As the tax deadline approaches on April 30, millions of Canadians—including newcomers—are preparing to file their returns. For those navigating Canada’s tax system for the first time, the process may feel confusing and overwhelming.
To help provide clarity and guidance, Y Media Group sat down with Stefanie Ricchio, CPA, Tax Expert and Spokesperson – TurboTax Canada, for an in-depth interview covering everything from residency requirements and tax deadlines to benefits and credits available for new Canadians.
Below is a comprehensive look at all the key questions and expert answers to help you file with confidence this tax season.
Host: What are some things newcomers to Canada should keep in mind when filing their taxes for the first time?
Stefanie Ricchio, CPA, Tax Expert and Spokesperson – TurboTax Canada:
First, you need to make sure you’ve applied for and received your Social Insurance Number (SIN). This number is essential for identifying you with the Canada Revenue Agency (CRA). Also, don’t forget the deadlines—April 30, 2025, is the deadline for personal income tax returns. For those who are self-employed, the deadline is June 16, 2025 (as June 15 falls on a weekend). But remember, taxes owed must still be paid by April 30 for employed and self-employed individuals to avoid penalties and interest.
I also recommend signing up for CRA My Account. It streamlines the filing process, allows you to track refunds, view RRSP and TFSA limits, and stay up to date. CRA recently made it easier by letting you verify your identity online using a government-issued photo ID—no more waiting for mailed security codes.
Host: How long does someone need to live in Canada before they must file taxes?
Stefanie: Your filing obligations depend on your residency status. If you’ve lived in Canada for 183 days or more in a calendar year, you’re considered a resident for tax purposes. You’re also a tax resident if you’ve established significant ties in Canada—like owning a home, having a spouse or dependents here, or working for a Canadian employer. Check the CRA website or directly contact the agency for more information on what it classifies as a resident to determine your residency status.
Host: What is the “90% rule” for newcomers?
Stefanie: If 90% or more of your global income during the part of the year you were not a resident came from Canadian sources, you’re entitled to claim the full Basic Personal Amount and other non-refundable tax credits. This helps lower the amount of tax you have to pay. If this condition isn’t met, the Basic Personal Amount will be prorated from your date of arrival.
Host: Do new Canadians need to file a return in the country they moved from?
Stefanie: That depends on the other country’s tax laws, but Canada has tax treaties with nearly 100 countries to avoid double taxation. In many cases, you can also claim a foreign tax credit for taxes paid abroad. It’s best to contact CRA to confirm your tax residency and ensure you meet your obligations in both countries.
Host: What if someone isn’t employed? Do they still need to file?
Stefanie: Yes. Even if you didn’t earn income, it’s important to file if you’re considered a resident for tax purposes. This enables CRA to determine your eligibility for benefits like the GST/HST Credit or the Canada Child Benefit (CCB). Also, keep in mind that income doesn’t just mean employment—it includes worldwide income from investments or other sources.
Host: What documents do new Canadians need before filing?
Stefanie: Some key things you’ll need include:
- The date you entered Canada
- Your T4 slip from your employer (if applicable)
- Details of any foreign income earned before or after your move
- If you own foreign assets over $100,000, you must file Form T1135
To make this easier, TurboTax provides a Canada Tax Checklist to guide you through the forms and documents you’ll need.
Host: What tax credits are available to newcomers?
Stefanie: There are several credits available for all Canadians that new residents may qualify for:
- The Basic Personal Amount, which reduces the tax you owe
- The GST/HST Credit, a quarterly rebate on sales taxes, calculated based on your income and number of dependents
- The Canada Child Benefit (CCB), a tax-free monthly payment to help with raising children under 18. This may also include the child disability benefit and certain provincial programs.
Visit the TurboTax blog for more information about popular Canadian tax deductions and credits.
Host: What are the most common tax filing mistakes people make?
Stefanie: One of the most common mistakes is filing late. If you owe taxes and file after the deadline, CRA charges a 5% penalty on the balance, plus an extra 1% for each month it remains unpaid, up to 12 months.
Host: What tax credits or deductions do Canadians often miss?
Stefanie:
- Medical expenses: Include things like fertility treatments, lab fees, insulin, contact lenses, and more (if not reimbursed by insurance).
- Charitable donations: Even small ones are eligible for the Charitable Tax Credit.
- Childcare expenses: Includes daycares, babysitters, day camps, and even overnight boarding schools.
- Canada Worker’s Benefit (CWB): Helps low-income earners—but many miss it.
- GST/HST Credit: Just filing a return automatically makes you eligible.
- Business expenses (for self-employed): Office supplies, utilities, phone, and vehicle expenses are deductible—but they must be for business and properly tracked.
- Tuition Tax Credit: If you paid for post-secondary education, you can reduce your tax bill, defer the credit, or transfer it to a parent/guardian.
Host: What final advice do you have for someone filing their taxes for the first time in Canada?
Stefanie: You don’t have to do it alone. Filing in a new country can be intimidating, but TurboTax makes it easy with products and services designed for every situation. Whether you’re filing with a single T4 or dealing with foreign income and assets, TurboTax helps you get your taxes done right.
✅ TurboTax Has a Tax Solution for Everyone
Whether you’re new to Canada, a student, a homeowner, or a freelancer, TurboTax has you covered:
- File on your own with easy-to-use software tailored to your situation
- Use TurboTax Assist & Review to get unlimited expert help and guidance as you prepare your return, and a final review before you file
- Hand your taxes off to an expert with TurboTax Full Service, and let an expert handle your return from start to finish
Visit TurboTax.ca to learn more!
