information.

Government Benefits

Why is it important to file a tax return every year?

Even if there is no tax owed, the return is used to calculate many federal and provincial benefits and tax credits.

Can I receive government benefits without filing a return?

In many cases, no. The CRA uses the tax return to determine eligibility for various benefits.

Does the tax return affect the Canada Child Benefit?

Yes. The amount of the Canada Child Benefit is calculated based on information from the tax return.

Why is it especially important for new immigrants to file their first return?

The first return helps the CRA determine the new resident’s eligibility for government benefits and tax credits.

CRA and Tax Account

What is the CRA?

The Canada Revenue Agency (CRA) is the federal agency that administers Canada’s tax system and most government benefits and tax credits.

What is CRA My Account?

CRA My Account is a taxpayer's personal account where they can view tax information, notifications, payments, and manage their data.

When can I register for CRA My Account?

After your first tax return is processed and you receive a Notice of Assessment, you can register for your CRA My Account.

Can I correct a mistake after filing my return?

Yes. If a mistake was discovered after filing your return or you forgot to include any information, you can submit a request for changes.

Frequently Asked Questions

Do I need to file a tax return every year?

Yes. If you are a tax resident of Canada and meet the CRA's requirements, it is recommended to file an annual return.

Do I need to pay tax when filing a return?

Not necessarily. After processing the return, the CRA determines if there is an amount owed, a refund due, or a zero balance.

Can I get a tax refund?

Yes. If you had more tax withheld throughout the year than required, the CRA may refund the excess after processing your return.

Can I file a return for free?

Yes. Some certified programs allow you to prepare and submit your tax return for free, and there are free volunteer programs available to certain categories of taxpayers.

What should I do if this is my first tax return in Canada?

Prepare the necessary documents, determine your tax status, complete the return, and send it to the CRA. After processing your return, you can register for your CRA My Account and receive any due payments.