New to Canada? Your First Tax Return Explained

Welcome to Canada! Filing your first tax return can be confusing, but at EZ Income Tax, we want to make the process as simple as possible. Here is everything you need to know about how the Canadian tax system works.

1. When is the Deadline?

The official deadline to file your personal tax return is April 30.

• If you owe money: You must file and pay by April 30 to avoid interest and penalties.

• If you are getting a refund: There is no penalty for filing late, but your Benefits (like the GST/HST credit or Child Tax Benefit) may be delayed or stopped if you don't file on time.

2. Refund vs. Benefits (Important!)

Many people use these words interchangeably, but they are very different:

• Tax Refund: This is a one-time payment. It happens when you paid too much tax from your paycheck during the year, and the CRA is giving your own money back to you.

• Benefits: These are monthly or quarterly payments (like the Canada Child Benefit or Carbon Tax Rebate). These are based on your income level, not on how much tax you paid.

Common Question: "Why did my friend get a refund and I didn't?" > Answer: Your friend may have had tax deducted from their salary, while you might not have worked yet. If you didn't pay any tax, the CRA cannot "refund" you, but you may still qualify for Benefits.

3. World Income & Benefit Eligibility

To calculate how much money the government should give you in Benefits, the CRA needs to know your "World Income."

• Even if you didn't earn money in Canada in 2024, the CRA will ask for your income from your home country before you arrived.

• This is not to tax that money again; it is only to see if you qualify for credits meant for low-income families.

4. Why did the CRA ask me for more info but not my friend?

If the CRA asks you for more information and not your friend, it is usually because of the Date of Entry.

• For example: If you arrived in 2025, but your friend didn't tell their accountant their arrival date, the CRA might assume they lived here all of 2024.

• This is a mistake! Providing your correct arrival date ensures you are following the law and prevents the CRA from asking for money back later.

5. Your Notice of Assessment (NOA)

After we file your taxes, the CRA will process it and send you a document called the Notice of Assessment (NOA).

• Keep this document! It is your official proof of income. You will need it to apply for loans, mortgages, or to sponsor family members in the future.

6. Registering for a "CRA My Account"

We highly recommend every taxpayer registers for a CRA My Account.

• Note: You usually cannot register until the CRA has processed your first tax return.

• Once registered, you can see your refund status, update your address, and set up Direct Deposit so you get your money faster.

7. Common First-Time Filer Scenarios

• Tuition Fees: If you are a student, keep your T2202 slip. You can use these credits to reduce your tax in the future when you start working.

• Moving Expenses: Generally, you cannot claim the move to Canada, but you might be able to claim moves within Canada for work or school.

• Foreign Assets: If you own property or assets outside Canada worth more than $100,000 CAD, you must tell the CRA (Form T1135).

Still have questions? Don't worry—that's what we are here for! At EZ Income Tax, we specialize in helping newcomers navigate their first Canadian tax season correctly.

Contact Kelly ThiThi Phan today to book your appointment!