But first, some basics. In Canada, the tax year runs from January 1 to December 31, and the deadline to file your individual income tax return is April 30 of the following year. Even if you have no income, it's important to do your taxes each year to continue getting your benefits.
How do you know if you need to file a tax return? You're considered a resident for tax purposes if you've established "significant residential ties" with Canada, such as having a home and family here, getting a Canadian driver's license, or joining a local sports team. If this sounds like you, you're probably required to do your tax return.
Plus, as a newcomer, you could be eligible to have your taxes done by a volunteer at a free tax clinic. There are free in-person and virtual tax clinics across Canada that help people with modest incomes and simple tax situations to file their taxes correctly and on time.
Depending on the tax clinic, you can get your taxes done by appointment, walk-in or drop-off. Virtual appointments are also available. Check out this handy website to see if you might be eligible, then use the online free tax clinic directory to find a clinic near you.
In addition to federal taxes, residents in Canada also pay taxes in their provinces or territories. This article will focus on four federal benefits and credits you might be eligible for regardless of where you live in Canada.
GST/HST credit
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What it is: When you purchase goods or services in Canada, you'll often pay the goods and services tax (GST) or a harmonized sales tax (HST), depending on your province. The GST/HST credit is a tax-free payment to help individuals and families offset this expense, and new residents to Canada don't need to have filed a tax return to start receiving payments.
If you're entitled to the GST/HST credit, you'll receive it in four separate payments over the year (July, October, January and April).
How much you could receive per year: Single people can receive up to $533, and a couple with two children may receive up to $1,066.
How to apply: If you're a new resident of Canada, complete form RC151 GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada and send it to your tax centre, along with proof of birth for any children you're applying for.
Learn more about the GST/HST credit
Canada child benefit (CCB)
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What it is: The CCB is a tax-free monthly payment to help with the costs of raising a family. It's calculated based on your previous year's adjusted family net income and whether you have full or shared custody of the children in your care. Depending on where you live, you may be eligible for a provincial/territorial additional amount.
If you're new to Canada, you need to apply for the CCB and you and your spouse or common-law partner must continue to file your tax returns to keep receiving payments.
How much you could receive per year: If eligible, each family may receive up to $7,997 per child under 6 and up to $6,748 per child aged 6 to 17.
How to apply: You can apply for the CCB in three ways. You can complete the RC66 Canada Child Benefit Application (and the RC66SCH if you’re a newcomer) and send it with supporting documents to your tax centre, apply online using Canada Revenue Agency's My Account, or apply when your child is born through birth registration.
Learn more about the Canada child benefit
Disability tax credit (DTC)
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What it is: The DTC is a non-refundable tax credit that can help reduce the amount of tax you have to pay if you have a physical or mental impairment or you support someone who does.
In order to claim the DTC when you do your taxes, you need to apply and be approved beforehand. The application is a two-step process involving a medical practitioner who certifies the impairment.
How much you could claim per year: If approved, you may be able to claim up to $9,872, plus an additional $5,758 for those under 18.
How to apply: You can apply using the paper form or online portal. In either case, you or your legal representative need to fill in Part A and share the application with your medical practitioner, who'll complete and certify Part B. Submit the application online using the Canada Revenue Agency’s My Account portal or by mail to a tax centre.
Learn more about the disability tax credit
Canada workers benefit (CWB)
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What it is: For workers in Canada who are earning a low income, this tax credit reduces the amount of tax owed and may even result in a refund.
The CWB has the added perk of being paid in three installments: July, October, and January. This is called the Advanced Canada workers benefit (ACWB) and may help you access up to 50% of the benefit early.
How much you could receive per year: The amount you can expect to receive for the CWB depends on your income and your province or territory of residence.
How to apply: You're automatically considered for the CWB and ACWB when you do your taxes; no extra application is needed. However, you must be a resident of Canada for the entire year. That means you won’t receive it on your first tax return unless you arrive on January 1.
Learn more about the Canada workers benefit
When you move to a new country, there's a lot of information to process. It's worth setting aside a little time to look into what benefits and credits you're entitled to — even if you've only just arrived.
Doing your taxes might not be your top priority when you're new to Canada, especially if you're not working yet, but doing them can help you access the benefits and credits designed to help make your life a little easier.
To learn more about the Government of Canada's benefits and credits for newcomers, visit "Every Dollar Counts" and follow them on Instagram and Facebook.
This content is for general informational purposes only and does not constitute financial, investment, legal, tax or accounting advice.
