[et_pb_section fb_built=”1″ next_background_color=”#ffffff” _builder_version=”4.16″ _module_preset=”default” background_color=”#e7dff3″ custom_padding=”0px||90px|||” bottom_divider_style=”ramp2″ da_disable_devices=”off|off|off” global_colors_info=”{}” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.16″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.4″ header_2_font_size=”30px” custom_padding=”||16px|||” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
By Julie Jaggernath<\/em>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row module_class=”custom_row” _builder_version=”4.16″ _module_preset=”default” custom_padding=”0px|||||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ module_class=”vertical-align second-on-mobile” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Whether you love or loathe tax season, it benefits your budget to file your income taxes on time. If you\u2019ve ever missed the due date, you know it can be a real eye-opener to see how many income-tested initiatives there are \u2013 programs and services you miss out on if you haven\u2019t filed your taxes by the deadline. Some of the programs decrease how much you need to pay to receive a certain benefit, while others put cash straight into your bank account to use for various bills. Any delay because you filed late can impact your budget.<\/p>\n Here\u2019s what could be at stake if you file late or not at all:<\/em><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.20.2″ _module_preset=”default” background_color=”#ffffff” custom_padding=”||120px|||” bottom_divider_style=”curve2″ bottom_divider_color=”#5B25AF” bottom_divider_color_last_edited=”off|desktop” bottom_divider_height_tablet=”80px” bottom_divider_height_phone=”50px” bottom_divider_height_last_edited=”on|phone” da_disable_devices=”off|off|off” global_colors_info=”{}” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_2,1_2″ make_equal=”on” _builder_version=”4.20.2″ _module_preset=”default” custom_padding=”||16px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”1_2″ _builder_version=”4.20.2″ _module_preset=”default” custom_css_main_element=”margin: auto;\t” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_image src=”https:\/\/nomoredebts.org\/wp-content\/uploads\/2020\/09\/so-much-to-lose-if-you-dont-file-your-taxes-benefits-for-budget_related_topics.jpg” alt=”Make sure to file your taxes to receive benefits which will help your budget.” _builder_version=”4.20.2″ _module_preset=”default” border_radii=”off|20px|200px|20px|200px” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n One of the biggest reasons people choose not to file their taxes is that they\u2019re afraid they owe the government money and can\u2019t afford another bill. If this is one of your concerns, there\u2019s actually a good chance you\u2019ll get a refund. Most people do, or they don’t owe anything.\u00a0<\/p>\n As of June 23, 2025, Canada Revenue Agency (CRA) reports<\/a> that of the 31.5 million returns processed since the start of this year\u2019s tax filing season (for income earned in 2024), 58% resulted in a refund. And the average refund was $2,000!<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.20.2″ _module_preset=”default” custom_padding=”0px||0px||true|false” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Twenty-four percent of tax returns resulted in a balance owing, which on average was $8,000. If you owe and file on time, even if you can\u2019t pay, you avoid the late filing penalty and interest charges on that amount, on top of what you owe. Eighteen percent of returns filed this year so far are nil returns, with no balance owing and no refund due. By filing a nil return these Canadians qualify for any federal and provincial income-tested programs or services in their province of residence.<\/p>\n All of this means that the odds are in your favour that you will get a refund if you file your taxes. And with the high cost of living, any extra cash in your budget goes a long way to making ends meet and not relying on credit cards to get by.<\/p>\n While letting the government use your money for free for a year isn\u2019t ideal, it does mean that you won\u2019t face an income tax bill each April. The lump sum of money most of us will get can be used for anything from paying off debt, to jump starting an emergency savings account, or indulging in a splurge. Take a look at your budget to see where you stand in relation to your goals before you decide how best to use your tax refund.<\/p>\n 12 Excuses People Make for Not Filing Their Taxes \u2013 Does Yours Stack Up?<\/a><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.25.0″ _module_preset=”default” custom_margin=”-45px||||false|false” custom_padding=”0px||||false|false” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n <\/p>\n Your family\u2019s reported income determines which benefits and credits you may be eligible for, both at the federal as well as at the provincial level. There are benefits that relate to age as well as income level.<\/p>\n People with kids are typically familiar with the Canada child benefit<\/a> (CCB), which you won\u2019t be able to receive if you don\u2019t report your income. For those with lower income, the CCB can amount to hundreds of dollars each month, which can be the difference between struggling to support your family during this time of high inflation, or getting by a little more easily. If you have kids, check out the Child and Family Benefits Calculator<\/a> to see what benefit you may be entitled to.<\/p>\n For lower income Canadians there\u2019s the Canada workers benefit (CWB)<\/a> if you\u2019re working, and the Guaranteed Income Supplement (GIS)<\/a> if you\u2019re a lower income senior. Both of these programs depend on you filing your tax return. If you file late, your benefits could be disrupted until your tax return is processed.