CC: Hi, I'm CC, and welcome to Taxology, the official podcast of the Canada Revenue Agency, and if you're new to Canada, welcome! On today's episode, we're helping newcomers and international students understand taxes in Canada, and what payments they may be eligible for.

On top of learning Canadian things like managing the snow, ice skating, what foods you can pour maple syrup on and how to pronounce “poutine”, you need to understand Canada's tax system.

And by the way, that was a trick question, maple syrup goes on everything!

Doing your taxes helps you. You may be able to claim your education costs, or you may be able to get a tax refund, which is money in your pocket.

You may also be eligible for benefit and credit payments throughout the year. There's also tax-free savings plans that you need to know about to help you save where your future in Canada.

Whether you're a student starting your first year of post-secondary studies or a newcomer supporting your family, every dollar counts, and we want to help you.

Today we're meeting remotely with Marie-Claude from the CRA, who works on helping Canadians understand taxes and what's in it for them. She'll share her expertise and share what you need to know.

So let's get on with the show and welcome our guest!

Thanks for coming today Marie-Claude!

Marie-Claude: Thanks for having me.

CC: Well, first of all, tell us who you are. Tell us about your role in the agency and how you interact with newcomers and international students.

Marie-Claude: For sure. Um, I currently work in the Benefits Outreach Modernization Section, and our role in outreach is to provide information sessions to newcomers and international students. But also to housing insecure individuals, Persons with disabilities, Indigenous people, and adult 65+, and for youth and students.

And the outreach program works with community organizations that help newcomers.

Our goal is to raise awareness about the importance for newcomers to do their taxes, and claim the benefits and credits that they are entitled to. And prior to working for headquarters, I was an Outreach Officer for the Quebec region for almost four years. And I was giving presentations to newcomers and international students.

CC: Awesome. So you were going into schools and giving presentations and I guess if you missed it, you can tune into our podcast, this very episode! Hahaha.

Marie-Claude: Absolutely! Yes actually I was giving presentations for these audiences, so newcomers and international students. And I got to interact with them and I believe I have a good sense of the most common questions that they might ask, and the issues that they're facing.

Because taxes may feel a little bit overwhelming and daunting, especially for newcomers. They may be facing language barriers.

It's not easy. It's not a language that is easy to understand, and we're here to help them and try to make it easier for them.

CC: Of course! What are some first things that newcomers and international students need to know about taxes in Canada?

Marie-Claude: Well, for Canadians, it's a given that we should file, right? But in some other countries, mostly European countries, the taxes are done by the government. There are countries around the world that do not require even to file taxes, so it can be confusing for newcomers.

You know they come in here, and they don't know what to do and how it works.

So we should not assume that everyone knows how it works here, because the Canadian tax system is based on the self-assessment principle. So the responsibility is on the taxpayer to report their income, but in many countries the system is not the same.

So one of the first thing that newcomers and international students may need to know is that they may be eligible to receive some benefit and credit payments, and as soon as they arrive in Canada.

CC: Yeah.

Marie-Claude: So it is, yeah, it's, it's really important for them. And you know it's important for newcomers to, first to apply for the benefits and credits, and then to do their taxes for the year they landed in Canada.

CC: Okay.

Marie-Claude: This is important, yeah. Even if you have…and this is really something I want to stress the importance of is, it is important to, even if you have no job and no income. Because we will use that information to calculate the benefits payment you're entitled to.

CC: And that's for everybody, right? Not just newcomers, not just students, that’s everyone should be filing their taxes.

Marie-Claude: Everyone should be filing their taxes if they want to claim the benefits and credit payments.

CC: Okay.

Marie-Claude: The rules are if they have taxes to pay, if they want to claim their refund, and if they want to claim benefits and credits, you have to do your taxes every year. Yeah.

CC: One thing that might confuse newcomers is their immigration status in Canada, versus their residency status for tax purposes. Could you dive into that and explain the differences?

Marie-Claude: Of course. So knowing if you need to do your taxes is based on your residency status. It is different from the immigration status, they're not the same. So you're considered a resident of Canada for tax purposes if you’ve established residential ties with Canada.

There are two kinds of residential ties we're going to look at. So whether you have significant residential ties, and then whether you have secondary residential ties.

First, significant residential ties are determined by things such as if you own or rent a house or home, if you have a spouse, and if you have dependants here with you.

So house, spouse, and dependants. Those are the three significant residential ties.

If you don't, which may be the case for most international students, for example. We may look at secondary residential ties, such as if you have furniture, utility bills to your name, electricity bills, if you have a car or home insurance, credit cards, Canadian bank accounts, provincial health care coverage, and social ties. And there are other things, right.

So those are the secondary residential ties we're going to look at if you don't rent or own a home, or if you don't have a spouse. So we're going to look at the secondary residential ties. Anything that ties you to Canada.

So as a taxpayer, it's your responsibility to determine your residency status. However, you can also ask the CRA for an opinion on what we think your residency status may be, based on information you will provide through a form called NR74.

