As a non-resident in Canada, filing your tax return before the 30 April deadline can often be a tricky task – especially if you live a busy life!
However, the good news is that it doesn't have to be!
By making sure you have all your documents ready on time, you can begin the process of filing early.
And remember - the earlier you file, the earlier you get your tax back in Canada!
With this in mind, here are 5 things you should really know before the 30 April tax deadline.
1. What documents will I need to file?
You will need a few specific documents to file your Canadian tax back.
Perhaps the most important document that you'll need is your T4 (more on this shortly), this is given to you by your employer.
The latest you should receive your T4 is 28 February, so you should reach out to your employer if you have not received it yet.
You will also need your SIN (Social Insurance Number) or ITN (Individual Tax Number).
2. Why it’s important to file before the deadline
If you owe money to the CRA in Canada and miss the tax deadline, you could incur a penalty fee of 5% on top of what you already owe them.
One of the main positives about filing a tax return is that there is a good chance you could be due a big tax refund!
And if you do not owe any tax to the CRA, or you are due a refund, there is no penalty for filing late and you can even file your return as far back as 10 years after the end of the tax year!
Countless nonresidents were affected by the COVID-19 and received benefits related to the coronavirus pandemic.
If you received benefits such CERB, CESB, CRB, CRCB, CRSB, EI or provincial or territorial emergency benefits, your income in 2021 was $75,000 or less and you file your 2022 income tax return on time, the CRA will automatically apply interest relief in case of a taxes owing until April 30, 2024.
This means that you will have one additional year to pay the 2022 balance due to the CRA without penalties and interest.
This interest relief will only apply to your 2023 taxes owing and not on previous or other balances due to the CRA.
If you miss the April 30, 2023 filing deadline the 5% late filing penalty still applies over the balance due for 2023.
By filing your Canadian tax return with Taxback.com, you can guarantee that you receive your maximum tax rebate.
3. Maximise your refund by claiming expenses!
Not many non-residents are aware that they are entitled to claim a host of expenses, such as tuition fees, medical expenses, interest paid on student loans, and donations!
Other lesser-known expenses that may be deductible include transportation and storage of personal effects, travel, and temporary accommodation.
Always save your receipts for any of these expenses, because in order to claim expenses in Canada, you must have valid documentation for a period of up to 6 years.
Claiming these expenses really adds up and helps you to maximise your Canada tax refund.
You can use our tax refund calculator for Canada to find out how much tax you can claim back.
4. Keep hold of your T4!
To be able to file your tax return in Canada, you’ll need your T4 (also known as the final cumulative payslip), which is given to you by your employer.
You will usually receive this by February 28 at the latest. So if you have not received your T4 yet, be sure to reach out to your employer. Alternatively, Taxback.com offers a Document Retrieval Service to aid your search for any documents you may be missing!
You will also need a T4 form from each employer throughout the tax year if you have been employed in multiple places.
The T4 is essentially a summary of the previous tax year and it outlines both the extent of your income earned, as well as tax paid.
5. Know what you are paying tax on!
In general, you’ll have to pay three types of tax; Income Tax, CPP (Canadian Pension Plan) contributions, and EI (Employer Insurance) premiums. You’ll find exactly the amounts paid on your T4.
More specifically, you will find your income tax in box 22 of your T4 slip, CPP contributions in box 16, and EI premiums in box 18.
You will be due a refund if you overpaid on any of these taxes!
Not sure how much you could be due? Why not check out our tax refund calculator here.
The average Canadian tax refund is $998
The average Canadian tax refund is $998
BONUS TIP: Get your tax back with Taxback.com!
When filing your tax return there are two options to consider.
Firstly, you can file your documents directly with the CRA yourself.
The main advantage of filing yourself is that it’s free.
By applying with Taxback.com, you will be fully tax compliant with the CRA.
We offer a no refund, no fee service. Why not start by calculating your tax refund today?
We also offer:
- A full review of your case in detail in order to ensure you get of all of the expenses and reliefs you can
- Maximum legal tax refund delivered straight to your bank account, wherever you are
- Convenient online service with no tricky and boring paperwork
- Got tax questions? We have a 24/7 Live Chat team