Advice for If You’re New to Canada Filing Taxes for the First Time

Filing taxes might seem daunting, especially if you’re new to Canada and figuring it all out for the first time. But here’s the good news: It’s not as complicated as it seems. Plus, filing your taxes isn’t just a legal requirement—it’s your ticket to accessing financial benefits like the Canada Child Benefit (CCB), Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit, dental benefits, and more.

The Canadian tax year runs from January 1 to December 31, and most returns are due by April 30 of the following year. Filing on time helps you stay eligible for important federal and provincial benefits. If you skip filing, you could miss out on payments that might make a big difference in your finances. You could also incur penalties or interest on any amount owed.

If this is your first time tackling Canadian taxes, don’t worry—we’ve got you covered. This guide will explain everything in simple steps, from signing up for a CRA account to claiming key tax credits and understanding how deadlines affect your benefits.

Key takeaways:

1. Those who are new to Canada can include recent permanent residents, refugees, and temporary residents like students and workers.

2. Filing taxes is required to access benefits like the Canada Child Benefit (CCB) and the Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit.

3. The Canadian tax filing deadline is April 30, and filing late could delay your benefits or result in penalties.

How to file taxes in Canada for the first time

If you’re new here, welcome! The Canada Revenue Agency (CRA) considers you new to Canada if you’ve recently established significant residential ties in the country. This includes people who have become permanent residents, refugees (protected persons), or temporary residents, such as international students or workers.

Understanding your residency status is important because it determines how you’ll file your taxes and what benefits you may be eligible for. Once you’ve settled in, filing your taxes is the next step to accessing those benefits and meeting your responsibilities as a Canadian resident. Let’s look at how to get started.

1. Register for a CRA account

The first step to filing your taxes is setting up a CRA My Account. This secure online portal is your go-to for managing all things tax-related. It’s where you can view notices, check benefit payments, track your tax refund, and even make changes to past returns.

Once your CRA My Account is set up, you can use tools like TurboTax’s Auto-fill My Return (AFR) to save time. This feature pulls your tax slips and other information directly from the CRA into your return, reducing errors and making filing much easier.

How to register for a CRA My Account:

• Go to the CRA website and follow the instructions to register for My Account.

• You’ll need your Social Insurance Number (SIN), date of birth, and postal code to get started.

• The CRA will send a security code by mail to finalize your registration.

Don’t have a SIN? Here’s how to get one

A Social Insurance Number (SIN) is essential for setting up your CRA My Account. If you don’t already have one, you can apply online, by mail, or in person at a Service Canada Centre. To apply, you’ll need documents proving your identity and status in Canada, such as a birth certificate, permanent resident card, or valid work or study permit. Once your application is processed, you’ll receive your SIN, allowing you to access CRA services and file your taxes.

With your CRA My Account and TurboTax working together, you’ll be ready to access your tax slips, benefits, and other important documents to complete your return quickly and accurately.

2. Review key tax credits and benefits

Filing your taxes isn’t just about reporting income—it’s also how you claim tax credits and access financial benefits. Canada offers both refundable and non-refundable tax credits:

• Refundable tax credits. These can provide a refund even if you don’t owe any taxes.

• Non-refundable tax credits. These reduce the amount of tax you owe but don’t result in a refund if you’ve paid too little tax.

Here are some key credits and benefits to consider:

• Canada Child Benefit (CCB). A monthly tax-free payment for families raising children.

• GST/HST Credit. A quarterly payment to help with sales tax costs for low- and moderate-income families.

• First-Time Home Buyers' Tax Credit. Provides up to $1,500 in tax savings for eligible homebuyers.

• Tuition Tax Credit. Reduces taxes for students by offsetting eligible tuition costs.

• Canada Dental Benefit. Helps cover dental expenses for children under 12 in eligible families.

How to claim tax credits

Make sure to report eligible expenses and check your CRA My Account for details on applying for specific credits, like tuition or first-time homebuyers' credits. A full list of credits can be found on the CRA's website.

