Your first tax filing in Canada can feel intimidating — new forms, unfamiliar terms, and a system that works differently from the one you’re used to. The good news is that it’s more straightforward than it looks, and filing on time unlocks benefits and credits that many newcomers don’t realize they’re entitled to.
This guide walks you through what a Canadian tax return is, who needs to file, what documents you’ll need, and how to get it done correctly the first time.
What Is a Tax Return in Canada?
A Canadian income tax return is an annual summary you send to the Canada Revenue Agency (CRA) reporting your income, deductions, and credits for the calendar year. Based on that return, the CRA calculates whether you owe tax or are owed a refund.
Canada’s system is self-reporting. Your employer may deduct tax from each paycheque, but it’s your responsibility to file a return that reconciles what was withheld against what you actually owe. After processing, the CRA sends a Notice of Assessment — an official summary confirming your income, tax paid, and any refund or balance owing. Keep it. You’ll need it for mortgage applications, immigration processes, and future tax filings.
One thing that surprises many newcomers: filing isn’t only about paying tax. It’s also how you become eligible for benefit payments like the GST/HST credit and the Canada Child Benefit.
Who Needs to File Their First Tax Return?
You generally need to file a Canadian tax return if you:
- Became a resident of Canada during the year and earned income here
- Owe tax for the year
- Want to claim a refund of tax already withheld from your pay
- Want to receive benefits such as the GST/HST credit, Canada Child Benefit, or provincial credits
- Sold property or have capital gains to report
- Received a CRA request to file
Residency matters more than citizenship. For tax purposes, Canada looks at residential ties — a home, a spouse or dependants here, a bank account, a driver’s licence — not your immigration status. Permanent residents, work permit holders, international students, and protected persons can all be considered residents for tax purposes.
As a newcomer, you’re typically taxed on your worldwide income from the date you became a resident, not for the full calendar year. Income earned before you arrived generally isn’t taxed in Canada, though you still report it in one section of the return because it affects how some credits are calculated.
Documents Required for Your First Tax Filing
Gathering documents early makes everything else simpler. Here’s what you’ll need:
Social Insurance Number (SIN) Your nine-digit SIN is required to file. If you haven’t received one yet, apply through Service Canada before the deadline. If you’re not eligible for a SIN, you may need an Individual Tax Number (ITN) instead.
T4 slips and other income documents Your employer issues a T4 slip showing your employment income and deductions, usually by the end of February. Depending on your situation, you may also receive:
- T4A — pensions, scholarships, self-employment commissions
- T5 — investment income such as interest or dividends
- T2202 — tuition amounts, if you studied in Canada
- T5007 — social assistance or workers’ compensation benefits
Personal identification and residency information Have ready your date of entry into Canada, your address, marital status, and your spouse’s net income for the year — including income they earned outside Canada. This is required even if your spouse hasn’t arrived in Canada yet.
Relevant tax receipts Keep receipts for rent or property tax paid in Ontario, medical expenses, childcare costs, charitable donations, moving expenses, professional or union dues, and RRSP contributions.
Hold on to everything for at least six years. The CRA can ask for supporting documents after your return has been assessed.
How to File Your First Tax Return in Canada
Step 1: Gather Your Tax Documents
Collect every slip and receipt from the list above before you start. Most income slips arrive by the end of February. If a slip is missing, don’t guess — contact the issuer, or check your CRA My Account, where many slips appear automatically.
Registering for CRA My Account is worth doing early. It lets you view slips, check benefit payments, and track your return’s status.
Step 2: Understand Your Income and Deductions
Report all income from your date of entry onward, including employment income, self-employment or freelance income, investment income, and rental income — from Canada and abroad.
Then look at what reduces your taxable income. Common deductions for newcomers include:
- RRSP contributions (though your contribution room starts building only after your first year of Canadian income)
- Childcare expenses
- Moving expenses, if you moved within Canada for work or study
- Professional and union dues
- Employment expenses, if your employer certifies them
A note specific to newcomers: if you were a resident of Canada for only part of the year, some non-refundable tax credits are prorated based on how many days you were here. This catches people off guard, and it’s one of the more common first-year errors.
Step 3: Choose a Tax Filing Method
You have three main options:
- Certified tax software (NETFILE) — fast and often free for simple returns. Be aware that some first-time filers can’t use NETFILE until the CRA has their details on file; if that applies to you, you’ll need to file on paper for year one.
- Paper filing — mail a completed return to the CRA. Slower to process, but reliable when NETFILE isn’t available.
- A professional tax accountant — the safest route when your situation involves part-year residency, foreign income, self-employment, or a spouse still living abroad.
Step 4: Submit Your Tax Return
File by the deadline — April 30 for most individuals, or June 15 if you or your spouse are self-employed (though any balance owing is still due April 30).
If you owe money, pay by the deadline to avoid interest. If you’re expecting a refund, direct deposit through CRA My Account is the fastest way to receive it. Once processed, review your Notice of Assessment carefully and keep a copy with your records.
Common Tax Credits and Benefits for Newcomers
Filing is what turns these on. Many newcomers miss a full year of payments simply because they didn’t file.
- GST/HST credit — a quarterly tax-free payment for individuals and families with low to modest incomes. Newcomers usually apply for their first year using a separate CRA form rather than through the return itself.
- Canada Child Benefit (CCB) — a monthly tax-free payment for parents of children under 18. New residents apply using Form RC66 along with residency documentation.
- Ontario Trillium Benefit — combines energy, property tax, and sales tax credits for Ontario residents. If you pay rent in London, you may qualify.
- Canada Workers Benefit — a refundable credit for lower-income working individuals and families.
- Tuition tax credits — if you studied in Canada, unused amounts can be carried forward to reduce tax in future years.
When Should You Hire a Tax Accountant in London, Ontario?
Simple returns — one T4, no dependants, no foreign income — can often be handled with software. Professional help becomes genuinely worthwhile when:
- It’s your first year in Canada and you’re a part-year resident
- You have income or property outside Canada
- Your spouse or children are still overseas
- You’re self-employed, freelancing, or running a business
- You’re claiming benefits for the first time and want them calculated correctly
- You received a CRA review letter or a reassessment you don’t understand
A tax accountant for newcomers does more than fill out forms. They make sure your residency date is applied correctly, your credits aren’t left unclaimed, and your first Canadian tax record starts clean — which matters for every year that follows.
Money Matrix Accounting Inc. provides personal tax filing in London, Ontario for newcomers, students, workers, and families, with flat-fee pricing and no surprises. If you’ve also started a business since arriving, we can help with company registration, bookkeeping, and corporate tax filing as your situation grows.
Get Professional Tax Filing Support in London, Ontario
Your first Canadian tax return sets the foundation for everything that follows — your benefit eligibility, your RRSP room, and the record the CRA holds on file for you. Getting it right the first time is far easier than correcting it later.
At Money Matrix Accounting Inc., our CPA-led team helps newcomers across London and throughout Ontario file with confidence. We’ll explain what applies to your situation in plain language, claim every credit you qualify for, and handle the CRA paperwork so you don’t have to.
Book your free consultation with Money Matrix Accounting Inc. — and file your first Canadian tax return the right way.