Tax Info Session - Western University
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+ Tax Info Session
+ Income Tax
Information
Session for
International
Students
International and
Exchange Student Centre
2019
+ Today’s
Agenda
§ Brief overview of residency
and how it affects tax.
§ Documents you need and
where to find them
§ Tools and resources
available to help you file
your tax returns.
§ Information for first time
filers
§ Overview of UFile
§ What happens after you file
your tax return
Introduction
Canada’s tax system
■ Based on residency not on citizenship.
■ Self-assessment system
■ Youare responsible for reporting your
income and paying the correct amount of
income tax
canada.ca/taxes-newcomers
Resident of Canada
Am I a resident of Canada for tax and credit
purposes?
nYou are considered to be a resident of Canada for tax
and credit purposes when you establish residential ties
in Canada.
n It is NOT related to your immigration status
nYou usually establish these ties on the date you arrive
in Canada.
canada.ca/taxes-newcomers
Determining Residency Status
■ Significant Residential Ties include:
■ A home in Canada (own or rent)
■ Your spouse and/or dependents are in Canada with you
■ Secondary residential ties that may be relevant
include:
■ You have personal property in Canada (car, furniture,
clothing, etc.)
■ You have social ties with Canada (memberships to clubs,
recreational or religious organizations, etc.)
■ You have economic ties with Canada (employment,
Canadian bank account, credit cards, etc.)
■ Driver’s license in Canada
canada.ca/taxes-newcomers
Determining Residency Status
■ Many international students who study or carry on research
in Canada do establish significant residential ties with
Canada.
■ Someone who applies for and obtains landed immigrant
status and provincial health coverage, these ties will
usually constitute significant residential ties with Canada
■ Income Tax Folio S5-F1-C1, Section 1.25
Residency Status
n Resident
n You have established significant residential ties with Canada.
n Non-Resident
n You do not establish significant residential ties with Canada
and you stay in Canada for less than 183 days during the year.
n Deemed Resident
n You do not establish significant residential ties with Canada
and you stay in Canada for 183 days or more in a calendar year,
and you are not considered a resident of your home country under
a tax treaty.
n Deemed Non-Resident
n You establish significant residential ties with Canada and under a
tax treaty you are considered a resident of another country
with which Canada has a tax treaty.
Where can I get more info?
n Publication T4055, Newcomers to Canada
n Income Tax Folio S5-F1-C1, Determining
an Individual’s Residence Status
n CRA Web site:
n www.cra-arc.gc.ca/internationalstudents/
n canada.ca/taxes-newcomersStill not sure…
n Ifyou are still not sure what your residency status
is for tax purposes, fill out Form NR74,
Determination of Residency Status (Entering
Canada)
n Mail the form to the address listed on the formWho HAS TO file a tax return? n You owe/have to pay taxes n Canada Revenue Agency asked you to file a tax return n You disposed of capital property (sold a principal residence) n Others (see CRA for complete list)
Who SHOULD file a tax return?
n You want to claim any of the following:
n A tax refund
n GST/HST tax credit (4 times a year)
n Ontario Trillium Benefit (monthly)
n Claim or carry forward tuition amounts
n Canada Workers Benefit (formerly WITB)
n Canada Child Benefit (CCB) payments if you have children
n Disability Tax Credit (for yourself or your children)
canada.ca/child-family-benefits-calculatorTaxes are Due: April 30*
Tax Year: January - December
General Information
n In Canada you file your Federal and Provincial taxes
at the same time
n You file taxes for the province where you resided as
of December 31
n Ifyou have ties in more that one province, file for the
province where you would normally reside if you
weren’t a student
n If
you have a spouse/common-law partner, each
person files their own tax return
n Some credits can only be claimed by one of youWhat do you have to report?
n All
income earned (regardless of what country the income
came from) from the date you became a resident of
Canada for tax purposes
n Employment income
n Scholarships, bursaries, fellowships, research grants, etc.
n Investment income
n And other types of income
n YourWorld Income is taxable from your date of entry.
