Are you an international student studying in Canada, or are you preparing to be one by this fall? Then this is for you.
As an international student and resident, you may have to file a Canadian income tax return, especially if you pick up a job or two. In Canada, your residency status determines how you will be taxed.
Although there are different categories of residency status, the CRA considers an international student on a study permit a resident of Canada for income tax purposes (when one establishes significant residential ties in Canada), although you are also an immigrant. You usually establish residential ties on the day you arrive in Canada.
So what do you require to file your income tax as an international student?
- Get a Social Insurance Number (SIN): This is a personal, confidential, and unique 9-digit number. You need this number to work in Canada, open any type of bank account, or access any government program or benefit. You are responsible for protecting your SIN because it is illegal for anyone else to use it. Service Canada is responsible for issuing SINs, which come in a paper format (a confirmation of SIN letter). And you can easily apply for a SIN and obtain one, as it takes 4-6 weeks to process. However, if Service Canada is unable to give you a permanent or temporary SIN, the CRA may give you a temporary tax number (TTN), which you may use to get benefits and credits, file taxes, and sign up for the CRA’s online services.
- Student ID card.
- A government-issued photo ID
- Income tax slips like T4 or T4A (for salaries, scholarships, awards, GRS, and bursaries), as well as the T1 (Income Tax and Benefit Return form).
- Tuition receipt T2202A, which identifies the number of months you attended university and the tuition you paid.
- Donation receipts if you donated to any Canadian charity.
- Medical receipts for out-of-pocket medical expenses.
- Rent receipts from your landlord However, this does not include on-campus residence fees.
- You may have other informational slips, receipts, or amounts you can indicate on your income tax return.
What money could you get from the CRA?
Canada has Benefits and Credits to help support you financially. The key is for you or your spouse or common-law partner to be a resident of Canada for income tax purposes.
To start receiving these payments, you must get a Social Insurance Number from Service Canada and apply for the benefit and credit you are eligible for.
The great news is that once you file your first tax return, you can get benefits and credits like GST/HST credit, climate action incentive payment, Canada Child Benefit, as well as many provincial and territorial programs benefits and credits for which you may be eligible.
Once you have filed your first tax return, you may be eligible to receive more tax credits and benefits.
How do you get your money?
Sign up for a direct deposit to get your money directly into your account at any financial institution in Canada. This is fast, secure, and makes sure you never miss a payment in the mail.
However, if you choose not to sign up for a direct deposit, you will receive your payment by cheque through the mail.
If you want to continue receiving the benefit and credit payments you are entitled to every year, then you must file your income tax and benefit return on time (even if you have no income in the year), have your spouse or common-law partner file a return even if they have no income, keep your personal information updated with the CRA, and keep documents that show proof of your situation.
WHAT’S NEXT?
Once you have filed your first tax return, you may be eligible to receive more tax credits and benefits.
You can complete and file your tax return either online or on paper. It’s best to submit an income tax return on or before the April 30 deadline each year.
The process could get overwhelming, especially for a first-time taxpayer. We know, and you can count on us at EMCA Accounting; our expert consultants are always available to help you through this journey. Contact us today and get started!
