The final deadline to file Canadian tax returns without penalty is at the end of April. Although the filing process might seem expensive or complex, students are actually entitled to certain benefits and credits.
Paul-Noel Murphy, a Canada Revenue Agency (CRA) senior communications advisor, connected with the Charlatan to share some student-centered tax tips.
The Charlatan (TC): What tax deadlines should university students keep in mind?
Paul-Noel Murphy (PNM): If you owe taxes, the main deadline for filing a tax return is April 30. You should get your return in on time because if you miss that deadline, there’s a late filing penalty: 5 per cent for the first month that it’s overdue. After that, it’s an additional 1 per cent per month, up to a maximum of 17 per cent.
If you don’t owe taxes, then the April 30 deadline is not as important because there’s no penalty.
TC: What’s the most common mistake you see students make when filing taxes?
PNM: I think the major issue is just not filing. Sometimes, because you don’t owe money, you think, “Why bother?” But because there are all these benefits and credits that are available through filing a tax return, it’s a really good practice to file on time every year.
Another mistake that a lot of people make, not just students, is not having their personal information up to date with the CRA. For example, if the term is over and you’re going to live back home, make sure you get your personal address information up to date. You don’t want to miss any benefits or credits that are mailed to you.
It’s also important to keep your direct deposit information up to date with the CRA. If you sign up for direct deposit, you can get those benefits and credits straight into your bank account.
TC: What kind of benefits and credits can students access?
PNM: For Ontario residents, you’ve got the GST/HST credit that comes up quarterly. If you’re the caregiver of a child, there’s the Canada child benefit. Anyone over 19 who resides in Ontario is also eligible for the Canada Carbon Rebate.
If you’re paying for rent off-campus, keep track of that and report it on your tax returns — you’ll get a trillium benefit if you’re 19 or older.
TC: What should international students be aware of this tax season?
PNM: The basic issue for international students is determining your residency status. If you’re just in Canada for study purposes only and you fully intend to return to your home country, you might not even need to file a tax return.
But if you have Canadian-sourced employment income with a work visa, then it’s important to file a tax return so you get all the benefits and credits.
You can always check with the CRA — call our individual inquiries telephone service to find out.
TC: Are there any situations where students should seek professional help to file their taxes?
PNM: Yes, there are some circumstances where you should consult a professional to see where you stand. Some students have a complex income situation, like income from foreign sources, setting up as a self-employed individual or those working in the gig economy.
TC: Do you recommend any resources students should use to file their taxes themselves?
PNM: Start by looking at canada.ca/taxes. There’s a wealth of information there, but I would point to the “get ready” page, which gives you a step-by-step outline of what you should do to prepare.
This interview has been edited for length and clarity.
Featured graphic by Alisha Velji.