Report it in Canadian dollars.
n Exchange rates: www.bankofcanada.ca
n Note: Loans and money sent by family do not get reported
on your tax returnDeductions
n Youmay be entitled to deductions which may
reduce your taxable income, for example:
n Moving expenses*
n Child Care expenses
n Union Dues
n Other expensesMoving Expenses
n Aninternational student can deduct international
moving expenses only if they are:
n Attending post-secondary courses in Canada as a full-time
student and;
n Receiving taxable award income (e.g., research grant) after
the move. You cannot deduct moving expenses against non-
taxable scholarship, fellowship, and bursary income.
n Ifyou move for school or work, you can claim moving
expenses within Canada (40 kms) against taxable
income at your new location.
n Unused amounts can be carried forward
n See Form T1-M for more informationChild Care Expenses
n You or your spouse/common-law partner
paid someone else to look after your child
so that you could work, go to school or
conduct research
n The spouse with the lowest income
generally claims this expense (even if it is
zero)
n UNLESS your spouse was enrolled in an
educational programTax Credits
Tax Credits Help Reduce
the Amount of Tax You Pay
■ Non-refundable tax credits
■ can only be used to reduce the amount of tax you pay
to zero
■ any excess cannot be refunded
■ Refundable tax credits
■ can be used to reduce the amount of tax you pay to
zero
■ any excess may be refundedTax Credits
Non-Refundable Refundable
n Basic Personal amounts* n Refundable Medical Expense
Credit
n Canada Employment amount
n Climate Action Incentive
n Tuition n Only certain provinces,
including Ontario
n Medical expenses
n Must be a resident for all of
n Donations 2019 and be 18+
n First time donor super
credit eliminated in 2018
Claim if you need to reduce your taxes. *May need to be pro-ratedWhat do you need to do your taxes?
Social Insurance Number or ITN
n Tofile your income tax return you need a Social
Insurance Number (SIN)
n It is ok to use for your taxes if it has expired
n If you are NOT eligible for a SIN, never applied for
one and never applied for an ITN you can apply for an
Individual Tax Number (ITN)
n Complete
Form T1261, Application for a Canada Revenue Agency
Individual Tax Number (ITN) for Non-Residents
https://iesc.uwo.ca/visas/working_and_volunteering/social_insurance_number.htmlYour T-Slips – T2202
n T2202 - tuition amount
n available online at
student.uwo.caYour T-Slips – T2202
Your T-Slips – T4
n T4 - if you worked (issued by employer)
n If you worked at Western, it may be available online on
MyHR (www.uwo.ca/hr/my_hr/)Your T-Slips – T4A
May be sent by mail or available online if you
consented to receive it electronically
nT4A - if you received a scholarship, bursary,
fellowship, etc. (issued by Western)
n If online, it will be available on student.uwo.ca
n If not, it was mailed to your home address
nT4A – if you received a research grant (i.e., you were
a Graduate Research Assistant, RA)
n If online, it will be available through MyHR
www.uwo.ca/hr/benefits/pay_info/t4_t4a.htmlT4A n Froma scholarship or bursary
T4A n Froma Research Grant (if were an RA)
Your T-Slips – T4A Box 104 = Research Grant Box 105 = Scholarship, Bursary
Your T-Slips
n Other T-slips/information you may have been issued:
n T5 - if you earned interest from an investment account
of $50 or more (issued by bank)
n Includes GICs and other investments
n T3 – if you have trust income (issued by bank)
n RC62 – if you have children and receive the Universal
Child Care Benefit (UCCB)Other Receipts and Forms
n Notice of Assessment - if filed your taxes last year
n Rent receipts
n Donations receipts
n Can keep for 5 years
n Income from any other sources
n From anywhere in the world
You should NOT claim for things for which you
DO NOT have an original receipt!!!Let’s Talk About Rent
n Your rent receipt MUST include the following:
n Your full name
n The address of the rented residence
n The period for which rent was paid (months)
n The amount of rent paid
n Your landlord’s full name, address and phone number
n Your landlord’s signature
n TIP
n Askyour landlord for a receipt at the end of every year
and before you move out!
You should NOT claim for things for which you
DO NOT have an original receipt!!!Other Receipts and Forms
n Graduate Students with Research Grants Only:
n Moving expense receipts
n Can be claimed by others if move from within Canada for work
n Research related expense receipts
n MUST be related to the research you are doing for your
Research Grant
You should NOT claim for things for which you
DO NOT have an original receipt!!!Medical Expenses
n From student.uwo.ca (Detailed Statement of Account)
n Can claim for the family on 1 tax return
n Medical expense receipts (including UHIP, SOGS/USC
health plans)
n Choose a 12 month period ending in 2019, which you haven’t claimed
before
n You will generally use this same 12-month period for any subsequent
years
n TIP: Make a note of which 12 month period you chose and how you
calculated the amounts!
