Filing taxes in Canada

In Canada, income tax is administered by the Canada Revenue Agency (CRA). The Canadian income tax year is from January 1 to December 31. If you owe income tax, you must pay it by April 30 for the previous calendar year. Late submissions are accepted, but there may be a penalty.

If you are employed in Canada, your employer will deduct income tax from your wages and send this money to the CRA. In order to deduct the proper amount of income tax from your wages, your employer will ask you to complete the form TD–1. Employers will deduct an amount from each pay cheque for Canada Pension Plan (CPP) and Employment Insurance (EI).

What you need to file a tax return?

To file a Canadian tax return, you need either: a Social Insurance Number (SIN), OR an Individual Tax Number (ITN) As soon as you get a SIN or ITN, enter it in your SSC account so that UBC can provide the government with accurate information for your taxes.

Apply for tax deductions:

• You may be eligible to deduct certain expenses from your tax payments. Moving expenses such as transportation and storage of personal effects, travel, and temporary accommodation may be considered eligible deductions. Save your receipts for the cost of relocating to Canada. However, you cannot deduct moving expenses if your only income at the new location is scholarship, fellowship, or bursary income that is entirely exempt from tax under the current legislation.
• You may also deduct childcare expenses, Registered Retirement Savings Plan (RRSP) contributions, and union dues.

You must file a tax return if you:

Owe income tax to the government (for example, you earn significant income in Canada)Are asked by the CRA to file a return

Even if you don’t owe any tax, you should file a tax return if you:

• Expect an income tax refund from the government.
• Are applying for the GST/HST credit (which provides cash payments to low- and middle-income taxpayers, to help offset the costs of paying GST/HST on taxable purchases).
• Are eligible to receive the child tax credit (for low- and middle-income taxpayers with children).
• Might earn more income in Canada later (e.g., co-op) so want to carry-forward (i.e. save for future years) Tuition Payment and Education Credits to reduce the tax you owe in future years.