Income Tax FAQs
1. I arrived in Canada prior to this tax year but I have never filed a return before.
Students who are filing a tax return for the first time must mail their tax return to the International Tax Office in Ottawa. A separate return for each year in Canada must be completed. If you use tax software such as Ufile, all forms must be printed and mailed to the International Tax Office. Subsequent year returns may be submitted through Netfile. You must include one world income statement reporting your income from Canadian sources from January 1 of the first year you arrived in Canada to the date you arrived in Canada. This amount for most international students is $0.
Since Ufile does not allow you to create an account for more than one tax year at a time, you will have to create a new account for each tax year. This means that you will have more than one username. When you use one Ufile account on a year to year basis, the software automatically carries forward your unused tuition and education amounts. Because you must use different Ufile accounts for each year, you must manually carry forward your federal and provincial unused tuition and education amounts. You can do this by checking the pdf file that Ufile creates. Find the amounts at the bottom of Schedule 11 (federal) and NL (S11) (provincial). Key in these two amounts at the top of the Education section of the following year under "unused tuition and education amounts from prior years" federal and unused tuition and education amounts from prior years " provincial. Note: Begin with your first year in Canada so the education amounts will accumulate each year.
2. Which part of my Canadian scholarship is tax exempt? 100%
3. How do I file a return if I finished my degree and have moved home (outside Canada)?
Your last tax return in Canada must be filed in paper. You can complete and print it in Ufile but you cannot Netfile (file online). You will have to mail it to the International Tax Office, http://www.cra-arc.gc.ca/cntct/prv/tstc/twts-eng.html
Note: Indicate that you were a non resident on December 31, 20XX.
You have to indicate your departure date from Canada on the first page of your T1 after you print it. Also don't forget to sign and date page 4 of your T1 and mail to the International Tax Office.
You are also supposed to prorate all your nonrefundable tax credits but don't worry since it shouldn't affect your final numbers (unless you earned a lot of income).
For more information about reporting income tax for your last year in Canada go to http://www.cra-arc.gc.ca/E/pub/tg/t4056/t4056-e.html#P241_25324.
4. I filed my taxes last year but I didn't report my tuition amount. How do I report it now?
You must file an adjustment and complete Schedule 11. Refer to http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/chngrtrn-eng.html
5. I have an ITN number which starts with "0" so I can't Netfile. What do I do?
If this is not your first year filing, you can mail or drop off your return to the local tax office:
St. John's Tax Centre
290 Empire Avenue
St. John's NL A1B 3Z1
6. I am earning income or have foreign property in my home country. How should I report this?
This matter is too complicated for ISA to advise. Contact Canada Revenue Agency for assistance.
7. My spouse has never come to Canada.
Report income information only in ufile. A separate tax return is not required to be completed or filed for your spouse.
8. I am able to Netfile but my spouse who has never filed a tax return is not able to Netfile.
File your tax return online and mail your spouse's to the International Tax Office.
9. I have received a scholarship from a source in my home country. Is it necessary to report this information?
Scholarships received from sources outside of Canada are non-taxable in Canada and do not need to be included as part of your Canadian Income Tax Return.
10. I qualify for the Universal Child Care Benefit (UCCB) but did not receive any money from this source in the current tax year.
If a person has dependants and has applied for the UCCB, but did not receive any income in the tax year, they must still enter 0 in RC62 boxes 10 and 12.
11. Do I need to file a tax return if I arrived in Canada in late December?
Yes you still need to file a tax return.
12. Since I made over $20,000 in the current tax year, will it cost me to file with Ufile?
No. Ufile has an agreement with the Canadian Federation of Students to provide students with free tax returns. Use the promotional code FAY1493.