Canada is a popular destination for skilled immigrants in search of new career opportunities. It can be overwhelming, as a newcomer, to navigate the financial landscape including the benefits and credits that you can avail of. In this guide, we'll explore how you can leverage these resources to your advantage. We will also offer practical tips for optimizing your tax returns and contributing to causes that matter to you.
Benefits and credits for newcomers
When filing your taxes in Canada, it’s important to understand the various benefits and credits you may be eligible for. Some of the key benefits and credits include:
- Canada Child Benefit (CCB): Provides tax-free monthly payments to eligible families with children under 18 years of age to help with the cost of raising children.
- Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit: Provides tax-free quarterly payments to individuals and families with low or modest incomes to help offset the GST/HST paid on purchases.
- Working Income Tax Benefit (WITB): Provides tax-free payments to eligible individuals and families with low income who are working to supplement their earnings.
- Ontario Trillium Benefit (OTB): Provides tax-free monthly payments to eligible individuals and families in Ontario to help with the cost of energy bills, property taxes and sales tax on goods and services.
Maximizing your tax refunds
While newcomers may be eligible for various benefits and credits, there are efficient ways to maximize your tax refunds and keep more money in your pocket. Some strategies to consider include:
- Claiming eligible deductions and credits: Ensure you claim all eligible deductions and credits, such as medical expenses, tuition fees and charitable donations. This will help reduce your taxable income and increase your tax refund amount.
- Reporting all income: Accurately report all sources of income, including employment income, investment income and any income earned outside of Canada, so that you can avoid penalties and receive all eligible benefits and credits.
- Donating to charitable organizations: Consider making charitable donations to organizations making a difference in the lives of those in need like Canadian Redcross, Sickkids Foundation and Windmill Microlending. Donating to these charitable organizations creates a positive impact for a worthy cause and can also result in tax savings through eligible donation tax credits.
Making an Impact with Windmill Microlending
Windmill Microlending is a non-profit organization dedicated to breaking the cycle of poverty by removing financial barriers and fostering employment opportunities for newcomers. Our affordable loans help skilled newcomers access the funds they need to pursue education, training and licensing in their respective professions. Donating to Windmill can help reduce unemployment, increase Canadian productivity and triple the earnings of skilled newcomers as they restart their careers in Canada. Donate today!
Understanding the benefits and credits available to newcomers in Canada is essential for achieving your financial goals. It enables you to maximize your tax refunds and keep more money in your pocket.
.webp)
