Why Should I Do My Taxes?
- Most international students will qualify to be Canadian residents for tax purposes. If you have an apartment, a bank account, a bus pass, etc., it shows that you have residential ties to St. John's. As a resident of Canada for part or all of a tax year (January 1 to December 31), you must file a tax return if you owe tax; or if you want to receive a refund because you paid too much income tax in a tax year. Scholarships are not taxed. Generally, students do not pay income tax. Income tax that was deducted from your pay cheques should be returned.
- You will register to get a small credit on all the sales tax you pay. This is called the GST Credit and is approximately $250 per year. You must be 19 years of age, to be eligible. http://www.cra-arc.gc.ca/bnfts/gsthst/fq_qlfyng-eng.html
- You will begin accumulating tuition credits. This may not help you now, but if you remain in Canada after graduation, these tuition credits will significantly reduce the amount of income tax you have to pay when you start working. If you had taxes deducted from your paycheck last year, you should get most of it back.
- If you have children (and once you have been a resident of Canada for 18 months) you will be registered for the Child Tax Credit. This is a monthly payment from the government for the support of your children, and again requires annual completion of the income tax return for both you and your spouse. http://www.cra-arc.gc.ca/bnfts/cctb/fq_qlfyng-eng.html
- If you prefer, you can complete a paper return and mail it with your receipts. The paper tax forms you need to fill out are available online
Still have questions? Here is a list of Frequently Asked Questions and their answers.