Webinar - Newcomers to Canada

Transcript

1 – Benefits and credits for newcomers to Canada

[Speaker]: Welcome, and thank you for joining our Benefits and credits for newcomers to Canada webinar. This session, presented by the Canada Revenue Agency, or CRA for short, is designed to help you understand your tax responsibilities in Canada and the benefits and credits you may be eligible for as a newcomer.

[Visual]: Two individuals and two children sitting on a living room floor; both children hold toys.

2 – Land acknowledgement

[Speaker]: The Canada Revenue Agency would like to acknowledge the prosperous lands across the nation that sustain us and enrich our lives. We recognize and extend our gratitude to the Indigenous peoples who have cared for these lands and who continue to guide us in building respectful relationships rooted in the spirit of reconciliation.

We invite you to take a moment to reflect on your own connection to the land from which you are joining us today, and to honour the Indigenous caretakers who have shaped, and continue to shape, its ongoing story.

[Visual]: An eagle, narwhal and fiddle icon.

3 – Overview

[Speaker]: Today you will learn the basics about taxes in Canada as a newcomer.

We'll start by explaining who is considered a newcomer for tax purposes. Then, we'll cover:

• how Canada's tax system works
• what residency and immigration status mean for taxes
• why filing your taxes is important

You will learn the different ways to file your taxes, including free options, and explore CRA's digital tools that make filing easier. You will also learn how to keep your information up to date, protect yourself from scams, and use the CRA's free online resource, Learn About Your Taxes, to build your understanding of taxes and the Canadian tax system.

Our goal today is to help you understand why filing taxes matters and how to access the supports available to you.

[Visual]: Two individuals sitting together at a table, looking at a laptop, with a coffee mug in the foreground.

4 – Are you a newcomer to Canada?

[Speaker]: Now that we've outlined what we'll cover today, let's start with what it means to be a newcomer for tax purposes.

The CRA considers you a newcomer to Canada during the first year you are a resident for income tax purposes.

As a newcomer, you can apply to get benefit and credit payments, including related provincial and territorial payments, even before filing your first tax return. These payments can provide important financial support as you settle in Canada.

To understand your tax responsibilities and determine whether you should apply for benefit and credit payments, it's important to know both your residency status and your immigration status.

[Visual]: Two adults standing with two children and another child sitting on a suitcase.

5 – Residential ties and immigration status

[Speaker]: In Canada, your tax obligation depends on your residency status, which usually begins the day you start living in Canada and the most important factor in determining residency is whether you've established significant residential ties.

These ties can include renting or owning a home, having a spouse or common-law partner, dependants, or a job in Canada.

Your immigration status is also important because it determines whether you can live, work, or study in Canada. As a newcomer, you may be a permanent resident, a protected person or refugee, or a temporary resident. A valid immigration status is important in order to receive benefit and credit payments.

To learn more about residency and immigration status for tax purposes, visit canada.ca/new-to-canada or simply scan the QR code on the slide for quick access.

[Visual]: A QR code with black dots.

6 – Taxes for international students in Canada

[Speaker]: If you are an international student studying in Canada, you might be wondering:

• Am I eligible to work in Canada?
• Do I need a work permit?
• When, where, and how much can I work?

Immigration, Refugees and Citizenship Canada (IRCC) can answer these questions.

For more information, visit: canada.ca/work-international-student.

In addition to understanding your work options, it's also important to know your tax responsibilities while studying in Canada.

Whether you need to file and how you will be taxed depend on your residency status for tax purposes, which is different from your immigration status. Residency status is based on the ties you have to Canada.

Filing taxes can also give you access to certain benefits and credits, even if you have little or no income.

For detailed information and guidance specifically for international students, visit:
canada.ca/taxes-international-students.

[Visual]: An individual standing outside holding a closed laptop and wearing a backpack.

7 – Social insurance number (SIN)

[Speaker]: To work, receive government benefits and services, and open most bank accounts in Canada, you need a Social Insurance Number, also called a SIN.

A SIN is a nine-digit identification number that is confidential and unique to you. It's important to protect your SIN because if it is stolen or misused, it can lead to identity theft or loss of government benefits and tax refunds.

You can apply for a SIN through Service Canada. If you cannot get a SIN, the CRA may issue you a Temporary Tax Number or TTN. A TTN can be used to apply for benefits and credits, file your taxes, and register for a CRA account.

