Filing your first tax return in Canada can seem daunting, especially if you’re unfamiliar with the process. Whether you’ve just started working, recently arrived as a newcomer, or reached the age where you need to file, understanding how the Canadian tax system works is essential. This step-by-step guide breaks down everything you need to know to file your taxes confidently for the first time.
Step 1: Determine If You Need to File
Most people must file a tax return if they:
- Owe taxes to the Canada Revenue Agency (CRA)
- Want to claim a tax refund
- Want to receive federal or provincial benefits like the GST/HST Credit or Canada Child Benefit
- Earned income in Canada (employment, self-employment, investments, etc.)
Even if you didn’t earn income, you should file a return to be eligible for refundable credits and benefits.
Step 2: Gather Your Tax Information and Documents
Before you start, collect all relevant paperwork:
- Social Insurance Number (SIN): Required to file a tax return
- T4 slips: Income from employment
- T5 slips: Investment income (interest or dividends)
- T2202: Tuition and education amounts (for students)
- Receipts: For medical expenses, childcare, donations, rent, and RRSP contributions
- Information on foreign income: If applicable
Organizing your information in advance makes the process much smoother.
Step 3: Choose How to File
You can file your Canadian tax return using any of the following methods:
- NETFILE: Use CRA-certified software like TurboTax, SimpleTax (Wealthsimple), or StudioTax
- PAPER RETURN: Download and mail the T1 General and all required schedules to CRA
- Tax Professional: A registered accountant or tax preparer can file on your behalf
- Community Volunteer Income Tax Program (CVITP): Free tax clinics for eligible individuals with modest incomes and simple tax situations
Step 4: Create or Register for CRA My Account
CRA’s My Account is a secure portal to track your taxes, view slips, and check your return status. Once your first return is processed, you can register and use features such as:
- Viewing Notices of Assessment
- Managing direct deposit
- Tracking refund status
- Applying for benefits
Step 5: Complete Your Tax Return
Whether you’re filing electronically or on paper, you’ll need to complete the following key forms:
- T1 General: The main personal income tax form
- Schedule 1: Calculates federal tax
- Provincial schedules: Specific to your province of residence
- Other schedules: Depending on income type (e.g., capital gains, self-employment, tuition)
Be accurate when reporting your income and applying eligible deductions and credits.
Step 6: Apply for Credits and Deductions
First-time filers often miss valuable credits. Ensure you review and apply for:
- Basic Personal Amount: Everyone gets a tax-free threshold
- Canada Employment Amount: Available for those with earned income
- GST/HST Credit: A quarterly benefit for low- to moderate-income Canadians
- Canada Workers Benefit (CWB): For low-income working individuals
- Tuition Tax Credit: If you were a post-secondary student
- RRSP Deduction: If you contributed to a Registered Retirement Savings Plan
- Medical and Charitable Expenses: Apply if you have qualifying receipts
Step 7: Submit Your Return
If you’re using NETFILE-certified software, submit your return electronically. Make sure you receive a confirmation number to verify successful transmission.
If mailing your return, send it to the appropriate CRA tax centre for your province. Include all signed forms, slips, and supporting documents.
Step 8: Wait for Your Notice of Assessment (NOA)
After CRA processes your return, they will issue a Notice of Assessment. This document confirms:
- Whether you owe money or are receiving a refund
- Approved credits and deductions
- RRSP contribution room for the next year
You’ll receive your NOA by mail or through CRA My Account.
Step 9: Set Up Direct Deposit
To receive your refund quickly, sign up for direct deposit through:
- Your CRA My Account
- Your financial institution
- By calling CRA and providing your banking information
Step 10: Keep Records and Plan for Next Year
Maintain all tax documents and receipts for at least six years in case CRA requests them for verification.
Start planning early for next year’s return by organizing expenses, tracking RRSP contributions, and updating your CRA profile if your situation changes (address, marital status, etc.).
Bonus Tip: First-Time Filers May Be Eligible for Benefits
Even with little or no income, first-time tax filers may qualify for:
- Canada Child Benefit (CCB): For families with children under 18
- GST/HST Credit
- Climate Action Incentive Payment (in select provinces)
- Provincial and territorial tax credits
Make sure to apply using appropriate forms like RC66 (for CCB) and RC151 (for GST/HST Credit if not filing a return).
Conclusion
Filing your taxes for the first time in Canada is a critical financial milestone. While the process may feel complicated, following a structured step-by-step approach helps ensure accuracy and maximizes your chances of receiving a refund or qualifying for valuable government benefits.
If you are unsure at any stage, consult CRA resources, speak with a tax professional, or attend a free tax clinic. Filing on time—and correctly—will build your tax history, prevent penalties, and keep you in good standing with the CRA for years to come.
