Why fill out a tax return if you have no taxable income for 2007?
By filling out a tax return, you may be eligible for the Goods and Services tax credit and provincial sales tax credit.
By filling out a tax return, low-income seniors can also re-apply for the Guaranteed Income Supplement (GIS).
Finally, by filling out a tax return, you'll recover any money owing to you for the year. This could include an overpayment of income taxes, Canada Pension Plan contributions (CPP), or Employment Insurance premiums (EI).
Even if you have no “Taxable Income”, you may still be required to file a tax return and pay CPP if your net self-employed income is in excess of $3,500. You may also want to report this “earned income” so that you build your RRSP contribution room and are eligible for greater RRSP deductions in a future year. If you are a student with excess tuition and education amounts in the year, you want to file a tax return so that you can carry them forward to another year. Also, if you have a business loss, you must file a return in order to establish your right to claim the loss in other years.
Tax credits, money owing—it's yours for the asking. Simply fill out a tax return.
Information for Tax Tips is provided as a public service by the Chartered Accountants of British Columbia.