Filing Your Taxes for the First Time in Canada
Let a professional and our tax software guide you.
Filing your first Canadian tax return can feel overwhelming when you do not know where to start. As a first time filer, you have the option to book a consultation with one of our accountants. We will walk you through the Canadian tax system and help you understand what to expect. The Urban Accountant (T.U.A) makes it completely hands-off. You gather your documents. Our accountants and our tax software prepare and file your return accurately.
We Guide You Through It
Our short questionnaire tells you exactly what documents you need to submit through the T.U.A application. No guessing. No confusion.
Your First Return Sets the Foundation
RRSP room, benefits eligibility, and your CRA history all start with this filing through the T.U.A app.
Done Right the First Time
First-timer credits, tuition carry-forwards, and government benefits. Request a consultation with an accountant if you need extra help.
Do You Actually Have to File Taxes in Canada?
You are legally required to file a return if you owe income tax to the CRA for the year. However, you should file even when you are not strictly required to. Filing your return is how you get access to government money you are entitled to.
Benefits like the GST/HST credit, the Canada Child Benefit, and various provincial benefits all require a filed return to qualify. Filing is also how you build up your RRSP contribution room for future savings. If you had any income in Canada during the year, whether from a job, a scholarship, or a side hustle, you should file.
When Should You File Your First Return?
You should file for any year in which you were a Canadian resident and had income. There is no minimum income threshold you have to reach before you are allowed to file. The earlier you establish a filing history with the CRA, the better.
For most Canadians, the filing deadline is April 30 each year. We recommend you file as soon as your tax documents for the year are available. This is typically late February or March. Do not wait until the deadline when you can get it done early.
What Documents Do You Need for Your First Return?
When you sign up with T.U.A, our intake questionnaire asks you simple questions and generates a personalized checklist. You will only look for the exact documents you need to submit through the T.U.A application.
If you have a job, the main document you need is your T4 slip. Your employer is legally required to give this to you by the last day of February. Your T4 shows your total employment income and the taxes that were already taken out of your paychecks.
Depending on your life, you might also need a T2202 tuition receipt from your school, or a T5 slip from your bank if you earned interest.
What Is a SIN and Why Do You Need It to File?
Your Social Insurance Number is a nine-digit number issued by the Government of Canada. Think of it as your official ID for everything related to taxes and employment. It appears on your T4 slips and you absolutely need it to file a return.
If you do not have a SIN yet, you can apply for one at a Service Canada office with your valid identification. Your SIN also links to your CRA My Account, which is the online portal where you can view your tax records and set up direct deposit for your refunds.
What Tax Credits Can You Get as a First-Time Filer?
Every Canadian who files receives the basic personal amount. This is a non-refundable federal credit applied to the first portion of your income, making that portion effectively tax-free at the federal level. If you were a student, you can claim the tuition tax credit using your T2202 form.
Our accountants and our tax software identify all the eligible credits and deductions available to you to maximize your return. You may also be eligible for the Canada Workers Benefit or the climate action incentive payment.
Your first filed return unlocks the GST/HST credit, activates your RRSP contribution room, and makes you eligible for provincial benefits. Most Canadians who delay filing miss these payments for years without knowing it.
What Happens If You Miss the Deadline?
If you owe money to the CRA and file after April 30, they charge a 5 percent late-filing penalty on what you owe, plus 1 percent per month for up to 12 months. Alternatively, clients may contact the CRA directly to request a payment plan if they are unable to pay the full balance owing at once.
However, you do not need to panic. Most first-time filers with one job do not owe anything extra. If you do not owe money, there is no penalty for filing late. The only downside is that any refund you are owed and any benefits you qualify for will not be paid until you finally file.
How Do You Report Tuition Fees on Your First Return?
As a first time filer, your tax return cannot be submitted electronically. It must be printed and mailed directly to the Canada Revenue Agency. You built up tax credits during your studies, and now you get to use them. Your school issues a T2202 form showing your eligible tuition fees.
If you cannot use them all this year because your income is low, your unused credits carry forward forever. You can also give up to $5,000 of unused credits to a parent who supported you. Our accountants and our tax software make sure it is tracked perfectly.
What If Your First Year Also Included a Small Business?
If you started a business, worked as a freelancer, or took on gig work, your first return will include Form T2125 alongside your T1 personal return. You report your gross business revenue and your eligible expenses to calculate your net business income.
Returns are completed in no more than 7 business days. An expedited 3-day return is available for an additional $55. Business returns require a bit more preparation than employment-only returns. Our accountants and our tax software handle self-employed and small business returns every day.
Your First Return Is the Most Important One to Get Right
It sets your RRSP room, activates your benefits, and establishes your CRA history. Let our accountants and our tax software handle it.
Frequently Asked Questions
Clients upload their tax documents through the T.U.A app. Our accountants and our tax software prepare and file their return on their behalf. T.U.A is not DIY software. It is a professional tax filing service delivered digitally.