If you’re new to Ontario, Canada, knowing about the benefits and support programs is key. This guide will give you a clear view of the main Ontario benefits. They’re here to make your move easier and help you settle well. It doesn’t matter if you’re a permanent resident, refugee, or just here temporarily. You’ll learn how to find the help you need, from health care and education to financial support.
Key Takeaways
- Discover the essential Ontario benefits and support programs for newcomers
- Understand the process of determining your residency status and its implications
- Learn about the Ontario Works and Emergency Assistance programs for financial aid
- Explore the Social Insurance Number (SIN) and its importance for accessing benefits
- Discover the GST/HST Credit and Canada Carbon Rebate for low-income families
Getting Started with Ontario Benefits
Coming to Canada as a newcomer can feel overwhelming. But, learning about Ontario benefits and the Canadian tax system can open doors to support and financial help.
Determining Residency Status
Knowing your residency status is key to getting Ontario benefits and understanding taxes. You’re seen as a Canadian resident for tax if you have a home, family, or property here. This status helps you use the benefits and credits meant for newcomers.
Understanding Canada’s Tax System
The Canadian tax system is unique. Your employer takes taxes off your pay. You must file a tax return each year to see if you owe taxes or get a refund. Learning about this system helps you use the benefits and credits for newcomers.
| Statistic | Value |
|---|---|
| Languages supported by the 211 phone line for newcomers in Ontario | Over 150 |
| Free services to help newcomers get their education and work experience recognized in Ontario | Offered |
| Limit on rent deposit in Ontario | One month’s rent or the rent for one rental period, whichever is less |
| Professions and trades in Ontario governed by government-set rules and laws | Over 100 |
Understanding ontario residency requirements and the canadian tax system for newcomers helps you build the right residential ties canada. This sets you up to use the benefits and support for newcomers in Ontario.
Applying for Ontario Works or Emergency Assistance
If you’re facing financial hardship, you might be eligible for Ontario Works or Emergency Assistance. The application process is easy, with options online and by phone. This makes it simple to get the support you need.
Online Application Process
The online application for Ontario Works takes about 20 to 30 minutes. You’ll need to share personal and financial details about you and your family. After you apply, a worker from your local office will call you within four business days.
Phone Application Process
If you’re in an emergency or need an interpreter, you can apply for Ontario Works over the phone. City of Toronto staff can help you with the application. They’ll ask about your personal and financial situation.
Application Follow-Up Appointment
After applying, you must attend an in-person meeting within 30 days to check if you qualify for help. Bring your spouse and dependents over 18 with you. If you don’t speak English or French, bring an interpreter who meets the criteria.
To be eligible for Ontario Works, you must be 18 or older, in need of money, and ready to look for or keep a job. Emergency Assistance is for people in crisis, like those facing homelessness, abuse, or not having enough money for basic needs.
The amount of help you get depends on your family size, housing costs, and income. This is based on the Ontario Works Act and Regulations. If you’re approved, you can get various services. These include applying for the Ontario Disability Support Program, Fair Pass Discount Program, and Ontario Electricity Support Program.
For better management of your assistance, use MyBenefits online. It makes it easier to get information and services.
Social Insurance Number for Newcomers
If you’re new to Canada, getting a social insurance number (SIN) is key. This nine-digit number is vital for working, getting government benefits, and filing taxes. It’s needed by all: citizens, permanent residents, and temporary residents.
Applying for a SIN is easy. You can do it online, at a Service Canada office, or by mail. Online applications usually get a SIN in 15 days, while in-person or mail takes up to 25 days. There’s no cost to apply for a SIN in Canada.
What you need for a SIN depends on your Canada status. Permanent residents need their Confirmation of Permanent Residence document. Temporary residents might need a work or study permit. Always keep your SIN info current, especially if your name or immigration status changes.
After getting your SIN, give it to anyone who needs it for taxes or benefits. But keep your SIN private to avoid identity theft and financial risks. Only share it with those who really need it, and don’t carry it with you.
For newcomers, knowing about the social insurance number and how to apply is key. With a SIN, you can join the Canadian economy and use the benefits and services for new residents.
GST/HST Credit for Low-Income Families
Coming to Canada can be tough, especially with taxes. But, there’s a program that can help: the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) credit. It’s a non-taxable credit for those with low incomes. It helps cover the GST or HST on what you buy.
To get the gst/hst credit canada, you must file a tax return yearly, even if you earn nothing. The Canada Revenue Agency (CRA) checks your income, marital status, and family size to see if you qualify.
- A single person with an adjusted family net income of $54,704 or less would receive the GST credit for July 2024 to June 2025.
- A married or common-law couple with two children would receive the credit if their adjusted family net income was $65,084 or less.
