Best tax tips for students and first-time filers

Tax season is here, ready or not. For Canadian residents filing taxes for the first time, it can seem overwhelming to know where to start. Enter the world of taxes with ease—and avoid a penalty for incorrect filing—using these five beginners’ tips as your guide.

1. Start early

Your brain is in the right spot. Now is the best time to start the process of filing your taxes. Though the deadline is April 30, starting today will give you plenty of time to ask questions and double-check your work, saving you unnecessary stress down the road.

2. Become tax-savvy with free lessons

Why do you have to file taxes in the first place? How are these taxes used? Educate yourself about the process and purposes of filing by taking the online course prepared by the Canada Revenue Agency (CRA). The course will also give you practical advice on how to file your taxes for the first time. Register online for the free training, which takes about one hour to complete.

3. Collect all the information you might need

A little prep work will go a long way in ensuring a smooth and efficient process. Collect all the information you may possibly need before you start filing. Begin by gathering T5 forms from the bank and any T4 forms sent by your employers in the past year. Employers are required to send these, so if you have yet to receive yours you will want to contact your workplace immediately.

4. Take advantage of student perks

University students can get credit for a number of school-related costs. This credit will reduce the amount of tax money that you owe the government. You can receive tax credit for tuition, textbooks, student loan interest, transportation costs, moving costs and childcare costs. Keep these numbers handy to insert into this spring’s filing.

5. Get help

Consider using an accountant to help file your taxes for the first time. An accountant can answer all of your questions as they come up, can point out tricks and tips that are personal to you and your living situation, and can give you sound advise to use as you continue to file taxes in years to come.

Another option is to file your taxes online. There are dozens of programs, websites and even mobile apps that are certified by the CRA that you can use for filing your taxes. For your convenience, the CRA has compiled a list of certified software providers on its website.

Next steps

Congratulations, the hard part is over! Once your filing is finished, you have the option to submit your paperwork online or via hard copy. Keep your information securely in one location, including receipts of anything you have deducted. Note that the CRA may contact you with follow-up questions.

Want to save time next year? The last step for a successful first filing is to take note of which tips worked best for you and which websites or resources were most helpful. When your return arrives from the CRA, put all this tax-related info together.

One thing is for certain: Next year will be easier than ever with these tax-smart practices already in place.