Over the years, I’ve had a few individuals contact me regarding their overdue tax returns. Their reasons for not filing were usually due to not being confident over the complexity of their return or simply just plain forgetfulness. If you do not file your taxes, you could be missing out on a potential refund, or worse owe penalties and interest.
Here are some reasons why you should file your tax return:
- You have had tax withheld by your employer.
- It is the easiest way to establish your contribution room for a tax-free savings account.
- You have “earned income” for RRSP purposes as this affects your contribution room.
- You want to apply for the GST/HST credit. This credit is for lower income individuals.
- You want to apply for the Canada Child Benefit. Your household income will determine the amount of the benefit you will receive.
- If you are a senior and eligible, the filing of your tax return renews the Guaranteed Income Supplement.
- You have capital losses that you want to either carry back to a previous return or forward to future tax returns.
Want to know more?