{ "id": 1802, "date": "2023-02-10T23:07:11", "date_gmt": "2023-02-11T04:07:11", "guid": { "rendered": "https:\/\/aucanadavisa.com\/?page_id=1802" }, "modified": "2023-02-22T19:39:02", "modified_gmt": "2023-02-23T00:39:02", "slug": "filing-taxes-in-canada", "status": "publish", "type": "page", "link": "https:\/\/aucanadavisa.com\/en_ca\/useful-infos\/settling-in-canada\/filing-taxes-in-canada\/", "title": { "rendered": "Filing taxes in Canada" }, "content": { "rendered": "
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To get your Canadian tax refund sooner rather than later, if indeed you are eligible for a refund, you should submit your Canadian tax return correctly and on time.<\/span><\/h2><\/div><\/div>

Get every dollar you deserve on your Canadian tax return<\/h2>

Deadline for filing Canadian income taxes<\/h3>

Canada\u2019s income tax filing deadline is\u00a0April 30<\/b>. If you happen to owe taxes and you file after this date, you could incur a penalty fee of 5 percent on top of anything you may owe to the Canadian government.<\/p>

Your residency status in Canada<\/h3>

Your tax obligations are typically determined by your residency status, so you need to know if you\u2019re a resident or non-resident for tax filing purposes. When you\u2019re sure of your status, you will be aware of your tax responsibilities.<\/p>

There are a number of factors involved in determining your status, including your residential ties with Canada, length of stay, the purpose of your stay, and other factors.<\/p>

For example, if you\u2019re on a working holiday or studying in Canada, you\u2019ll generally be classified as a \u2018non-resident for tax purposes\u2019. If you\u2019re a permanent resident, residing in Canada, well that would likely mean you are a resident for tax purposes.<\/p>

Your Social Insurance Number (SIN)<\/h3>

If you\u2019re working in Canada, you should have a\u00a0Social Insurance Number (SIN)<\/a>. When completing your Canadian tax return, enter your SIN on the first line of the \u201cInformation about you\u201d area of the \u201cIdentification\u201d section on page 1.<\/p>

Your T4 document<\/h3>

To file your\u00a0tax return\u00a0in Canada, you\u2019ll need your T4 or final cumulative payslip from your employer.<\/p>

This is usually sent out to employees by the end of February at the latest. If you have different employers throughout the year, then make sure you get a T4 from each employer.<\/p>

Your T4 a summary of the previous tax year, outlining how much income you earned, and how much tax you paid.<\/p>

What tax am I paying in Canada?<\/h3>

Generally speaking, you\u2019ll pay three types of tax: Income Tax, CPP (Canadian pension plan), and EI (employer insurance).<\/p>

Workers in the province of Quebec pay into the QPP (Quebec Pension Plan) instead of the CPP.<\/p>

Your T4 will show a breakdown of the amounts paid for each type of tax contribution.<\/p>

You will find your income tax in box 22 of your T4 slip, CPP contributions in box 16, and EI in box 18.<\/p>

In Canada you will only get a refund if you have overpaid any of these taxes. This can happen if your employer\u2019s payroll overpays on taxes through the year \u2014 you then \u2018settle up\u2019 with the government when you file your taxes and they calculate how much you underpaid or overpaid in taxes through the previous year.<\/p>

Quebec, once again, is a bit of an outlier here. While other workers in Canada submit only one tax return to the federal government, workers in Quebec must submit separate returns, one each to the federal and Quebec governments.<\/p>

Deductions, credits, and expenses on your Canadian tax return<\/h3>

There\u2019s a whole raft of deductions, credits, and expenses that workers in Canada may avail of come tax season.<\/p>

You may be eligible to claim expenses, including:<\/p>

  • Medical (e.g. doctors\u2019 visits, prescriptions, surgery)<\/li>
  • Travel (e.g. monthly transit passes)<\/li>
  • Business (e.g. rent, supplies, travel, professional fees)<\/li><\/ul>

    Deductions can reduce your assessable income, and therefore your tax liability. Check out this\u00a0complete set of Canada\u2019s tax deductions, credits, and expenses<\/a>.<\/p>

    And, if you have your own business, there are certain expenses you can deduct so keep your receipts!<\/p>