How To File Your Tax Returns In Canada As An International Student  

1. 1. Residency status: Being an international student, leaves room for you to be  seen as a resident for income tax purposes. Hence, knowing your residency status is important before filing your tax return.

2. 2. Eligibility for refund: You might be eligible for a refund if you've paid income taxes through any Canadian job or scholarship.

3. 3. Access to benefits and credits: Filing your tax return makes you eligible for various tax credits, such as the GST/HST credit and the Ontario Trillium Benefit.

4. 4. Tuition fees: You can claim tuition fees on your tax refund even if you didn't make an income. Another interesting part is that you can use these credits in the future if you want to do so.

5. 5. Required for immigration: Filing your tax returns is one of the most important things you must do as an international student. This is because taxes might be required when applying for immigration status. It is usually compulsory because it shows you are following the country's laws.

1. 1. Residency: There are certain things that would make you a resident in Canada. For example, you can automatically become a resident if you have a home, spouse, or dependents. And if you are an international student, you are also a resident for tax purposes.

2. 2. Non-Resident: You are in this category when you don't have any residential ties. Or, you are a non-resident if you stay in Canada for less than 183 days a year. So, as a non-resident, you'll be taxed only on your Canadian income.

3. 3. Deemed Resident: Even if you don't have significant residential ties to Canada, you might still be considered a deemed resident. But this can only happen if you spend 183 days or more in the country during a calendar year. However, there are more conditions to this category; if you are not a resident of your home country under a tax treaty, then you might be deemed resident.

4. 4. Deemed Non-Resident: This category is known as deemed non-resident and  happens when you establish ties in Canada but also a resident of another country due to a tax treaty.

Now you know the rules of residency status, there are a few other things to note. One is that your residency status will affect the types of income you need to report. Secondly, it will also affect the tax benefits you may be eligible for. To know your residency status, consult the Income Tax Folio S5-F1-C1. You can also submit Form NR74 to the CRA.

1. 1. Social Insurance Number (SIN):  International students must have a SIN to file taxes. You must apply for an Individual Tax Number if you are ineligible for a SIN.

2. 2. Income Tax Slips: There are two major income tax slips when filing a tax return in Canada. The first is the T4 Slip, which is for employment income. The second is the slip for scholarships, awards, and other financial benefits. If you worked outside Canada, you will need to report that income. Note that this will affect your tax return due to tax treaties.

3. 3. Interest Tax Slips: If you have bank accounts or investments in Canada, you may receive a T3 or T5 slip to show earned interest.

4. 4. Tuition Receipts: The T2202A form shows how much you paid and how many months you attended school. This can be found on your university's online portal.

5. 5. Medical and Donation Receipts: International students miss a few things when filing a tax return in Canada. Did you know your medical and donation receipts are also important? These receipts could be used to claim additional credits.

6. 6. Rent Receipts: If you pay rent, this could be used for certain benefits like the Ontario Trillium Benefit. Note that on-campus residence fees are not eligible for this credit.

1. Know your residency status.

This is the first and most important step, so you know the forms you have to fill out and the types of income you'll need to report. Once you know your residency status, then get your documents ready.

2. Prepare the required documents.

Gather all the documents listed above. The Canada Revenue Agency requires these documents to process your tax return.

3. Choose how you want to file.

You can choose to file your returns online using tax preparation software. The CRA provides a list of authorized software options that help with filing. Or you can hire a professional. Some of these professionals specialise in working with international students.

In some regions, like Waterloo, free tax clinics will help you file your return. You can also access services through the Community Volunteer Income Tax Program.

4. Complete and submit your return.

After completing your return, make sure it is signed and submit it to the CRA. If you are filing your tax return for the first time, you must mail a signed copy.

5. Wait for a notice of assessment.

After submitting your tax return, the CRA will send a notice of assessment to confirm the details. Keep this notice for your records.

6. Create a CRA MyAccount.

After you've filed your first return and received your notice of assessment, create a CRA MyAccount. This will allow you to track your tax situation and set up direct deposits. Another thing is that it will help access correspondence from the CRA electronically.

1. 1. GST/HST Credit: This tax-free benefit removes part of the sales taxes paid on goods and services. You can apply for this when you file your tax return.

2. 2. Ontario Trillium Benefit: This benefit helps remove the Ontario sales tax and property tax or rent paid by individuals with low or modest incomes.

3. 3. Tuition Fee Credit: If you paid tuition fees, you may be able to carry forward the tuition tax credits if you did not use them in the current tax year.

4. 4. Medical and Donation Credits: If you had significant out-of-pocket medical expenses or made donations, these can reduce your overall tax liability.