You may also have provided information to IRCC during your immigration process. However, this information may still need to be shared with us as well as CRA and IRCC are two distinct entities. So filing is important if you want to receive benefit and credit payments or open a CRA account.

CC: OK, so should be clear, you need to give information to both the Canada Revenue Agency and Immigration, Refugees and Citizenship Canada?

Marie-Claude: Right.

CC: Okay.

Marie-Claude: And also, if you're a temporary resident, we may ask you for a copy of your permit to determine your eligibility to certain benefits. It's very important to make sure you update this information with us if your temporary residence permit gets renewed, to keep getting benefits.

But if you have your student permit or temporary work permit. If it gets renewed, then you stay here for a longer period of time, this information needs to be shared with CRA, as IRCC will not. It's your responsibility to share it with us.

CC: I see. As an international student, what kind of benefits and credits could I receive?

Marie-Claude: You may eligible for the GST/HST credit. The GST is the goods and services tax/harmonized sales tax credit.

So if you're at least 19 years old and a resident of Canada for tax purposes, as we explained earlier, you could be eligible for that credit, goods and services tax/harmonized sales tax credit, and we commonly call it the GST/HST credit.

To apply, you need to file the RC151. So you need to file the application, and then do your taxes on your first year you land in Canada, and then keep on doing your taxes to keep on receiving this benefit.

If you have children under 18, you may also be eligible to receive the Canada Child Benefit or CCB for short. There's also an application you need to fill out, it's called the RC66, and RC66SCH.

So apply, If you have children under the age of 18, and if you're eligible, we'll send a monthly payment.

CC: It sounds complicated. You're saying a lot of letters and numbers jammed together. If I was an international student. How would I remember all this? Like, what's the way to make it simpler?

Marie-Claude: There's a lot of information you can find on our website. We also have a “Learn about your taxes” online learning tool and there's a lot of information in that. And there's a module specifically on benefits and credits as well.

CC: Smart. Awesome. What other essential things do newcomers and international students need to know?

Marie-Claude: So we've mentioned already the residency status and the self-assessment principle. Next, there's the SIN.

So to work in Canada or access government programs and benefits, you need a nine digit number known as your Social insurance number. So you can apply for a SIN by contacting Service Canada, that's another entity of the government.

And if Service Canada is unable to give you a permanent or temporary SIN number, the CRA will give you a temporary tax number that you will use to file your taxes and apply for benefit and credit payments. You can also use that temporary tax number to sign up for CRA online services.

CC: Like My Account!

Marie-Claude: Like My Account absolutely.

CC: So, do you only start getting payments from when you file or from when you arrive in Canada?

Marie-Claude: It all depends. For certain benefits, you may be eligible as soon as you arrive, and for other benefits you may have to wait a little bit.

In either case, if you wait to file your application, if you wait to send it because you didn't know or because you didn't have the information, and you apply a little bit later. Payments can be retroactive, absolutely. And we will calculate base either on your arrival date or the date you became eligible.

So for example, if you arrived in September 2024, you won't have to file until April of the following year. But you could be eligible for a payment that, for the GST/HST credit, you could be eligible for a payment that we are issuing in October, one in January and one in April.

So if you feel you've missed out on any payments, don't worry, send the application and we will calculate any retroactive payment you may be eligible for, and it's not too late to apply.

CC: That's super helpful.

Marie-Claude: Keep in mind that once you start receiving your payments, it's very important to do your taxes every year, even if there is no income to report.

CC: When newcomers arrive to Canada, can they take advantage of Canadian savings plans?

Marie-Claude: Sure, there's two savings plans that you can take advantage of. One is the Registered Retirement Savings Plan, or the RRSP. And the other one is the Tax-Free Savings Account, or TFSA.

So a RRSP is used to put money aside for retirement. As a newcomer, you can only contribute the year following your arrival and to the maximum of your deduction limit, also called contribution room. So that amount can be found on your last notice of assessment.

The notice of assessment is a document you receive after you file your taxes. It is going to have that information. You can also find that information on My Account, once you’re able to register.

A TFSA, is an account in which you will not pay taxes on the income you make. You only accumulate contribution room while being a resident of Canada for tax purposes. And you can only contribute to your TFSA while you're a resident of Canada and you must have a valid SIN number or Temporary tax number, and you also must be 18 years and older.

So if you become a non-resident for tax purposes, you can keep your TFSA, but you cannot contribute any additional money to your TFSA after the day that you are no longer a resident.

If you do contribute to your TFSA while you're a non-resident, you may be subject to a tax. And additional information can easily be found on the website, or I also invite you to listen to the second CRA Taxology podcast. It's called “TFSA vs. RRSP, what’s the difference?”.

And you can also check our brand new module in Learn about your taxes, it's called “Saving for the future”, and it talks about all the savings plans in simple language.

CC: Perfect. For international students specifically, what other questions do you get from them about their taxes? Like what slips do they need to file, and who gives it to them?