<\/p>\n Eligibility for the GST\/HST Credit is Automatically Determined When You File<\/strong> There are provincial and territorial benefits<\/a> along with the federal benefits and there are income-tested programs and services across the country as well. If you don\u2019t file your taxes, you will be forced to pay the maximum for any service because your eligibility for reduced fees depends on your verified level of income.<\/p>\n For example, at the provincial level in BC, Medical Services Plan (MSP) premium assistance as well as the Fair PharmaCare deductible (which helps with the cost of prescriptions) are determined by reported income. The deductible for Fair PharmaCare is the amount you must pay before your eligible prescriptions are covered for the balance of the year. The Fair PharmaCare program in particular restricts retroactive reimbursements, so it\u2019s important to keep your enrolment current to receive the benefits.<\/p>\n Provincial and territorial programs that are not administered by the federal government require you to consent to CRA sharing your reported income information with the provincial program. It\u2019s not done automatically, and it is usually valid until you revoke your consent or when you miss reporting your income via your tax return.<\/p>\n Subsidized Daycare, Sports and Activities & Student Loan Applications Student loans are another needs-based program and parents\u2019 reported income is often needed on applications for students attending university, college, or technical school in the years right after high school. A student\u2019s own taxes may need to be filed up to date as well.<\/p>\n Assisted Living, Nursing Homes, Disability Credits \u2013 Reported Income Vital<\/strong><\/p>\n For assisted living or nursing home accommodations for seniors or those with a disability, payment is based on affordability, which is again determined by the previous year\u2019s reported income.<\/p>\n There are provincial and territorial benefits along with the federal benefits and there are income-tested programs and services across the country as well. If you don\u2019t file your taxes, you will be forced to pay the maximum for any service because your eligibility for reduced fees depends on your verified level of income.<\/p>\n When you earn income, you must file an income tax return, but you may not know what you owe until after you\u2019ve filed. If you owe and file on time, even if you can\u2019t pay, you avoid the late filing penalty and interest charges<\/a> on that amount. If you can pay part of what you owe, pay what you can afford; some is better than none.<\/p>\n CRA is the most powerful creditor in Canada, so payments on what you owe the government must be prioritized. That said, if you contact them and make reasonable payment arrangements, that will go a long way towards peace of mind and dealing with that and other debts. If you need help, one of our credit counsellors would be happy to review your situation with you, answer your questions, and provide you with guidance around how to proceed.<\/p>\n There are a number of tax considerations to keep in mind when it comes to the various pandemic benefits. You may have received income from one of the COVID-19 benefit programs, you may need to repay a portion of the money you received, or you might want to arrange a payment plan if you owe a lot and can\u2019t afford to repay all of what you owe right away. Visit CRA\u2019s COVID-19 information page<\/a> to learn more.<\/p>\n If you\u2019re not sure where to start with filing your income tax return, CRA has a comprehensive FAQ page<\/a> to help you get started. Read down the list of topics and click on those that apply to you. Then gather your paperwork and electronic slips so that you\u2019ve got everything handy. If you have a myCRA account, CRA might have uploaded some of your information to your account at the time copies of the slips were submitted to CRA. That means that the government will know if you owe whether you file or not – so file your income taxes so that you know, too. If you need more help, ask a family member, hire a tax professional<\/a>, or take advantage of CRA approved software to file online. There\u2019s a lot riding on keeping your taxes filed up to date and CRA has extra staff available at this time of year to answer questions. So rather than panic, keep calm and file on for the deadline of April 30th.<\/p>\n <\/p>\n Last Updated on June 28, 2025 <\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Learn why you should file your taxes, the federal benefits tied to personal income tax returns and penalties for filing late. Call for help 1-888-527-8999.<\/p>\n","protected":false},"author":6,"featured_media":15831,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[117],"tags":[],"class_list":["post-14410","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manage-money-better"],"yoast_head":"\nYou Miss Out On a Refund \u2013 Most People Get One<\/h2>\n
Federal Benefits and Credits Put Cash Into Your Account<\/h2>\n
Many people get at least some of the quarterly GST\/HST credit<\/a>. It helps modest income households offset some of the tax they pay throughout the year. By filing your tax return, CRA automatically determines how much of a rebate you\u2019re eligible for.<\/p>\nProvincial & Territorial Benefits and Needs-Based Programs Must Know Your Income<\/h2>\n
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If your children attend subsidized daycare or participate in activities eligible for subsidies or grants, eligibility is determined by reported household income because these are needs-based programs.<\/p>\nPenalties for Filing Late<\/h2>\n
COVID-19 Tax Considerations<\/h2>\n
File Your Income Tax Return \u2013 Here\u2019s How to Get Started<\/h3>\n