Empowering youth in and from government care in BC

What do I need prepare for my taxes?

First you need the basics:

1. Legal name
2. Your current address
3. Your date of birth
4. Decide if you want to vote in elections
5. Your Social Insurance Number (SIN)
6. Your income

What’s my income?

Basically think of it this way: if you got money somehow you have to declare it.

There are a few exceptions in BC:

1.Any GST/ HST payments/ cheques

2.Any child tax benefits

3.Any money you got as a payment from a vehicle accident

4.Any money you got as a result of being a victim of a crime

5.Lottery winnings

6.Most gifts and inheritances

7.Any money you receive for disability due to war service

8.Most payments from a life insurance policy due to someone’s death

9. Inheritance

What can I declare?

The most common things that youth declare are:

• Income (jobs, income assistance, disability, employment insurance etc)
• School (tuition or paid student loan interest)
• Savings (RRSP’s and/ or Tax-Free savings accounts)
• Expenses (Large medical costs, childcare expenses, children’s fitness tax credit, children’s art credit)

If you own property or have your own business there are other things you will need to declare, so have an accountant help you with your taxes.

What are the forms I need?

The government calls tax forms slips.

1)T4’s: your income from working. You should get one from every employer you’ve had in the last year. So, if you’ve moved you need to make sure you’ve updated your address with your former employers. Previous years’ T4s can be accessed here.

2)T4E’s: this is what you get if you’ve received Employment Insurance in the last year.

3)RC62: Universal Childcare Benefit

4) RRSP contribution slip – you get this from the bank you have your RRSP with

5)T2202A: your post-secondary school should give you this for tuition

6)T5007: AYA T5, income assistance or disability income slip.

I'm First Nations are there different tax rules for me?

In some cases yes.

1. you must provide proof of registration with Aboriginal Affairs and Northern Development Canada (AANDC).
2. You must have earned the income while living on a reserve and from the reserve.

If both things above are true then you are tax exempt from the following:

1. Any property you own on reserve (that has existed before July 1, 1867). If you’re not sure check with your band.
2. If you earned income from your reserve. For example, let’s say you’re an artist and you sell your art to people on your reserve then you don’t have to declare it as income, but if you sell it off reserve to someone then you are suppose to declare it as income. For more information check out this link.
3. If you received employment assistance like employment insurance, income assistance, disability etc.
4. If you are a full time student and received scholarships, fellowships, or bursaries, or are receiving AANDC’s Post-Secondary Student Support Program or its University and College Entrance Preparation Program.

There are a few other reasons like income earned from savings, retirement etc. For more information check out the CRA’s website

Ok, I have everything I need how do I file taxes?

We suggest using this online free, Vancouver based, tax software called Wealthsimple Tax Did we mention it’s FREE???

You can file your 2022 and prior year tax returns using this software.

Is there anything else I can claim?

Yes, you can claim the following things:

1. Childcare expenses
2. Child Fitness Tax
3. Medical costs

What Childcare expenses can I claim?

There are very specific circumstances that you can declare childcare expenses.

You can declare if:

1. Both you and your partner/ spouse are or if you are a single parent and are:  
   1. Not at home because you are working;
   2. Have your own business and you need to work;
   3. Attend school under the conditions identified under Educational program; or
   4. Carry on research or similar work, for which you or the other person received a grant.
2. If someone you know, but is not related to you is taking care of your child(ren). Remember you will need this persons social insurance number to declare the cost which means the government knows they made money. So, make sure this person is aware they will have to declare this on their tax return.

You can't declare if: 

1. If you are looking for work 
2. If someone related to you through blood, adoption or marriage is looking after your child(ren).

What kind of child care can I claim?

• Any individual (not related) providing child care services;
• Day nursery schools and daycare centres;
• Educational institutions, for the part of the fees that relate to child care services;
• Day camps and day sports where the goal of the camp or sports is to take care of your child ; or
• Boarding schools, overnight sports schools, or camps where the child spends the night

What's a child's fitness tax?

It's a tax break you get if your child is in a fitness program. 

A fitness program means it must: 

• be ongoing (last at least eight consecutive weeks or, in the case of children's camps, five consecutive days);
• be supervised;
• be suitable for children; and
• require significant physical activity.

Significant amount of physical activity means: 

The activity must increase the child’s heart rate, plus one or more of:

• muscular strength,
• muscular endurance,
• flexibility, and/or
• balance.

The following situations do not qualify:

• activities where riding in, or on, a motorized vehicle is an essential part of the activity;
• self-directed (unsupervised) activities;
• activities that are part of a regular school program like P.E. class; or
• sports programs in schools.
• food and accommodations related to being part of a fitness program
• watching your child(ren) play videogames
• equipment purchased in order to participate in the sport. If the equipment is part of the registration fee then it’s ok. For example, some registration forms might include jersey, then it’s ok.

What are medical costs?

There are hundreds of things that can be claimed, some need prescriptions and some don’t. You can claim things ranging from crutches to prescriptions. Remember to keep your receipts because you will need to submit them. Check out this detailed list.

Do I get all my money back for my medical expenses?

No, you only get a percentage of your expenses back. The calculation is this: you take your total expenses and subtract 3% of your annual income and that’s what you would get back.

For example:

1.last year you had $2000 in medical expenses and you made $22,600.

2.Calculate 3% of $22,600 = $678

3.Minus $678 from $2000 = $1322.

4.Which means you would receive $1322 back from your medical claims

Do I have to pay taxes on an inheritance? 

No, but if you are on income assistance, disability or employment insurance you need to tell them that you received that money. If you are not honest about it and you are caught there are penalties starting with being cut off from the service.

How do I get a GST cheque? 

The government automatically calculates how much your payments are and will send you cheques.