Do You Need an Accountant for Your First Tax Return in Canada?
Illustrative example based on public discussions
You first came to Canada for a short visit. Later that year, you moved here, started a Canadian job and received a T4 from your employer. You also had income from outside Canada.
Now you're preparing your first Canadian tax return. Which date matters: your first visit or your move? Do you need to include the income you earned abroad?
Do you need an accountant? It depends on what you want to understand or hand over.
When a quick explanation is enough
Some questions become easier once you understand the terminology.
A T4, for example, is a slip from your employer showing your pay. If you've never filed taxes in Canada, the name might be unfamiliar even though the document itself is straightforward.
If you're comfortable working with your records, you may choose to prepare your return yourself. People with modest income and a simple tax situation may also qualify for help through a free volunteer tax clinic under CRA rules.
Two questions
One needs an explanation. The other needs your details.
- A general questionWhat is a T4?
- A general explanation may be enough.
- A question about your returnWhich date matters for my first return, and do I include my income from another country?
- An answer depends on your own circumstances.
When your own details need a closer look
In our example, you visited Canada, left, and moved here later. You have employment records from Canada and income records from abroad.
The CRA considers your ties to Canada when determining tax residency. Your dates, circumstances and records help explain your situation.
The example
Three events and one separate income record
First
Short visit to Canada
Later
Move to Canada
Then
Start work in Canada
Use this sequence to explain what happened. It does not establish your tax residency.
What do you want someone to look at?
You might need help understanding how your dates and records affect the questions you're answering. Or perhaps you've already prepared a draft and want someone to examine particular entries.
The work is different. Before agreeing to a review, ask what the accountant will examine, what you'll receive, and who will submit the return.
When you want an accountant to prepare and file it
Perhaps you understand the questions but would prefer someone to organize your information and prepare the return.
An accountant can bring together your dates, income records and other relevant details, then prepare the return for your approval.
You'll still need to provide accurate information, answer questions and review the completed return.
Preparation and filing
Who does what?
You
- Provide documents and explain your circumstances.
- Answer questions about your records.
- Review and approve the return.
Your accountant
- Identify what's needed and organize the information.
- Prepare the return for your review.
- File it after you approve it.
What to ask before you agree to the work
A few practical questions can help you find out what the accountant will handle.
Before you agree
Three questions to ask the accountant
What will you check?
A specific question, my existing draft, or the whole return?
What do you need from me?
Which documents, dates and other details should I bring?
What will I receive?
An explanation, feedback on my draft, or a prepared return with filing included?
Ask who will file the return if that isn't already clear.
Free initial consultation
We can talk through which parts of your situation need attention, what information to bring, and whether full preparation is right for you. Preparing and filing the return is a separate paid service.
Official Canadian sources (4)
These CRA and Government of Canada pages are the primary sources used to check the tax information in this article.
This article provides general information. Your own tax situation may need individual review.