Young Canadians may be entitled to money back at tax time Yellowknife NT
Fort Smith, NT
Young Canadians may be entitled to money back at tax time
(NC)-The feeling of euphoria that comes with earning your first real paycheque can be almost overwhelming. Yet the euphoria passes quickly when you realize your employer has taken income tax off your gross earnings. There's a good chance that you'll get some money back if you file a tax return.
Whether you're 17, 27, or 67, if you work in Canada, you may have to pay income tax, depending on your income. People who earn less than $9,600 don't have to pay income tax, but the only way to get tax refunded is to file a return.
Young Canadians especially may be entitled to tax refunds, GST/HST credits, and, depending on where they live, provincial or territorial tax credits-but the only way to find out how much, if any, is to file a tax return. The GST/HST credit is a tax free quarterly payment you can receive from the Canada Revenue Agency if you qualify.
If you're a student you may also be able to claim part of your tuition and other education expenses but again you must file a tax return to find out how much, if any.
Even though you may still be in your teens or early 20s, every dollar you earn counts towards how much you can contribute to a Registered Retirement Savings Plan, now or in the future. By filing a tax return, you keep your records of earnings up to date.
Remember to include all your sources of income-even tips and other amounts paid in cash are considered income and are therefore taxable. More information is available on taxes and youth at www.cra.gc.ca.