Introduction

Entering the job market in Quebec, whether after university, a vocational diploma, a professional internship, or a specialized program, also means stepping into a new world: that of taxes, payroll deductions, credits, and sometimes even additional tax obligations. Many young professionals miss out on refunds, forget credits, or make mistakes that lead to penalties. This guide presents essential tax advice for new graduates to start their careers on the right foot and explains how a CPA near you in Montreal can help you optimize your tax filings.

Legal and Regulatory Framework

According to the Income Tax Act and the Quebec Tax Act, all workers must file an annual return including:
• Employment income (T4 / RL-1)
• Interim, internship, or scholarship income (T4A / RL-1 / RL-8)
• Business income or self-employment income
• Credits for tuition fees (T2202 / RL-8)
• Eligible employment expenses
• Deductions for RRSP, student loans, or eligible moving expenses

Young workers must also understand mandatory payroll deductions: tax, QPP, UI, and sometimes taxable benefits.

Important Judicial Decisions

The courts remind that young professionals are responsible for their own returns, even in the case of an employer's mistake. Several judgments highlight that:
• Taxable scholarships must be reported correctly.
• Tuition fees must be carried forward if not used in the current year.
• Self-employment income must be documented even if informal.
• Unauthorized employment expenses can lead to penalties.

The courts have also confirmed that ignorance of tax rules does not excuse omissions of income.

Why the CRA and Revenu Québec Target New Professionals

Young graduates often generate common mistakes, including:
• Forgetting to report a student job or a paid internship
• Neglecting to claim education credits
• Confusing self-employment income and employment income
• Deducting ineligible expenses
• Not updating their address (loss of tax notices)
• Confusing taxable and non-taxable scholarships
• Forgetting tip income

Tax authorities compare data from employers, educational institutions, banks, payment platforms, and other third parties to detect inconsistencies.

Essential Tax Advice for Young Professionals in Quebec

1. Properly Use Education Credits (RL-8 and T2202)

Young graduates can:
• Reduce their taxes
• Carry forward unused credits
• Transfer some to a parent in certain cases

This credit is one of the most underutilized by new workers.

2. Check that All Employment is Reported

Be sure to include:
• Student jobs
• Paid internships
• Temporary contracts
• Side jobs paid in cash or through a platform
• T4A and RL-1 slips from schools or employers

A forgotten job often triggers an audit.

3. Understand Taxable Benefits

Phone, parking, provided meals, and allowances may be taxable and must appear on the T4/RL-1.

4. Contribute Early to the RRSP

Even a small amount can:
• Reduce taxes
• Build a savings history
• Increase the purchasing power for a first home through the HBP

Young people who start early gain significantly in the long run.

5. Keep All Payment Proofs

Receipts, invoices, transportation costs, interest on student loans, and work-related expenses must be kept for at least six years.

6. Optimize Government Benefits

Young workers may be entitled to:
• GST/QST Credits
• Quebec Solidarity Credit
• Family benefits (if applicable)
• Deductions for public transport

These programs are often overlooked.

Mackisen Strategy

At Mackisen CPA Montreal, we help young professionals:
• Optimize their education credits
• Check their tax slips to avoid omissions
• Reconstruct forgotten income
• Deduct eligible expenses from first jobs
• Leverage RRSP benefits from the first year
• Prevent errors related to self-employment or side businesses
• Respond to assessment notices from the CRA and Revenu Québec

We also provide clear explanations, tailored to new workers discovering the tax system.

Real Customer Experience

A young graduate in Montreal forgot two student jobs and a taxable scholarship. The CRA triggered an audit. We reconstructed all income, claimed unused education credits, and transformed a balance owed into a refund.
Another client thought her unpaid internship did not affect her return — she had received a T4A which we used to optimize her credits and avoid recalculation.

Frequently Asked Questions

Are scholarships taxable?

Some are, others are not. It depends on the program and student status.

Should I report cash jobs?

Yes. All income is taxable, even without a T4.

Can I deduct purchases related to my first job?

Only if the employer signs a T2200 form confirming their necessity.

I have several small incomes, how do I keep track?

A simple bookkeeping method or software can facilitate tracking.

Why Mackisen

With over 35 years of combined experience in taxation and accounting, Mackisen CPA Montreal supports young professionals in maximizing their credits, avoiding mistakes, and building a solid financial foundation from the start of their careers.