*Remember, these are non-refundable tax credits.Academic vs Tax Year
2018-2019 2019-2020Medical Expenses
Note: At Western you pay for these from September – August.
The tax year is from January – December.
You may be eligible to claim UHIP and SOGS/USC Health and Dental Plans
and other medical expenses
2018-2019 2019-2020
Claiming the 100% $0
Academic Year Claim next year.
(Sept. 2018 – Aug. 2019)
Claiming the Claim 2/3 Claim 1/3
Calendar Year (Jan – Aug, 2019) (Sept – Dec, 2019)
(Jan. 2019 – Dec. 2019)Grad – Fall 2019
Academic Year
Per Term
ScholarshipUndergrad – Fall 2019
Academic Year
Academic YearOther
n Other receipts and forms you may need if you have
children:
n Daycare Receipts
n Camp Receipts
You should NOT claim for things for which you
DO NOT have an original receipt!!!Other Information You Need
n Bank account information for setting up direct deposit
n Date you arrived in Canada (if you arrived in 2019 or
filing for the first time)
You should NOT claim for things for which you
DO NOT have an original receipt!!!+
How ToHow to File your Return
1. Online using CRA certified software (canada.ca/
netfile)
a. File it online and NETFILE
n CANNOT be used if:
n It is your first year filing a tax return and the CRA does not have your
complete date of birth on record
n if you are a non-resident or deemed-resident
n If you have an ITN/SIN starting with “09”
n Your address is outside of Canada
n Employment income from an international organization
b. Use the software, print off the return and mail it
2. File a paper return
n canada.ca/taxes-general-packageIf you are mailing your forms:
If your mailing address is in London:
Winnipeg Tax Centre
Post Office Box 14001,
Station Main
Winnipeg MB R3C 3M3
https://www.canada.ca/en/revenue-agency/corporate/contact-information/
where-mail-your-paper-t1-return.htmlUfile
n Free for university students
n http://www.ufile.ca/tips-and-tools/file-for-free
n Special online code for students!
n CFS1981
n Free for anyone doing taxes in Canada for the first
time
n Free if your total family income is less than $20,000
n If you have a simple tax returnHow to File your Return
3. Have someone file for you (EFILE)
n USC Tax Clinic
n www.facebook.com/IncomeTaxUSC/
n Community Tax Clinics
n canada.ca/taxes-help
n Certified Tax Professional
n Make sure they have experience doing takes for newcomers to
Canada
Bring a USB to a tax clinic and
request a copy of the complete PDF Tax Return (not just the
summary page)!
NOTE: You must have a Social Insurance Number. If you previously had an ITN
that starts with “09”, they will not be able to EFILE for you.How to File your Return
n Community Tax Clinic eligibility requirements:
n Your SIN number cannot start with “09”
n Income is less than $35,000 (individual), $45,000
(couple), Increase by $2,500 for each additional family
member.
n Norental income, foreign income, investment income,
business income, employment expenses.
n Have not filed for bankruptcy.
Make sure to bring a USB drive!MyCRA Account
n To set up your account you need:
n Your SIN
n Date of birth
n Your current postal code
n An amount you entered on your income tax and benefit return, so have
your return on hand (the line requested will vary and it could be from
the current tax year or the previous one).
n You MUST have filed a tax return in one of the previous 2 years
n One you register, you will receive a security code by mail (5 – 10 days)
n Before you file your taxes electronically:
n Set up your account
n Update your mailing address
canada.ca/auto-fill-my-return
canada.ca/my-cra-accountMyCRA Account
n You can now see and do the following online:
n View your tax slips online (e.g., T4, T4A, T5, T3, carry forward
amounts, etc.)
n Auto-Fill Your Return
n See the status of your tax return
n See your Notice of Assessment
n Make adjustments to your tax return
n And more!
canada.ca/auto-fill-my-return
canada.ca/my-cra-accountHow to File your Return
Mailing your Forms Filing Online
n What to include with your return: n Keep a copy of the following for
n T1 General 6 years:
n Schedule 1
n Your complete tax return
n Schedule 11
n Bring a USB to a tax
n Schedule 14
n ON428
clinic and request a
n Schedule ON-S11
copy of the complete
file – not just the
n ON-BEN
summary!
n Other forms in the tax
package as it applies to you n Your T-Slips
n Your T-Slips (T2202, T4, n Your receipts
T4A, T5, etc.)
n DO NOT send in your receipts!
