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How To File Your Taxes in Canada (2022)


Income tax

If you’ve moved to Canada this year and earned income, you are required to fill out the 2021 tax form in early 2022. New to the process? Fret not – here’s everything you need to know about filing your taxes on time, the right way! 


When Are Income Tax Forms Due? 

Income tax

You have until April 30, 2022, to file your taxes. However, if you don’t owe any taxes or expect a refund, you won’t experience any penalties for filing a bit late. Should you owe taxes, be it insufficient employer deduction from your paycheque, or you are self-employed, you are required to pay interest on top of what you own. It’s ideal to file earlier than to wait. 


What If I Don’t Have All My Statements? 

It’s imperative to keep your pay stubs — that way, you can still calculate your total income, the amount deduction for CPP, OAP, and taxes. After figuring it out, fill up your income tax form with this information; if the CRA (Canada Revenue Agency) asks to see proof, you can provide photocopies of your tax stubs. The CRA is allowed to fine your employer for failing to give a T4. T1 slips are also offered by banks for any form of interest you earn, only if it’s over $50+ per year. From our abysmal interest rates, it’s unlikely a newcomer to Canada will have made any investment income yet. Hence, when in doubt, always call your bank for further assistance.

How Do I Start Filing My Taxes? 

Local tax forms are available in your local Canada Post Office, as well as it is available online: Certified Tax Software. Another alternative to this is tax packages available for purchase in electronics or computer shops near you — these boxes come with discs or instructions. Having said that, do note that it’s essential to use appropriately authorised software approved by the Canadian government/ Canada Revenue Agency to avoid scams.  


What If I Need to Hire Someone?
Income tax

It's only natural for newcomers to be unfamiliar with the Canadian tax systems. Worry not; businesses such as H&R Block or Liberty Tax Canada provide services that help assist you in filing your taxes. Before contacting them, ensure that you have your payslips and receipts.


What Income Can I Claim Through Taxes?

Canada has a slightly different approach to taxes than other parts of the world; T4 slips are mandatory in the tax process. That said, items sold on sites such as eBay or Facebook are not considered income as these ‘second-hand’ items are sold for cheaper than you bought them. For instance, $200 worth of craft supplies sold as preloved online for $20 is not considered an income (you made a huge loss instead of making a profit). A general rule of thumb for new “businesses”? If your annual earnings exceed $30,000 before expense deductions, you must register as a running corporation.


What Deductions Can I Claim For My Taxes?
Income tax

Medical and health expenses are claimable – this includes dental, prescriptions, medical devices, optical, or any other item that a licensed doctor has prescribed to you. Other things deductible includes school programs, educational courses, charity donations, and more. For the specifics, do run through on the return for more advice. 


What Exactly Do I Need to File My Taxes? 

Whether you decide to do your taxes yourself, hire someone, or file online, you’ll need the following: 

  • T4 Slips
  • T1 Slip (if interest is over $50+)
  • Tax forms or legit online tax software
  • Spouse’s income
  • Social insurance numbers for you and your spouse
  • Deduction amounts with invoices or receipts

Where Can I Find More Information Online? 

If you’re a newcomer to Canada, there is plenty of information on the Government of Canada website. A specific page about Newcomers to Canada and Taxes can help you get started; there may even be local agencies who can assist you with doing your taxes. 


Start Recording Income & Deductions Now 

The sooner you do your taxes, the less you’ll have to worry. Who knows, a massive tax refund may just be coming your way! 

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