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Home / Managing your money / Understanding tax / 7 reasons to file a tax return

Tax

7 reasons to file a tax return

2 min read

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There are many good reasons to keep up to date on your taxTax A fee the government charges on income, property, and sales. The money goes to finance…+ read full definition 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 BenefitBenefit Money, goods, or services that you get from your workplace or from a government program…+ read full definition. 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 RRSPRRSP See Registered Retirement Savings Plan.+ read full definition contributions, which reduce your net income. If you don’t use your contribution roomContribution room The amount you can put into a savings plan like a Registered Retirement Savings Plan…+ read full definition 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 RESPRESP See Registered Education Savings Plan.+ read full definition. 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) pensionPension A steady income you get after you retire. Some pensions pay you a fixed amount…+ read full definition, 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.

TAKE ACTION

Learn more from the Canada Revenue Agency (CRA) about when you must — and when you may want to — file a return.

Last updated September 26, 2023

Articles in this section

Articles read
How income tax works 2 min read
Understanding the tax deductions on your pay stub 3 min read
Investors and tax 4 min read
Reducing the tax taken from your pay cheque 2 min read
Tax penalties and fees 3 min read
7 reasons to file a tax return 2 min read
RRSP and TFSA contributions 2 min read
Penalties for not reporting income 2 min read
5 common mistakes to avoid on your tax return 2 min read
Making changes to your tax return 1 min read
If your tax return is reviewed 3 min read
If your tax return is audited 2 min read
If you don't pay your tax bill 2 min read
If you disagree with your tax assessment 1 min read
Filing a final return 1 min read
Charitable donations 2 min read
Medical and attendant care expenses 2 min read
Claim tax credits on student loans and expenses 3 min read
Parents and tax 2 min read
Homeowners and tax 2 min read
Seniors and tax 3 min read
Caregivers and tax 2 min read
The self-employed and tax 3 min read

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