NEW TO TAXES? WHAT YOU NEED TO KNOW

From NEWS CANADA

There’s a lot to get used to when you start your first job in a new country. Doing your taxes is part of it.

It gets you access to benefit and credit payments to help make rent, pay for childcare or for activities.

These tips will get you started:

Have all of your income information available, including any tax slips you received for the tax year.

Do your taxes on time, every year, even if you didn’t earn income or your income was tax exempt. Your benefit and credit payments, like the GST/HST credit, are calculated using your tax information.

Register for direct deposit to get your payments directly into your bank account.

You may be eligible to have your return filed at a free tax clinic if you have a simple tax situation and a modest income.

You can also use the CRA’s free online learning tool, Learn about your taxes, to help you gain the confidence you need to do your taxes on your own either online using NETFILE-certified software (sometimes free) or on paper using an income tax package.

While there’s only so much each person can do to save more and tighten their budget, here are ideas you may not have thought of.

Use reward points wisely. If you’ve been collecting points via credit card rewards or a customer loyalty program, now might be the time to use them. It depends on the program itself and how much you’ve collected, but don’t forget about the value of your points when budgeting for your next big-ticket purchase, self-care splurge or perfect gift. Just be sure to read the fine print before cashing in.

Pool your resources. Chances are, more of your friends and neighbours are struggling than you know, so reach out and see how you can help each other out. Maybe it’s holding a weekly group meal of pantry staples with rotating hosts; it could be a commitment to tend a garden together for home-grown produce you can all enjoy; or maybe you split cheaper bulk-packs of toilet paper, rice and meat from the grocery store. Whatever you do, there are often ways to save through community.

Look out for government payments. Don’t forget about the cash you get from any government credits and benefits. The Climate Action Incentive payment goes to Canadians in the province where it was collected – currently Alberta, Manitoba, Saskatchewan and Ontario since they use the federal carbon pricing system rather than their own. Households in Newfoundland and Labrador, Nova Scotia and PEI will begin receiving payments in July.

The incentive used to be paid out as a refundable tax credit, but now it’s a quarterly payment directly to your account. It can help you offset the costs of going green or you can save it for later.

More info at canada.ca/learn-about-taxes and at canada.ca/cai-payment.