The last date for filing personal taxes in Canada is April 30, 2021. This is to avoid late filing penalties and interest if you owe money to the government.
For newcomers and low-income earners, here’s a few tips to simplify your understanding of the Canadian Tax System to get the best bang for your buck!
- File your income tax and benefit returns, even if you don’t owe tax or have income. The return can be an application for government credits and benefits.
- Gather all of your income slips – employment income (T4), COVID benefits (T4A), Employment Insurance (T4E), social benefit payments (T5007), for seniors – Work Pension(T4A(P)), Old Age Security (T4(OAS)), bank interest income (T5), for students – Tuition (T2202A) and make a note of RRSP contribution amount for the year. This amount will be deducted from your total income, bringing down the net income on which you pay taxes.
- Gather expense receipts to claim non-refundable tax credits to reduce taxes you owe, such as Medical Expenses, Prescription receipts, Vision/Dental care expenses, Day care Expenses, Tuition Fee Yearly Rent Amount, Transportation Expenses (for Seniors), Donation amounts and Moving expenses (in case of a student).
- For students, you could save up your tuition credits every year to either transfer some credits to your parents or you could use it yourself when you have an employment income in the future to help bring down taxes owed.
- Get free help completing your tax returns by visiting, https://www.canada.ca/en/revenue-agency/campaigns/free-tax-help.html?utm_campaign=not-applicable&utm_medium=vanity-url&utm_source=canada-ca_taxes-help
- Low income earners and social benefit recipients will receive the refundable tax credits including Ontario Trillium Benefits, GST/HST credits, Canada Workers Benefit and Climate Action Incentive. Families with children will receive Canada Child Benefits.
- If you or your family member has a disability, you could apply for Disability Tax Credit (DTC). Once approved, you can claim the tax credit in your return to help reduce the taxes you or your family member owe and receive a disability amount. Families with children with DTC will receive a child disability benefit.
- If you are a low to moderate income senior home owner, you may be eligible for up to $ 500 back on your property tax. If you or your family member is a senior, and you make your home safe and accessible, you could be eligible for Senior’s Home Safety Tax Credit.
The tax return can change every year. Do you know if recent changes affect you? To learn more, visit: https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/get-ready-taxes.html
Find benefit programs and estimate your tax credits:
Indus Community Services runs free income tax clinics in the month of March and April every year for the past 25 years for eligible income individuals and families. This year, our virtual tax clinics are in full swing! If you qualify, you can phone-in to file your tax returns for free after completing a prescreening and registration. Call us today – 905-275-2369 X 1294 / 905-459-4776 X 3240 / 905-846-6666 x 223