Keep them for 6 years!First Time Filers
First Time Filers - Important
n Include the date you entered Canada on your tax
return
n If
you have not done your taxes for a few years, you will
need to file taxes for each year separately
n Your date of entry ONLY goes on your first tax return!
n You will need to know your World Income
n January 1 until the date you arrived in Canada
n Date you arrived in Canada until December 31First Time Filers - Important
n Fill
out form RC 151: GST/HST Credit Application for
Individuals Who Become Residents of Canada
n One form per family
n Only fill it out ONCE!
n Mailit to the tax centre that applies to you (see
address on back of form)
n Sudbury of your mailing address is in Ontario
canada.ca/gst-hst-creditImportant!!!!
n Keep a copy of the following for 6 years
n Your Tax Return
n Your T-Slips
n Receipts for anything being claimed
n Notice of Assessment
n Any letters from CRA
n Notify CRA if you are moving!
n You cannot change your address using NETFILE!What Happens Next?
n Letters you will receive in the summer:
n Notice of Assessment (summary of tax return)
n Letter from the GST/HST Office
n Letter from the Ontario Trillium Benefits office
n You may also receive:
n A letter
requesting that you send additional information
or receipts/T-slips
You can come see IESC or email us (iesc@uwo.ca) if you
are not sure about what you are being asked!You will need to:
Need to Change Your Tax Return
n Reassessment requests can be done:
n Fill out and mail form T1-ADJ
n through MyCRA
n ReFILE using your certified tax software
n Do not send in a new tax return!Beware of Scams!
n Beware of scams – suspicious emails, letters or
telephone calls that claim they are from the CRA but
are not!
n Ask yourself:
n Do I owe money to the CRA?
n Is the caller using threatening language?
n Is the caller asking for information I would not provide
on my tax return?
n Is the caller asking me to pay by prepaid credit card?
n Is the caller asking for information I know the CRA
already has on file for me?
www.canada.ca/en/revenue-agency/corporate/security/protect-
yourself-against-fraud.html+
We Are Almost
Done!+
Using UFileUsing UFile
Social Insurance Number:
If you don’t know your SIN number, enter 000-000-000 and
then go back and edit later.Using UFile
Using UFile
Using UFile
Using UFile
Add CRA.DoNotReply-NePasRepondre.ARC@canada.ca to your
address book, contact list, or safe senders list.Using UFile
• You need to have your MyAccount set up to use this function.
• Once you download your information, double-check to make sure
that T-slips are not missing.Using Ufile – Interview Setup
Check off this box, for your first year in Canada
if you became a resident for tax purposes.Using Ufile – Interview Setup
T4
T4A
T3, T5
Foreign IncomeUsing Ufile – Interview Setup
T2202
Child care expenses are entered in
the dependent's file. Tick here if:
• You are eligible to claim child care
expenses even though your earnings
are higher than your spouse's, or
• You have child care expenses and
attended school.Using UFile
Click 1st year in Canada
Click if spouse new to Cda
If non-resident/deemed
residentUfile – If you are a newcomer
Required
Required, even if $0
Required, even if $0
If someone is helping you with your tax return, make sure they
have asked you these questions!
• Date you entered Canada in 2019
• Income before arriving in Canada in 2019Ufile – If you are a newcomer
Ufile - Employment Income
Other employment income includes any income received from
employment where you did not receive a T4 slip, including cash
payments.Using Ufile – Foreign Income
Using Ufile – If you have a T4A
Ufile – If you have a T4A
Ufile – Medical Expenses
Ufile – Medical Expenses
Ufile – Medical Expenses
Ufile - Tuition
From your Notice of
AssessmentUsing Ufile – ON-BEN
Everyone
If renting
If living on campusUsing Ufile – ON-BEN
Yes
Your choiUsing Ufile
You cannot start, stop or make changes to your direct deposit information using NETF
The Canada Revenue Agency (CRA) will use the information they already have on reco
Your direct deposit information will not be transmitted with your return.
