Wednesday, March 29, 2023

Tax season | Why file an income tax?

Many government subsidies require a calculation of a person’s or household’s net income to qualify. No tax return equals no money. Think about it, especially for your adult children and students.

“When I announced it in public, I saw many of them who had no income and could not do it. They could not defer their basic tuition fees or their solidarity credit,” says the learned Nicolas Godbout, today Effisca, a specialist in personal income with assets in the United States and elsewhere.

Young and old people who don’t file their income tax risk leaving a lot of money on the table. Look instead.

$100 to Legault

Tax Season | Why File An Income Tax?


Adults earning low incomes are eligible for certain benefits.

In the 2022 budget, the Quebec government announced a tax-free payment of $500 to Quebec adults earning $100,000 or less. The check was designed to ameliorate the harmful effect of inflation on taxpayers’ purchasing power. Those who filed their taxes in 2021 will automatically receive them. If you don’t have it, it’s not too late to fix it.

Rebelote in December

Tax Season | Why File An Income Tax?


A taxpayer must file a provincial income tax return to receive the solidarity tax credit.

The Coalition of Quebec’s future government kept its election promise and sent a second check in December. It was $600 for those 18 and older earning $50,000 or less, and at least $400 for those earning more than $50,000 to $100,000.

If the son blows out his 18 candles in 2022, he is entitled to a check, confirms Tommy Gagné-Dubé, assistant professor of taxation at the University of Sherbrooke. He still has to complete his 2021 provincial declaration to receive it. He has until June 30, 2023 to comply.

Courtesy notice: A taxpayer must file a provincial income tax return in order to receive the solidarity tax credit and the credits related to the work premium, which are due in 2022. As amended, the credits for the work premium are intended for workers who are not. full-time students. To be eligible, a single person earns a minimum of $2,400 and a maximum of $21,490 in 2022. Up to four years of solidarity credit can be claimed.

The federal government is no exception.

Tax Season | Why File An Income Tax?


When filing federal returns, taxpayers also ensure that the Canada Revenue Agency automatically verifies their eligibility for certain programs.

The same goes for the special GST credit to be paid towards the end of 2022 to offset runaway inflation. Ottawa doubled its credit in six months. An adult 19 and over, single and without children, can receive $234. Those who filed their federal income tax returns in 2021 received a special payment automatically starting on November 4. For others, it would pay to produce T1 2021.

By filing a federal return, the taxpayer also enables the Canada Revenue Agency to automatically verify their eligibility under the Canada Workers’ Compensation Act with modest operating income. In 2022, a single person without children is entitled to an ACT of $2,400 of earned income up to a maximum of $29,073. We are not full-time students for more than 13 weeks. From July 2023, the payment of one percent of the estimated allowance is made.

Also the rent for the house: $ pocket less than left in the month D

Your child studies in the city and lives in an apartment, without a doubt joins as one supplement of the Canada Housing Benefit program? The measure, which he completed the day before on December 11, to fight against inflation, remains unknown.

“It’s not in the tax as such, but it’s good to talk about it,” agrees Sébastien Hamel, CPA. Anyone 15 and over earning less than $20,000 and spending at least 30% of their net income on housing is eligible for a tax-free $500. For rent, the reference year is 2022. For paid income, that is 2021.

“This measure, like the Canadian dental benefit, is not publicized,” laments tax expert Nicolas Godbout.

Tax Season | Why File An Income Tax?


Nicholas Godbout, expert and financial advisor at Effisca.

To determine a taxpayer’s eligibility, the Canada Revenue Agency will verify their age, income and residency for tax purposes. Heirs requires a supplement to go online in “my document” or by phone.

Work! Junior only has until March 31st. He must also file his 2021 federal income tax return.

Canada Bond Doctrine

Tax Season | Why File An Income Tax?


The Canadian government has registered a bond in education genealogy savings plan without having to pay an adult.

The education bond is a measure designed for low-income families. The Government of Canada is paying off the bond in the Institutional Regular Savings Plan (RESP) without paying adults. I like to read $2,000 leaning on the sidewalk nearby. The federal government pays $500 when the account is opened and $100 per year for subsequent years up to a maximum of 15 years.

In 2022, for the first time, a student beneficiary can open a resp in their own name and claim a Canada Learning Bond for eligible years up to their 15th birthday. Must be 18 and under 21. Their eligibility for the learning bond will be based on their parents’ income for their respective years. His parents must have previously submitted a tax return for the years concerned.

Nation World News Desk
Nation World News Desk
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