When spring returns to Edmonton, you will be faced with a responsibility that awaits every Canadian who has earned some form of income over the past year. It is not optional, nor is it something you can skip if you find it difficult. It is a mandatory process—filling out and submitting a tax return to the Canada Revenue Agency (CRA). For many newcomers to Edmonton, this process causes fear and confusion. But in reality, if you put the information together correctly, the task becomes manageable and sometimes even rewarding if you are due a tax refund.
The tax return you will be filing is called the “T1 General.” It's not as complicated as it sounds. Think of it as a form that tells the government about all the money you earned last year, how much tax has already been withheld from your paychecks, and what other worldwide income you had. Based on this information, the government calculates how much tax you owe, and if too much has been withheld, they will refund you the difference.
Gathering your documents: What you need to collect
Before you even look at the T1 form itself, you must gather all the necessary documents. This is a very important step because if you try to complete your return without these documents, you will make mistakes that could result in penalties, questions from the CRA tomorrow, or loss of credits to which you are entitled.
First of all, you need your Social Insurance Number (SIN). Without this number, you simply cannot file your return. If you are new to Edmonton and have not yet received your SIN, this is your first priority. This number should be written on the paper or card given to you by Service Canada.
Next, you need your T4 slips from every employer you worked for during the year. A T4 is an official document that your employer must send you by February 28. This document shows how much you were paid for the entire year and how much tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) contributions were deducted from your salary. If you worked in several places (which is often the case for newcomers who study and work part-time), you will receive several T4 slips — one from each employer.
If you had income from investments, dividends, or interest from bank accounts, you should receive a T5 slip. This is a form sent to you by your bank or investment company. It shows how much interest or dividends you received.
If you were self-employed (for example, you worked as a freelancer, had your own small business, or provided services on a contract basis), you will not receive a T4. Instead, you will need to keep track of all your income and expenses yourself. To do this, you will need form T2125, on which you report your net business income.
If you made any contributions to a Registered Retirement Savings Plan (RRSP), you will need a receipt from your financial institution. This receipt shows how much you contributed during the year, and you can deduct this amount from your income to reduce the amount of tax you pay.
If you have assets abroad (e.g., a house in Ukraine, a bank account abroad, stocks abroad) with a total value of more than $100,000, you need Form T1135. This is a form in which you list all these assets. This is mandatory, and failure to comply will result in serious penalties.
If you had work-related expenses that were not deducted on your T4, you will need receipts. For example, if you purchased professional equipment for work, purchased training materials, or had work-related travel expenses, keeping these receipts helps you prove to the CRA that these expenses were legitimate.
If you had medical expenses (e.g., glasses, hearing aids, treatment), you may be eligible for a medical credit. Keep receipts for all of these expenses.
If you have children, you will need information about the potential Canada Child Benefit, which is linked to information about your children.
Choosing how to file: DIY, professional, or free help
Once you have all your documents, you are faced with a choice: how will you file your return?
The first option is to use tax software. The CRA has a list of officially approved programs called “NETFILE-certified” (certified for online filing). There are many such programs, but the most popular in Canada are TurboTax, StudioTax, and WealthSimple Tax. Some of them are paid (TurboTax costs between $30 and $100 depending on the complexity of your situation), and some are free (StudioTax and WealthSimple are completely free if your income is below a certain threshold).
The advantages of using software are that it guides you through each step, tells you what numbers to enter, and even pulls information directly from the CRA if you are registered with My Account. The program also does all the math for you, which greatly reduces the likelihood of errors. In addition, when you complete your return in the program and file it online through NETFILE, you receive instant confirmation from the CRA that it has been received.
The second option is to hire a tax professional. This could be an accountant or tax preparer. For a newcomer to Edmonton who is unsure of themselves, it is often worth the peace of mind. A professional will review all your documents, make sure everything is correct, and optimize your return to ensure that you receive all the credits and deductions to which you are entitled. The typical cost of hiring a professional ranges from $200 to $500, depending on the complexity of your situation.
The third option is free assistance. The CRA offers free support through the Community Volunteer Income Tax Program (CVITP). This program provides volunteers to assess people who earn less than a certain amount (usually around $35,000 per year). You can find your local CVITP site in Edmonton, register, and volunteers will complete your return for you at no charge. This is especially helpful for newcomers who have just started working and are earning a low income.
