Tax filing for the first time?
Tax filing is a major challenge faced by the Canadian youth not knowing where to start, here is a guide to help you out:
As a teenager or student, rather than relying on your parents to help you with your tax filing, it is best to take proactive approach to tax season and make sure to file your tax before the April 30th deadline. You can meet a professional Tax Accountant (https://canada.ctlinternational.ca/ ) to help you with your tax filing or do it online.
However, the CRA (Canada Revenue Agency) has a 90 minutes course on their website (http://www.cra-arc.gc.ca/tx/ndvdls/dctrs/lrn-tx/menu-eng.html ) which will give you a good understanding of the tax system, which includes your role in the Canada’s tax system, why you pay tax, how these taxes are used and how to file tax return. Also there are other resources on the CRA website which provides you with answers to basic tax questions.
As a young Canadian, either a student or a teenager, you should file tax return regardless of your age or income. Even before you get your first job where your employer is taking taxes from your paycheque, you should be filling tax return.
Some things you can claim
As a student, here are some things you need to know which will help you save money this tax time. As part of the rules, a student is eligible to claim the following;
- Credit on your textbooks. This amount to $65 for each month or $20 for part-time students.
- Eligible tuition fees
- Interest paid on your student loans
- Eligible moving expenses
- GST/HST credit
- Child care expenses
- Amount spent on public transit
For an international student studying in Canada, your need to file tax is determined by your residency status. Generally, residents and deemed residents must file their tax. If you don’t have any significant residential ties in Canada and have been in Canada for less than 183 days, then you may not need to file a tax return. Head over to CRA website to determine your resident status in order to know how you will be taxed in Canada.
Furthermore, as a student, you should always make sure you file your income tax return even if you have little or no income in order to claim your tax credit, deductions and benefit that you are eligible for.
Final tips for students, do not engage in spending your tax refunds on items you ordinarily cannot afford. Instead focus on narrowing down your priorities and paying off your students loans or credit card and reinvest the remaining money.
If you have any question, kindly contact CTL Business Group. Our professional Tax Consultants will be glad to provide answers to your questions and give you the best tax solution.
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