Let's be honest: tax season is not the most enjoyable time of the year. Filing your income tax returns is not a choice, but an obligation. However, this obligation also allows you to assert your rights and sometimes even have a little more money in your pockets. Let's look on the bright side.
Get money back
Without realizing it, you may have paid too much tax during the year. By filing your income tax return, you could receive a refund. The amount could be used to:
- pay for expenses;
- repay a debt;
- treat yourself;
- increase your retirement savings.
Continue receiving your benefits
Several government financial assistance programs are calculated based on the income you declare.
No return = no benefits.
That is the case for:
- Family Allowance;
- the Canada child benefit;
- the solidarity tax credit;
- the GST/HST credit;
- the Guaranteed Income Supplement.
For example, to continue receiving Family Allowance, you and your spouse, if you are in a relationship, must file your income tax returns, even if one or both of you have no income to report.
Each year, Retraite Québec recalculates your Family Allowance payments based on the income you declared and your conjugal status. If a return has not been sent to Revenu Québec before the deadline, the payments you usually receive will be suspended until your situation is resolved.
In mid-June of each year, you can consult the new amounts to which you will be entitled for the next year (from July to June) on your annual notice, which is uploaded to the My documents section in
My Account.
Accrue
RRSP contribution room
Your contribution room under a registered retirement savings plan (RRSP) is calculated based on your income tax return.
No return = no new contribution room.
Contributing to an
RRSP allows you to postpone payment of a portion of your taxes, in addition to providing you with a financial cushion for your retirement.
Other useful information