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Ukraine uses new missiles
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New US rules for airlines 
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Personal Tax Return Filings
Many people assume that they don’t have to file a personal tax return because they don’t have a balance owing. This isn’t the best rule of thumb to follow. Filing is mandatory in the following situations:
- There are self-employment earnings that were subject to contributions for the Canada Pension Plan(CPP) or Employment Insurance Premiums (EI);
- Capital property was sold in the year;
- Spouses elect to split pension income; or
- CRA sends you a request to file a return.
Sometimes filing a tax return is technically not required, particularly when there is no income to report. However, there are situations when it makes sense to file a return regardless of having no income such as claiming:
- A refund of tax withheld at source;
- Tax credits such as GST/HST; and
- Tax benefits and supplements such as: Canada Child Tax Benefit (CCTB); working income supplement, etc.
Filing a tax return is essential to receive benefits such as Guaranteed Income Supplements. It is also the easiest way to establish your contribution room for a Tax-Free Savings Account (TFSA).
Students are also able to carry forward or transfer unused tuition, education, or textbook amounts. Reporting earned income also creates RRSP contribution room.
In addition, when applying for a loan or mortgage, the bank may request a copy of a Notice of Assessment for income verification purposes.
Commonly Overlooked Tax Breaks
Some people pay more tax than needed simply because they tend to overlook some of the savings available to them. Common omissions are as follows:
1. Capital Losses
Losses from buying or selling shares in an unregistered account can be carried back to offset capital gains realized in any of the three preceding years or carried forward indefinitely.
2. Pension Income Splitting
Individuals who are 65 years of age or older can allocate up to 50% of eligible pension income to a spouse. This can result in significant savings when one spouse is in a lower tax bracket than the other.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.
