3 things young people should know about income tax

by | Mar 11, 2024 | Finance and Business

Filing your taxes is something of a rite of passage for young people; a sign that you’re starting to make your way in the world by earning income. At the same time, they can feel a bit intimidating for someone still new to the process.

Here are three things to know:

Filing doesn’t mean paying
Filing your income tax and benefit return does not necessarily mean you will have to pay taxes on it. This is likely early in your career when your income is at the lowest rung on the pay-scale ladder. Depending on how much money you make, you could even get a tax refund if you paid more tax during the year than you now owe based on your income.

You can get some extra cash
In addition to a potential tax refund, you could receive benefit and credit payments. By submitting your tax return, you’re automatically enrolled for certain payments if you’re entitled to them, such as the Canada Worker’s Benefit. Other payments you must apply for, such as the Canada Child Benefit, but your tax return and reported income determine if they apply to you.

You can get that cash quickly
Most of us are used to taking care of life online – from booking a yoga class to paying your phone bill. The same goes for doing taxes. You can submit your tax return online through a Netfile-certified software.

If you also sign up for direct deposit from the Canada Revenue Agency, then you can receive any payments you’re entitled to in as little as eight business days. The agency does not have access to personal banking information, like your account balances, when you do this.

Find out more at canada.ca/direct-deposit

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