Every year, millions of Canadians have to calculate their federal income tax from the previous year in order to pay taxes in time to avoid penalties (if they owe money) or to collect a refund in case they had too much deducted from their pay-check. There are different rates based on the amount of income for the calendar year.
• Its tax time again!
Make sure you can find all your tax papers and slips when you need them. Make a big envelope or shoe box your “official tax slip holder”. Start with the letter that you received from the Canada Revenue Agency and add any document that may be tax related.
• Tax filing is a “family affair”
If you are married or have dependents, prepare the returns for yourself, your spouse and dependents at the same time. Only then can you (or your software) accurately prepare your tax returns and find the deductions, credits and transfers that can get you a better tax refund.
• Students are entitled to substantial tax credits that should not be missed
Any family member who is a registered student can claim an amount for the tuition paid. And remember, a student can also claim an education credit and an amount for books for each month spent as a full-time or part-time student.
• Student loan interest is deductible
Get a receipt for the interest charged on approved provincial and federal student loans. If you could not used the deduction on last year’s tax return you can carry forward and use the balance of interest in this year.
• International Student
Even you are in Canada as an international student, it is important that you understand what your rights, entitlements, and obligations are under Canada’s tax system. It is your responsibility to determine your income tax status, and make sure to file your tax return for pay your required amount of taxes OR To collect a refund for each year according to the law.
Did you forget to claim the credit?
If you did not claim the solidarity tax credit in your 2010 income tax return, you can still claim it. Complete Schedule D and form TP-1.R-V, Request for an Adjustment to an Income Tax Return.