Income Tax: Frequently Asked Questions

 

1. COMMON QUESTIONS REGARDING FILING TAXES:

Should I file taxes even if I did not work in previous year?
Yes, you should file your tax return even if you did not work or if you did not have any T4 (employment income). Filing Tax return each year helps you to qualify for Quarterly GST/HST benefit, helps you accumulate tuition credits and much more.

Should I file taxes if I landed here on 31st December 2023?
Yes, you should file taxes for the 2023 year even if you were here for a single day.

What if I arrived in Canada prior to this tax year but I have never filed a return before?
You may file multiple years using UFILE and select the earliest year to begin filing. When you use one Ufile account on a year to year basis, the software automatically carries forward your unused tuition and education amounts. You can always refer to your tax years by reviewing and saving the pdf file that Ufile creates. Note: Begin with your first year in Canada so the education amounts will accumulate each year.

Why Should I file taxes?

  • 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 also register to get a small credit on all the sales tax you pay. This is called the HST or GST Credit and is approximately $300 per year dependant on income, number of dependants you may have, etc.. You must be 19 years of age, to be eligible. HST / GST CREDIT

  • 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 Canada Child Benefit (CCB). 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. CANADA CHILD BENEFIT

What documents do I need to file taxes?
We have a link to the short list of documents you may need to file your taxes (STEP 1).

Generally, most students may need the following documents to file taxes:
1. T2202 Slip (Tuition fee)
2. Insurance premiums (Health and dental insurance premiums)
3. T4 Slip (Employment Income)
4. T4A Slip (Scholarship/Funding non-taxable income)
5. T5 Slip (Sent by bank for an investment income- Not common for international students!)
6. Other expenses (If required)!

Where do I get my MUN documents like tuition fee form and scholarship form?
You can get all MUN related form from MUN Self-service in few simple steps. Check out one of our video tutorials on how to get documents from MUN self-service.

How should I file my taxes?
Student can use any genuine software available to file taxes. At internationalization office we use ufile software. You check out ufile video tutorial (Step 2) - coming soon

Am I required to upload my Tax forms/receipts when filing taxes?
No, you are not required to upload any documents when filing taxes. Tax filing only requires utilization of information in those tax forms in order to file your taxes.

Am I supposed to print and send my tax return file after I submit it online?
No, you don’t need to send the tax return by mail if your online tax filing has been accepted. You only mail your tax return if it was not accepted/transmitted online.

2. T2202 (TUITION FEE FORM) RELATED QUERIES:

Where do I get my T2202 form?
You can get it though the MUN Self-service. Check this video on how to get your documents from MUN Self-service.

Why does T2202 form shows less amount than what I paid per semester?
T2202 form includes only the core tuition fee. It does not include the accessory fee like recreation fees, insurance premiums and so on.

3. T4 (EMPLOYMENT INCOME RELATED QUERIES):

Where do I get my T4 form if I worked at MUN?
You can get it though the MUN Self-service. Check this video on how to get your documents from MUN Self-service.

Where do I get my T4 form from if I worked outside MUN?
Your employer will issue a T4 directly to the mailing address on their file by February end. If you are missing a T4, please check with the employer directly.

How many T4’s can I add to my Tax return?
There is no limit on how many T4 return (information) you can add to your tax return.

4. T4A (SCHOLARSHIP/FUNDING RELATED QUERIES):

Where do I get my T4A form if I worked at MUN?
You can get it though the MUN Self-service. Check this video on how to get your documents from MUN Self-service.

Where do I get my T4A form from if I had scholarship outside MUN?
Please contact your funding agency if you are missing a T4A. Check with your department first and then contact your external funding agency/department for more information on it.

Is my scholarship taxable?
Scholarships are considered non-taxable income and hence are 100% exempt from taxes.
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.

5. GST/HST BENEFITS RELATED QUERIES:

Do international students qualify for GST/HST benefits?
When you file taxes, you qualify for the quarterly GST/HST benefits for the coming year. The GST/HST quarterly benefit differs for each individual and is determined when CRA processes your income tax return.

Do we need to keep sale receipts for GST/HST benefits?
No, you do not need to keep any sale receipts for qualifying for GST/HST benefits.

