For those whose IEC time and working holiday visas have finished or coming to an end this year, we have a few tips from the Jackstaxback team to help make the transition as smooth as possible, when filing your 2018 tax return.
Pass on your new contact details to all 2018 employers
The most common issue we see from clients who are former IEC members is a missing T4. Unfortunately, not all employers are as organized as all IEC members, and will accidentally lose T4s by mailing them to an old Canadian address or incorrect email address.
When you hand in your notice to your employer, we recommend that you update them with your future mailing address, as well as ensuring they have your correct email address on file. You are required to submit a tax return with information from T4s from all 2018 employers, which should be issued to you in early 2019. As an IEC member, working holiday or other temporary foreign worker, it would be easiest to receive your T4 via email, that way you will always have access to an electronic copy, and avoid the T4 being lost in international mail.
Know your tax residency status
This can be the most confusing part of filing a tax return. If you filed last year or a previous year as a newcomer tax resident, and have a permanent leaving date from Canada (for work purposes) in 2018 you will most likely be filing your return as a tax emigrant. However as with all things ‘tax’, it is beneficial to consult a tax professional regarding your tax residency, in order to make sure you are 100% tax compliant when filing your tax return, and also to ensure you receive the largest tax refund possible.
Making mistakes with your tax residency can lead to incorrect, potentially smaller refunds and extremely long delays with receiving your deserved tax return.
Update your details with CRA
There is not many more annoying things on earth than having your hard-earned tax refund cheque mailed to an old address in Canada. Especially when it should have already been deposited into either a Canadian account you have left open, or mailed to your correct foreign address. So, how do you update your contact details with CRA? When leaving Canada for good you should contact CRA and update them with either your foreign address, or your Canadian bank account details in order to receive your tax refund via direct deposit (if you plan on keeping an account open).
More information on doing this can be found on the official CRA website.
File a tax return!
After the effort of ensuring you receive all the required documents to file a tax return, and inform CRA of your new personal details, do not forget to file a tax return! You are legally obliged to file a tax return in Canada if you have worked at some point in Canada within the previous calendar year. There is also a high possibility that you will be due a tax refund. With a quick and free tax return quote provided by Jackstaxback, you will be able to see how much of a tax refund you are entitled to.
If you have any further questions regarding your 2018 tax return or all other tax matters, why not send us a message. Our experienced team are more than happy to answer any questions you may have, after all, tax doesn’t have to be taxing.