No Income No Tax Return?

by Tax Guy - Burlington Accountant on March 8, 2010 Print This Post Print This Post

Well not exactly.

Individuals are only required to file a Canadian income tax return (T1) if one of the following conditions applies:

  1. You have a tax balance owing at the end of the tax year,
  2. You have sold capital property during the year (stocks, bonds, mutual funds, real estate, business properties etc.),
  3. If you are a non-resident and have a taxable capital gain from a previously claimed capital gains reserve,
  4. You have a positive Lifelong Learning Plan (LLP) or Home Buyers Plan (HBP) balance, or
  5. The CRA has demanded that you file a return.

Note that if you are new to Canada you are required to pay tax on your worldwide income but only on income from point you became a Canadian resident for tax purposes.

If none of the above apply, there are still benefits to filing a personal income tax return. You should consider filing a tax return if:

  • You want to claim a refund,
  • You would like to claim the GST/HST credit,
  • You have unused tuition and education credits to carry forward,
  • If you had earned income for the purposes of your RRSP, or
  • If you have non-capital losses to carry back or if you are a senior and want to receive GIS or OAS payments

If you would like to discuss how we might best help you with your taxes, please give Dean a call at 289-288-1206 or sent an email.

Revised May 30, 2012

 

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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