• 2020/4/30 13:50
• 留学霸
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It's the annual tax return season again. I believe that more and more international students have heard that they need to file taxes when they are studying. Before studying abroad, he also introduced an article on the comprehensive introduction of tax reporting. For details, please visit the link below the article. The following E-Canada School will teach foreign students how to file taxes, the matters to be paid attention to when filing tax and the method of tax declaration.

Why do international students have to file taxes?

Perhaps many people's understanding of tax reporting is the expenditure for the government. Under this premise, we must have income to file tax. But most international students have no income. What tax do they report? First, let ’s understands the terms that we may often hear tax refund, tax deduction, and tax deferral. Because many international students belong to non-income groups, international students generally report GST / HST and OTB (Ontario Trillium Benefit), of which HST / GST is a tax on consumption in Canada, such as: buying clothes, eating, cutting hair, etc.

The consumption tax is calculated by the government CRA (Canada Revenue Agency) according to the consumption and background of each group, and then we will give us some subsidies every quarter. Generally, the tax refund we hear refers to the tax refunded to the taxpayer when we have income and withholding tax after tax payment. In addition to the consumption subsidy tax, international students can also declare OTB (Ontario Trillium Benefit), which is Ontario's low-income subsidy, which includes the subsidy for renting a house, and each subsidy is different according to the rent. The final tuition fee will not be refunded to the students, but will be used for tax deduction. The so-called tax deduction is that when we have income, part of the tax paid can be offset.

How to file a tax

International students need to have personal documents: Social Insurance Number (SIN), abbreviated as SIN card and ID proof, such as driving license or passport.

The SIN card is to be applied at the Service Canada Center. The passport and student visa are required to prove the legal status in Canada.

The tuition receipt can be downloaded from the official website of the school where the student is studying.

The rent receipt can be requested from the landlord. If you have income, you need to provide the T4 form.

If the bank's interest is greater than 5%, a T5 form is required. T5 also belongs to the income obtained from investment. Both forms can be filled out on the CRA official website according to the information in the form, and some employers will also give T4.

If you have income, you can provide a doctor's receipt and medicine receipt and donation receipt. The income referred to here is the income that the employer is paying for the employees, not the cash workers.

Things to note

As mentioned earlier, the documents required for tax returns for international students who generally do not have income, in addition to personal documents, only have tuition and rent receipts. The tuition receipt is downloaded from the school's official website. And before there is no income, the tax deduction effect of tuition fees cannot be reflected.

The HST / GST subsidy tax is for everyone, but the amount will vary according to the situation of each person, and it is calculated by the government, and there is nothing to pay attention to.

The thing to note here is the rent receipt, because the landlord does not necessarily understand the tax return policy. Therefore, the receipt must have the time period for renting, the price, and the address. These should be written in accordance with the provisions of the contract. If the utility bill is paid by oneself, the receipt of the rent should not say that the rent includes utilities and parking. Finally, make sure to have the landlord's signature.

Tax return methods

There are three ways to file tax returns:

1. Find a professional accountant to file a tax return: If it is a one-year tax return, the fee charged is about 30 to 50 Canadian dollars. The price will increase with the tax filing year.

2. Non-profit organizations: Many churches or communities have a department called Tax Clinic, which is a department that specializes in tax returns for people and is free. The detailed address and contact information can be found on the CRA official website, https://apps.craarc.gc.ca/ebci/oecv/external/prot/cli_srch_01_ld.action. Need to make an appointment in advance, and many are just to help report one or two years of tax. One thing to note here is that the people that each community helps will be different. Some say that the client can be anyone, while some say that it is just an international student, a newcomer to Canada, or a disabled person.

3. File your own tax returns online: Here you need to download certain tax reporting software online, such as Ufile, and then fill in according to the software's guidelines. Because different software formats are different, there is no unified standard, but the information / numbers to be filled are the same. Tax reporting software generally requires payment to use.

If you have any questions about applying for a visa to study abroad and immigration of foreign students, please feel free to consult the E-Canada School. We provide one-stop services for students to apply for study visas and immigration. Welcome to contact Canadian and American immigrants. We will analyze the applicants in detail and tailor the most suitable study abroad immigration program for you.