Things to remember for first time tax filers
Filing taxes seems like a tedious task especially if you have to do taxes online yourself. It is definitely not something that we all look forward to but it is certainly something that we cannot avoid. This task can feel even more daunting if you are doing it for the first time. If you are someone who is filing taxes for the first time in Canada, here are a few things that you need to remember.
The first question that you need to ask yourself, ‘Do you need to file a tax return?’ Ideally, if you are a resident of Canada, whether you are a student, or an employee or a business owner, you should file your tax returns.
You should do that even if you do not have any income for the said year, as you might still be eligible for a refund on some good or services tax, or maybe a child tax benefit or some other tax benefit depending on the province you live in. Do not forget to fill the ON428 form if you live in Ontario to claim the Ontario Trillium Benefit on rent and property taxes that you might have paid in the past year.
Federal and state tax being separate can get a little confusing for new immigrants. But the good part is that these taxes do not need to be filed separately. You can simply submit the Form 428 along with your federal tax forms.
If you live in Quebec though, you need to file a separate state tax return. Make sure that you file your taxes on time to avoid any penalties. The deadline for filing your taxes in Canada every year is April 30. Businesses get some more time from the government of Canada and they need to file their taxes by June 15.
There are many ways of filing taxes in Canada. The most convenient way of doing it is filing tax returns online. There are many websites that offer tax filing services in Canada, TaxTron being one of them. Taxtron provides tax filing services to employed people, retired individuals, and businesses. They have NETFILE, which is the software used to file taxes online, approval for both Mac as well as Windows.
If you are filing for the first time, you need to ensure that your date of birth is registered with the CRA, only then you can use NETFILE to file your taxes. Once all the formalities have been completed, you can expect your return in 2 weeks.
You can also file your taxes via mail. You can download all the required tax forms from the Canada Revenue Agency’s (CRA) website or you can also collect them from the post office or the local tax services office. Next, you need to fill out all the papers and send it in, along with all the required documents, to your local tax services office. If you are applicable for a refund, you will receive it in about 4 to 6 weeks.