When are the GST/HST benefits paid out?
They are paid our quarterly, generally around the following dates: July 5 and October 4 of the current year and on January 3 and April 3 of the next year.

How is the GST/HST benefit paid out to us?
If you opted for direct deposit and submitted the information for direct deposit, most probably your GST/HST benefit will paid out directly in your bank account. If you did not opt for direct deposit, a cheque will be mailed out to your address on file.

6. QUERIES AFTER FILING TAXES:

Am I supposed to mail out my tax forms/documents to CRA?
No, if your return has been accepted online, you do not need to send any tax forms/slips/documents to CRA?

Do I need to store my Tax slips/documents?
Yes, you need to store your documents/ tax slips for at least 7 years as CRA has the right to ask for any details that a person has claimed through Tax return.

How much time does it take for CRA to process my return?
For first time filer generally, it takes about one to two months for them to process your tax return. For repeat filers, generally the tax return is process within few weeks.

My Tax return shows that I will be refunded some amount, how will I be paid that amount?
If you opted for direct deposit and submitted the information for direct deposit, most probably you will be paid directly in your bank account. If you did not opt for direct deposit, a cheque will be mailed out to your address on file.

What if the tax return shows that I owe CRA some amount of income tax?
In most student cases this will not happen. If it happens that student sees that they owe CRA some tax, they will send out a letter to the address on a file with a voucher that can be used to pay the owing amount in the bank. You can also call CRA general inquiry line to discuss this issue. It is always a good idea to consult some professional before making any payments.

What is MyCRA and should I register for it?
First time filers are advised to register for MyCRA account only after they receive their notice of assessment or at-least a month has passed after filing their tax return. MyCRA account is an online portal to access all your tax documents/slips/history. It is very useful to have a MyCRA account as next year you can use the auto-fill feature to file your tax return with very less efforts.

7. OTHER QUERIES:

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 this link for more info

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 one of the two tax offices (dependent on what country you are from). 

To apply for SIN: For more information about obtaining a SIN, call Service Canada toll-free at 1-800-206-7218. Select option "3" for SIN information. If you are calling from outside Canada, or if you have a rotary dial telephone, call 506-548-7961 (long distance charges will apply). You may also visit their website at servicecanada.gc.ca.

I am earning income or have foreign property in my home country. How should I report this?
This matter is too complicated for the Internationalization Office (IO) to advise. Contact Canada Revenue Agency for assistance or you may see THIS LINK.

My spouse has never come to Canada.
Report income information only in UFILE. If spouse has had no Canadian income you can report nil or no income for your spouse on the tax return. A separate tax return is not required to be completed or filed for your spouse.

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 Canada Revenue Agency (one of two offices which is dependent on what country you are from).

How do I receive the Canada Child Care Benefit (CCB)?
If a person has dependants and has applied for the CCB, you must be here with your child for 18 months before you can apply. See this link for more info

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 CFS1981.

Where can I find Netfile Access Code?
The Netfile Access Code (8 Digit code) can be found on your previous year’s Notice of Assessment. You can locate it around top right corner of Notice of Assessment.

I do not have Netfile Access code, what should I do?
Netfile Access code is NOT MANDATORY. So, if you do not have the code, nothing to worry. First time filers will not have Netfile Access Code.

8. CERB/CRB/CESB Queries:

If I took CERB/CRB/CESB, how can I add that to the tax return?
If you took benefits from Canadian Government for the Pandemic, you will be provided either T4A or T4E to add to your tax return. If you applied for benefits through CRA you will be provided a T4A. If you applied through Service Canada you will be provided a T4E.
Both T4A or T4E can be added to the tax return by selecting Pension option for T4A OR employment income for adding T4E.

When I add my CERB/CRB/CESB amount to tax return, why is it showing I owe money to CRA?
The Benefits provided are taxable and hence when you list/mention/add them to your tax return the software will show an approximate amount of tax you may need to pay on that benefits.

Can I use Tuition credits to pay off the money I owe due to pandemic benefits?
The tax software will automatically use your available tuition credits to give you the best tax scenario. If the software doesn’t do it automatically, please manually select the option to use the tuition credit in the software.

Do I need to repay all the benefit which I took during the pandemic?
Each case is different and depending on your situation you may or may not need to pay the entire amount back to CRA. Please contact CRA directly for clarification.