Do Welfare Recipients Get Tax Refunds In Canada? | Our Tax Guide

Do welfare recipients get tax refunds in Canada?  A lot of welfare recipients ask our company if there are ways of getting a tax return in Canada.  Should they file a tax return even though their income is low?  Are there any credits that you can receive such as GST/HST, child tax benefits etc while on welfare?  Below is an in depth article that will help answer all these questions and help you take advantage of your tax situation.

Am I able to file a tax return while on welfare?

The answer to this question is yes you are still able to file a tax return while on welfare.  In fact you want to file a tax return as there are other benefits you can receive.  Benefits such as:

• GST
• HST
• Child Tax Benefits
• Climate Action Incentive (CAI)
• BC Climate Action Tax Credit (BCCATC)

 

There are many reasons to still file a return while be on welfare.  Filing a return can help you gain any of these benefits as well as be able to apply for loans from the bank, apply for CERB, EI (Employment Insurance) and CEWS.  Keeping your tax return filing up to date will help you stay on top of these benefits and future benefits to come.

 

Should I file a Tax Return even if my income is low?

Yes you should always file a tax return no matter what, even with 0 income.  0 income can help you with GST/HST payments, child tax benefits, as well as help your partner receive a higher refund as you would be considered a dependent.  Filing a tax return should always be done on time.  If you don’t file a return after so many years, it is very likely that the CRA can assess any year that you have not filed.  This assessment could have you owing thousands of dollars as they would estimate income for you.  So it is very important to keep on top of your filing.

 

Canada’s Workers Benefit (CWB)

This is another great reason to file your tax return on time.  The Canada’s Workers Benefit (CWB) can be added as a refundable credit if you make $3000 or more.  You can claim this on your tax return even if you have received welfare payments throughout the year.

Canada’s Workers Benefit is a new improvement since 2019 as this has been changed from the Working Income Tax Benefit. 

 

What Slip Do I Receive When I Receive a Welfare Tax Form?

The proper slip to watch out for before you file is the T5007 form.  This form will have all the important information you need when filing.  Usually this slip will come in the mail in February after the tax year is over.  The box number that holds your non taxable amount will be box 11. 

We hope this article was helpful for you in response to do welfare recipients get tax returns in Canada.  At Accufile we are here to help with any tax situation you have.  Take advantage of our Personal tax returns at $25, Business tax returns at $75, and Corporate tax returns at $200.  You may contact us by email at [email protected] , or click below on our online chat.