3. File by the tax filing deadline

Meeting the tax filing deadline is critical to avoid penalties and interest and to ensure timely receipt of benefits. In Canada, the deadline to file your taxes is April 30 for individuals who are not self-employed. If this date falls on a weekend or holiday, your return is due the next business day.

Why it’s important to file on time

• Delays in filing can result in penalties or interest charges if you owe taxes.

• Late filing might delay your benefits, like the CCB or GST/HST credit.

If you’re a first-time filer, consider using certified tax solutions, like TurboTax, to make the process easier. It walks you through the steps and ensures your return is correct.

TurboTax can review your taxes to make sure they are accurate

Filing taxes for the first time can feel overwhelming, and it’s easy to make errors along the way. Here are some of the most common mistakes newcomers make—and how you can avoid them:

• Forgetting to report world income. If you’ve earned income outside Canada during the tax year, you’re required to report it on your Canadian tax return. The CRA uses this information to calculate your taxes and benefits. If you’re unsure how to report world income, tools like TurboTax can guide you through it step-by-step.

• Overlooking refundable credits: Refundable tax credits, like the GST/HST credit or the Canada Child Benefit, can put money back in your pocket, even if you don’t owe taxes. Make sure you’re aware of what you’re eligible for, as missing out on these credits could mean leaving money on the table.

• Misunderstanding residency status. Your tax residency status determines how you file and what income you need to report. Whether you’re a permanent resident, refugee, or temporary resident, it’s important to file based on your status and the time you’ve spent in Canada.

• Missing deadlines. Filing late can lead to penalties and delays in receiving benefits. Be sure to mark the tax filing deadline—April 30—on your calendar and submit your return on time to avoid complications.

• Not keeping receipts and tax slips. You’re responsible for keeping all tax-related documents, including receipts for tuition, donations, or medical expenses, and tax slips like T4s or T5s. These slips are often issued by the end of February, so make sure you collect everything you need before filing.

To avoid these common pitfalls, consider using TurboTax’s review tools and resources. Whether you’re filing on your own or getting expert assistance, TurboTax ensures your taxes are accurate and that you’ve claimed all eligible credits and deductions. With built-in error checks and professional guidance available, it can be a valuable tax filing tool.

Your taxes are filed. Now what?

Once you’ve submitted your tax return, there are a few important things to keep in mind to ensure everything is in order and you’re prepared for the next steps:

• Watch for your Notice of Assessment (NOA). After filing, the CRA will send you a Notice of Assessment, which summarizes the results of your tax return. It tells you whether you owe taxes, are receiving a refund, or need to make corrections. You can find your NOA in your CRA My Account or wait for it to arrive by mail.

• Understand payment deadlines. If your NOA indicates you owe taxes, the payment deadline is usually the same as the filing deadline—April 30. Paying late can result in interest charges, so make arrangements to pay on time to avoid additional costs.

• Track your refund. If you’re expecting a refund, you can check the status through your CRA My Account. Typically, refunds are processed within 2 weeks for electronically filed returns and up to 8 weeks for paper returns.

• Keep your documents organized. Even after filing, it’s important to keep all your tax slips, receipts, and other supporting documents in case the CRA requests them. Hold onto these for at least 6 years to comply with record-keeping rules.

• Be aware of CRA scams. Scammers often pose as CRA representatives to steal your personal information or demand fake payments. Be cautious of unexpected calls, emails, or texts claiming to be from the CRA. Verify any communication directly through your CRA My Account or by contacting the CRA directly.

• Be aware of penalties for false returns. Filing incorrect or misleading information on your return can result in serious penalties, including fines or even criminal charges. If you realize you’ve made a mistake, file an adjustment request through the CRA to correct it.

Using TurboTax can help you stay on top of the post-filing process. TurboTax provides tools to track your refund, interpret your NOA, and even help you make adjustments if needed. Filing your taxes is just the first step—TurboTax ensures you’re supported every step of the way.