For more information and to apply for a SIN, visit canada.ca/social-insurance-number.

8 – Canada's tax system

[Speaker]: Your Social Insurance Number (SIN) is essential for working in Canada and accessing government programs. It's also required when filing your taxes.

Now, let's look at how Canada's tax system works.

• Canada's tax system is administered by the CRA on behalf of the Government of Canada and most provinces and territories.
• When you have a job, your employer usually deducts taxes directly from your pay. This means you've paid some or all of your taxes in advance, reducing what you owe when you file your tax return.
• Each year, before the tax deadline, your employer or other payer will provide you and the CRA with tax slips showing your income, deductions and amounts already paid. You need these slips to complete your tax return.
• The tax year runs from January 1 to December 31, and your return is generally due by April 30 of the following year.

As a newcomer, you are not required to file a tax return until the year after you become a resident for tax purposes. For example, if you arrived in 2025, your first return will be due by April 30, 2026.

Your immigration status and income information help the CRA determine your eligibility for benefit and credit payments, such as:

• the Goods and services/harmonized sales tax or GST/HST credit, and
• the Canada child benefit

Be sure to keep all supporting documents for at least six years after you file your return, in case the CRA reviews it.

9 – Why do we pay taxes?

[Speaker]: Now that you understand how Canada's tax system works and what's required when filing your return, let's look at why taxes matter.

Taxes are collected to fund essential public services and programs you use every day, such as airports, schools, health care, emergency services, and more. They also help support benefit and credit payments and income assistance programs in our communities, including Old Age Security and Employment Insurance.

Taxes not only fund these services; they also make these benefits and credits possible for people living in Canada.

[Visual]: A grandparent, a parent, and a child sitting together, holding a tablet in a room with bookshelves.

10 – Do you have to do your taxes?

[Speaker]: As a newcomer to Canada, you may wonder whether you need to do your taxes.

Generally, you must do your taxes if:

• you owe tax for the year
• or the CRA sends you a request asking you to do your taxes

There are advantages to doing your taxes every year. You should do your taxes if you:

• want to receive a tax refund
• or want to start or continue getting benefit and credit payments that you may be eligible for, such as the Canada child benefit.

One of the most common credits you may be eligible for is the goods and services tax/harmonized sales tax credit, or GST/HST credit for short.

[Visual]: An individual sitting at a table with documents and an open laptop.

11 – GST/HST credit

[Speaker]: The GST/HST credit is a quarterly tax-free payment for people with low and modest incomes. It helps offset the GST or HST they pay on goods and services.

When you arrive in Canada and meet the eligibility criteria, you can apply for the GST/HST credit online using webform RC151, GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada. The amount that you are eligible for depends on your income and whether you have a family. To keep receiving the GST/HST credit, you must do your taxes every year, even if you have no income to report. The CRA will confirm if you are eligible and for how much.

If you have children with you when you arrive in Canada and meet the eligibility criteria for the Canada child benefit, or CCB for short, you will need to apply using a different form that I will go over with you.

[Visual]: An individual sitting at a desk, holding eyeglasses while using a laptop.

12 – Canada child benefit

[Speaker]: The CCB is a tax-free monthly payment made to eligible families to help with the cost of raising children under the age of 18. Depending on your residency status, you could be eligible for the CCB when you arrive in Canada.

The amount you receive depends on:

• your family's net income,
• the number of children you have in your care, and
• the ages of the children.

You could get up to:

• $7,997 for each child under 6 and
• $6,748 for each child aged 6 to 17.

As a newcomer to Canada, you apply for the CCB using forms RC66, Canada Child Benefit Application and Schedule RC66SCH, Status in Canada/Statement of Income forms, when you meet the eligibility criteria. Let's look at this next.

[Visual]: An individual and 2 young children are sitting and reading a book together.

13 – Are you eligible for the Canada child benefit?

 

[Speaker]: To be eligible for the CCB, you must meet all of the following conditions:

• You live with a child who is under 18 years old
• You are primarily responsible for the child's care and upbringing;
• You are a resident of Canada for tax purposes.

In addition, you or your spouse or common-law partner must also be one of the following:

• a Canadian citizen;
• a permanent resident;
• a protected person;
• a temporary resident who has lived in Canada for the previous 18 months, and who has a valid permit in the 19th month; or
• an individual who is registered, or entitled to be registered, under the Indian Act.

