Filing your Taxes could Open Doors to Benefits
Filing your taxes has many benefits. We share six rewarding benefits that you might be eligible for receiving. These may be applicable to you after your taxes are filed.
- Money management
Fri Feb 3, 2023 by Ruth-Anne Klassen
Filing your taxes has many benefits. Below are six rewarding benefits that you might be eligible for receiving. These may be applicable to you after your taxes are filed. As well, you’ll avoid the consequences for not paying your taxes. Gathering paperwork for yearly taxes isn't anyone's favourite thing to do, but the benefits for folks such as people living on lower incomes can make a significant difference.
This payment is available to residents of Canada who are living on lower income situations. It’s meant to compensate what already has been paid in sales taxes (in Alberta, only GST, but other provinces have HST as well). Eligible tax-filers receive the four payments per year.
To claim this benefit: File your taxes, even if you have no income to report. Or, include proofs of income, like T4s, T3s, and T5s.
2. Canada Workers Benefit (CWB)
This payment can financially support individuals and families who are living on lower incomes. To review eligibility and claim this benefit: When filing electronically, follow instructions in the tax-filing software. When filing by paper, use Schedule 6, Canada Workers Benefit.
If your life is impacted by a severe and long-lasting disability, or that of your dependent, this government tax credit is for you. Managing a disability can create costs, so the government reduces the amount of tax that you pay.
To claim this benefit: Fill out form T2201, to determine if you are eligible for this tax credit. First, a medical practitioner will fill out Part B, and if they determine you to qualify, you can complete.
For a financial break on the costs of raising children, the government provides monthly payments to eligible parent figures. The Canada Revenue Agency (CRA) calculates these based on how many children you care for, the age of the children, your marital status, and the net household income. If you have shared custody of a child, 50% of the benefit goes to each of the two parents.
To claim this benefit: Register your child after birth, apply online through MyAccount, or fill out the Form RC66 paperwork.
Specifically for parents of young children, this benefit provides up to $1, 200 per year for each child under age six, in addition to the Canada Child Benefit.
To apply for this benefit: No application required, but both you and any other parent figure must have taxes for 2019 and 2020 filed and assessed to receive any payments you are eligible for. Once the returns are assessed the person will receive the retroactive payment they are entitled to receive the young child supplement.
6. Alberta Child and Family Benefit (ACFB)
For financial assistance with covering health benefits not included in health care, the Alberta government provides the ACFB. Intended to help with the cost of benefits like dental care, eye glasses, diabetes supplies, this program covers or supplements whatever does not receive from a private health insurance plan.
To apply for this benefit: No application required. File your taxes, and if you are eligible for the CCB, you will also receive the ACFB.
If you could use more income to pay the bills, you might receive some financial help by filing taxes. To make the tax-filing process a little smoother, carefully store important files and documents for safe recording keeping. And connect for supports if needed.
