If you worked in any of these countries, you could be due a Tax Refund

What to do Right Now to be Ready for the Canadian Tax Deadline

Let’s face it, taxes are most probably the last thing on your mind right now with the COVID-19 pandemic crisis. 

The Canadian Government is taking robust measures to prevent the spread of COVID-19. Due to the crisis filing deadline for individuals is deferred until 01 June 2020 and the payment due date is deferred until 31 August 2020.

If you are late to prepare and send your paperwork, you will face filing penalties and interest charges on any taxes you owed.

All that documentation can make you go crazy! To help you get started we created a  list of  5 things you can do to be ready for the tax deadline in 2020. 

Canadian tax deadline

1. Start early

For starters, if you’re owed a tax refund in Canada, the sooner you file, the sooner you’ll get your refund in your pocket.

Plus filing early helps you avoid the deadline rush and stress. The CRA (Canada Revenue Agency) is currently processing tax returns. So why wait until the deadline to file? 

2. Determine your residency status

In order to file a compliant tax return, you must first determine your Canadian tax residency status.

In short, you are a non-resident in Canada for tax purposes if: 

  •  you stayed less than 183 days in Canada during the tax year or you are living temporarily in Canada

  •  you don’t have significant residential ties in Canada or have stronger residential ties in another country

  •  you live in another country and you are not considered a resident of Canada   

Most working holidaymakers in Canada are typically considered non-residents for tax purposes.

What are significant ties in Canada? 

  • A spouse or common-law partner

  • A house or apartment (own or renting)

  • Dependants

If you worked in Canada you should have received your T4 slip by the end of February. 

If you worked for multiple employers you will have more than one T4 slip.

If you have investment income or interest your investment broker or your bank should provide you with T3 or T5 slips and in case you received other types of income from Canada such as scholarships, fees or commissions the payer should issue a T4A slip for you. 

If you have lost your payment documents from Canada or never received them Taxback.com can help you trace them. 

3.Gather your income documents 

In order to file your tax return you will need:

Your income documents

If you worked in Canada you should have received your T4 slip by the end of February. 

In case you worked for multiple employers you will have more than one T4 slip.

If you have investment income or interest your investment broker or your bank should provide you with T3 or T5 slips and in case you received other types of income from Canada such as scholarships, fees or commissions the payer should issue a T4A slip for you. 

However, If you have lost your payment documents from Canada or never received them Taxback.com can help you trace them. 

Your Social Insurance Number (SIN)

Your Canadian SIN is a 9 digit number that allows you to be employed legally in Canada. You should have a SIN before to start your employment and you can obtain it from Service Canada. 

However, it’s possible that you received income other than employment from Canada and you do not have a SIN.

If you have never applied for a SIN and you received income from Canada you can apply for an Individual Tax Number (ITN) after you left Canada.

To apply for an ITN, you must complete Form T1261, Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Residents in order to file your tax return.

Taxback.com can help you with your ITN application, just register here.

Canadian tax deadline

4. Keep records of  any expenses you intend to claim

Living in Canada can be expensive, luckily the tax office allows some expenses to be used as a deduction for your taxes. 

This may include work-related expenses, medical costs, tuition fees or interest paid on a student loan.

  -In order to claim work-related expenses in Canada, you need a form T2200 signed by your employer and documents proving your work expenses such as invoices, receipts, employment contract, a list with itemized tools, rental contract and bank statements.

-Medical expenses can be claimed for medical exams, medications and prescribed therapy. In order to claim them, you need valid receipts.

On a valid receipt should be indicated:

- the purpose of the payment,

- the date of the payment,

 - information about the patient for whom the payment was made and,

 - if applicable, information about the person who prescribed the purchase or provided the service.

A cancelled cheque can’t be accepted as a valid receipt for medical expenses.

1) As a student in Canada, you need a form T2202, Tuition and enrolment certificate for federal tax credit and a form Releve8 if you studied in Quebec in order to claim or transfer your tuition fee for future years or to a parent of yours. 

Form T2202 is issued from your educational institution according to the payment for the tax year. 

This means that if you study in 2019 and 2020 in Canada you will receive two T2202 forms - one for 2019 and one for 2020 and your tuition fee payment will be prorated according to the educational period during each tax year. 

Even if you do not have income during the year and you paid tuition fee in Canada you still can file a tax return in Canada and claim the tuition fee credit in future. 

2) If you have paid interest on a student’s loan you need to contact the bank for a statement with the exact amount of interest paid during the tax year.

You should note that you can’t claim the total amount of the student’s loan repayments and just the interest, therefore bank statements for made repayments
are not eligible documents for this expense. 

You have to keep the documents for expenses you claimed on your income tax return for 6 years after you filed the tax return because the tax office might want to see them.

If you do not provide the required documents you will have to return the overpaid refund with interest. 

5. Let someone else do it for you!

Who wants to spend time thinking about tax when you could be enjoying your working holiday in Canada instead?

Here are three reasons you should let Taxback.com handle your Canadian taxes.


Canadian tax refund

You will get your maximum Canadian tax refund

When you apply with Taxback.com you will receive a free tax refund estimation.

Then, if you like what you see, you can proceed and claim your cash! We will transfer your refund straight to your bank account anywhere in the world.

The average Canadian tax refund a Taxback.com customer receives is $998 so it’s definitely worthwhile applying for a refund!

We will handle all the paperwork, so you don’t have to!

When you choose Taxback.com you won’t need to worry about any confusing tax paperwork.

All you need to do is complete a short online questionnaire. Our Canadian tax team will then prepare and file your tax return.

It’s that easy!

What’s more, we can even track down your missing T4 documents!

You will be compliant

By filing with Taxback.com you can 100% guarantee your compliance with the Canadian tax authorities. 

About The Author

Kristina Valcheva - Digital content writer @ Taxback.com

Kristina is a digital content writer at Taxback.com. She has a strong interest in finance and technology, and her background is in media, journalism and sales.

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