To start, stop or change your direct deposit information:
If you are fully registered with My Account, visit the Canada Web site.
Otherwise, please contact CRA by phone at 1-800-959-8281.
Your direct deposit information must be updated before filing your return.Using Ufile
How to Contact Us • Call us: 519-661-2111 ext. 89309 • E-mail us at iesc@uwo.ca • Visit our website: www.iesc.uwo.ca Follow us online • Twitter: @IESCatWestern • Facebook: facebook.com/uwo.international • IESC Blog: http://iescblog.wordpress.com/
+
THANK YOU!+
How did we
do?
Use the QR code
OR visit
iesc.uwo.ca/tax_feedback.htmlStatement of World Income
n If
you are filing for the first time you must include a
note with your tax return with the following information:
World Income from January 1 until (the day you
n “My
came to Canada) was $x (even is $0).”
n must be in Canadian Dollars
n You are NOT taxed in Canada this amount. It is used to
determine whether or not you need to pro-rate amounts.
n Your information:
n Name
n SIN
n Date of Birth
n Address and Phone NumberA Few Reminders…
n You
will be receiving a Notice of Assessment in the
summer
n Keep this for a minimum of 6 years!
n Keep the following for a minimum of 6 years:
n Copy of your tax return and forms sent in
n Copy of your T-slips and relevant receipts
n Any receipts & forms in case they ask for them
n Notify CRA if you will be moving
n Willstop receiving any payments if don’t update
address!GST Application Form
n You only need to fill this form out once!
n Mail
the form to the Winnipeg address listed on the
form.Don’t have a Social Insurance Number ? …
n Apply for an Individual Tax Number (ITN)
n Fill out Form T1261
n Send form to the International Tax Services Office. Include a
notarized or certified photocopy of a piece of ID (see
instructions on form)
n Can be notarized at Community Legal Services, Room 120 in the
Law Building
n Include the form with your tax return
n Your ITN will be written on their Notice of Assessment in
the area when SIN is written. An ITN begins with the
number “0”Useful Phone Numbers n Individual Tax Inquiries – CRA General Phone n 1-800-959-8281 n 613-940-8495 (from outside Canada or US) n GST/HST Inquiries n 1-800-959-1953 n Universal Child Care Benefit, Canada Child Tax Benefit n 1-800-387-1193 n Provincial Programs for Ontario (PPO) n 1-877-627-6645
Useful Links n Tax Packages for All Years n www.cra-arc.gc.ca/formspubs/t1gnrl/llyrs-eng.html n MyCRA Account n cra.gc.ca/myaccount n cra.gc.a/auto-fill
Useful Links
n Information for International Students
n www.cra-arc.gc.ca/internationalstudents/
n http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/ntl-
eng.html
n www.cra-arc.gc.ca/vdgllry/ndvdls/srs-ntrntnl-stdnt-
eng.html
n Information for Newcomers
n www.cra-arc.gc.ca/newcomers
n www.cra-arc.gc.ca/vdgllry/ndvdls/srs-nwcmrs-
eng.html
n Information for Students
n www.cra-arc.gc.ca/students/Useful Links
n Benefits Calculator
n GST/HST
n Ontario Trillium Benefit
n CCTB
www.cra-arc.gc.ca/bnfts/clcltr/cfbc-eng.html
n Apply for a Social Insurance Number
n www.uwo.ca/international/iesc/visas/working/
social_insurance_number.htmlUseful Links
n Tax Treaties
n www.fin.gc.ca/treaties-conventions/treatystatus_-
eng.asp
n Annual Average Exchange Rates
n www.cra-arc.gc.ca/tx/ndvdls/fq/xchng_rt-eng.html
n Change Your Address
n www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/chngddrss-
eng.htmlUseful Links
n CRA certified tax software
n cra.gc.ca/netfile
n cra.gc.ca/netfilesoftware
n www.ufile.ca/tips-and-tools/file-for-free
n USC Tax Clinic (undergraduate students only)
n westernusc.ca/service/income-tax-clinic/
n Community Tax Clinics
n www.cra-arc.gc.ca/tx/ndvdls/vlntr/clncs/london-on-
eng.html
n cra.gc.ca/volunteerYou can also read
