9 tax tips every first-time filer needs to know, including students & newcomers to Canada
Tax season in Canada is approaching fast, and if you're filing your taxes for the first time — or just want a refresher on how it's done — we've got you.
The Canada Revenue Agency (CRA) has shared some essential tips for first-time tax filers in Canada to make the process easier and ensure you don't miss out on key benefits and credits on your 2024 tax return. And, Narcity also spoke with Gerry Vittoratos, the national tax specialist at UFile, who shared even more expert advice on what young Canadians and newcomers to Canada need to know to maximize their returns and avoid common mistakes.
From understanding your residency status and claiming benefits to meeting deadlines and spotting tax scams, there's a lot to navigate when preparing your first income tax return in Canada.
Whether you're filing as a new resident or taking the reins on your own taxes for the first time, we've got all the must-know basics to make the experience as smooth as possible.
Here's everything you need to know to tackle your first tax return, with expert advice and CRA-approved tips that could even help you get some extra money back in your pocket.
Find out if you need (or want) to file
The first step is figuring out if you even need to file a tax return. According to the CRA, even if you lived in Canada for only part of the year, you must file if you owe taxes — that is, you earned more income than the basic personal amount, which is $15,705 for the 2024 tax year.
However, if you want to claim a refund on taxes you paid throughout the year (like via payroll deductions), or you or your partner want to receive benefits, you'll need to file a tax return for that too.
Even if your income is below the taxable threshold, Vittoratos advises filing your taxes anyway so you can claim benefits and carry forward credits like tuition amounts to use in future years when you may start owing tax.
"At low-income levels, they would be entitled to benefits such as the GST credit (and provincial equivalent if applicable) but can only claim this credit by filing their tax return," he explains.
"They also need to file in order to recognize carryforward amounts they will be able to use for future years, such as tuition fees not claimed in the current year because they're not taxable," he adds. "The only way to recognize these future amounts is to file a tax return."
For newcomers, it's also important to note that in Canada, your tax obligations are based on residency status, not immigration status. If you're unsure of your residency for tax purposes, you can fill out Form NR74 and send it to the CRA to get confirmation.
Claim those benefits
Filing your tax return can unlock regular payments like the GST/HST Credit, the Canada Carbon Rebate (in certain provinces) and the Canada Child Benefit, if you're eligible. Many newcomers to Canada are eligible for these credits as early as their first year in Canada.
Vittoratos notes that there are also specific forms newcomers should use to apply for benefits. In particular, you can use Form RC151 to apply for the GST/HST Credit and Canada Carbon Rebate at the same time. If you're eligible for the Canada Child Benefit, you'll need to complete Form RC66SCH to include with the standard application Form RC66.
Similarly, there are several benefits and credits for students that can only be claimed if you file your tax return — even if you have no or minimal income to report — such as the Canada Training Credit and amounts for tuition, textbooks, interest paid on student loans and more.
You can use the CRA's Benefits Finder tool to find out which federal and provincial programs apply to your specific situation.
Report income from outside Canada
If you arrived in Canada in 2024, Vittoratos says it's important to note that you'll need to include any income earned during the tax year in your native country on your first tax return.
"They need to provide this information on their first Canadian tax return to determine whether they're entitled to all the non-refundable tax credits like all other residents of Canada," he adds.
Know your deadlines
Mark your calendar! Tax season officially kicks off on Monday, February 24, when the CRA's NETFILE service opens for online filing. After that, key dates come fast:
- Friday, February 28: This is the last day for employers and banks to send out T4, T4A and T5 slips. If you're still missing these forms after this date, you'll want to follow up.
- Friday, February 28: This is also the extended deadline to make charitable donations for the 2024 tax year. If you make an eligible donation by this date, you can claim it on your 2024 tax return for a potential tax credit.
- Monday, March 3: The deadline to contribute to an RRSP for the 2024 tax year. Making a contribution before this date could lower your taxable income for 2024 and save you some cash or get you a bigger refund.
- Wednesday, April 30: This is the big one — the tax filing deadline for most Canadians. File on time to avoid penalties if you owe money.
- Monday, June 16: Self-employed Canadians have until this date to file, but remember: any balance owing is still due by April 30, so don't wait too long to crunch those numbers!
File for free
You don't need to pay for fancy software or expensive services — there are a few options to file your tax return in Canada for free.
If you need help with your tax return and meet the criteria for modest income and a simple tax situation, you might qualify for assistance at a free tax clinic. These clinics, hosted by community organizations across Canada in partnership with the CRA, connect you with trained volunteers who can help you complete your tax return for free — either in person or virtually. If you're filing for the first time as a newcomer to Canada, make sure to bring your Confirmation of SIN letter from Service Canada to the clinic to get started.
If you're comfortable filing your tax return on your own, there are a bunch of completely free or pay-what-you-can NETFILE-certified software options available to help you file electronically. Tax software must be recertified by NETFILE each year, and the CRA will update its online database once platforms have been certified for the 2024 tax year.
Go paperless
Skip the snail mail and file online for a much faster turnaround time. The CRA says signing up for direct deposit and filing your tax return electronically can speed up your refund, getting it to you within eight business days — compared to eight weeks with a paper return.
Review your Notice of Assessment
After you file, the CRA will send you a Notice of Assessment (NOA), which outlines how much you owe or will be refunded. Use this document to confirm the details of your tax return and register for CRA My Account for easier access to your tax info.
My Account also lets you change your address, sign up for direct deposit and update your communication preferences to receive important documents from the CRA by email instead of physical mail.
Forgot something? Fix it later
Made a mistake on your tax return? No need to panic! Wait until you receive your Notice of Assessment (NOA) from the CRA before making any corrections.
Once you have your NOA, you can use the CRA's Change My Return tool in My Account or the ReFILE service for faster electronic adjustments. These tools let you amend returns for up to 10 previous years and guide you through common changes, like adding missing tax slips or claiming credits you missed.
If you can't file electronically, you can mail a completed Form T1-ADJ along with supporting documents to your tax centre.
Be scam smart
The CRA is warning first-time filers that scammers often target taxpayers, so stay vigilant. The CRA will never threaten you, send you a credit or refund via e-transfer or text message, or ask for personal or financial information via voicemail, text or email.
You can check the CRA's Scams and Fraud page for tips on protecting yourself and to verify whether a call or message you received was legitimate.
Filing your first tax return might seem daunting, but with these tips and the CRA's support system, it doesn't have to be. Plus, who knows — you could get some unexpected money back.
Good luck, first-time filers!