The maximum GST/HST credit amounts for the July 2024 to June 2025 period are:
- $519 for single individuals
- $680 for married or common-law partners
- $179 for each child under 19 years old
The gst/hst credit for newcomers is paid every three months in January, April, July, and October. New Canadians can apply for it in the year they move here using the GST Credit Application (Form RC151).
The federal sales tax credit is a big help for living costs in Canada. Make sure to claim it by filing your taxes yearly, even if you didn’t work.
Canada Carbon Rebate
The Canada Carbon Rebate (CCR) is a tax-free payment to help people and families in some provinces. It offsets the higher costs from the federal carbon pricing system. This program gives money to help with the increased prices of fossil fuels and carbon-heavy goods and services.
Offsetting the Cost of Federal Pollution Pricing
The CCR goes to residents in eight provinces: Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. People get the rebate four times a year, on the 15th of January, April, July, and October.
The federal carbon pricing set a minimum price of $20 per tonne of carbon dioxide equivalent (CO2e) in 2019. This price has gone up to $80 per tonne in April 2024 and will hit $170 per tonne by 2030. This means drivers in some provinces pay more for gas, from $0.1431 to $0.1761 per liter, depending on where they live and the year.
To get the CCR, you must be at least 19, a Canadian resident for tax purposes, and meet CRA’s criteria. You don’t need to apply for it. Eligibility is based on last year’s income tax returns.
The rebate amount changes by province and family size. It includes base amounts and extra for having a spouse, kids, or living in a small or rural area. For instance, families of 4 could get $760 to $1,800 every quarter, with more for those in rural areas.
The CCR payments are tax-free and don’t depend on your income. They’re based on your family situation and where you live. This helps people and families deal with the costs of the federal carbon pricing system across the country.
Ontario Benefits For Newcomers
If you’re new to Ontario, you might get federal and provincial benefits to help your family financially. These include the Canada Child Benefit (CCB) and the Child Disability Benefit.
Canada Child Benefit (CCB) and Child Disability Benefit
The Canada Child Benefit (CCB) is a tax-free payment for eligible families. It helps cover the costs of raising kids. The amount depends on your family’s income, the number of kids, and their ages. You can apply for the CCB once you get a social insurance number in Canada.
The Child Disability Benefit is extra money for families with a child who has a severe and long-lasting physical or mental impairment. It offers financial support to families with kids who need special care.
Newcomers to Ontario might also get provincial programs like the Ontario Trillium Benefit, Ontario Sales Tax Credit, and the Ontario Child Benefit. These programs help with living costs and give financial help to those with lower or moderate incomes.
Using ontario benefits for newcomers means your family can get the support and resources needed to do well in your new home. Keep up with what you can get, apply for what you’re eligible for, and enjoy the financial security they offer.
Disability Tax Credit
If you’re new to Canada, you might be eligible for the Disability Tax Credit (DTC). This tax credit can lower the taxes you owe. It’s for Canadian residents, including newcomers and refugees, who have a severe and long-lasting impairment.
To get the DTC, you need a doctor or other qualified medical professional to confirm your condition. For the 2021 tax year, you could get up to $8,662. Plus, if you care for a family member with a disability, you might also get the Canada Caregiver Credit (CCC).
Parents of kids under 18 with a severe impairment could get up to $2,915 more each year in Canada Child Benefit (CCB). Also, starting a Registered Disability Savings Plan (RDSP) before you’re 49 can lead to up to $90,000 in grants and bonds.
You don’t have to be a Canadian citizen to get the Disability Tax Credit. Immigrants and refugees can also benefit, making it a key support for newcomers.
“The Disability Tax Credit is a game-changer for newcomers with disabilities, providing much-needed financial relief and access to additional government support.”
Filing your taxes in Canada is important. It’s not just about doing your civic duty. It also opens the door to tax credits, deductions, and government benefits like the Disability Tax Credit. Using this credit can help your finances and support your life in Canada.
Property Ownership Before Arriving in Canada
If you owned property in your home country before moving to Canada, you should know about the tax rules. When you become a Canadian resident, you might be seen as selling any foreign property you had, even if you didn’t sell it. This is called a “deemed disposition.” It can lead to big tax issues you need to think about.
The Canada Mortgage and Housing Corporation (CMHC) helps newcomers with information on buying a home. They offer guides, fact sheets, and tools to help new Canadians make smart choices about property.
Knowing about the tax rules for property ownership before coming to Canada and tax implications for property owned abroad is key. This knowledge helps you plan your finances better and make your move to Canada smoother.
- Look into the tax rules for any property you owned before moving to Canada.
- Learn how to report a “deemed disposition” of foreign property to the Canada Revenue Agency.
- Check out CMHC’s resources to help you decide about buying a home in Canada.
- Talk to a tax expert to make sure you follow all the rules and requirements.
