With just under a month before the April 30th Canadian tax deadline approaches you should have everything in order so the tax man won’t be knocking on your door this year! If you are new to filing your own Canadian tax return or if you just need a refresher course on what you need to file, this blog will help you out.
**Please note that this blog will only go through the basics and the essential forms you need to complete. For further information about the Canadian tax system and to learn how your taxes will be used, please take the free “Learning About Taxes” course that can be found at Canada.ca. It takes about 90 minutes, but it will go over everything you need to know about filing taxes in Canada**
To start, if you are a citizen of Canada but you had no income this year, you will still need to file a tax return as you may be eligible to get a child benefit, GST/HST tax credit, working income tax benefit or a guaranteed income supplement.
Collect all important documents that show your income
The first step in filing your Canadian tax return is to have your tax slips that show your income you have made over the year. This will most likely be your T4’s from any employer you had throughout the year that they need to send to you before the end of February. If you get a T3 or a T5013 slip, you will be getting those later on, usually around the end of March.
You will also need to collect all of your records and receipts so you can prove any of the deduction, expenses, and credits you are going to claim.
Download software to fill out your return
There are a few certified tax preparation software you can download which allows you to properly fill out and send your return to the CRA. There are a few free ones you can find on the CRA website or you can use a paid software like Turbotax.
Report your income
When you get into the software, you will need to report all the income you received in the year from every source; this includes income you received inside and outside of Canada.
Check for your deductions, benefits, and tax credits you are eligible to claim
Deduction, tax credits, and benefits will reduce the amount of tax you have to pay on your return. Click here to learn more about what deductions or tax credits you may be eligible to claim.
Submit your return to the CRA
Before you send your return, please update your personal information like your banking information, current address, marital status, how many children you have, etc. When everything is up to date and filled out properly, send your return to the CRA! If you are using a software to file your return, all you have to do is hit submit!
Don’t delay! Filing your tax return on time every year is incredibly important for every Canadian to do. If you ever need help with your tax return, the expert team at S&W Chartered Professional Accountants is here for you!