New to Canada
Your first Canadian tax return works differently from every one after it, and the differences catch people out. You become a resident for tax purposes on the day you arrive, so you only report income earned from that date onwards — but the CRA still asks about your income before arriving, because it is used to calculate credits rather than to tax you. Several benefits you are entitled to are not automatic in your first year either; they have to be applied for with separate forms. We file first returns for newcomers every year and know exactly which pieces are missing.
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The date you landed sets the line between income Canada taxes and income it does not. Money earned before that date is generally not taxed here — but it still has to be reported, because your first-year credits are prorated based on it. People often either declare too much and pay unnecessary tax, or declare nothing and have their credits denied later.
This is the most expensive thing newcomers miss. In later years the CRA works your credits out from your return; in your first year, several have to be claimed on separate forms before anything is paid:
You can be a resident for tax purposes on a study permit, a work permit or as a permanent resident — it depends on your ties to Canada, not on the document in your passport. Where you live, whether you have a spouse or children here, a lease, a bank account and a licence all count.
It is worth confirming rather than assuming, because it determines which return you file and what you can claim.
Once you are a resident, Canada taxes your worldwide income, and holdings outside Canada above a certain value have to be reported separately. This is an area where the penalties for getting it wrong are real, so bring it up at your appointment even if you are not sure it applies to you — it is much easier to deal with upfront.
What it costs. A first return for a newcomer is priced like any other personal return — from $45 depending on your slips and situation. Benefit applications are $30. We confirm the total with you before starting.
See the full price listIt is reported, but generally not taxed. Canada taxes you from your date of entry onwards. Your pre-arrival income is used to work out your first-year credits, which is why leaving it off can cause credits to be denied.
In your first year the GST/HST credit and the Canada Child Benefit both need separate application forms — they are not triggered by the return alone. We handle these alongside your filing.
Very often yes. Tax residency depends on your ties to Canada rather than your permit type. Most people living here through the year are residents for tax purposes. We confirm your status before filing.
Yes, and you usually should. A part-year return is normal, and it is what starts your benefit payments flowing.
Your date of entry, your SIN, any Canadian slips such as T4s, an idea of your income before arriving, your rent or landlord details, and your family's details if you have a spouse or children.
A free, no-obligation consultation — in person in Kitchener-Waterloo, or entirely online from anywhere in Canada. Complete information means we can start the same day.
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