Should you file a tax return?

Here’s what the CRA says about who should file a Canadian tax return:

You have to file a return for 2006 if any of the following situations apply:

• You have to pay tax for 2006.
• We sent you a request to file a return.
• You disposed of property in 2006 (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed amounts to you, or you are reporting a capital gains reserve you claimed on your 2005 return).
• You have to repay any of your Old Age Security or Employment Insurance benefits. See line 235 - Social benefits repayment, for details.
• You have not repaid all of the amounts you withdrew from your registered retirement savings plan (RRSP) under the Home Buyers' Plan or the Lifelong Learning Plan. For details, see Guide RC4135 - Home Buyers' Plan (HBP) or Guide RC4112 - Lifelong Learning Plan (LLP).
• You have to contribute to the Canada Pension Plan (CPP). This can apply if, for 2006, the total of your net self-employment income and pensionable employment income is more than $3,500. See line 222 - Deduction for CPP or QPP contributions on self-employment and other earnings.

Even if none of these requirements apply, you may still want to file a return to receive certain benefits and credits. You may want to file a return if any of the following applies to you:

• You want to claim a refund.
• You want to apply for the GST/HST credit. For example, you may be eligible if you turn 19 before April 2008.
• You or your spouse or common-law partner want to begin or continue receiving Canada Child Tax Benefit payments.
• You have incurred a non-capital loss (see line 236) in 2006 that you want to be able to apply in other years.
• You want to carry forward the unused portion of your tuition, education, and textbook amounts (see line 323).
• You want to report income for which you could contribute to an RRSP, in order to keep your RRSP deduction limit for future years up to date.
• You want to carry forward the unused investment tax credit on expenditures you incurred during the current year (see line 412).
• You receive the Guaranteed Income Supplement or Allowance benefits under the Old Age Security Program. You can usually renew your benefit simply by filing your return by April 30. If you choose not to file a return, you will have to complete a renewal application form. This form is available from the Human Resources and Social Development Canada (HRSDC) website.