Tax Time is here.
We should all be completing our returns…why?
There are many benefits to completing your tax returns:
For the Employee: To verify that your employer has deducted CPP, EI Benefits and Income Tax properly and to qualify for the Working Income Tax Benefit (WITB).
For Parents: To qualify for benefits for your children. First of all there is the Canada Child Tax Benefit (CCTC) and, if you have a child under 6, the Universal Child Care Benefit (UCCB). There also is the National Child Benefit Supplement (NCBs). This is based on your income. In addition, there are tax credits for children’s participation in organizational arts and sports activities (Children’s Arts Tax Credit & Children’s Fitness Tax Credit).
For Students: To qualify for HST/GST credits. These payments are based on your previous year’s income. Students can claim a textbook tax credit and tuition fees. Even if you do not qualify this year for some of these credits, you may be able to carry them forward for future years or use them to build RRSP contribution room.
For Seniors: To qualify for the Guaranteed Income Supplement. If your income is limited, you could qualify for a top up of your Old Age Security cheque. You may also benefit from Pension Income Splitting and reduce your tax debt.
For Everyone: To qualify for the Goods and Service Tax Credit (GST). You have to apply every year. To qualify for the Ontario Trillium Benefit. Ontario has combined the provincial sales tax, energy and property tax credits. This payment will be made to you monthly effective, July 2015, based on your income or as a single payment at the end of the benefit year, June 2016. In addition, to qualify for credits on your medical expenses, donations, etc., you need to do taxes.
It is the law… and if you don’t file, CRA will charge interest and penalties. Even if you currently can’t pay what is owed, you need to complete your tax return.
Check out CRA’s website for detailed information on the above.