The simplest way to ensure you keep receiving government benefits is to file your tax return on time. Even if you don’t have a tax balance owing, it is always advantageous to file a tax return.
Filing a tax return is the first step to applying for various Federal and Provincial tax credits and benefits, along with some government programs. By filing your tax return on time, it also avoids any unnecessary interruptions to current benefits to which you are already receiving.
Here is a list of 10 reasons why you should file your tax return (even if you don’t owe any tax):
- To receive the Climate Action Incentive payment
- To receive the Canada Child Benefit and the Ontario Child Benefit
- To establish contribution room for Tax-Free Savings Account (TFSA)
- To establish Registered Retirement Savings Plan (RRSP) contribution room
- To receive the GST/HST credit
- To receive the Ontario Energy and Property Tax Credit
- To renew the Guaranteed Income Supplement (GIS)
- To receive the Ontario Child Care Tax Credit
- To receive a refund on tax withheld on income
- To avoid paying interest and late filing penalty
Here is a recent real example when seniors did not receive their tax slips on time. Many panicked as they didn’t want to be late in filing their return, as doing so could affect the GIS payments they are currently receiving.