Luckily, most teens don’t earn enough money to have to file a tax return. Generally speaking, all Canadians earning less than the basic personal credit (approximately $ 11,000) do not have to file. Certain exceptions apply, of course. See all the details on the Do you have to file a return? From the Canada Revenue Agency.
The best question is: should my teenager file a tax return? Absolutely
- He may be entitled to a tax refund. If your teenager had income tax, EI, or CPP deductions but didn’t make a lot of money, they may be eligible for a refund.
- He can start increasing his RRSP contribution limit. The RRSP contribution limit begins to accumulate as soon as income is declared, regardless of age.
- He can register for services. Filing a tax return registers your teenager in the CRA system. When he turns 19, his eligibility for the GST / HST credit will be automatically assessed if he has filed a return in the previous year.
Make it a learning moment. Involve your teenager in the filing process
Salaries, wages, pensions and pensions paid by one of the Contracting States or one of its administrative subdivisions or local authorities (cantons, departments, municipalities, etc.) for services rendered currently or previously to the debtor in the exercise of functions of a public nature to a natural person possessing the nationality of that State are taxable only in the State of the debtor.
It follows, on the side, that for the application of paragraph 1 of Article 21, the salaries, wages, pensions or pensions paid by the State or a French public authority to French nationals resident remain taxable (see in this regard for public pensions from sources paid to residents nationality, Moylan ministerial response below). Using the tax return calculator is important.
The Legal Stances
According to the provisions of article 21 of the tax convention of September 9, 1966, pensions paid by the French State or one of its local communities, or by a legal person governed by public law of that State, directly or by deduction from a special fund, to a natural person who is a resident of Switzerland and has nationality, for services rendered previously, are exclusively taxable in France. In accordance with paragraph 1 of B of article 25 of the aforementioned convention, these pensions are exempt from tax.
However, this State retains the right to take them into account in order to determine the tax rate applicable to any other income of this taxpayer, which would be taxable. As is common practice in international law, this rule is in no way a source of double taxation. It only makes it possible to maintain the progressivity of the tax in such a way as to take into account the real contributory capacities of residents, even when the convention withdraws Switzerland’s right to tax a portion of the income of these taxpayers. However, this progressivity only affects the taxable income of residents of that state, in accordance with the provisions of the convention. France also reserves identical rights in its tax treaties.