Tips for First-Time Tax Filers in Canada

This is tailored advice for young professionals or students who are filing their taxes for the first time. It includes common deductions and credits and how to navigate the tax filing process efficiently.

Manhar Brar - Advisor, Sun Life - [email protected]

Nigel Muggeridge - Administrative Assistant - [email protected]

Ryan Yan - Client Activation Consultant - [email protected]

Hello! And welcome to our mid month tax article. Today we are going to be focusing on helpful tips and strategies for individuals who are new to filing their taxes. As we continue through this tax season, check out some of our similar past tax posts that may help you in the coming weeks!?

Preparation Tips

Before commencing the actual action of filing your taxes, one should gather all necessary information and documents. Doing some prior research on some credits or benefits you may be eligible for can make filing less complicated and more efficient. The Canada Revenue Agency - Agence du revenu du Canada (CRA) website is full of helpful information and is a great resource to expand Canadian tax knowledge.?

Tax preparation should start well before March and April. Keeping receipts and retaining important documents and emails year-round will make your process smooth. Some of these forms can include employer forms, such as a T4. If you attended Toronto Metropolitan University , the 加拿大多伦多大学 , or any other university in Canada, expect receipts from your university detailing your tuition paid. Thus, keeping a physical and virtual form for each year of taxes will be great preparation.

Once you've selected a platform or method for filing your taxes, it's crucial to prioritize timely submission to avoid delays and steer clear of potential consequences like late payments, fees, or accruing interest. Remember, the deadline for filing your taxes is April 30th, 2024.

Filing Tips

Now as we start delving into the topic of the actual filing action, let's go through some tips that may benefit you! First, let's go through some major documents and how they will help you file. One of the most important documents to have and understand is the T4 Employment Income Form issued by your employer. This document is very necessary if you worked for any employer in the past year, and it ultimately determines most of the return, if applicable.

For your investments, consult Form T5. The T5 form is the statement applicable for all investment income. So, for example, if you made some gains from 英伟达 or Meta over the past year, you may have to file a T5, depending on which account you made the trades in. Consult the CRA website for more information.??

If you are a newcomer to filing your taxes, you may be young, which could also mean you are a student. Hence, keep in mind Form T2202A, which is a form distributed from a student's college or university. The form details fees paid by the student, and then that information is used in return calculations as well. Another quick tip is that students may be eligible to transfer the amount of their tuition to a parent or guardian and allow them to claim it because it may have a more positive impact on their return depending on some factors, such as if they have a higher income level.?

Another important form to keep in mind when filing is Form T777. This is called the statement of employment expenses. For any salaried or commissioned employees who are required to pay costs related to their employment that an employer has not covered, they will need this form to claim employment expenses as a deduction.?

As one goes through their taxes, they will likely encounter the availability of certain credit and benefit payments. Don’t skip this part! These payments can really help you throughout the coming year.?

These payments are tailored to help, incite, or pay back Canadians in certain ways. Take, for example, the extra GST and HST taxes you pay when you check out at your local Loblaws Inc ; these add up after a while. So with the GST/HST credit, as the CRA describes as a payment made every three months, eligible individuals may get money to help offset what they pay in goods and services tax or harmonized sales tax. Many other credits and benefits may be available to a taxpayer. However, it is important to ensure your eligibility before applying to avoid mistakes and delays.

Caution must also be exercised as we go through tax season. Many fraud communications have been sent out during these months as scammers have posed as the CRA. Therefore, it is very important that all tax filers have a secure login with the Canada Revenue Agency, are skeptical of any message, and take action to prove if it is real or a scam. The Canada Revenue Agency has resources on its page that may help with these types of problems.

It also must be noted that if someone has difficulty filing their taxes, they may take advantage of the CRA’s resources on their website. There is the possibility of getting support from the free tax clinic or even the liaison officer service.?

After filing taxes, one may be able to receive future credits and payments through direct deposit. Setting this up may prove helpful; no physical copy of the check might help save you time cashing it and also erase the risk of the check being lost.?

Notice of Assessment

The CRA describes the notice of assessment as an evaluation of your tax return that the Canada Revenue Agency sends you every year after you file your tax return. The Notice of Assessment (NOA) also includes the date the CRA processed your return and details about how much you may owe or get as a refund or credit.?

As is usual procedure with any tax document, keep your NOA secure. It is an important document for your reference and records. More often than not, your NOA contains the necessary information for filing your next-year taxes.?

Mistakes

When filing your taxes, especially if you are doing it by yourself and for the first time, you may make some mistakes. But have no fear; if you notice that you have made a mistake after submitting your taxes, there is still time to make an adjustment.?

After you receive your notice of assessment, you may be able to change your return in many ways. First, it is important to consult the CRA website on how to change your return. But that being said, you can change your return online, through mail, or through a refile. However, try to avoid making mistakes because processing times for their adjustments are lengthy and extra paperwork must be filed.

Some ways you can avoid making mistakes are by double- and triple-checking before you submit, allowing companies like H&R Block Canada to handle it, or using tax software provided by companies like Intuit TurboTax . Some smaller entities and professionals would gladly take on the business of your tax filing process.?

Should you have any further questions or concerns about your personal tax filing situation, please feel free to reach out and connect with our team Here