Often, I get this question as if I should really be filing a tax return even I have no income or tax owing. More importantly, where the kids are growing up and they get their first paycheque but far from the taxable limit. A new immigrant with nil or little income in first year, a student studying in University or a person emigrating from Canada. At certain times, though, filing a tax return is optional but there are some mandatory situations. A Helpful link is directly from the source, Canada Revenue Agency Website (http://www.cra-arc.gc.ca/doyouhavetofile/). Some of the most common situations to consider:

You MUST file the tax return, if:

  1. You have to pay tax (it could be any situation).
  2. CRA sent you a request to file a return.
  3. You and your spouse or common-law partner elected to split pension income.
  4. You disposed of capital property. For tax years 2016 and after, a sale of Principal Residence also requires you to file the Tax Return and Schedule.
  5. You have to repay any of your old age security or employment insurance benefits
  6. You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or the Lifelong Learning Plan.
  7. You have to contribute to the Canada Pension Plan (CPP). (Self Employment Earnings).

 

There are many other credits and benefits available, which if a tax return is not filed, may not become available.  Most recommended are:

  1. There is a refund. A Student, with little income, far from the taxable limit still wants to file a tax return to claim refund of CPP, EI and Income Tax.
  2. Some benefits are available only by applying e.g. Working Income Tax Benefit, GST Credits (you may be eligible if you turn 19 before April of Next Year), Child Tax Benefits.
  3. Students are highly advised to file tax return to claim Tuition Credits.
  4. For Seniors, to continue the claim for Guaranteed Income Supplement.

We can help you to analyze your situation, suggest the required filings and compliance and ensure you get the required deductions, credits and refund for the tax filings.  Please contact us via email or phone.