There are many good reasons to keep up to date on your tax filing each year. You may file a tax return even if you don’t have any income. It could help you access certain refundable tax credits and other benefits.
On this page you’ll find
- 1. You owe tax or want to receive a refund
- 2. Recover any tax you overpaid from your pay cheque
- 3. Take advantage of refundable tax credits
- 4. Create contribution room in an RRSP
- 5. You might be eligible for the Canada Learning Bond for your child’s education savings
- 6. Confirm your eligibility for some benefits
- 7. Peace of mind
1. You owe tax or want to receive a refund
If you are a resident of Canada for part or all of a tax year, you must file a tax return if you owe tax or want to receive a refund. If you owe tax, you should file on time to avoid late fees.
2. Recover any tax you overpaid from your pay cheque
You may have had too much tax deducted from your pay cheque and not benefited from all the deductions and tax credits you were entitled to.
3. Take advantage of refundable tax credits
Examples of refundable tax credits are: GST/HST Credit, or the Canada Workers Benefit. If you don’t file a return, you won’t be able to confirm your eligibility for credits like these.
4. Create contribution room in an RRSP
If you have earned income, you can make RRSP contributions, which reduce your net income. If you don’t use your contribution room in any year, you can carry the unused amounts to future years. Learn more about RRSPs.
5. You might be eligible for the Canada Learning Bond for your child’s education savings
If your income is low or moderate, you may be eligible for additional Canada Education Savings Grant (CESG) support as well as the Canada Learning Bond (CLB), which is a government grant added to your RESP. Filing your tax return will declare your income level and help determine your eligibility.
6. Confirm your eligibility for some benefits
The CRA relies on information from your tax return to confirm eligibility for some benefits, such as the Canada Child Benefit (CCB). If you receive the Old Age Security (OAS) pension, your tax return confirms whether your income level will reduce the amount of the payments you receive.
7. Peace of mind
Staying up to date on filing your taxes is an important step in keeping your finances in order. If a crisis hits, this will be one less thing you or your family will need to worry about.
Learn more from the Canada Revenue Agency (CRA) about when you must — and when you may want to — file a return.