Filing Taxes in Canada For International Students Is Crucial

International students who first come to Canada face some challenges until they understand how things work. Other than the culture, language, homesickness, rules and regulations can intimidate them because they indeed are not to be taken lightly. One of these regulations is that every resident in Canada should file their taxes. After reading this blog, you will be able to determine if you should file taxes or not.

Everyone is required to submit their tax returns every year if they owe taxes or if they want to claim a refund or credit. File a tax return means submitting an income tax form to the CRA to receive tax credit that is money paid by the government back to the students. Not all international students are eligible, only those who are considered to be residents inside Canada, which means they should have substantial ties to Canada like a bank account, rent agreement, driver’s licence.

If you are employed in Canada, your employer will deduct income tax from your income and send that amount to the CRA. That amount is a deduction from each paycheque for Canada Pension Plan (CPP) and Employment Insurance (EI).

You must file a tax return if you are either working inside Canada and owe income tax to the government, or have an international income source. Other circumstances require you to do so like you are eligible to receive an income tax refund from the government, the child tax credit, apply for the GST/HST credit, or tuition payment and education credits using the T2202/T2202A form provided by your school. 

International students who are residing inside Canada for a period not less than 183 days, are eligible for the abovementioned returns as well as the Trillium Benefit if they file their tax return as a resident of Ontario. Most of the taxes are paid out quarterly for low-income residents to compensate for the tax they paid to buy goods.

Canada Revenue Agency is responsible for income tax in Canada. The Canadian income tax year starts on January 1 and ends on December 31. If you owe income tax, you must pay it by April 30 for the previous calendar year. Late submissions are accepted, but there may be a penalty.

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