New country - new taxes

By Manish Puri,
Special to The Post

If you’re new to Canada, you may feel overwhelmed by the major changes in your life, and income taxes are likely the last thing you want to think about.
Filing income tax is not only legally required, but also enables you to access the social benefits available to help you.
First, you’ll need to determine whether you’re considered a Canadian resident for tax purposes – if you have significant ties to Canada, such as family, memberships in organizations, or property, you may be required to file a Canadian income tax return. To determine this, it’s best to talk to the CRA.
 The first income tax return for most new Canadians covers all income earned from the date of arrival in the country until the end of the year. Keep good records of when you arrived in Canada, because foreign income earned before arrival isn’t subject to Canadian taxes.
Once you’re a Canadian resident for tax purposes, you have to declare all income from anywhere in the world on your tax return.
If you own foreign property worth more than $100,000 you will need to declare this on the T1135 Foreign Income Verification Statement tax slip.
 If you had Canadian income during the year before you arrived in Canada, you have to declare it on your income tax return.
However, as non-residents often have income tax withheld from their Canadian income, you may not owe any additional taxes, and could even get some of that money back if you’re eligible for deductions or tax credits.
 By filing taxes you can access benefits such as  the Goods and Services/Harmonized Sales Tax Credit, and the Universal Child Care Benefit.
With the April 30 tax deadline looming, using a tax preparation software, such as TurboTax, which walks you through your taxes step-by-step can make doing your taxes for the first time much more simple.

Manish Puri works for Intuit Canada and is deeply passionate about helping Canadians do their own taxes. More details about tax benefits and issues are available http://blog.turbotax.ca.

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