Income Tax
Benefits of filing a return | Should I file? | How to | Cost | What is GST?| Child Tax Credit | Learning About Taxes | Top
Benefits of filing a tax return 
You may want to file a tax return if any of the following applies to you:
- You want to claim a refund.
- You want to apply for the GST/HST credit .
- You or your spouse or common-law partner wants to begin or continue receiving Canada Child Tax Benefit payments.
- You want to carry forward the unused portion of your tuition and education amounts (see line 323).
- You want to report income for which you could contribute to an RRSP, in order to keep your RRSP deduction limit.
- You receive the Guaranteed Income Supplement or Allowance benefits under the Old Age Security Program. You can usually renew your benefit simply by filing your return by April 30. If you choose not to file a return, you will have to complete a renewal application form . This form is available from the Human Resources Development Canada (HRDC) web site.
Should you file for income tax?
Benefits of filing a return | Should I file? | How to | Cost | What is GST?| Child Tax Credit | Learning About Taxes | Top
You don't owe the government anything and they don't owe you. So why bother to file a tax return? Here are some good reasons:
- If you have children, both you and your spouse or common-law partner must file a tax return in order to receive the child tax benefit.
- If you want to receive the GST/HST credit, you have to file a tax return. If you are turning 19 before April 1, 2006, you have to file a 2004 tax return in order to receive the credit for the calendar quarter following your birthday.
- If you have more tuition fees or education amounts than you need to reduce your tax to zero, you still have to file a tax return so that the CRA can record the amount you can carry forward to future years.
- If you had a job or other type of earned income, you should still file a return so that the income is used to increase your RRSP contribution limit for future years. This applies even if you are under 18 and still too young to contribute to an RRSP.
- If you are receiving the guaranteed income supplement, you must file a tax return each year to ensure that you continue to receive benefits.
How do you complete an income tax form?
Benefits of filing a return | Should I file? | How to | Cost | What is GST?| Child Tax Credit | Learning About Taxes | Top
- manually, using preprinted T1 personal income tax forms available at the post office, or using forms downloaded from Canada Revenue Agency (CRA). Once you have prepared your return on paper, you can either mail it, or if your return is very basic, you can Telefile it (by telephone). If you Telefile, there is no need to send in your paper return or your information slips, but these must be kept for at least 6 years.
- electronically from your home computer, using NetFile. You may either purchase tax calculation software at a retail store, download software over the internet, or file your tax using an online tax return, which may be free of charge if you have low net income and a simple return. CRA provides a list of tax software packages which are approved for NetFile. When you use NetFile to file your return, you do not mail a printed return or information slips, and if you are expecting a refund it usually arrives within 2 weeks. You need an access code from CRA in order to NetFile. If you didn't receive one, you can call their e-service Help Desk, at 1-800-714-7257 to get an access code. The Netfile service is available from mid-February until September 30 for filing of personal income tax returns for the prior year. For more information, visit the Canada Revenue Agency web page on NetFile.
- have an accounting or tax preparation firm prepare and file your tax return. These firms usually file your return electronically, using EFile, so your refund would probably also arrive quite quickly.
What do you pay for if a business processes your income tax form?
Benefits of filing a return | Should I file? | How to | Cost | What is GST?| Child Tax Credit | Learning About Taxes | Top
Do it yourself for FREE!
| Netfile | Telefile | |
|---|---|---|
You'll have to use software or a Web application that we've certified. There may be a cost for you to purchase a tax preparation software package or application, but the NETFILE service is free.
|
You do not have to pay to file your tax return using the TELEFILE option. To use TELEFILE you call a toll-free telephone number, which is accessible from anywhere in Canada and the continental United States. | You can mail a paper tax return to the CRA tax centre serving your region using the envelope included in your tax package. Use your mail-in label if you have one, and make note of the tax centre address for future reference. |
Benefits of filing a return | Should I file? | How to | Cost | What is GST?| Child Tax Credit | Learning About Taxes | Top
The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay.
GST/HST Credit (on Revenue Canada's Web Site)
Benefits of filing a return | Should I file? | How to | Cost | What is GST?| Child Tax Credit | Learning About Taxes | Top
The Canada Child Tax Benefit is a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18. The CCTB may include the National Child Benefit Supplement (NCBS), a monthly benefit for low-income families with children, and the Child Disability Benefit (CDB), a monthly benefit providing financial assistance for qualified families caring for children with severe and prolonged mental or physical impairments. The CRA also helps deliver related programs for many provinces and territories.
Calculate your Canadian Child Tax Benefit
Benefits of filing a return | Should I file? | How to | Cost | What is GST?| Child Tax Credit | Learning About Taxes | Top
The Canada Revenue Agency (CRA) offers a free online course, Learning About Taxes. The course has been designed to help users understand how the Canadian tax system works and to teach how to file a basic income tax return.
"Taxes will affect you and your family, both now and in the future. A basic knowledge and understanding of Canada's income taxes will allow you to deal effectively with taxes. You'll be able to comply with the law and, at the same time, be sure that you get all the benefits to which you are entitled." (Course Introduction, Used by permission of the Canadian Revenue Agency.)
Previous Page
Page Last Updated:
April 12, 2006 1:08 PM