Step by Step: Completing Form T1 General
Now let's break down how to complete Form T1 General. The form consists of several sections, each of which asks you to provide a specific type of information.
Section 1: Identification
This is the easiest section. You are asked to provide your full name, address, Social Insurance Number, and marital status. Your name must be spelled exactly as it appears on your passport and CRA documents. If you are unsure how the CRA knows your name, you can check CRA My Account.
The address must be the address where you lived at the end of the year (December 31 of the previous year). If you moved during the year, you must provide the address where you lived on that date. If you moved from abroad to Edmonton during the year, you must provide the address of your residence in Canada.
Your SIN is the nine-digit number you were given by Service Canada.
Marital status includes “Single,” “Married,” “Common-law partner,” or “Divorced/Widowed.” Select the one that applies to your situation as of December 31.
Section 2: Total Income
This is the section where you report ALL sources of income. There are specific lines to fill in for different types of income.
For employment income, you will enter the information from your T4 slip. On the T1 form, the line called “10100 — Salaries, wages, and commissions” is where you enter the numbers from box 14 of your T4 slip. This is the total amount you were paid during the year.
If you had multiple jobs (multiple T4s), you add them together. For example, if you earned $25,000 at one job and $15,000 at another job, you would enter $40,000 on line 10100.
For investment income (interest, dividends), you will enter the information from your T5 slip. There are separate lines for “Interest” and “Canadian Dividends.” If you received dividends from non-resident corporations, that goes on a different line.
For self-employment income, you first complete Form T2125, where you calculate your net income (income minus expenses). Then you enter this net income on line 10400 of Form T1.
For income from abroad (e.g., dividends from a foreign company, rent from foreign property), you enter this separately. It is important that this income be converted to Canadian dollars at the exchange rate on the date you received the income.
Other types of income include government benefits (such as Employment Insurance), pension income, Canadian Pension Plan (CPP) payments, and others. Each of these has a corresponding line code.
Section 3: Net income
This section shows your income after certain expenses have been deducted. For example, if you had income from work and you had professional expenses that were not included in your T4, you would enter those expenses here.
However, most often, newcomers use this section for RRSP deductions. RRSP stands for “Registered Retirement Savings Plan.” If you contributed money to your RRSP account during the year, you are entitled to deduct that amount from your income. This means that if you earned $50,000 and contributed $5,000 to your RRSP, your “net income” is $45,000, and most of your taxes will be calculated based on this amount. This is a smart strategy, as it is one of the few ways you can reduce the amount of taxes you pay.
Education expenses, moving expenses, and child support expenses can all be deducted in this section. However, for newcomers with a single job, this section is usually relatively simple, as most work-related expenses are already accounted for in your T4.
Section 4: Taxable Income
This section looks at your net income and deducts exclusions such as capital losses. For most people, however, this section is equal to line 3 of section 3 — your net income. This is the amount on which your federal and provincial taxes are calculated.
Section 5: Federal and Provincial Tax
This is the section where the form automatically calculates how much federal and provincial tax you owe based on your taxable income. The software does this for you. However, this is also the section where you report any taxes that have already been withheld. On the line called “Tax withheld,” you enter the amount shown in box 22 of all your T4 slips. This is the money that your employer has already withheld and submitted to the CRA on your behalf.
This is also where you fill in the lines for any credits you are eligible for, such as basic personal amount, convalescent credits, medical expense credits, and others. These credits actually reduce the amount of tax you pay, dollar for dollar.
Special details for newcomers to Edmonton
There are a few special points that newcomers to Edmonton should pay special attention to when completing their tax return.
First, if you arrived in Edmonton during the year rather than at the beginning of the year, your income is calculated only from the date of arrival to the end of the year. For example, if you arrived on June 1, you only report income you earned from June 1 to December 31. For this information, you must have a document that confirms your date of arrival, such as a copy of your passport with an entry stamp or your immigration letter from IRCC.
Second, if you have foreign income (for example, you still receive dividends from investments in Ukraine), you must include this income in your Canadian return and convert it to Canadian dollars. If you have assets abroad worth more than $100,000, you must complete Form T1135.
