Moving to Canada and Understanding Taxes
Moving to a new country can need a lot of adjustment and cause some serious inconvenience, whether it is adjusting to the new culture, learning the local rules and regulations, or fitting in with your new neighbours and acquaintances. Just like other factors, adapting to the new environment demands you to be financially prepared and well-informed about the tax situation in the new country. Similarly, if you are new to Canada, it is important for you to know the Canadian income tax laws and responsibility. Tax Accountant makes filing income tax easy with its convenient and accessible online tax platform where you can file your taxes electronically. Below, we have outlined the basics of income tax return filing with the Canada Revenue Agency (CRA).
Why Should I File a Tax Return?
If you are a new immigrant and considered a resident of Canada, then you are required by law to file income tax for all or part of the tax year and declare your worldwide income to the CRA. Your Canadian residency status does not decide whether you must file tax returns; it only changes how these returns are submitted. The CRA also requires you to submit tax returns if you meet any of its rules, regardless of age or profession. Avoiding Canadian tax returns can be risky. Filing taxes is important because it makes you eligible for many benefits and deductions from the CRA. A Tax Accountant or online Tax Services can help simplify this process.
How to File Canadian Income Tax Returns
With Tax Accountant, filing income tax in Canada is easy as saying your A-B-C’s. Our online tax software allows you to submit returns electronically using E-FILE or NETFILE. We are an approved online Tax Services provider, dedicated to easing the tax filing process. Note, if your SIN starts with “08” or “09”, you may not be able to NETFILE. With Tax Accountant Pro, a Tax Accountant can assist you with filing, saving you time and stress. We provide complete and problem-solving tax strategies to help you meet this legal requirement.
Benefits of Filing Canadian Income Tax
You are considered a Canadian resident for tax purposes once you establish significant ties in Canada, such as family, bank accounts, or other social and financial connections. Even if you move to another country, you may still be treated as a resident. Filing your Canadian income tax return makes you eligible for various benefits, deductions, and refunds. Benefits can include the Canada Child Benefit and HST/GST credits, while deductions may cover pension income splitting, moving expenses, support payments, employment and childcare costs, and RRSP contributions. The exact benefits and deductions depend on your personal circumstances, so it’s important to claim everything you qualify for.