The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit helps offset the tax you pay on things you buy. If you are at least 19 years old, have a low or modest income, and are eligible, apply for a tax-free quarterly payment. Find out if you are eligible to apply for the GST/HST credit.
Newcomers to Canada can take advantage of several strategies to save on taxes. Here are some key tips:
Understand Tax Credits and Deductions: Familiarize yourself with the various tax credits and deductions available to you. Common ones include:
- Basic Personal Amount: This is a non-refundable tax credit that allows you to earn a certain amount of income tax-free.
- Canada Workers Benefit (CWB): A refundable tax credit for low-income individuals and families who are in the workforce.
- Child Care Expenses: If you have children, you may be able to claim child care expenses incurred while you work or attend school.
File Your Taxes: Ensure you file your tax return every year, even if you think you may not owe taxes. Filing can help you access benefits and credits you may be eligible for.
Use Tax-Advantaged Accounts: Consider contributing to tax-advantaged accounts such as:
- Registered Retirement Savings Plan (RRSP): Contributions are tax-deductible, and the investment grows tax-deferred until withdrawal.
- Tax-Free Savings Account (TFSA): Contributions are not tax-deductible, but withdrawals are tax-free, including any investment growth.
Claim Moving Expenses: If you moved to Canada for work or to start a new job, you may be able to claim moving expenses on your tax return.
Keep Good Records: Maintain organized records of your income, expenses, and any receipts for deductions or credits you plan to claim. This will make filing your taxes easier and help you maximize your deductions.
Consider Professional Advice: If your tax situation is complex, consider consulting with a tax professional who can provide personalized advice and help you navigate the Canadian tax system.
Learn About Provincial Tax Credits: Each province has its own tax credits and deductions. Research the specific benefits available in your province of residence.
Take Advantage of Education Credits: If you are a student or taking courses, you may be eligible for education-related tax credits.
By understanding and utilizing these strategies, newcomers can effectively save on taxes in Canada.