Let’s say you arrived and established residency on June 1st. Your first tax return must show all income from both inside and outside Canada from June 1st to December 31st. Income before your arrival usually isn’t subject to Canadian tax. We’re a full-service accounting firm that can help you with anything from bookkeeping, personal tax to corporate taxes, GST filings, and payroll. If you can’t handle the wait, check the status of your refund at IRS.gov/refunds, or use your smartphone to download the IRS2Go app.

Steps to file

• A tax return is essentially a detailed report to the IRS of your income, expenses, and other relevant financial information for a specific tax year.
• This penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late, with a maximum of up to 25% of your unpaid taxes.
• Permanent residents must provide birth proof for each child on the application.
• If you were an employee then you should be receiving a form W-2 for 2019 on or before January 31, 2020 from your employer.
• For example, Form K-1, which reports partnership income, doesn’t have to be filed until March 15.

This threshold changes annually, so verify the current figure. Additionally, earning over $400 from self-employment requires filing to pay Social Security and Medicare taxes. Receiving advance premium tax credits for health insurance also necessitates filing to reconcile these credits, how to file taxes for the first time at 18 regardless of income.

What happens if you don’t file your taxes?

Just like Cliff says, „the government comes for the regular people first.” If you have a job, your employer will usually take off income tax from your paycheque and send it to the CRA automatically. If you’re self-employed, you have to send payments to them directly.

Canada Revenue Agency (CRA)

If you filled out a W-4 when you started working, then you’ve probably been getting taxes withheld over the course of the year. The best way to find out is by looking at a recent pay stub, which will indicate the amount of money taken out for tax purposes. Another is that you need to file taxes to build up RRSP contribution room. Plus, if you have any medical or tuition expenses, even if you don’t have much income to claim them against, you can still transfer those credits to other family members. Or, in the case of tuition, you can carry the credit forward to future years when you’re earning https://www.bookstime.com/articles/cpa-vs-accountant more money.

• Electronic filing (e-filing) is recommended for accuracy and faster processing.
• Parents should also submit form RC66 (Canada Child Benefit Application) with schedule RC66SCH.
• Note that temporary residents receive a SIN starting with “9” that expires with their immigration document.
• Begin gathering necessary documents and reviewing your financial records early in the year.
• If you are not sure of your residency status for income tax purposes, complete Form NR74, Determination of Residency Status (entering Canada).
• Remember to report all sources of income, not just your primary job.

We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology. Honestly, depending on how old you are and a few other factors, you might not even need to worry about filing taxes yet (ah, the blissful joy of youth). But before you breathe a sigh of tax-exempt relief, there are a few basic details you need to know to figure out whether or not you need to file. H&R block has been Canada’s leading tax preparation firm for more than 60 years.

Simple tax returns 100% free

The IRS announced the official start date for tax filing season as Monday, Jan. 27, 2025. Those who are above this income level, can also seek help by purchasing commercial tax software or hiring a professional to do your taxes for you. Forget about getting a driver’s license, growing hair in strange places or moving out of your parents’ home. The first real sign that you’re well on your way to becoming a full-fledged „adult” is filing a tax return.

The Basics of Taxation on Business

Taxpayers are required to file a tax return if they earn over $400 a year in self-employment earnings. To find out whether you should file a return, you can use the IRS tax filing tool. Once we process your first tax return, you will receive a notice of assessment (NOA). It will state how much you will get as a refund or how much you owe. Use this document or the information from your tax return payroll and make sure to register for a CRA account.

When should I file my first tax return as a newcomer to Canada? You should file your first Canadian tax return in the year following your arrival. For example, if you became a resident for tax purposes in 2024, you would file your first return by April 30, 2025.