New job? New baby? Newlywed? Find out how your taxes could change

New job? New baby? Newlywed? Find out how your taxes could change 

Was last year full of change for you? Maybe you started your soon-to-be epic career, welcomed a new addition to your family or tied the knot with the love of your life. If any of these sound familiar, it’s good to remember to keep your friendly federal tax team – a.k.a. the Canada Revenue Agency (CRA) – in the know. Big changes in your life can mean big changes to your taxes, so we’ve come up with a few scenarios to walk you through what you should know along the way.

You started your first job
The switch up from student to fully-fledged employed adult can be a big one. You might have been surprised to see how much tax came out of your first paycheque, but there’s a chance you have a tax credit waiting to be claimed. If you couldn’t claim all of your tuition and education credits while you were in school, and didn’t transfer all of them to someone else, they would have carried forward when you filed your next return. That means they could be used this year to lower your overall tax bill.

You put a ring on it  
Congrats! While you’re enjoying heartwarming wedded bliss, take a moment to loop in the CRA of your new marital status with an RC65 Form – Change of marital status. Here’s some more good stuff to know:

You bought your first place

No more rent payments for you! If you’re a first-time homebuyer you’re eligible for the Homebuyers’ amount. This is a $5,000 credit, which works out to $750 in tax savings.
Here’s a few more things to know:

You’ve got a little one on the way

Hello, baby! The first few weeks with a new addition can be a bit hectic, you may have forgotten you registered your child at the time of birth. Here’s what else you should know:

Had some other life changes in the last few months?
Maybe you went through some other big changes that aren’t listed above, and are wondering if they affect your taxes…

If you answered yes to any of these questions, then your tax situation has changed too. It’s a good time to consult a Tax Expert to make sure you have the right amount of tax being withheld by your employer, and see if you might qualify for other credits or deductions.

When big changes come along, it’s easy to get swept up in them and put your taxes on the backburner. Taking a minute to update the CRA of any tax-changing events will save you some headaches down the road, so keep them in the know!

 

Not sure if the changes in your life mean changes to your tax bill? Stop by H&R Block and chat with a Tax Expert. They can walk you through any steps you need to take, and point out any new credits or deductions you could qualify for. Find an office near you. Ready to file? You can do it yourself with our free online software.