Tax tips for first-time filers, including newcomers

Who must file a tax return and when?

There is no specific age when you need to start paying income tax in Canada,” says Stefanie Ricchio, CPA, tax expert and spokesperson for TurboTax Canada.

“All individuals earning income are required to pay income tax in Canada,” she says. This includes employment income shown on the T4 slip your employer provides you at tax time, as well as investment income, self-employed income, scholarships, rental income and withdrawals from registered retirement savings plans (RRSPs) and registered education savings plans (RESPs).

That said, there's a basic amount of income that taxpayers can earn tax-free each year. This non-refundable tax credit is called the basic personal amount, which is $16,129 for the 2025 tax year federally. Each province also has a different provincial amount, Ms. Ricchio adds.

“Anyone who earned less than the basic personal amount and didn't pay any withholding taxes wouldn't owe taxes to the government nor would they receive a refund,” she says, but adds that if their employer deducted income taxes from their earnings, that amount can be claimed on their tax return and it may be refunded.

Even if someone earns little or no income, they should file a tax return, Ms. Ricchio says.

She says early filing allows you to receive any benefits and credits you may be eligible for such as the Canada Groceries and Essentials Benefit (formerly the GST/HST credit) and Canada Child Benefit.

“It also might allow you to obtain other federal or provincial support for low-income

earning individuals and start building RRSP contribution room,” she says.

Also, the earlier in life you file, the more contribution room you can build in your RRSP. Each year, Canadians can contribute up to 18 percent of their earned income into an RRSP, up to a government-set limit. Your RRSP contribution room for the following year is based on the income you report on your tax return, Ms. Ricchio notes.

“Making allowable RRSP contributions can be deducted from your income, deferring taxes to future years,” she says.

Tax filing for newcomers

For newcomers, it's their residency status, not immigration status, that's key to whether they need to file a tax return in Canada, Ms. Ricchio says.

“If the CRA considers you a permanent resident, a factual resident, or a deemed resident, then you have an obligation to file income tax in Canada, as well as to report all of your worldwide income regardless of your immigration status,” Ms. Ricchio says.

Before newcomers can file taxes in Canada, she says they need to have a social insurance number (SIN), which is used to identify them for income tax and benefits.

Ms. Ricchio also recommends newcomers keep and organize all receipts and paperwork needed for their taxes once they arrive in Canada and throughout the year. Some of the key information needed includes; the date you entered Canada (which has to be stated on your first tax return), T4 slips, details about any income earned before arriving in Canada and any employment income received from outside Canada after the date you relocated. Also, newcomers – and all Canadians – must report any foreign assets they own valued at more than $100,000 on form T1135 on your tax return. Even if you don't have income as a newcomer, you should file a return so CRA can determine if you're eligible for any benefits, Ms. Ricchio says.

Newcomers should also know if there's a tax treaty between their former country of residence and Canada to ensure they aren't “double taxed” on income earned outside the country. Ms. Ricchio says newcomers can contact the CRA directly to confirm their tax obligations based on their situation or seek out advice from a tax professional.

Also, Ms. Ricchio notes non-residents must file their first tax returns on paper and mail them to the CRA.

“Make sure you leave time ahead of the deadline for your return to be delivered,” she says, adding that tax software like TurboTax can also be used to prepare and print a return to mail in.

Does it help to file early?

Filing your taxes early gives you time to gather the tax slips and information required which, in turn, can help reduce what you owe or help you get a refund.

“If you are likely to owe taxes, it's also a good opportunity to allow time for you to arrange payment,” Ms. Ricchio says. “Your balance is due on the tax deadline, so if you file at the end of February when Netfile opens, you have two months to source funds to pay your taxes.”

“There are penalties and interest for being late if you have a balance owing, so it's important to gather all your documents and receipts ahead of time,” Ms. Ricchio says.

Canadians should consider signing up for a CRA My Account to make the tax filing process efficient and accurate. On that account, you can check the status of refunds, any outstanding balances, RRSP and tax-free savings account (TFSA) contribution room, and ensure the CRA has all your correct information.

Canada's tax system can be complex, so don't wait until the last minute to file your taxes, Ms. Ricchio says.

“Navigating a new tax system in a language you're less familiar with can be challenging. It's a big move!”

She suggests newcomers seek help from a Canadian tax professional or a tax solution like TurboTax to ensure their income is being reported correctly and to take advantage of all the credits and deductions available. Newcomers can also learn more from the TurboTax Canada Learning Hub.

Getting help

If you're a first-time tax filer, an easy-to-use tax solution like TurboTax can help guide you through the process. TurboTax asks you questions about your situation and then adds the right forms to your return based on your answers. You can import your CRA data directly into TurboTax using Auto-fill My Return. Then TurboTax does the calculations for you, double checks your return for errors and alerts you of errors before you file.

If you need more support, TurboTax Assist and Review gives you unlimited tax help and guidance as you prepare your return. You can also get a final review of your return by a tax expert before you file so you can be confident it's done right.

“Both options ensure you get every credit and deduction that you qualify for to boost your tax refund or get you the lowest tax payable,” Ms. Ricchio says.

For a comprehensive checklist of everything you might need to file your taxes, you can check out TurboTax's Canada Tax Checklist.

This article was originally published by The Globe and Mail in March 2025.