Tax Filing for Newcomers in Canada

Barbara Britto and Evelyn Jacks

Canada Revenue Agency (CRA) has issued updated guidance for 2026 to assist new residents in efficiently navigating their initial tax season, something professional advisors may wish to take more time to cover with immigrants to Canada. Filing a tax return is not only a legal obligation for residents but also serves as an entry point to vital benefits and credits that can substantially aid individuals and families as they establish their lives in Canada. Further, it’s important for people to know that it’s a requirement to report world income in Canadian funds on the T1.

The Backdrop - It is crucial for newcomers to recognise the significance of timely tax filing. Individuals who became residents of Canada in 2025 are required to submit their first tax return by April 30, 2026. The only exception is proprietors who can file by June 15; however if they owe money to CRA, interest is charged effective May 1. Those arriving in 2026 must file by April 30, 2027. Adhering to these deadlines is essential for maintaining continuous access to benefits and preventing interest charges on unpaid taxes.

The Refundable Benefits - Filing a tax return is crucial, even if you had limited or no income during your initial year in Canada. Numerous federal and provincial benefits—including the Canada Child Benefit and the Canada Groceries and Essentials Benefit—are determined by the information reported on your tax return. In fact, a temporary resident can start receiving the CCB payment in the 19th month they have lived in Canada. To meet eligibility requirements, both spouses are required to submit annual returns.

In the case of the GST/HST credit, now renamed the Canada Groceries and Essentials Benefit, receiving the money is possible in the year of entry, even before filing the first tax return. Complete Form RC151, GST/HST Credit Application.

The Documentation – Newcomers will need your help with CRA’s digitization requirements; especially setting up their MyAccount and getting their Social Insurance Number of SIN. Help them collect key documents before filing taxes and explain how these will be stored electronically. Gather T slips, records of foreign income earned as a resident, the value of foreign assets held around the world when they entered Canada and receipts for expenses like childcare, medical costs, donations, and documentation for any self-employment or business activities. Remember, reporting world wide income is required and most newcomers will appreciate knowing more about mixed use expenses like home workspace and auto use expenses.

Help new clients understand how long they must retain their records. That’s a period of six years from the end of the last tax year they relate to. The tax year, for clarity is the calendar year for individuals, and the fiscal period for corporations. There are separate rules for trusts. 

The Notice of Assessment. After filing, explain that the CRA will issue a Notice of Assessment and it’s critical to keep this to preserve appeal rights, communicate with CRA ( they will often ask for the Line 15000 amount to verify taxpayer identity) and it may also be required for immigration applications, loans, or future tax planning. 

Adjusting Returns. Let your newcomer client know that if an error is discovered after filing, a correction can be requested. This is true for any audits the client may face in the future as well – error correction is allowed. Don’t forget to mention how lucrative the disability amount and medical expense claims can be, especially if the newcomer family is giving care to several generations under one roof. 

Bottom Line: Gaining an understanding of the tax system is difficult for most Canadian residents, and especially newcomers to Canada. Professional tax preparers can be of significant help with valued and trusted services which can result in a large number of referrals, too. That’s a win-win.

Knowledge Bureau can also help. Tell your clients about Canada’s Income Tax Fundamentals course to help newcomers better grasp their tax filing rights.