Why File a Income Tax Return?

Taxes are boring! They are complicated, can take a lot of time to do and can be a pain in the-you-know-what. But did you know that if certain conditions apply, you don’t have to file a tax return? Sadly these conditions do not apply to everyone and even if you don’t have to file, it can still be a good idea to file.

When Do You Have To File A Tax Return?

• If you had income and owe taxes, then you have to file! After-all, if you don’t file, the CRA won’t know how much to charge you.
• If you had net self-employment income that was more than $3,500, then you will have to pay CPP.
• Do you and your spouse want to split your pension income? If so, you both have to file a tax return.
• Did you sell investments or other capital property? If so, you must file a tax return to declare the capital gain or loss.
• If you have to repay Employment Insurance (EI) or  Old Age Security Benefits (OAS), then you have to file a tax return.
• If you took amounts from your RRSP for the Home Buyers Plan (HBP) or Life Long Learning Plan (LLP) and must make repayments, then you are required to file a tax return.
• The CRA told you that you have to file! Don’t ignore the request as there can be penalties for failing to file.

Good Reasons To File A Tax Return

Perhaps you don’t have to file an income tax return this year. In many cases it still makes good sense to file anyway. Here are a few good reasons to file:

• The government owes you money and you want a refund! If they owe you a refund and you don’t file, then you won’t earn any interest on that money.
• You want to receive the GST or HST credit.
• If you receive the Child Tax Benefit (CTB) and want to continue to receive those payments, then you’ll have to file.
• If you were a student and want to carry forward your unused tuition and education amount to future years, you’ll have to file a tax return. If you want to transfer these amounts, you will also have to file.
• Did you have earned income and you can build more RRSP contribution room by filing your income tax return.
• Did you have a non-capital loss in the year? If so, you’ll have to file to be able to carry this amount forward.
• Did you receive the Working Income Tax Benefit (WITB) advanced payment? Do you still want to receive it? Then you should file.
• If you receive the Guarantee income Supplement (GIS), you will have to file in order to continue receiving those benefits.

Related Articles

• Get Ready To File Your Income Taxes
• No Income No Tax Return?
• Get Ready to File Your Tax Return
• Income Tax & Real Return Bonds