Are You a Newcomer to Canada? Here’s What You Should Know About Filing Your Taxes.

If you recently arrived in Quebec, you already have a long to-do list and now you have to get to grips with meeting your tax obligations. The first questions you should probably ask yourself are: Where do I begin? When do I have to file my tax returns? What income do I have to report? And, most importantly: What do I need to know?

First and foremost, welcome to Canada! All of the questions above are important for newcomers to Quebec, because the Quebec tax system is different from that of other Canadian provinces. The answers below may help you prepare your first tax returns.

You might not know that, in addition to federal government income taxes, Quebec collects provincial income taxes. This means that you have to file two separate tax returns, one for Quebec and one for Canada.

From a tax standpoint, who is a newcomer?

The newcomer category may include:

• Individuals who obtained a work permit and previously resided in another country;
• Individuals who are awaiting or were granted permanent resident status by Citizenship and Immigration Canada;
• Individuals who were granted either an “approval-in-principle” from Immigration, Refugees and Citizenship Canada to remain in Canada, or a Selection Certificate from the Quebec Government.

A few elements you should consider:

• The purpose and permanence of your stay in Canada (length of employment contract[s]).
• Your residential ties in Canada.
• The residential ties you have to overseas countries while physically present in Canada.
• Your work permit (duration, renewal date, etc.)

Do I have to file an income tax return even if I earned no income?

Once you have a social insurance number (SIN), you or your spouse must file an income tax return. If you don’t have a SIN, you can submit an application to the Government of Canada.

Do you know why you must report your income earned prior to your arrival and after your departure from Canada?

• This information is requested for information purposes and is used to determine the credits and deductions to which you may be entitled.
• Rest assured that you will not be taxed on income earned prior to your arrival and after your departure from Canada.

Can I claim a tax credit for a dependant?

You should know that having a dependant child can impact the amount of taxes you’ll have to pay. Indeed, you can benefit from tax credits for children on both federal and provincial levels. These credits are calculated based on your family income and the number of children that you have. They are paid in either monthly or yearly instalments.

You should also be aware that the date on which you must file your income tax returns depends on your residence status in Canada. If you’re considered a Canadian resident for the entire year, you must file your tax returns before April 30 of the following year. If you’re considered a Canadian resident for part of the year, you must file your tax returns no later than June 15 of the following year. In all cases, you must report all the income that you earned in Canada and overseas for the period during which you were a Canadian resident.

In addition to the tax credit for dependants, you can claim several other credits. Click here to find out more about payments and tax credits you may be entitled to. Please don’t hesitate to contact us if you have questions or doubts about the tax filing process. Our experts can help you maximize your tax credits.