The Ins and Outs of Taxes in Canada for Newcomers
Filing taxes in Canada each year is an important requirement for all residents, but it can seem complex and intimidating for newcomers unfamiliar with the Canadian tax system. This article will break down the key things you need to know about filing your taxes in Canada returns as a new arrival, from income tax rates to submission deadlines and methods.
In Canada, both the federal and provincial governments collect taxes in Canada on personal income. Tax rates are marginal, meaning you only pay the higher rate on income within each tax bracket. Things like tax credits and deductions can reduce the amount you owe. By the April 30th deadline, all residents must submit their taxes returns for the previous calendar year.
Filing Methods
There are several options for filing your taxes returns. The most popular is through authorized tax software, which lets you e-file your return directly with the CRA. You can also hire an accountant, use a volunteer tax clinic, or submit a paper return. No matter the method, the CRA aims to process returns within 2 weeks.
Filing your taxes in Canada returns provides benefits like potentially receiving a tax refund or credits. Seeking help from experts can ease the process for newcomers adjusting to the Canadian tax system. With the right information, you’ll be well prepared to navigate your taxes obligations.
