Filing tax return helps low-income Canadians access benefits
EAGLE STAFF
Filing an income tax return can feel stressful or complicated for many people, but doing so can especially benefit Canadians with lower incomes.
A statement from the Canada Revenue Agency says many low-income filers will receive a refund and may qualify for a range of federal payments after staff review their eligibility.
Those benefits include the groceries and essentials benefit, formerly known as the GST/HST credit, the Canada Workers Benefit and various provincial or territorial payments. Income information from tax returns is also used to determine payment amounts for the Canada Child Benefit.
Most Canadians, other than business owners, must file a return by April 30. Anyone who owes tax and files late may face a penalty in addition to the amount owing.
Last year, the agency “issued more than $56 billion in benefit payments to tax filers,” the statement said.
More than 300,000 eligible Canadians also claimed the non-refundable disability tax credit of up to $10,138 to reduce the amount of income tax they had to pay.
The CRA says its SimpleFile services make filing “free, fast and secure” for people with lower incomes and simple tax situations. People with a CRA account should check it this month for an invitation package, while those without an account may receive one by mail.
Some people will be invited to choose between SimpleFile Digital and SimpleFile by Phone.
“If you get invited, why not try SimpleFile Digital this year?” the statement said. “You can file your taxes with this service in just a few clicks — no forms, no fees and no stress.”
The federal government also plans to expand filing options for people with lower incomes. If approved, the agency could begin filing returns on behalf of eligible individuals who do not owe tax unless they opt out, possibly as soon as this fall.
Next March, the agency also plans to place pre-filled tax returns into some online accounts so recipients can review and approve them, the statement said.