Welcome to Canada's Favourite Questions and Answers Community, where you can ask practical questions and get sensible answers for free, without the need to register or login.

Does everyone has to file income tax in canada? What is the easiest and fastest way to file my own income tax myself without the help of a tax accountant?

+4 votes
For the past many years I had always used the help of a tax accountant to help me file my own income tax. But a friend suggested to me that I could very much do it myself without going to a tax accountant. I could save on the fees paid to the tax accountant and achieve the same results. In fact, I might even be able to get more tax refund doing it on my own since I know my situation the best.

My case is a pretty simple one where I only have my work income to report and a few donations to the local church community. I do not have RRSP or any other investment such as stocks, shares, mutual funds or GICs. I also want to help my own mum and dad to file their income tax as well. Since they haven't been working for quite many years now, their income should be reported as zero and I guess it shouldn't be that hard to complete their income tax. All these years I had been paying my tax accountant for helping file income tax for my parents too and I believe i could save quite some money just on the fees I pay to the tax accountant for the three of us. Oh, not to forget fees for doing my spouse's income tax too. Does anyone know if I need to file an income tax for my son who is 4 years old, to be included in our family income tax filing?
asked in Charlottetown by Cheryl King (169 points)

Type your answer below

Upload image or document:

Your name to display (optional):
Privacy: Your email address will only be used for sending this above notification.
Anti-spam verification: (Check box below)
(No login or Registration required)

2 Answers

0 votes

Everyone except a dependant such as your infant child or teenage child who depends on you for financial support, has to file an income tax in Canada. If your child at any age starts earning money on his own, he or she will need to file an income tax then. Even if you don't have any income at all, you will be required to file taxes so that you could possibly claim for the quarterly GST/HST payments and other claims. 

A lot of people surprisingly doesn't know or they don't trust themselves in filing taxes on their own. They prefer going to an accountant to file their taxes thinking it is better that way. The fact is it is very easy to file your own income tax if your situation is very simple and straightforward. 

Lets say you earned income in the previous year and this current year you are filing your income tax for last year. 

1. You will receive a document called T4 from your work employer around mid February or end of February

2. If you invested your money in an investment account and you earned more than $50 throughout last year, then you get a T5 statement from your bank where you invested your money.

3. If you donated money to some charity organisation, you will get a donation receipt showing you the amount you contributed to that organisation

4. If you had spend money on medication and drugs, keep your bills since you will need them to file some medical claims.

5. If you have paid tuition fees, you will get a statement from your college, university or educational institute showing the amount of money you spent on education tuition fees as it is called. You can claim this amount while filing your income tax.

6. With the above documents in hand you are ready to file your own taxes. Some of the popular tax Softwares are Ufile and Turbotax. There are other tax Softwares too but they are not that popular or not as easy to use. Some of the tax Softwares are free and doesn't require you to purchase them. Even UFile and Turbotax has the free versions too, provided your income for that year is less than $20,000. Students file for free with UFile regardless of their income amount. You can download the tax software online - Ufile and Turbotax, or buy the tax software CDs from any departmental stores in your local area like turbotax from Walmart.ca or Ufile from bestbuy.ca.

7. When you open your tax software, you will need to enter your personal details about yourself, your spouse or any Dependant you may have.

8. You can either use the in built "Download T4" into your tax software or you can manually enter all the T4 (Work Income Document) Details. 

9. Based on your situation you can enter details such as investment, donations, medical expenses, tuition fees, RRSP, Rental income, Capital gains.

10. Once you are done entering those information into the tax software, the tax software does all the hard work with calculations and shows you how much tax refund or tax owing. It also provides you with tips and suggestions on topics related to your situation. Once you are satisfied that ll information you have entered is correct, you can "Netfile" your tax return online which means you can send your completed income tax return directly to the Canada Revenue Agency using this tax software. 

11. Remember to also complete the section for your spouse and dependant children before you "Netfile" your income tax return. You may have to "Netfile" for youself, your spouse and your children, one at a time. So if you have 3 person's taxes you are filing, then you will have to "Netfile" three times. You will see the "Netfile" options beside each of your family members name except if your dependant children has no income and still depends on you for financial support.

The most popular tax software in Canada are Turbotax and Ufile. They are both widely used by all Canadians to file their own income tax and they are very easy to learn. You do not need to be an accountant to be able to use these software's. Most of the information are entered into the software through series of interview questions and then it will tell you exactly how much refund or taxes you are owing to the government.

answered by Nancy Yueng (203 points)
0 votes
Watch video on "How to file your income tax in Canada using Turbotax software?" :

Watch video on "How to file your income tax in Canada using Ufile software?" :

answered by Taxman

Related questions

+9 votes
2 answers
+3 votes
2 answers
+3 votes
1 answer