“Navigating the tax implications of foreign property ownership can be complex, but with the right information and guidance, you can make a smooth transition to life in Canada.”
Understanding property ownership before coming to Canada and tax implications for property owned abroad helps you prepare for the financial and legal parts of settling in your new home.
Tax Implications for Returning Residents
If you left Canada and are now coming back, you might face tax issues with property you owned abroad. When you return, you’re seen as having sold any foreign property you had, even if you didn’t sell it. This deemed disposition can lead to big tax implications for returning residents that you must consider.
Unwinding a Deemed Disposition
The deemed disposition of foreign property means you’re seen as selling the property at its market value when you became a Canadian resident again. This could lead to a tax bill, as you might have to report any gains or losses. To deal with this, you need to manage the tax effects and follow Canadian tax laws closely.
- Look at the cost and market value of your foreign property at the time of the deemed disposition.
- Figure out the capital gains or losses and report them on your Canadian tax return.
- Think about tax credits or exemptions that could reduce the tax impact of the deemed disposition.
- Get professional tax advice to help with the complex process of unwinding a deemed disposition.
Handling the tax implications for returning residents and dealing with a deemed disposition is key. It helps make moving back to Canada smoother and avoids tax problems or issues with the Canada Revenue Agency (CRA).
Filing Income Tax Returns as a Newcomer
If you’re new to Canada, you must file an annual Income Tax and Benefit Return. This lets you report your income, claim deductions, and see if you owe tax or get a refund. Knowing about the different tax package options and how to file can help you meet deadlines and avoid fines or extra charges.
Tax Package Options
There are several ways to get the tax package you need:
- Request a personalized tax package from the Canada Revenue Agency (CRA)
- Download the tax package online from the CRA website
- Use tax preparation software or hire a tax professional to help you
Filing Methods and Deadlines
After getting your tax package, you can pick how to file your tax return in Canada:
- Online filing with certified tax software, which takes about two weeks
- At a community volunteer tax clinic, which also takes about two weeks
- By mail, which can take around 8 weeks if filed before April 30th
Remember, filing late can lead to penalties and extra charges. The deadline for filing personal taxes in Canada is usually April 30th each year.
Understanding the tax filing process and deadlines is crucial for newcomers to Canada to ensure they meet their obligations and avoid any penalties or interest charges.”
Penalties and Interest for Late Filing
If you’re new to Canada, knowing about tax penalties and interest is key. The Canada Revenue Agency (CRA) has strict rules and fines for late filing or not paying taxes. Understanding these can help you avoid financial trouble.
The CRA charges a 5% penalty on taxes owed for late filing, plus 1% for each month it’s late, up to 12 months. If you’ve been late three times in the last three years, the penalty jumps to 10% plus 2% for up to 20 months.
Not reporting income can also lead to a 10% penalty or 50% of the difference between what you reported and the actual tax. In serious cases, the penalty can be up to $100 or 50% of the avoided tax, and you could face criminal charges.
Tax preparers can also face penalties, up to $1,000 or 50% of the avoided tax, with a cap of $100,000 plus their earnings.
Make sure to file your taxes by the deadline, usually April 30th for regular jobs and June 15th for self-employment. Missing the deadline can mean losing out on benefits like the Climate Action Incentive Payment and GST/HST credit.
To dodge these fines and interest, keep on top of your taxes as a newcomer. Learn the deadlines, what you need to file, and where to get help. This way, you can file smoothly and keep the CRA off your back.
Completing Your Tax Return as a Newcomer
Filing taxes in Canada as a newcomer can be both exciting and a bit scary. But, with the right help, you can finish your tax return well and get the benefits and credits you deserve.
Identification and Other Information
You’ll need to give out personal info when filing your taxes, like your social insurance number, marital status, and where you live now. Make sure all the details you give are correct and current. This makes the filing process smoother and quicker.
Reporting Income and Claiming Deductions
One important part of filing taxes as a newcomer is reporting income from Canada and other countries. This includes money from a job, investments, and other sources. Also, you should claim all eligible deductions and credits to lower your taxes. Keep good records and receipts for your claims, as the Canada Revenue Agency might ask for them if they check your return.
| Deadline | Details |
|---|---|
| April 30, 2021 | The filing due date for most individuals to complete and file an income tax and benefit return. |
| June 15, 2021 | The deadline for individuals who are self-employed and had a business in 2020 to file the 2020 return. |
Even if you didn’t earn much in Canada, it’s a good idea to file a tax return. This way, you make sure you get all the benefits and credits you’re supposed to have as a newcomer.
“It’s important to keep detailed records and receipts to support your tax filing, as the Canada Revenue Agency may request this information if your return is selected for review.”
