How to File Your First Tax Return

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Helina Tadesse March 16, 2025

Filing your first tax return can feel overwhelming, but it doesn’t have to be! Whether you’re a student, a new employee, or just starting to earn income, filing taxes is an important step to ensure you’re compliant with the Canada Revenue Agency (CRA) and potentially claim money back. Let’s break it down into simple steps.

Step 1: Gather Your Documents

Before you start, collect all the necessary paperwork. Here’s what you’ll likely need:

• T4 Slip: From your employer, showing your income and deductions.

• Receipts: For expenses like tuition, medical bills, or charitable donations.

• Social Insurance Number (SIN): Your unique identifier for tax purposes.

• Other Forms: If you’re self-employed, have investment income, or received scholarships, you may need additional forms like a T4A or T5.

Example: If you worked part-time and earned 

10,000,yourT4willshowthisincome.Ifyoupaid

10,000,yourT4willshowthisincome.Ifyoupaid500 in tuition, keep your tuition receipt to claim the credit.

Step 2: Choose How to File

You have two main options:

1. Online (NETFILE): Fast, easy, and eco-friendly. Use certified tax software like TurboTax, Wealthsimple Tax, or UFile.

2. Paper Filing: Print and mail your return. This is slower but works if you’re not comfortable with technology.

If your income is under a certain threshold, you may qualify for free tax software through the CRA’s Free File program.

Step 3: Fill Out Your Tax Return

This is where you report your income and claim deductions or credits. Here’s how to keep it simple:

• Report Income: Enter amounts from your T4 or other slips.

• Claim Deductions: Reduce your taxable income with expenses like RRSP contributions or moving costs.

• Claim Credits: Get money back for things like tuition, medical expenses, or public transit.

Example: If you earned 

10,000andpaid

10,000andpaid500 in tuition, you’d report the 

10,000asincomeandclaimthe

10,000asincomeandclaimthe500 tuition credit to reduce your taxable income.

Don’t overlook credits like the Canada Training Credit or the Climate Action Incentive they can add up. 

Step 4: Submit Your Return

Once your return is complete, it’s time to submit it.

• Deadline: April 30 is the usual deadline for most individuals. If you owe money, late filing can result in penalties.

• What Happens Next: The CRA will process your return and send you a Notice of Assessment, which outlines your refund or any amount owing.

If you’re self-employed, your deadline is June 15, but any taxes owed are still due by April 30.

Step 5: Track Your Refund or Payment

• Refund: Use the CRA’s MyAccount portal to track your refund status. Most refunds are issued within 2 weeks for online filings.

• Payment Owing: If you owe money, pay by the deadline to avoid interest charges. You can pay online, at your bank, or through the CRA’s My Payment service.

Sign up for direct deposit with the CRA to get your refund faster.

Common Mistakes to Avoid

1. Missing Deadlines: Late filing can lead to penalties. Mark your calendar!

2. Incorrect SIN: Double-check your Social Insurance Number to avoid processing delays.

3. Overlooking Credits: Research available credits—many beginners miss out on money they’re entitled to.

4. Math Errors: Use tax software to minimize calculation mistakes.

5. Not Keeping Records: Save your documents for at least 6 years in case the CRA reviews your return.

If you realize you made an error after filing, use the CRA’s ReFILE service to submit an adjustment.

Filing your first tax return is a milestone, and with these steps, it’s easier than you think. Start gathering your documents today, and don’t hesitate to seek help from a tax professional if you’re unsure. Remember, filing your taxes on time ensures you stay in good standing and might even put some money back in your pocket.