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Koroll & Company Blog

Do I Have To File An Income Tax Return?

[fa icon="calendar"] Mar 23, 2021 3:23:00 PM / by Allen Koroll

Do I Have to File a Tax Return

 

It may seem like an odd question to some, but there are taxpayers who aren’t sure whether they need to file a tax return in some years.

The obvious reason a taxpayer would have to file is if they owe taxes for the year but this isn’t the only reason a taxpayer is required to file. You must also file if you …

  • Are required to by the CRA as per a Request to File or Demand to File 
  • Disposed of capital property, including your principal residence 
  • Claimed a capital gains reserve last year 
  • Realized a taxable capital gain 
  • Received OAS (Old Age Security) or EI (Employment Insurance) benefits and are required to repay some or all of it
  • Withdrew funds from your RRSP under the Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP) and are still making repayments 
  • Have self-employment or pensionable employment income over $3,500 that you must make CPP (Canada Pension Plan) contributions on
  • Are opted to pay Employment Insurance premiums on self-employment or other eligible income
  • Received the advance Canada Workers Benefit this year and 

Other reasons you may want to file your tax return are to take advantage of credits, benefits and carry forwards. To optimize your tax returns in current and future years, you should file if you …

  • Are expecting a refund from the government 
  • Have unused tuition amounts you want to transfer to a spouse, parent or grandparent 
  • Have unused tuition amounts you want to carry forward to use in future years 
  • Incurred non-capital losses you want to carry forward to future years 
  • Contributed funds to a registered retirement savings plan (RRSP), pooled registered pension plan (PRPP) or specified pension plan (SPP) and want to keep your deduction limit up to date 
  • Want to elect to split pension income with your spouse or common-law partner
  • Want to claim the Canada Workers Benefit or apply again for advance payments 
  • Want to receive the GST/HST Credit 
  • Want to receive the Canada Child Benefit (your spouse or common-law partner will also have to file) 
  • Want to receive the Guaranteed Income Supplement or Allowance Benefits with your OAS 
  • Want to claim the Climate Action incentive 
  • Want to claim any other benefits or carry forward any other credits or deductions 
  • Speed up the application process for benefits that depend on your income, like a student loan 

You may also have to file a tax return if you are the legal representative of a deceased person's estate. 

To find out if you’re required to file or if you should file to optimize your tax position, please contact our team today.


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The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.



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Topics: Tax Tips

Allen Koroll

Written by Allen Koroll