Tax Basics Information Session March 2018 International Student Advisor s Office

Transcription

1 Tax Basics Information Session March 2018 International Student Advisor s Office

2 Agenda The Canadian Tax System Who pays Taxes in Canada? Do I have to file an Income Tax Return? When to file an Income Tax Return? Social Insurance Number and Individual Tax Number Get help completing your Income Tax Return Important Contacts and Resources Questions 2

3 The Canadian Tax System Taxes are one of the main sources of revenue for the government (federal and provincial level), paying for many of the services and benefits that Canadian enjoy such as infrastructure, education, healthcare and benefits for low income persons. Three types of taxes collected in Canada: Personal Income Tax and Property Tax Taxes you pay on things you buy (GST/HST) Excise duties on products such as alcohol, cigarettes and gasoline Canada Revenue Agency is a Canadian Federal Agency that administers tax laws for the federal government 3

4 Who Pays Taxes in Canada? Based on residency status Residents of Canada must pay taxes and apply for credits According to CRA: An individual is a resident of Canada if this is the place where he or she normally lives in the regular routine of life Not the same concept for immigration purposes 4

5 Am I a Resident For Tax Purposes? For income tax purposes, international students studying in Canada are almost always considered to be residents of Canada for tax purposes because they have established significant residential ties with Canada, including some of the following: Canadian Bank Account Studying or Working in Canada Personal property or an apartment lease in Canada A spouse or common law partner in Canada; other strong social ties Canadian Driver s License 5

6 Do I Have to File an Income Tax Return? You also should file a return as an international student if you: have income from a job or scholarship if you want to apply for GST/HST Credit If you want to receive Canada Child Tax benefit if you plan to apply for permanent residency in the future Canada s Tax System is based on self-assessment: Individuals voluntarily complete an income tax return to report their annual income; and in the end, after your income tax are calculated, you will find out if you have balance of tax owing for the year or whether you are entitled to a refund (cash back). If 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. Learn them here. 6

7 When to file a Canadian Income Tax Return Income Tax year starts on January 1 and ends December 31 Tax season generally starts March 1 st each year (T4s go out in February and March) You have until April 30 th to file. Filing late comes with a potential penalty if you owe CRA money. You declare any Canadian income: Part time job Seasonal and/or co-op work Canadian scholarships (generally; if it comes from a Canadian source, it is considered income that must be reported) 7

8 What is a Social Insurance Number? The SIN is a nine-digit number that you must have in order to work in Canada To apply for a SIN you must provide original immigration documents - your Passport, Study Permit and Work Permit (if applicable) to Service Canada The closest Service Canada Centre is located at: Federal Building 633 Queen Street Fredericton, New Brunswick

9 What is an Individual Tax Number? XXX-XXX-XXX If you do not have, or are not eligible to obtain a SIN (.e your study permit doesn t allow you to work) you will need to apply to CRA for an Individual Tax Number (ITN) 9 Digit number 4 to 6 weeks for processing. To apply, visit here.

10 How to file an Income Tax Return On your own File your return online using a Tax preparation software (TurboTax, SimpleTax, etc.) or use free EFILE, found here. Paper copy Mail your return to your local tax center via Canada Post outlet; download and print a copy from CRA website here. Professional help H&R Block - Student rate available 80 Regent Street; 10 Trinity Avenue Others in community can be found here. Volunteer help Volunteers trained by CRA will be on campus to help you file taxes through the Community Volunteer Income Tax Program see ISAO Facebook and schedule later in presentation for signup details 10

11 Where else I can file my Tax Returns? Free Community Tax Preparation Clinics: Brunswick Street Baptist Church (161 York Street) Forest Hill United Church (45 Kimble Drive) Multicultural Association of Fredericton (28 Saunders Street) The Salvation Army Tax Help (531 St. Mary s Street) See full list with all contact information and conditions here. 11

12 Tax Help for International Students at UNB Day 1 Thursday March 22 10:00am to 4:00pm Marshall D avray Hall Room 210, 320 Day 2 Friday March 23 10:00am to 4:00pm Marshall D avray Hall Room 210, 320 Day 3 Saturday March 24 10:00am to 4:00pm Marshall D avray Hall Room 210,

13 Bring These Documents to Your Appointment Identification 2017 Notice of Assessment T4 (only if you worked employer mails out) Tuition Statement (T2202A) T4A if you have received Canadian scholarships Receipts of charitable donations made and not claimed in previous 5 years Public transit passes if applicable Disability document if applicable Receipts for prescriptions or other Medical expenses 13

14 Notice of Assessment CRA sends you a notice of assessment because you filed a tax return or a return was filed for you last year. The notice shows the date and result of last years return assessment and whether you have a refund, an amount owing, or a zero balance. Always keep these forms, dating back to six years, for your records 14

15 View your T4A and T2202A online Log into your myunb account and click on "Page 2" under the "Launch Menu Section", you should see a "T4 and T4A information drop down menu". Click on the "T4 and view my T4A information" in the respective drop down menu's, for T4 and T4A information. Click on the electronic consent tab above them to give your electronic consent, if you haven't already. The T2202A tax receipt can be found in "eservices" as one of the side menu's when you click on the "Financial" tab. 15

16 Important Contacts and Resources 16 Web: Are you an international student studying in Canada? More helpful tax information can be found here. Contact Canada Revenue Agency Income Tax Questions: International Tax Questions: Contact International Student Advisor s Office isao@unb.ca Phone: Series International Students and Income Tax Watch the webinar series

17 THANK YOU! QUESTIONS?