Tax Filing For Youth Employees – PembinaValleyOnline.com

If you’re a worker under the age of 18, it may not be necessary to file taxes.

The Canada Revenue Agency only requires a person under 18 to file if they’re taxable, and that is if their income is more than $9,000 a year.

Joshua Neufeld, co-owner of CNH Tax and Bookkeeping in Winkler says if all of your combined sources of income is less than $9,000, then you don’t need to file, but he says there are some benefits to doing so.

“If you file and claim that you earned some income, either employment income or self-employment income, then it starts building RRSP room. So later in life, if you want to contribute to RRSPs you’d have a higher limit.”

If you’re in that bracket of earning less than $9,000, Neufeld says you would likely get back everything you were deducted. That amount will show on your T-4 under ‘income tax deducted.’

“Our fee is $50 for a basic return. So if it’s less than that, (your expected return) maybe you would want to go to a free tax clinic, if it’s a really basic return. If it’s more than that, maybe it’s worth it to get it filed.”

If you didn’t file last year and you would still like to, Neufeld says they can file taxes up to 10 years back.

At CNH Tax and Bookkeeping, Neufeld says they do see quite a few young people come in to get their taxes done. However, Neufeld says there is a growing number of youth employees that are tackling their taxes on their own. “The young people now are quite tech-savvy and they’re starting to come out with APPs where you can file on your phone…most of the time they’re fairly simple returns.”

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Neufeld says once it starts getting more complicated, that’s when they see a lot of the younger generation start coming in and asking for a professional to do their taxes.

Meanwhile, for youth under 16, and for 16 to 24-year-olds they can claim a Manitoba Fitness Tax Credit. It’s for any fees for weekly programs that last 8 weeks or more, or for daily programs that last 5 days or more in which the activities are primarily fitness activities that are eligible. Some examples include swimming lessons, soccer, hockey, and fitness training programs.


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