Need to Prepare and File Tax Returns in Canada? Here’s How.
It’s almost time to do your taxes! Even if you’re new to Canada, filing a tax return is mandatory. Thankfully, being excited about it is not.
Still, it doesn’t have to be a source of stress. The Remitbee Online Money Transfer guide will take you through step by step how to file your tax return for 2018 by the deadline, 30th April 2019.
Do I Need to Do a Canada Tax Return for Immigrants?
The answer is yes! Anyone living in Canada, an immigrant or not, will need to submit a tax return. If you are moving abroad, a seasonal worker or spend a considerable amount of time out of the country, you should check with the Canadian government here to find out which tax return you need to fill in.
Even if your income is tax exempt, or you had no income for the past year, you still need to fill in a tax return.
How to File A Tax Return in Canada
It’s super simple and just like Remitbee’s online remittance services, you can file your Canada tax return online too. Here’s how.
Step 1 – Prepare
First, you need to gather all your documents together.
- Payslips, pay stubs and statements from your employer
- Contracts from your clients if you’re self-employed.
- Receipts for business expenses (e.g. lunch you purchased for a client during a meeting).
- Other deductions and credits from your business/work.
Whether you’re submitting online or sending a paper tax return, you should always keep a paper copy of all your slips, receipts and documents at home.
Step 2 – Choose A Way to Submit
You can submit your tax return in a few different ways:
- Online (our preferred method) via NETFILE, the government approved free software. It launches February 18th.
- On paper, in a document you can download online or request a package from the government.
- By phone, if you’re on
limitedincome or fixed income from one year to the next. If you’re eligible, you’ll receive a letter invitation mid-February.
Step 3 – Fill It In
Whether you’re doing it online or on paper, go through the tax return page by page. Start with your personal information, including address, marital status etc.
Fill this in correctly so you can find out what benefits you’re entitled to.
Then, fill in details about your income. It’s as simple as typing in the figures from your payslips and giving a total income and expense figure.
Step 4 – Submit
Double check all your figures and personal details, then click submit online or send it through the post.
If you use NETFILE, you can make changes later.
If you’re due a tax refund, you’ll receive it in as little as 8 business days if you submitted online. If you have tax to pay, you’ll be notified and must pay by April 30th or June 15th if you’re a business owner.
Stay on Top of Your Finances
According to a survey taken by Ipsos, “the number of Canadians who are $200 or less away from financial insolvency at month-end has jumped to 46 percent… as interest rates rise”.
If you’re feeling the pinch this year, consider submitting your tax return a good starting point to make some changes. Get on top of your finances, find corners to cut and get 2019 off to a good start.
Check out our article on spending money wisely without cutting back on luxuries. It’s written with Christmas in mind, but you can easily apply it to birthdays and other costly celebrations!