If your spouse or common-law partner is a non-resident of Canada during any part of the year, you must fill out Form CTB9, Canada Child Benefit – Statement of Income, for each year, or part of a year, that they are a non-resident of Canada. This form is separate from your tax return. If your spouse moves to Canada, they must do their taxes every year even if they have no income.

14 – Total income – All sources

[Speaker]: To do your taxes in Canada, you'll need to understand your total income.

Your total income includes your income from all sources inside and outside of Canada.

You can receive many different types of income. Employment income includes any income you receive from your job. Your total income includes all money you earn from all sources, both inside and outside of Canada, from the date you arrive until December 31 of the same year.

This means:

• Income from your job, including any tips or gratuities;
• Scholarships or grants you receive;
• Any other money earned during that period.

15 – Disability tax credit (DTC)

[Speaker]: Now, let's look at a tax credit that can provide important support for persons with disabilities: the disability tax credit, or DTC.

The DTC is a non-refundable tax credit that helps people with disabilities, or their supporting family members, reduce the amount of income tax they may have to pay. To claim this credit, you must apply for the DTC and be approved by the CRA.

Even if you do not have taxable income, there are other benefits to applying for the DTC. Being approved can help you access other federal programs such as the child disability benefit, the Canada workers benefit disability supplement, the registered disability savings plan, or RDSP for short, and the new Canada Disability Benefit. I will speak more on some of these programs shortly.

[Visual]: An individual is sitting on a couch in a living room, using a smartphone, with a visible prosthetic leg.

16 – Child disability benefit

[Speaker]: The child disability benefit is for families caring for a child under 18 who is eligible for the Canada child benefit, or the CCB for short, and the DTC. It is a tax-free payment of up to $3,411 annually per eligible child and is paid along with the monthly CCB payment.

Now that we've talked about the disability tax credit and the child disability benefit, let's move on to something that applies to everyone: how to file your taxes.

[Visual]: A child with a prosthetic leg sits on the floor stacking wooden blocks.

17 – Ways to do your taxes

[Speaker]: There are a few ways to do your taxes.  

The fastest and easiest way is to do them online. If you are eligible, you can use certified software, some of which are even free on canada.ca. The software guides you through the process, calculates everything, and helps make sure you don't miss out on any benefits and credits. Depending on the software, you can also use the "Auto-fill my return" feature, which can automatically retrieve your slip information from the CRA and populate the tax return for you.  

If you have a modest income and a simple tax situation, a volunteer may be able to do your taxes for you at a free tax clinic.

You can also get help from a family member, a friend, or a tax preparer.  

Finally, you can do them on paper by downloading a tax package for your province or territory, filling out the forms on a computer or by hand and mailing them to the CRA.  

To find out more, visit canada.ca/taxes-get-ready.

18 – Free tax help

[Speaker]: You may be able to get your taxes done by a volunteer for free!

The program is called the Community Volunteer Income Tax Program, or CVITP. In Quebec, it's known as the Income Tax Assistance – Volunteer Program, or ITAVP.  

You may be eligible for help at a free tax clinic if you have a modest income and a simple tax situation. Generally, a modest income is less than $40,000 for a single person and less than $55,000 for a couple. Your tax situation is simple if, for example, you don't have a small business or income from a rental property.  

Tax clinics are held all year. However, most clinics are offered in March and April.

In Quebec, community organizations that partner with the ITAVP offer free tax return preparation sessions and do not accept any payment for the preparation of federal returns. For Quebec provincial returns, minimal fees may be charged, provided that they comply with Revenu Québec guidelines. 

For more information on free tax clinics or to find a clinic, go to canada.ca/taxes-help.

[Visual]: Icon for the Community Volunteer Income Tax Program.

19 – My Account for individuals

[Speaker]: My Account is an online portal in your CRA account that lets you manage your tax and benefit information quickly, conveniently, and securely.  

Along with doing your taxes every year, you must keep your personal information up to date with the CRA to keep getting benefit and credit payments.  

This includes your address, marital status, and the number of children in your care. You can update all this information in My Account. 

You can also do the following:

• Track your refund, view, or change your tax return
• View mail, such as your notice of assessment, online
• Check your benefit and credit payments and statements
• Apply for the disability tax credit and track the status of your application
• And much more!

