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THE IMPORTANCE OF FILING A TAX RETURN

Discover why filing a tax return is crucial for maximizing benefits available to Canadian residents. Learn how to file, access social benefits, avoid penalties, and utilize credits. Find detailed information and resources to make the process smooth and beneficial.

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THE IMPORTANCE OF FILING A TAX RETURN

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  1. THE IMPORTANCE OF FILING A TAX RETURN January 30, 2017

  2. TAX RETURNS • Why file? • How?

  3. Benefits are only available to Canadian residents • International students should read this to determine if they are Canadian residents for tax purposes. • http://www.cra-arc.gc.ca/internationalstudents/

  4. Provincial benefits are only available to provincial residents • Out of province students should read this to determine what province they are resident in at the end of the year. • http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/prsnl-nf/prvnc/menu-eng.html

  5. Why file a tax return? • 1. OSAP • 2.Social Benefits delivered through the tax system. • 3.Other (includes tax credits)

  6. Social benefits delivered through the tax system • Ontario Trillium benefit for Ontario residents • 2. GST credit • 3. Canada Child Benefit • 4. Working Income Tax Benefit

  7. Social benefits delivered through the tax system • Benefits are income-tested and tax-free • Each benefit has a different formula • Use on-line calculator to estimate benefits for all provinces (not just Ontario residents): • http://www.cra-arc.gc.ca/benefits-calculator/ • Payments starting each July are based on prior years return: Payments for July 2016 to June 2017 are based on 2015 return.

  8. Ontario Trillium Benefit • Monthly • Depends on income and rent • 2016 amounts if single & low income: • If rent = $1K per mo., benefit = $47 per mo. ($567 per year) • If rent = $500 per mo., benefit = $38 per mo. ($457 per year) • If no rent or live in residence, benefit = $24 per mo. ($291 per year)

  9. GST credit • Quarterly • 2016 amounts if single & low income: • $69 per quarter ($276 per year)

  10. Other • Avoid interest and penalties if you owe tax • 2. Tuition, education and textbook amounts • 3. Student loan rules • 4. Credit for interest on student loans

  11. Scholarships & Tuition, education & textbook (TET) amounts • Scholarships are generally tax-free if • you fill out Schedule 11 forms to report your tuition, education and textbook (TET) amounts. • .

  12. Example:Schedule 11 & Tuition, education & textbook (TET) amounts • If • tuition is $10K per year & • attend York full-time for 8 months (8 x 465 ET) • then • TET = about $14K x 20% = $2,800 in tax savings • 2016 is the last year that federal ET and Ontario TET can be earned • but unused TET can be carried forward.

  13. How to file • Until January 20, 2017, you can NETFILE 2013, 2014 and 2015 using software on the CRA website. Some software is free. Check out the website. • http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/netfile-impotnet/ • NETFILE for 2016 will probably open in February 2017

  14. How to file • You can file up to 10 years of returns. • For ones you can’t NETFILE, you can paper file. • The forms are available on the CRA website. • http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html

  15. How to file • CPA Ontario and the CRA each sponsor free Tax Clinics through the GTA in March and April, including YorkU clinics staffed by SAS accounting students at 3 sites off campus. • Monthly clinics at the CEC at Yorkgate. • On campus clinics?

  16. Other Advice • CRA My Account • http://www.cra-arc.gc.ca/myaccount/ • Direct Deposit • http://www.cra-arc.gc.ca/directdeposit/

  17. Questions? • Joanne Magee • jmagee@yorku.ca 

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