If you worked in any of these countries, you could be due a Tax Refund

Canadian Tax Year - Key Dates

Get your key dates for the Canadian tax year in our calendar

This calendar should help familiarize you with Canada’s key tax deadlines:

01 January 2019

First day of new tax year.

 

15 March 2019, 15 June 2019, 15 September 2019, 15 December 2019

Installment payments due dates for 2019.

 

25 January 2019

EFILE service is closed for maintenance. 

 

9 February 2019

E-filing open for resident and immigrants in Canada for 2017 tax year.

 

28 February 2019

 Last day to issue T4s, T4As and T5s to employers and CRA (Canada Revenue Agency). 

 

22 April 2019

Deadline to set up a pre-authorized debit payments for 2017 to avoid interest charges.

 

The average Canadian tax refund is $998

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30 April 2019

 Filing due date for 2018 tax returns for individuals and pay balance due, if any to the CRA.

 

15 June 2019

Filing due date for 2018 tax returns for self-employed in Canada. In case of balance owing for 2018, it still has to be paid before 30 April 2019.

 

31 December 2019

Last day of tax year.

 

 

 

Tax Tips for Canada

Moving to Canada or visiting on a working holiday? It pays to know a little about your tax obligations! Here are some quick tips to help you.

 

1. Resident or Non-Resident

Are you a resident or non-resident? Because this factor will affect what taxes you pay in Canada. Everyone who works in Canada will pay income tax on their earnings but there is a tax-free allowance.

Residents are taxed on their worldwide income and while non-residents must declare all their income, including worldwide, they only pay tax on income earned in Canada.

Generally you will be considered a non-residents for tax purposes if you normally, customarily and routinely reside in another country. You will most likely be considered a resident for tax purposes if Canada is the place where you, in the settled routine of your life, regularly, normally, or customarily live.

 

You can read more about the criteria here.

 

 

2. Tax-Free Allowance

In 2019, the amount you can earn without paying tax is $12,069. However, you may not always be eligible to claim this credit and this will be decided by a form called a TD1, which you will fill out when you start a job in Canada. 

For example, if you worked in another country in the same tax year that you worked in Canada ( from Jan-Dec), you should not claim the personal tax credit if the income you earned outside the country was more than 10% of your total income. This is the 90% rule.

So you only claim the tax-free allowance if you earn at least 90% of your total income from that year in Canada.

 

 

3. Your TD1

The TD1 is a form you need to fill in when you start or change your job in Canada. You will fill in a TD1 Federal form and TD1 provincial form, depending on where you choose to work. There are a couple of places where you could get tripped up on this form.

The first one is if you worked in another country before you came to Canada. If you earned income from another country in the same tax year you worked in Canada, you need to make sure you earned at least 90% of your income in Canada to avail of the personal tax credits.

If you earned more than 10% of your income outside Canada in that year, then you should enter 0 in box 13 and tick ‘’No’’ on the non-resident question on the TD1 form.

The second area you may get wrong is if you work in more than 1 job at a time. You must make sure you do not claim the personal tax credits twice! If you are eligible to claim the credits, please only claim them for one job. It’s advisable to claim them for the job that pays the most.

If you feel that you have incorrectly claimed tax credits, you can change them at any time. Simply print off and complete new Td1 forms and give them to your employer.

 

 

4. Expenses

You may be able to claim for certain expenses, including work-related and medical expenses. Depending on the type of employment, you may be able to claim on work expenses.

There are two conditions to qualify:

  1. Your employment contract requires you to pay the expenses
  2. You don't receive an allowance to pay the costs or if you do receive an allowance, that your employer adds it to your total income

Examples of these types of expenses include: transportation costs, cost of electronic devices, accounting and legal fees, and possible rebate of GST or HST taxes paid when you purchased these items. Any expenses must be directly related to your employment and you must retain records for these including invoices and receipts.

 

 

5. Filing your tax return

You should file a tax return before the April 30 deadline after the end of the tax year. You’ll need your social insurance number and T4 or final payslip to file. While the deadline is April 30, you can file your tax return in February after the end of the tax year.

 

You may be due a refund if:

You overpaid income tax

You overpaid in the Canadian Pension Plan

You overpaid Employer Insurance

 

You can also find out if you’re due some tax back by using our online tax calculator.

 

Here is how it works:

 

Need help with your Canadian tax affairs? Do not hesitate to contact us at info@taxback.com or visit our Canadian tax website today.

About The Author

Ciara Kennedy - Digital Content Writer @ Taxback.com

Ciara is our Digital Content Writer at Taxback.com. Since graduating in Journalism and Visual media, Ciara has worked in online marketing in Ireland and Australia and loves writing in all its forms.

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