Third, if you are a temporary resident (Work Permit or Study Permit holder), you may be eligible for “non-resident” taxation in certain circumstances. This means that you may only report your Canadian income, not your worldwide income. However, if you have a home in Canada (a rented apartment counts), you are generally considered a resident and must report all worldwide income. If you are unsure, always file Form NR74 to obtain official confirmation of your status from the CRA.
Fourth, keep in mind that if you are self-employed (e.g., freelance work), the deadline for filing your return is June 15, not April 30. However, any amount you owe must still be paid by April 30.
Using CRA My Account to review and file
Once you have completed your return, you are ready to file. If you are using NETFILE-certified software, filing online is the easiest and fastest way. The software generates a file that is sent directly to the CRA. You will receive immediate confirmation of receipt.
But before you file, it's a good idea to log in to your My Account on the CRA website and check what information they already have about you. If you are registered with My Account, tax software can often automatically retrieve this information and fill it in for you. This saves time and reduces the likelihood of errors.
In My Account, you can also view your Notice of Assessment (NOA), which is the official document the CRA sends you after processing your return. This document shows the exact amount you owe or the amount you are due to receive as a refund. You can also view your RRSP room (how much money you can contribute to your RRSP next year) and view the status of any credits or benefits you may be eligible for (such as the GST/HST credit or Canada Child Benefit).
Deadline and consequences of late filing
The deadline for filing your tax return is April 30 of the year following the tax year. Therefore, for 2024 taxes, the deadline is April 30, 2025. If you are self-employed, the deadline is June 15, but any amount you owe must still be paid by April 30.
Being late is very expensive. If you file late, the CRA imposes a penalty of 5% of any amount you owe, plus 1% for each month you are late (up to a maximum of 12%). In addition, if you were late in previous years, the penalty is doubled. Furthermore, interest of about 8% per year is charged on the unpaid amount. This means that being late can turn a small amount you owe into a significant amount over several years.
After filing: What next?
Once you file your return online, you will receive instant confirmation. Your return will be processed within a few weeks. When it is processed, you will receive a Notice of Assessment (NOA) — an official letter from the CRA telling you how much money you owe, how much you are getting back, and the decision on any credits.
If you are due a refund, the CRA will automatically transfer the money to your bank account (if you provided your account details on your return). This takes a few days to a week. If you owe money, you can make your payment online through CRA My Payment or through your bank.
If you are eligible for the GST/HST credit (quarterly payments from the government to offset sales taxes), the CRA automatically calculates this credit based on your return and begins issuing payments to you every four months.
If you have children, the CRA calculates your Canada Child Benefit (child payments) and begins issuing monthly payments.
Common mistakes to avoid
There are several common mistakes that newcomers make when filing their tax returns, which can lead to questions from the CRA or loss of credits.
First, do not include money that you brought with you from abroad when you moved. Many people think that the money they brought with them is income and that they must report it. This is incorrect. The money you brought with you is simply your personal savings, not income. It is not taxable.
Second, don't forget any income. If you had multiple jobs or income from different sources, make sure you include everything. The CRA will know about all your T4s and T5s because copies are sent to them directly from your employers and banks.
Third, do not fill out Form T1135 incorrectly if you have foreign assets. Many people skip this form thinking it is not mandatory. This is a costly mistake. If you have assets abroad worth more than $100,000, you must complete Form T1135.
Fourth, do not round off amounts. Enter the exact amounts from your documents without rounding them off.
Fifth, do not skip credits that you are entitled to. Many people think that they have to calculate credits themselves. In fact, tax software often automatically calculates credits for you if you enter the correct information. For example, if you are a student with income below a certain threshold, you may be eligible for a basic personal amount. If you had medical expenses, you may be eligible for a medical credit.
Remember that this is not some abstract concept. It is the way the government calculates how much money it owes you as a refund or how much you owe in the form of additional taxes. If you fill everything out correctly, you can get a significant amount of money back as a refund. If you make mistakes, you may receive questions from the CRA tomorrow or even penalties.
If you are unsure about anything, don't hesitate to find a professional or visit the free CVITP website in Edmonton. Investing a few hundred dollars in professional help often pays off many times over when you get a bigger refund or avoid mistakes that would cost you much more.