In today’s world, all of us go through major life events more often. We are a fast paced world with change being part of the fabric of our every day. This past year, there were some major shifts in my life. I went from being a freelancer to having a full-time role with a great company. I love my new job. My teen is also facing change as she graduated from high school and well it is time for college and the work force. So what do all these changes mean come tax time? These are normal changes that almost every Canadian family will face at one time or another.
What Does a New Job mean?
First, let’s talk about the taxes. Whenever a Canadian gets a new job with a new employer, all of your employment insurance and Canadian pension plan are reset for the fiscal year. This means you may be due an overpayment come tax time. Check for this.
If you were paying into a retirement savings plan with your employer make sure you understand what this new job means for that old plan. Know your rights and obligations. Do the research.
Have Your First Job?
Having that first job is exciting. My teen’s first job was at her high school helping after school with a fellow student who needed supports in place at the end of her school day. Since every ; this receives a basic tax credit of $11,000, my teen was not required to fill out a tax form but here are the reasons she will.
Many first tax returns have to be submitted in paper. It allows the government to set the first time filer up on the CRA system, this also allows you to file online in the future if you qualify. The younger you do this first return as well sets the timeline for when your RRSP contributions begin.
Starting college or university, or are you there and you haven’t filed your first return yet?
First, your tax return is used to determine if you are eligible for things like GST and the Ontario Trillium Benefit here in Ontario. Even if you have zero income, you can qualify for these payments.
As well to use your tuition, education and text book credit you have to submit them on your tax return in the year they occur even if you are not going to use the credit till the future.
There are several credits that you are intitled to as a student that you can save or transfer to a parent. The tuition amount can either be claimed by a student be transferred or carried over toward a future year.
With so many questions and because life can change on a dime, filing using TurboTax Canada makes sense. Every step of the way you are asked questions that enable you to get the best return. We love how fast and easy it is as well.
If you would like to win one of 5 copies of TurboTax Canada here on my blog, simply, leave a comment on this post, or you can join us for the #CDNmoney chat on Tuesday, March 28th at 7 pm ET as we talk about new parents and tax returns. There will be more chances to win that night as well.
*Blog Giveaway ends March 27th at 11:59 pm and is only open to Canadian tax filers. This post has been sponsored by TurboTaxCanada, but as always my opinion is mine.