Knowing how to file your taxes is one of those essential (if not exciting!) life skills – right up there with cooking, budgeting, and doing your own laundry. If you’re a teen earning money from a part-time job or summer work, now’s the perfect time to learn. The good news? Filing a tax return with the Canada Revenue Agency is easier than you may think and will give you a major advantage throughout your financial future.
Key Takeaways
Filing a tax return as a teen offers significant advantages, even when you’re not required to:
- No downside: There’s virtually no downside to filing a tax return, even if you earn less than the basic personal amount ($15,705 for 2024 or $16,129 for 2025)
- Get money back: You may be entitled to a refund if CPP or EI deductions were taken from your paycheque
- Build RRSP room: Filing early helps you accumulate RRSP contribution room (18% of your earned income), which carries forward for years
- Learn essential skills: Starting with simple returns makes tax filing less intimidating as your financial life becomes more complex
- Access government benefits: Being registered with the CRA makes you eligible for benefits like the HST/GST credit when you turn 19
- Help your family: Your tax filing can potentially help reduce your family’s overall tax bill through medical expense pooling or tuition credit transfers
- Simple to file: Free online tools like NETFILE and TurboTax Free make filing straightforward and accessible
Why These Benefits Matter
We spoke with Judith Bailey, a Team Lead and CPA with TurboTax, who shared some tips and tricks to help teens prepare their first tax return and take advantage of these benefits. Here’s what every teen should know:
Do under 18 need to file taxes in Canada?
Regardless of age, Canadians are generally required to file a tax return if they earn an amount of money that exceeds the basic personal amount. For the 2024 tax year, the basic personal amount is $15,705. For the 2025 tax year, this amount increased to $16,129. “Usually a teenager has a summer job or casual work; if they earn less than that they aren’t going to be required to file,” says Bailey.
Bottom line: If you’re a teen who earns less than the basic personal amount, you’re not required to file a tax return.
What are the advantages of filing a tax return as a teen?
Maybe you don’t need to prepare a tax return, but that doesn’t mean they shouldn’t. “There are huge advantages to filing a return as a teen,” explains Bailey. Here are some reasons why it may be worth it for you:
You may get a tax refund
“One of the biggest reasons to file a return is you may be entitled to a refund,” Bailey says. Anyone earning under the basic personal amount threshold won’t have any tax payable, but you may have had EI (Employment Insurance) and CPP (Canada Pension Plan) contributions automatically deducted by your employer. The reason for this is an employer doesn’t know how much you’ll earn as a teen in a year.
For the 2024 tax year, EI premiums are deducted at 1.66% of insurable earnings (up to a maximum of $63,200), and CPP contributions are deducted at 5.95% on earnings between $3,500 and $68,500. At the end of the year, take a look at your total earnings and any common tax deductions. “If you’ve had deductions made and file a return, you could be entitled to a refund,” explains Bailey.
You can build up your RRSP contribution
Bailey says the second biggest reason why you should file a tax return as a teen is to build up your RRSP (Registered Retirement Savings Plan) room. While you’re likely not saving for retirement, you can still start planning for it. “Whenever you file your income tax return, you’ll be able to allocate 18 per cent of that year’s income towards next year’s RRSP contribution room,” explains Bailey.
That means if you make $1,000 one year, you’ve built up room for a $180 RRSP contribution. “So if you file taxes when you’re 16, by the time you’re 30, you’re going to have built up 14 years worth of room,” says Bailey. But if you wait until your mid-20s when you land their first real job to file a tax return, you’ll have missed out on all that RRSP contribution room.
You can practice filing a tax return
Preparing a tax return is a life skill just about everyone has to learn at some point. “The earlier you file your return, the simpler it’s going to be,” says Bailey. Which is why learning to file a return where, say, you’ve made $500 over the summer is probably going to be the simplest return you’ll ever do. “Then, each year you do one, it might be a little more complicated, but you’re learning a little bit more as you go,” explains Bailey. She says it’s better to learn now, rather than waiting until you’re are in your twenties and might also have additional considerations, such as deducting donations or moving expenses. “It’s like learning to ride a bike, the earlier you can do it, the better,” she says.
You’re registered with the CRA
Another reason why you should file your taxes as a teen is you’ll be registered on the CRA (Canada Revenue Agency) system. “That way, when you turn 19, you’re automatically eligible for any HST/GST credit,” says Bailey. “As long as you file your return as well.”
It could help boost your family’s tax return
Filing your taxes could also help lower your family’s tax bill. For example, if you have medical expenses, you can pool those expenses and have one person (usually a parent) claim them all together. This may help lower their taxes.
If you’re already attending post-secondary school and receive a tuition slip, you may not want to claim the credit, unless you’ve made enough income that year. Instead, you can transfer that amount over to a parent or guardian to use as a tax credit.
Read more: Guide to 2025 Tax Deductions for Families
What do teens need to file their taxes in Canada?
Now you know why there are perks to filing a tax return, here’s a checklist of things youcould need to file a tax return as a teen. Depending on your circumstances, you may need all or some of the following:
- Personal information—including your Social Insurance Number (SIN).
- T4 income slips—you should receive a T4 from each employer.
- A total amount from any cash tips or casual cash–in-hand work—teens should keep track of these amounts throughout the year.
- T2202 Tuition and Enrollment Certificate, if you’re enrolled in post-secondary education. You may also be able to claim moving expenses for school, such as flights.
- T5 slip, if you are old enough to invest and only if have earned an income over $50 on any investments in 2024.
How to file your taxes in Canada as a teen
You don’t need to hire an accountant to file a return. Here’s how you can file your taxes in Canada:
NETFILE
NETFILE is an electronic tax-filing service available through the CRA. It will let you do your personal taxes online free of charge.
Benefits of filing your taxes online include:
- An immediate confirmation from the CRA that their tax return has been received.
- No need to send in receipts, unless requested at a later date.
- A refund as quickly as two weeks, deposited directly into your bank account – if you are eligible.
TurboTax Free
TurboTax Free is a zero cost software that’s ideal for simple tax returns. The software is free to use and comes with features such as an auto-fill feature to import tax slips and software that will take care of the math for you. TurboTax Free is CRA NETFILE certified for the 2025 tax year.
Pay-what-you-want tax software
There is other tax software available in Canada that offers a pay-what-you-want model. Visit the CRA’s certified tax software page for a list of providers. Be sure to check that the tax service provider is certified for the tax year you’re filing for.
The Bottom Line
The biggest takeaway when it comes to taxes for teens? There isn’t much of a downside to filing a tax return. So, why not? Not only are you learning about important tax terms and an essential money skill, but you might just have money coming back to you in the form of a tax refund.
Taxes and financial literacy don’t need to be complicated for teens
Mydoh is a great way to learn about important financial literacy topics like taxes, the basics of budgeting, saving and more. It’s an interactive mobile app and Smart Cash card designed to help kids and teens learn real-life money skills.
Sign up for Mydoh to get started on the path to financial responsibility.
This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or its affiliates.
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