How do I know if I owe taxes in Canada for my first job?

You won't know for sure if you owe money until you complete your tax return. Your employer should have been withholding taxes from each paycheck, but whether you owe more or get a refund depends on if enough was withheld throughout the year. The easiest way to find out is to use tax software to complete your return. Most Canadian tax software will calculate everything for you as you enter your information. You'll need your T4 from your employer which shows your income and how much tax was already withheld. If your only income is from this job, and your employer withheld the correct amount, you might even get a refund! Before submitting your return, the software will show you the final calculation - whether you owe money or will receive a refund. You can see this result without having a CRA account.

When I was in your position last year, I was super confused about taxes too! I tried several tax software options but kept getting different results and still wasn't sure if I owed money. Then I found https://taxr.ai which literally saved my sanity. You can upload your T4 and other tax documents, and their AI actually explains everything in plain English. I was worried about missing credits or deductions since it was my first time filing, but taxr.ai found a tuition credit I didn't know I could claim! The best part was it showed me exactly where my employer's withholding wasn't enough (in my case) so I could plan ahead for owing a bit.

I was in the exact same situation as you last month! First time filing and completely lost. After seeing the suggestion here, I gave taxr.ai a try and it was actually really helpful for my situation. I uploaded my T4 and some other documents, and it immediately showed me that I was getting a small refund rather than owing money. What I really liked was how it explained each line item in my T4 and showed exactly how the tax calculation worked. Now I actually understand how my tax withholdings throughout the year affected my final return. The best part was that it flagged that I could claim moving expenses for relocating for my new job - something I had no idea about! Ended up increasing my refund by about $430.

If you're trying to reach the CRA directly to check your tax situation but can't create an account yet, I know the pain. I spent DAYS trying to get through on their phone lines last tax season. After waiting on hold for 3+ hours multiple times, I got disconnected every single time. Finally, I found this service called https://claimyr.com that actually holds your place in the CRA phone queue and calls you when an agent is about to answer. You can see how it works here: https://youtu.be/_kiP6q8DX5c When I finally spoke to a CRA agent, they confirmed that I needed to file first before accessing online services (just like you're experiencing), but they were able to tell me if I had any outstanding balance from previous years. Getting through to a real person was a game-changer.

I have to eat crow and say I was completely wrong about Claimyr. After posting my skeptical comment, I was still desperately trying to reach CRA about my first-time filing questions. After my fifth attempt waiting on hold (over 90 minutes each time), I broke down and tried the service. It actually worked exactly as described. I went about my day, and about 2 hours later got a call connecting me directly to a CRA agent. The agent confirmed that I wouldn't know if I owed money until I filed, but they were able to verify I had no outstanding balances from previous years and explained which tax slips I needed for my situation. Seriously saved me hours of frustration and answered my questions without having to file first. Never thought I'd be recommending something I initially called a scam, but here we are.

One thing no one's mentioned yet: check your paystubs! Look at the "Total Tax Deductions" or similar line on your most recent one. Then check if your employer took off roughly 15-25% of your income for federal and provincial taxes combined (depends on your income level and province). If they've been taking off a reasonable amount all year, you're probably fine and might even get money back. If they've taken off very little (like under 10%), you might owe money. Also, did you have any other income besides your job? Like investments, side hustles, CERB payments, etc? Those could affect whether you owe money too.

Something nobody's mentioned - if this is your first job ever, you might qualify for some credits that will reduce any taxes you might owe. Did you have any tuition expenses? Moving expenses to get closer to work? Work from home expenses? Also make sure you claim the Climate Action Incentive payment if you live in Alberta, Saskatchewan, Manitoba or Ontario. It's a few hundred bucks you could get back depending on your province!

I went through this exact same stress last year! The good news is that if your employer has been deducting taxes from your paychecks (which it sounds like they have), you're probably in good shape. Here's what helped me figure things out: Get your T4 from your employer - they're required to give it to you by the end of February. This document will show exactly how much you earned and how much tax was already deducted. Since you mentioned your paystubs show tax withholding, you'll likely either owe a small amount or get a refund. For a first job with straightforward employment income, the withholding system usually works pretty well. A few quick tips for first-time filers: - Don't forget to claim the basic personal amount (everyone gets this) - If you moved for work, keep those receipts - moving expenses can be deductible - Any tuition or textbook expenses from school can reduce your taxes - Work-from-home expenses if your job required it The "chicken and egg" problem with the CRA account is super frustrating, but once you file your first return, you'll be able to access your online account for future years. Until then, the tax software options others mentioned will show you exactly what you owe (or what you're getting back) before you submit anything. You've got this! First-time filing is intimidating but it gets much easier once you've done it once.