Why Should Low Income Earners File Their Taxes?
Filing your taxes might not be a high priority for low income individuals, teenagers, and students. This may be because they question the belief that since they aren’t making sufficient or any income, there is no reason to file taxes. However, there are several government incentives and benefits that pay back.
One thing for sure is that, if you don’t file your taxes, you do not get the various government benefits which can mean money back in your pocket.
The benefits are the following:
- GST/HST & Provincial Tax Credit
The Canada Revenue Agency is providing billions of dollars to Canadian Resident who file their taxes. The federal government provides a maximum amount of $280 in GST credit while the provincial government provides a maximum amount of $291 in provincial tax credit also known as “trillium benefit” to Canadian residences, even if they did not earn any income.
- Child Tax Benefit
If you’re a parent who has a dependent(s), the Canada Revenue Agency will provide you an amount of $5400-$6400 annually per child, for those households who are medium to low income earners. Parents can also claim for their child’s “children arts and fitness amount.”(Photo credit: Financial Post)
- Public Transit Credit
If you take the transit such as the TTC, you can claim for the full amount for which you spent on transit passes, tickets or tokens. The Canadian government will only credit 15% of what you had spent on transit.
*Note: 2016 is the last tax year to claim for public transit credit as it will be removed in the upcoming tax years.
- Medical & Other Taxable Credits
You can claim your medical expenses for which you spent such as eye glasses prescription, dental checkup, prescription medicine, and etc. Some other taxable credits that you can claim are charitable donations, political contributions, tuition slips, interest claim and many more. Deducting these expenses, might potentially give yourself a refund or reduce your taxable owing.
This post was sent to us by www.sfttaxservices.ca 1656 Eglinton Ave. W.