Filing Income Tax Returns
If you are working, you have to file an income tax return every year. When you file your income tax return, you are letting the Government of Canada know how much money you made that year and how much taxes you paid. Depending on your yearly income, your employer deducts a certain percentage in income tax, as well as other government benefits such as CPP (Canadian Pension Plan) and EI (Employment Insurance).
Taxes need to be filed before the end of April of each year for the previous year’s tax season. For example, to file your taxes for the 2013 year, you need to send them to the Canada Revenue Agency (the government agency responsible for taxes) before the end of April 2014.
Your employer is responsible for providing you with a T4 slip, which is a record of how much you were paid and how much money was taken off in taxes. Even if you no longer work for your employer at tax time, they still need to provide you with this form. If you have not received a T4 from your employer or former employer, it is a good idea to contact them at the end of February.
If you make less than a certain amount of money, you may receive a tax refund. A tax refund means that you will get back money that has been deducted from your paycheque.
If you pay less taxes than what you were supposed to, you will be asked to pay more taxes in addition to those that have already been deducted from your paycheque.
You can file your income tax return by mail or on the Internet. There are also accounting companies that will file your taxes for you as long as you give them all the necessary paperwork and pay their fees.
For more information about filing taxes, you can check the Canada Revenue Agency website.