Marie-Claude: So we do get many questions on common tax slips that they may receive. So if you worked during the year, even part time, you will receive a T4 slip from your employer. The full name of the T4 is “T4 Statement of Remuneration Paid”.

It's a summary of your total income and deductions for the year. That's from your job and it's your employer who’s going to give it to you.

Other than the T4 from your employer, the common slips you'd get as an international post-secondary student may be the T2202 or some T4As.

So T2202, it's called “Tuition and Enrolment Certificate”, and it provides a summary that allows you to claim your tuition fees when you're doing your taxes. So you should receive the slip from your educational institution. It’s often in your student portal and it is important to ensure that you provide your SIN or your Temporary tax number to your school so they can properly link the slip to you. This allows you to claim your tuition fees. You can also receive various T4A slips specifically for scholarships, bursaries and grants.

CC: So what is taxable? You've got scholarships and bursaries. That's money from the school. What about money that you get from your parents? Does that count as income?

Marie-Claude: Money you get from your parents does not count as your income. If whether they're gifts or they're here, they're there to help you with your expenses, they're usually not taxable.

Such as the money that you are transferring from your foreign bank account as well, from your foreign bank account to your Canadian bank account. That amount will not be taxable.

For your bursaries, you'll get a T4A slip for that and for all your scholarships, bursaries received which will need to be added on your tax return.

However, if you're enrolled as a full-time student, you may be eligible for a scholarship exemption, and in that case. It will not be taxable.

CC: Is there anything else that international students can claim?

Marie-Claude: You can also claim moving expenses! So you may be able to claim moving expenses if you move to be at least 40 kilometres closer to your school, and you were enrolled as a full-time student.

CC: And 40 kilometres, like from another country! That counts. Haha.

Marie-Claude: Like from another country. Yes, it counts!

CC: You said that you know the questions that you get, like you've been giving the presentation and you, you get a lot of the same questions.

So other than slips and what's taxable and what's eligible, what are other questions that you got a lot during your time giving these presentations?

Marie-Claude: Well, we do have a lot of information that is tailored to newcomers and have newcomers in mind. Like if you use social media, we do have information on Instagram, Facebook, LinkedIn and X.

We also have easy to understand information in Learn about your taxes. So this I've talked about this earlier, it's an online learning tool that helps newcomers understand taxes from all aspects.

It ensures that they get the benefits and credit payments they’re entitled too.

It is a great resource for anyone interested in learning about taxes, and it's written in a plain language in an easy to understand format. It also includes three minute videos and infographics. It helps you understand the Canadian text system, how to file a tax return and what's in it for you.

So it's a really fun tool to go through.

CC: Other than those, what other resources can a newcomer or international student use?

Marie-Claude: Another great resource is the CRA online accounts. After doing your first tax return, we highly encourage everyone to sign into My Account, as it allows you to quickly manage your information online, see your tax slip, and register for direct deposit you don't, so you don't have to call us.

We also share information through our outreach program and settlement organizations. Finally, if you need help with doing your taxes, there are free tax clinics you can go to. If you have a simple tax-filing situation, you may be eligible to have a volunteer complete your return for free. And this is done through the Community Volunteer Income Tax Program or the CVITP for short.

CC: Nice. I like help.

Marie-Claude: Especially when help is free!

CC: Exactly. Do you have any last tips or tricks for newcomers and international students?

Marie-Claude: Sure. Once you've determined that you're a resident of Canada for tax purposes, and you want to claim a potential refund, or you want to claim benefits and credit payments, there's an important date that you need to remember, is that you need to file your tax return by April 30th of each year if you’re not self-employed.

If you are self-employed the filing date is June 15th. But the most important day to keep in mind is April 30th. And if you do have a balance owing, unfortunately you have to pay by that date as well, April 30th, if you don't want to have to pay interest or late filing penalties.

Marie-Claude: As a newcomer, you're eligible to file electronically as well. And remember that we can assess your tax return way quicker and way faster if you file electronically.

You can also register for direct deposit, and if you're entitled to a refund or for your benefits and credit payments, we will direct your payments directly in your bank account, in your Canadian bank account. And this is, that way it's faster and more secure for you as opposed to getting a cheque, and you may lose it. So direct deposit…

CC: Is the way to go!

Marie-Claude: The way to go! Haha!

CC: Well thanks so much for joining us today Marie-Claude. I learned so much!

Marie-Claude: It was my pleasure. Thank you for having me.

CC: A big thank you to Marie-Claude for being on today's show.

We hope you've learned a lot about the Canadian tax system and what could be in it for you, and how to start doing your taxes.

If you want to learn more, check out our learn about your taxes course at canada.ca/Learn-about-taxes. There you'll find short videos, interesting lessons and fun quizzes to improve your knowledge.

You can also check this out on Facebook, X and Instagram @CanRevAgency.

By the way, I was joking in the intro about maple syrup belonging on all foods. Or was I?

Anyway, this is CC and thanks for listening. Until the next time, stay safe and do your taxes.