Filing a tax return is advantageous for students and individuals with lower incomes, even if they have earned minimal or no income during the year. By filing taxes, students can access different tax credits and benefits like the GST/HST credit and the Canada carbon rebate, which provide cash payments irrespective of income levels. Accumulating tuition deductions and RRSP contribution room over time can also be valuable for future financial planning.
Moreover, filing taxes generates a financial record that acts as proof of income and eligibility for government programs and benefits, including COVID-19 relief programs and the Canada child benefit. Regularly filing tax returns is often necessary to access these benefits. Additionally, individuals with lower incomes can benefit from the Canada workers benefit, which offers advance payments based on income levels.
It is essential to file tax returns annually to utilize available tax credits, build up benefits over time, and ensure eligibility for various government programs and financial resources. Even teenagers with part-time jobs can gain from filing taxes to start accumulating benefits and contributions early in their financial journey.
