Income Tax Return Canada – The Filling Process and Tips

Do you work in Canada? The Canada Revenue Agency who is the administrator of income tax return Canada is interested in your taxable income. This is usually an amount that starts at fifteen percent of your gross pay. If you make more than four thousand dollars per year, your tax rate will be higher than fifteen percent.

If you have just got a new job in Canada, you should know that Canada’s taxation period/year begins from January to December.  Usually, tax returns deadline is April 30th.  Hence, if you started working in Canada in a calendar year, the Canada Revenue Agency expected you to file your tax return Canada by April 30th of the following year.

How income tax return Canada filing is done

Before you can begin to file your tax return Canada, you must know your residency status. If during the taxation year you lived and worked in Canada for more than six months, you can file your income tax return as a resident. The International Tax Services Office can also be called upon to help if you are unable to determine whether you are a resident or a non-resident. It is also possible that your home country has tax agreement with Canada and this will definitely affect your income tax return status.

Canadian T4 Form

This will automatically be collected by your Canadian Employer. It will sum up your total income and expected deductions for the current taxation year. To get T4s from your employers on time, ensure that you give them your full identity and contact details so they send all forms before the deadline for tax return Canada submission.

Non-resident special forms

If you are a Canadian non-resident, you will be required to file your taxes via: Schedule 1 Federal Tax, the 428 form, Schedule A under Non-Residents of Canada and T1234. A resident of Canada will skip Schedule A.

Filling your forms

As soon as you grab your forms for tax purposes, you can give them to a tax consultation or tax firm to know what to do with it. This is if you do not have time or expertise for this kind of work.  A tax firm can be of great help when you are trying to file your Canadian taxes from overseas. Before you submit your income tax return Canada forms, gather all your original copies of your T4s and send along with return to the CRA International Tax Services Office.

Conclusion

If you have to file your tax return Canada forms as a non-resident, declaration of your prior income while outside Canada will not be necessary. However, if you qualify as a resident of Canada, you must report any income you have earned within Canada and outside of Canada.