Federal and Provincial Tax Credits for Newcomers
Coming to Canada can be tough, but there’s a silver lining – you might get tax credits. These can lessen your tax load. They’re for low-income families, childcare, medical costs, and more.
The Canada Child Benefit (CCB) is a big help. It’s a monthly payment for kids under six or between six and seventeen. The amount depends on your family’s income.
The GST/HST Credit also helps by covering GST or HST on purchases. A family with two kids could get up to $992 every three months. A single person might get $496 from July 2023 to June 2024.
The Canada Workers Benefit (CWB) is for low-income workers. Singles can get up to $1,428 a year if their income is low enough. Families could get up to $2,461 a year if their income is also low.
Provinces and territories have their own credits for newcomers too. For instance, the Ontario Trillium Benefit (OTB) combines several credits. The Alberta Child and Family Benefit (ACFB) helps lower-income families with kids.
It’s key to look into and claim all the tax credits you can. This way, you can get a bigger refund and pay less tax as a newcomer.
“As a newcomer to Canada, it’s crucial to understand the various tax credits and benefits available to you. Claiming all the credits you’re eligible for can make a significant difference in your financial situation.”
Tax Treaties for Newcomers
Coming to Canada, you might not know about the many tax treaties Canada has with other countries. These tax treaties for newcomers to Canada help you understand Canadian taxes and avoid international tax agreements canada.
These treaties set the rules for your tax status and how taxes are shared between Canada and your home country. Knowing how they apply to you helps you meet tax duties in both places and avoid paying taxes twice.
- Canada has tax treaties with over 90 countries, offering newcomers many benefits.
- These treaties help figure out your tax status and how taxes are split between Canada and your home country.
- Understanding these treaties lets you use rules that might lower your taxes or help you claim credits or deductions.
Learning about tax treaties for newcomers to Canada and international tax agreements canada is key to fitting into the Canadian tax system. These agreements help you meet your tax duties while saving money and getting benefits.
“Understanding tax treaties can be a game-changer for newcomers to Canada, helping them navigate the tax system and avoid the pitfalls of double taxation.”
As a newcomer, getting advice from tax experts is very important. They can give you advice tailored to your situation and make sure you use the tax treaties you can.
Digital Services for Individuals
The Canada Revenue Agency (CRA) offers digital services and tools for individuals, including newcomers. These services make managing your taxes easier. They help you file taxes online and give you control over your tax situation.
One key service is filing your tax return online. The CRA’s secure platform lets you submit your return quickly and easily. This is great for newcomers who might not know the Canadian tax system well.
The “My Account” portal gives you direct access to your tax information. You can view and manage your tax details, update your info, and talk to the CRA online. This keeps you informed and helps you make smart decisions.
The CRA also has digital resources for newcomers. These include guides, tutorials, and webinars in languages like English, French, Arabic, Farsi, and Spanish. These resources help you understand your tax duties and make filing taxes easier.
Using the CRA’s digital services, newcomers can enjoy convenience, accessibility, and efficiency. These tools simplify filing taxes and help you manage your money better.
“The CRA’s digital services have been a game-changer for me as a newcomer. Being able to file my taxes online and access my information through the ‘My Account’ portal has made the process so much easier and less stressful.”
– Fatima, a newcomer to Canada
Streamlining the Tax Filing Process
- File your tax return online through the CRA’s secure platform
- Manage your tax information through the “My Account” portal
- Access digital resources and guides in multiple languages
- Benefit from the convenience, accessibility, and efficiency of CRA’s digital services
| Digital Service | Languages Supported |
|---|---|
| Permanent Residence Application Resource Guides | English, Spanish, Farsi, Arabic |
| Refugee Hearing Preparation Guides | English, French, Chinese, Spanish, Mongolian, Arabic, Somali, Urdu, Farsi, Tigrinya, Turkish, Sorani Kurdish |
| Online Accounts & Web Portals Tutorials | English, French, Arabic, Tigrinya, Spanish, Tagalog, Punjabi, Farsi, Vietnamese, Traditional Chinese, Simplified Chinese |
| Digital Literacy Resources | English, Arabic, Spanish, Pashto, Dari, Swahili, Ukrainian |
| Financial Literacy Information | English, Arabic, Spanish, Tagalog, Farsi, Chinese (Simplified), Chinese (Traditional), Punjabi, Hindi, Urdu, Russian, Ukrainian |
Conclusion
Coming to Ontario as a newcomer can be complex, especially with benefits and taxes. This guide has given you a clear overview of what you need to know. It covered everything from social assistance and tax credits to filing taxes.
Knowing your rights and duties helps you make the most of the support available. With this guide, you’re ready to handle your finances and get the ontario benefits for newcomers you need.
This summary of benefits for newcomers to canada will be a great help as you settle in. Staying informed and proactive about your rights and duties is key to doing well in Canada.