For more information, or to register for a CRA account to access My Account, go to canada.ca/cra-sign-in-services.

[Visual]: A screenshot of the CRA account overview page in My Account.

20 – Have you received a letter from the CRA? No need to worry!

[Speaker]: After filing your taxes, or at any time, the CRA may send you a letter or questionnaire to confirm your eligibility for benefits and credits.

If you receive one, don't ignore it. Respond as soon as possible. They may ask for documents to update your information, such as your marital status, proof that you're the primary caregiver of a child, or your address.

If you need more time, don't have the documents, or aren't sure what's being asked, contact the CRA. This information helps the CRA calculate your benefit and credit payments. If you don't respond, your payments may stop, and you could be asked to repay amounts already received.

[Visual]: An individual holding a tablet and a piece of paper.

21 – Need help?

[Speaker]: The CRA needs your permission to deal with another person, such as a family member, friend or an accountant, who may act as your representative for income tax and benefit matters.

You can give permission to another person in your My Account, or on paper by filling out Form AUT-01, Authorize a Representative for Offline Access, and sending it to the CRA. Note that if you use the paper form option, you can only authorize a representative to communicate on your behalf with the CRA by phone, fax or mail, or in-person, with no online access.

22 – Want to learn more about taxes?

[Speaker]: Next, we'll take a quick look at a free online learning tool from the CRA called Learn about your taxes. It's easy to use and helps people understand how taxes work and how to do a basic return. Let's watch a short video to see how it works.

** Video transcript**

Feeling out of the loop when it comes to taxes? We've got you covered!

Learn about your taxes is a free online learning tool from the Canada Revenue Agency.

It's designed for everyone – whether you're a student, doing your taxes for the first time, or just looking for a clear and easy-to-follow introduction to taxes in Canada.

We provide short videos, interesting lessons, and fun quizzes to improve your knowledge.

You can learn about starting a job, how to file your taxes, and what benefits and credits are available. You'll get the info you need to file like a pro!

We also explain how Canada's tax system works, why taxes matter, and how they help millions of Canadians every day. Including you!

What you learn could help you get benefits, credits or claim deductions for extra money in your pocket.

To learn more or get started, go to canada.ca/learn-about-taxes.

23 – Be scam smart!

[Speaker]: You should always be cautious if you receive correspondence or calls claiming to be from the CRA. Scammers imitate the CRA to try to steal your personal information by targeting you by telephone, text, instant messaging, email, or mail. They may demand payment right away, threaten you, and try to get your personal and financial information.  

The CRA may legitimately contact you by phone, automated message, letter, or email to ask you about your account or clarify something you've shared. So how do you tell the difference between a real and scam call from the CRA? The CRA will not ask you for personal or financial information in a voicemail, email or text message.

When in doubt, check My Account to see if you have an amount owing.

Learn about recognizing and reporting scams at canada.ca/be-scam-smart.

[Visual]: Screenshot of the Be Scam Smart webinar slide with the yellow triangle with exclamation point inside that reads: "Some scams are easy to spot. Some are not. Canada.ca/be-scam-smart"

24 – Thank you!

[Speaker]: That brings us to the end of today's webinar.

For more information on any of the topics discussed today, and to find out when you must file a tax return and how to get ready to do your taxes, visit canada.ca/new-to-canada. This page also includes a helpful video for newcomers, available in 13 languages.

We also encourage you to visit our Upcoming Events page at canada.ca/cra-outreach-events to view past recordings and register for upcoming webinars.   

Did you know that you can find answers to most of your questions in minutes by using the tools found at canada.ca/cra-skip-the-line? You can use the new GenAI chatbot, access your CRA account, and find answers to your most frequently asked questions. Best of all, there is no waiting! Scan the QR code on the slide for more information.

If you still can't find what you're looking for online, and you live in the territories and have an 867-area code, call 1-866-426-1527.

If you are deaf, hard of hearing, or have a speech impairment and are registered with the Canada Video Relay Service, dial 272-877 within the application to get help from an agent. 

Stay connected with the CRA on Facebook, X, YouTube, LinkedIn, and Instagram.

We hope this webinar was helpful! Thank you for joining us and enjoy your day!

[Visual]: A QR code with black dots.

[Visual]: Icons for social media platforms: Facebook, X (formerly Twitter), YouTube, LinkedIn, and Instagram.