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Life Events and Taxes: Key Things to Know


Life is full of milestones, and many of these moments can impact your taxes. From turning 19 to starting your first job, buying a home, welcoming a child, or entering retirement, understanding how taxes intersect with life events can help you make the most of available benefits and credits.

The Canada Revenue Agency (CRA) provides guidance and tools to help Canadians navigate these changes and plan their finances effectively.


Turning 19

Your 19th birthday opens the door to new benefits, such as the GST/HST credit. If you work and earn a low income, you may also be eligible for the Canada Workers Benefit (CWB). Filing your taxes for the first time is important to access these benefits.


Starting Your First Job

When you start working, federal and provincial/territorial taxes are withheld from your paycheck based on the TD1 form you complete. This form allows you to claim personal tax credits to reduce the amount withheld. Remember to keep track of your total income if you have multiple jobs, and include all T4 slips when filing your tax return.


Post-Secondary Education

Students may be eligible for tuition credits, transferring amounts to a parent or spouse, and deductions for moving expenses if relocation is necessary for school or work.


Buying, Renovating, or Saving for a Home

  • Saving: The First Home Savings Account (FHSA) and Home Buyers’ Plan (HBP) help first-time buyers save for a home with tax advantages.

  • Renovating: The Multigenerational Home Renovation Tax Credit allows you to claim costs for adding secondary units for seniors or adults with disabilities.

  • New rebate: First-time home buyers may also be eligible for the proposed GST/HST rebate on new homes.


New Relationship Status

It’s important to inform the CRA if your marital status changes, such as marriage, common-law partnership, separation, divorce, or widowhood.


Welcoming a Child

New parents may qualify for benefits and credits such as the Canada Child Benefit (CCB), and can plan for their child’s education through a Registered Education Savings Plan (RESP) with incentives like the Canada Education Savings Grant (CESG).


Turning 65+

Retirement and age-related milestones can affect your taxes. You may qualify for benefits such as the GST/HST credit and the Guaranteed Income Supplement (GIS). Age-related deductions and credits may also reduce your taxable income.


Death and Taxes

Handling tax matters after a loved one passes requires notifying the CRA, filing final and estate returns, and possibly applying for a clearance certificate to ensure all taxes are settled before distributing assets.


No matter your stage in life, the CRA offers resources to help you understand taxes and meet your obligations. Free tax clinics are available for those with modest income and simple tax situations, and the CRA’s podcast Taxology provides guidance for newcomers, students, parents, and first-time workers.


This article is for informational purposes only and does not imply endorsement or affiliation with CRA.


*This article is for general informational purposes only and is not intended as professional tax advice.

While the content is based on guidance from the Canada Revenue Agency (CRA), it may not reflect your specific tax situation. For personalized tax advice, please consult our tax professionals or contact the CRA directly.


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